Illicit trade in counterfeit and pirated goods poses a major challenge to a global innovation-based economy. It damages economic growth and fuels organised crime, which can undermine trust in functioning markets and the rules-based international trading system. The COVID-19 pandemic has exacerbated existing problems by re-shaping value chains, shifting consumer demand, and, consequently, opening new opportunities for illicit trade networks. Policy makers need solid empirical evidence to take action against illicit trade. To meet this need, the OECD and the EU Intellectual Property Office (EUIPO) have joined forces to carry out a series of analytical studies. The results have been published in a series of reports that gauge illicit trade in counterfeit and pirated goods.

Illicit trade in fake goods is a significant and growing threat in today’s globalised and innovation-driven economy. Its harmful impact on economic growth, innovation, the rule of law and, ultimately, trust in well-functioning global markets, should not be underestimated.

The COVID-19 pandemic, an unprecedented global event that began in 2020, has profoundly influenced almost every aspect of human life, including the dynamics of global trade and the proliferation of counterfeit goods. The rapid global spread of the virus, with its varying health impacts, prompted governments to swiftly enact a range of preventative and mitigative measures. These included widespread travel restrictions, lockdowns, and business closures, which had immediate and far-reaching effects on global trade.

The COVID-19 pandemic, an unparalleled global event, has significantly affected nearly every sphere of human activity. Among the diverse sectors disrupted was the complex domain of counterfeiting and illicit trade, intertwined with the broader challenges of intellectual property rights (IPR) enforcement. For criminals that run illicit trade networks, the COVID-19 pandemic opened new opportunities for profits. Broken supply chains, strong demand for medicines, protective equipment and tests or limited capacities of law enforcement officials are factors that shaped the landscape of illicit trade.

This chapter provides a comprehensive overview of the COVID-19 pandemic, setting the stage for a detailed understanding of its widespread impact. It begins by tracing the chronological progression of the pandemic, with a focus on identifying periods of heightened intensity. This background serves as a foundation for a deeper analysis of how the pandemic has affected various aspects of trade within the European Union. Particular attention is given to the trade in industrial goods, a sector that has been notably vulnerable to issues of counterfeiting during this period. This exploration aims to shed light on the multifaceted effects of the COVID-19 pandemic on the European Union's trade dynamics, offering insights into the challenges and adaptations that have arisen in this unprecedented global health crisis.

The COVID-19 pandemic triggered a profound psychological shift in world trade, altering human behaviour and interactions. The increase in health risks has led to a marked preference for health-related products. In addition, the closures have encouraged a significant shift towards e-commerce. Border closures and trade disruptions have led to fluctuations in trade patterns, including the trade routes used. Law enforcement authorities, faced with adjusting human resources, have had to recalibrate their priorities and operations to adapt to these rapid changes.

The COVID-19 pandemic has had a significant impact on illicit trade, posing unprecedented challenges to law enforcement. With increased demand for health-related products and the rise of e-commerce as a platform for counterfeit goods, law enforcement has faced disruption in its fight against counterfeiting. However, the crisis has also fostered increased international collaboration and innovative enforcement strategies. Continued monitoring and global collaboration will remain essential in the future to address the changing landscape of illicit trade.