2011 Intellectual Property (IP) Crime Statistics

• From 2005 to 2011, the RCMP has seen a noticeable yearly increase in the number of reported occurrences involving counterfeit and pirated products.
• In 2011, the RCMP reported an increase in the enforcement of IP crime with 876 investigations as compared to 818 in 2010 and 597 in 2009.
• Commodity types most frequently reported by the RCMP in 2011 were apparel, footwear and personal accessories, accounting for 52% of all goods seized, followed by audio-visual and copyrighted works at 18%. 
• The percentage of occurrences involving harmful counterfeit products has significantly increased from 11.2% in 2005 to 25.8% in 2011. In 2011, 210 cases of harmful counterfeit products were investigated, including commodity types such as pharmaceuticals, electrical products and consumer electronics, as well as toys, batteries, toiletries and household products. 
• There has been an important increase in the number of reported occurrences involving counterfeit cosmetics, from 17 incidents in 2010 to 41 in 2011, and in the number of counterfeit electronics & electrical products, from 77 occurrences in 2010 to 98 occurrences in 2011.
• Of all IP-infringing goods seized in Canada in 2011, where the origin was identified by the RCMP, China remains the primary source country, accounting for 80% percent of these goods.
•  The total retail value of seizures of counterfeit and pirated goods has more than doubled the seizure values of 2010, reaching over $67* million CAD.

Types of Commodity Seized in 2011

• Footwear, Clothing & Accessories: 52%
• Copyrighted Works: 18%
• Consumer Electronics: 8%
• Pharmaceuticals: 7%
• Toiletries & Household Products: 5%
• Other Products: 4%
• Electrical Products: 3%
• Toys: 1%
• Batteries: 1%

Total Retail Value of Seizures of IP Infringing Goods

*Project O-Scorpion, a pilot project undertaken by RCMP in the Greater Toronto Area focusing on international shipments, accounted for $43,827,460 of the total retail value of 2011 seizures.

• 2005: $7,679,910
• 2006: $13,461,390
• 2007: $13,514,280
• 2008: $29,317,265
• 2009: $18,656,231
• 2010: $24,296,401
• 2011: $67,509,692

Percentages of Occurrences Involving Harmful Products

• 2005: 11.2%
• 2006: 14.2%
• 2007: 14.8%
• 2008: 13.7%
• 2009: 18.1%
• 2010: 21.8%
• 2011: 25.8%

Counterfeiting is a serious problem because:

• Counterfeit products threaten Canada’s economic integrity and cause loss of employment.
• Counterfeiters aim to produce their products at the lowest costs, forgoing safety regulations, certifications and quality controls, in order to maximize profits. They do not care about the health and safety of consumers.
• Counterfeit drugs are unregulated, un-tested and often manufactured in unsanitary conditions. Those who consume counterfeit drugs risk ingesting lower, higher levels or no active ingredients and dangerous toxins that are harmful to their health and could even cause death.
• The majority of counterfeit drugs seized in Canada are purchased from the internet