Can a product's appearance influence a purchasing decision? Yes. Industrial design not only makes a product more appealing—it can also convey quality, innovation, trust, and differentiation from other similar products.

A recent report from the European Union Intellectual Property Office (EUIPO) confirms this idea with relevant data. Seventy-two percent of European consumers consider product design to be important when deciding what to buy, and nearly three out of four are willing to pay more for a better-designed product. In Spain, that figure also stands at 73 percent.

But the report allows us to take it a step further. If industrial design influences consumer choice, it also becomes an asset that is particularly vulnerable to copying, imitation, and counterfeiting. Therefore, protecting a product’s appearance is not just an aesthetic issue. It is a strategic decision within a company’s industrial property management.

What Does Industrial Design Protect?

Industrial design protects the configuration or external appearance of a product. That is, its lines, contours, shape, colors, textures, materials, ornamentation, or a combination of these elements.

It does not protect an abstract idea or a technical solution in and of itself. Other forms of protection, such as patents or utility models, exist for that purpose. An industrial design protects the specific way in which a product is visually presented on the market.

This can be applied to a wide variety of products: furniture, containers, handbags, jewelry, clothing, electronic devices, industrial parts, lighting, toys, packaging, and everyday consumer goods.

In markets where many products offer similar features, appearance can be a deciding factor. Recognizable packaging, a distinctive shape, or a consistent visual style can help consumers identify, remember, and prefer one product over others.

This point is particularly relevant in the digital environment. Purchasing decisions are increasingly made on marketplaces, social media, and e-commerce platforms, where the product’s image carries a great deal of weight before the consumer can physically touch, try, or compare it.

Industrial Design and Counterfeits: A Direct Relationship

Counterfeiting does not always involve copying a brand or reproducing a logo. In many cases, it is the product's appearance that is imitated.

A counterfeit product may replicate the shape of a handbag, the design of a piece of jewelry, the style of a sneaker, the silhouette of a lamp, or the overall appearance of a package. Sometimes it will also feature another brand’s logo. Other times, it will attempt to visually resemble the original product without exactly copying its distinctive mark.

That is where the protection of industrial designs takes on obvious practical value.

A trademark protects the sign that identifies the source of a business: a name, a logo, a graphic combination, or, in certain cases, a distinctive shape. Industrial design, on the other hand, protects the external appearance of a product. These two forms of protection can be complementary, and in industries prone to copying, it is advisable to analyze them in a coordinated manner.

For example, in fashion, jewelry, watches, furniture, accessories, electronics, or packaging, consumers often recognize a product by its appearance rather than by other factors. If that appearance is copied, the damage can go beyond a lost sale. It can affect the company’s reputation, create confusion in the market, and undermine the investment made in creativity, development, and communication.

Why the Best-Designed Products Are the Most Vulnerable

In principle, the more recognizable an industrial design is, the more value it can generate. But it may also be more attractive to those seeking to capitalize on that value without bearing the costs of design, manufacturing, quality, or branding.

The EUIPO report notes that sectors where design plays a key role are particularly vulnerable to counterfeiting. In the European Union, estimated annual losses amount to 12 billion euros in the textile and apparel sector and 2.7 billion euros in the handbag and jewelry sectors. In Spain alone, counterfeiting causes losses of more than 1.2 billion euros in these sectors.

E-commerce has exacerbated this risk. A counterfeit industrial design can appear on a marketplace, circulate on social media, be promoted through targeted ads, or reach consumers through international channels in a very short time.

This poses an additional challenge for companies. By the time the infringement is detected, the counterfeit product may already have been distributed across various platforms or territories. In such a scenario, having a registered design can facilitate enforcement, as it makes it easier to establish more clearly which appearance was protected, starting when, and within which territorial scope.

It's not just a problem for large companies

Counterfeiting is often associated with large companies, but small and medium-sized enterprises are also particularly vulnerable to the copying of industrial designs.

Many small and medium-sized enterprises base their differentiation on a few products or a unique appearance that is an essential part of their competitive advantage. When a third party copies those designs and sells them at a lower price, the consequences can be significant, since SMEs typically have fewer resources to monitor and respond to infringements.

The EUIPO report highlights precisely this gap. Although companies that register industrial property rights tend to show better economic indicators, only about 1% of EU SMEs hold registered design rights.

The figure shows clear room for improvement. Many companies invest in creating attractive products, but they do not always include industrial design protection in their planning. And, in many cases, the problem arises when the product has already become successful and copies begin to appear.

How to Integrate Industrial Design into a Company's Strategy

Protecting an industrial design should start with a simple question: What visual elements make this product recognizable or unique?

From there, it is important to identify which products, packaging, collections, components, or decorative elements have actual or potential commercial value. Not all designs need to be registered, but those that involve significant investment, offer differentiation, or have market potential deserve specific evaluation.

It is also advisable to keep documentation of the creative process: sketches, drafts, renderings, briefs, design decisions, creation dates, and contracts with external designers. This documentation can be useful in the event of a dispute, especially if you need to defend the validity of the design or prove ownership.

Finally, protection must go hand in hand with monitoring. Detecting counterfeit products, imitations, or copies of industrial designs on marketplaces, at trade shows, on social media, or through distribution channels allows us to respond sooner and minimize the impact.

Trademarks, Industrial Design, and Unfair Competition: Complementary Approaches

In some disputes, the copying of a product can be analyzed from different legal perspectives.

If a sign identical or similar to a registered trademark is used, a trademark infringement may occur. If the appearance protected by a registered design is reproduced, an industrial design infringement may arise. And, in certain cases, it may also be assessed whether unfair competition exists, especially when the imitation causes confusion, takes unfair advantage of another’s reputation, or distorts market behavior.

For this reason, protection against counterfeits and counterfeit products rarely relies on a single approach. The most effective strategy is usually to develop a combined approach.

Protecting industrial design means protecting the investment in differentiation

The EUIPO report confirms that industrial design influences consumer choice and contributes to the competitiveness of European companies. But that very value also makes it a target for counterfeiting and copying.

For companies, registering an industrial design should not be viewed as a defensive measure reserved for when a dispute arises. It is a strategic decision that protects the investment made in creativity, development, market positioning, and reputation.

Manolo Mínguez, Senior Associate – Director of the Elzaburu Office in Valencia

The illicit trade in counterfeit goods has evolved into a global, technologically advanced network capable of adapting rapidly to changes in the market and consumer behavior. The report by the European Union Intellectual Property Office (EUIPO) confirms this trend with data that highlights a growing threat to innovation, consumer safety, and economic activity as a whole.

Lower Volume, Higher Economic Value: The Structural Shift in Counterfeiting

According to the latest analysis by the EUIPO, more than 112 million counterfeit items were seized in 2024, with an estimated value exceeding 3,800 million euros—the highest figure to date. Although the total number of seized products fell by 26%, the economic value of the goods rose by 11%, indicating a shift toward more complex and higher-value counterfeits.

This shift in pattern can be explained by criminal networks’ growing focus on mid- to high-priced products that consumers trust (such as software, cosmetics, watches, and electronic devices). They are prioritizing the most profitable segments and moving away from the traditional mass-market approach.

The Unexpected Rise of Software and Physical Media

One of the most striking findings in the report is that recorded CDs and DVDs (including software, video games, and applications) lead the list as the category most frequently seized in the domestic market, accounting for 40% of all seizures. This uptick is not due to a resurgence in physical media driven by nostalgia, but rather to demand generated by retro gaming and by users who prefer offline installations for professional software.

The associated risk is significant: many of these copies contain malware, unauthorized remote access, or critical vulnerabilities, which can compromise the cybersecurity of users and businesses. In an environment where cybercrime is growing exponentially, installing pirated software leaves the door open to targeted attacks or data theft.

Toys, Fashion, and Cosmetics: Direct Risks to Health and Safety

After counterfeit software, the most common categories are toys (19%), clothing and accessories (12%), cigarettes and e-cigarettes (4%), and perfumes and cosmetics (3%)—categories that pose a clear risk to consumer health.

Counterfeit perfumes, cosmetics, and tobacco products bypass all health inspections and may contain harmful substances, while defective toys or chargers can cause physical harm.

As a result, these products not only infringe on intellectual property rights but also pose a direct threat to consumers, who are often unaware of the illegal origin of the items they purchase.

The Global Map of Counterfeiting: Routes and New Logistics Hubs

Most of the counterfeit goods seized in the EU come from China (44%), followed by Turkey (22%). For the first time, the United Arab Emirates (6%) has emerged as a key player in the illicit trade flow, establishing itself as an emerging logistics hub.

As for shipping methods, maritime transport remains the dominant mode, but the main operational challenge lies in postal and express courier shipments, driven by the boom in e-commerce and the circulation of millions of small packages that are difficult to track individually.

Spain: A Strategic Hub in the Fight Against Counterfeiting

Spain continues to play a central role in the seizure of illicit goods, with nearly three million additional items seized compared to 2023, valued at 576 million euros. Its geographic location and the activity at its ports and logistics centers account for both the scale of the flow and the effectiveness of national enforcement efforts.

Institutional Cooperation and Technology: Key Factors

The report highlights improvements in administrative and law enforcement cooperation, as well as the increasingly advanced use of technological tools, including artificial intelligence for predictive analytics.

In this regard, the Enforcement Portal (IPEP) handled more than 6,500 alerts in 2024 and facilitated joint actions with Europol through operations such as Fake Star II, Shield, and Opson. As a result, more than 81% of the proceedings resulted in the destruction of the seized products.

Thus, the report highlights the need for genuine—not merely formal—cooperation, which involves sharing technical information (among companies, customs authorities, and law enforcement agencies), strengthening operational training, and expediting seizure procedures to keep pace with highly technologically advanced criminal networks.

The Role of the Consumer: An Essential Preventive Measure

The fight against counterfeiting cannot be limited to customs agencies and courts. Raising public awareness is essential to reducing demand. Educating consumers about the economic and ethical impacts, as well as the personal risks to health and safety, is a crucial line of defense, especially among young people and in educational settings.

At Elzaburu, we closely monitor developments in the illicit market and their implications for industrial property rights. Our team continuously analyzes regulatory, technological, and operational changes to provide our clients with thorough, up-to-date advice tailored to the real challenges of anti-piracy and the protection of intangible assets.

Alberto Gallo, an associate attorney at Elzaburu specializing in anti-piracy.

In a business environment that is increasingly reliant on online channels, Internet piracy has become a real threat to brands. It is no longer just about physical copies: today, product counterfeiting, illegal sales, and the unauthorized use of intangible assets result in losses amounting to millions and a serious erosion of consumer trust.

The impact of these trademark infringements goes beyond economic damage: they directly affect reputation, erode differentiation, and can jeopardize the viability of business models based on innovation. According to the EUIPO, piracy and counterfeiting cause annual losses of 83 billion euros in the European Union, particularly affecting sectors such as fashion, cosmetics, electronics, sports, and entertainment.

Given this situation, we’re going to explore the five essential steps to protect your brand against digital piracy, focusing on prevention and the implementation of legal and technological strategies:

1. Properly register industrial and intellectual property rights

The first step in any protection strategy is to properly register your industrial and intellectual property rights. This includes trademarks, designs, patents, and copyrighted works. Registration must be filed with official agencies such as the OEPM (Spanish Patent and Trademark Office), the EUIPO (European Union Intellectual Property Office), or WIPO at the international level. Having your rights registered not only establishes your legal ownership but also allows you to act quickly in the event of any unauthorized use.

2. Proactive Digital Monitoring

Today, online piracy takes many forms: from counterfeit products on marketplaces to fake social media profiles. To combat it, it is essential to establish continuous digital monitoring.

There are advanced technologies that scan the internet for misuse of trademarks or copyrighted images, accurately identifying the source of the infringement. These tools, combined with the work of specialized law firms, make it possible to detect and remove illegal content with a success rate of over 80 percent.

3. Collaboration with platforms and marketplaces

Collaboration with digital platforms is one of the cornerstones of the current fight against piracy. Marketplaces such as Amazon, AliExpress, and eBay, as well as social media platforms such as Facebook, Instagram, and TikTok, have created mechanisms that allow rights holders to report infringements and request the removal of illegal content.

Using these channels significantly shortens response times and limits the spread of pirated products before they cause irreversible reputational damage.

4. Customs Surveillance and International Control

Although the digital channel is the most visible, many counterfeit goods continue to be distributed through traditional logistics networks. In this context, customs surveillance becomes a key tool.

Companies can request customs intervention to identify and intercept suspicious shipments before they enter the market. This measure not only curbs the trade in counterfeit goods but also helps track down illegal distribution networks.

5. Specialized legal advice

In a constantly changing ecosystem, where infringers operate anonymously, swiftly, and on a global scale, each case requires a tailored legal response. Having a legal team with expertise in digital intellectual property and industrial property enables us to act swiftly and devise effective strategies in both civil and criminal proceedings.

Furthermore, in cases of cross-border violations, specialized legal advice enables the coordination of actions across different jurisdictions and the use of international cooperation channels, such as Europol, Eurojust, or the European guidelines on anti-piracy legislation.

Comprehensive protection against a global phenomenon

Protecting a brand in the digital environment is not a one-time task, but an ongoing process. Only through a comprehensive approach is it possible to respond effectively to the growing threat of digital piracy.

Protecting a brand today means much more than simply registering a name or a logo. It involves strategically investing in protection, digital monitoring, preventive legal actions, and institutional collaboration.

At Elzaburu, we support our clients in this endeavor by offering an ethical, rigorous, and strategic approach to protecting what gives their business its value: their brand.

Transi Ruiz, Senior Associate in the Legal and Anti-Piracy Department at Elzaburu.

One in ten medicines on the market in developed countries is counterfeit or fails to meet the required quality standards, according to data from the World Health Organization (WHO). This alarming figure not only poses a serious risk to public health but also causes economic harm to the pharmaceutical industry and hinders global scientific and medical progress.

Counterfeit medicines pose a serious health risk, as they may contain the wrong ingredients, incorrect dosages, be past their expiration date, or contain hazardous substances. Their use endangers patients’ lives, especially in the treatment of serious diseases such as cancer, HIV/AIDS, tuberculosis, or malaria. In these cases, the use of counterfeit products is not only ineffective but can also worsen the patient’s condition, contribute to the development of treatment resistance, and undermine the effectiveness of public health policies.

A public health issue with global implications

The consequences of using counterfeit medications are particularly dangerous when they include low-quality antibiotics or antibiotics in insufficient doses. Instead of eliminating the infection, these products allow some bacteria to survive and become stronger, promoting the emergence of resistant strains.

E-commerce and Counterfeit Medicines

Despite efforts by authorities and the industry to curb this threat, the counterfeiting of medicines continues to rise. Over the past five years, the supply of these illicit products has increased by 35 percent, driven primarily by the boom in e-commerce. Digital platforms allow counterfeiters to reach a much wider audience, taking advantage of the anonymity offered by the internet and making it considerably more difficult to track them down and prosecute them.

The situation has become so serious that law enforcement agencies have stepped up their operations against the illegal trafficking of medications. The most recent of these is Operation Shield V, coordinated by Europol between April and November 2024, involved 30 countries. This operation led to the arrest of 418 people and the seizure of counterfeit medications valued at more than 11.1 million euros. These figures highlight the magnitude of the problem and its direct link to organized crime networks.

The Institutional Response to Counterfeit Medicines

To combat this threat, European countries have implemented traceability and verification systems within the legal supply chain for medicines. In Spain, the Spanish Medication Verification System (SEVeM) stands out as a key tool for ensuring the authenticity of every package dispensed at pharmacies.

SEVeM assigns each medication a unique identifier, similar to a QR code, which is verified at the time of dispensing. Thanks to this system, it is possible to detect whether a product has been tampered with or does not belong to the authorized supply chain. Currently, more than 22,000 pharmacies, 216 private hospitals, 340 distributors, and 543 laboratories are connected to this network.

Furthermore, pursuant to the Delegated Regulation (EU) 2016/161, as of September 30, 2024, it is prohibited to dispense medicines that trigger alerts in the system and that cannot be ruled out as suspected counterfeits. This regulation strengthens patient safety and requires all actors in the pharmaceutical supply chain to act with the utmost diligence.

The Work of the AEMPS and Public-Private Partnerships

The Spanish Agency for Medicines and Health Products (AEMPS) has established specific procedures for reporting suspected cases of counterfeit medicines, which are available to manufacturers, distributors, and pharmacies. These reports are continuously updated and serve as a valuable resource for identifying patterns and preventing new threats.

The fight against counterfeiting requires effective coordination among public institutions, pharmaceutical industry operators, and the public. Information, education, and public awareness are essential to reducing demand for these products and encouraging safe purchases through official channels.

Beyond Health: Impact on the Economy and Innovation

The harm caused by counterfeit medicines is not limited to public health. The economic losses for pharmaceutical companies are significant, as these illegal products compete directly with the originals, damage brand reputations, and reduce the return on investment in innovation.

Furthermore, they discourage scientific research. Developing a new drug requires years of work and enormous financial resources. The entry of counterfeit products into the market undermines those efforts, making investment in science and technology less attractive. Without sustained investment in R&D, medical progress stagnates, and millions of people could be left without access to effective and safe treatments.

The impact also extends to public health systems, which must deal with the consequences of using ineffective medications: repeated treatments, adverse effects, unnecessary hospitalizations, and campaigns to detect or recall products from the market.

Best Practices for Preventing Counterfeit Medicines

To protect yourself from the risks associated with counterfeit medications, it is recommended that you follow these guidelines:

• Buy only from authorized pharmacies, whether brick-and-mortar or online.
• Check to make sure the package has not been tampered with and that the security seal is intact.
• Check the drug's registration number in the AEMPS's CIMA database.
• Report any suspected counterfeit products to the appropriate authorities or the manufacturer's laboratory.

Drug counterfeiting is a global public health problem. It affects patients, harms the economy, undermines innovation, and strengthens organized criminal networks. Strengthening surveillance, promoting public education, and encouraging the purchase of medicines through official channels are essential steps in combating this threat.

At Elzaburu, we continue to support the protection of industrial property rights and to collaborate with authorities and companies to ensure consumer safety and market integrity.

Alberto Gallo.Associate in the Anti-Piracy Department at Elzaburu

Over the past decade, CrossFit has evolved from a trend in the field of functional training into a global discipline with millions of followers and more than 12,000 affiliated gyms worldwide. This expansion has been accompanied by a parallel phenomenon: an increase in piracy and counterfeiting in the sport, particularly the misuse of registered trademarks such as“CrossFit.” This situation affects both rights holders and consumers, who may be misled into receiving a service that does not meet the quality standards associated with the brand.

Piracy in CrossFit: A Growing Problem

CrossFit is not only synonymous with a high-intensity functional training method; it is also a registered trademark. This distinction is essential to understanding the legal issues surrounding its use. While the training system (based on exercises such as burpees, snatches, or AMRAPs) can be freely practiced by anyone or any gym, the use of the name “CrossFit” is legally protected. In other words, a facility can offer similar workouts without legal issues, but it cannot use the CrossFit trademark without the appropriate license.

The unauthorized use of the name “CrossFit” by unaffiliated gyms constitutes a clear form of sports piracy. These facilities take advantage of the brand’s reputation and prestige to attract customers, without meeting the certification and training requirements or paying the licensing fees required by the brand. This practice not only infringes on intellectual property rights but also constitutes unfair competition against facilities that do operate within the established legal framework, investing in training and quality standards.

Sports Piracy: How CrossFit Defends Its Brand Legally

CrossFit Inc. has taken an active, global stance in defending its brand. The company has implemented a monitoring network that combines technology with the collaboration of its affiliate community. Through a reporting form available on its official website, anyone can report misuse of the brand. This network makes it possible to detect cases of CrossFit piracy at various levels, from large chains to small neighborhood gyms.

What is CrossFit's policy regarding trademark infringement?

The procedure begins with a friendly notice requesting that the infringer cease the unauthorized use of the trademark on items such as social media, whiteboards, signage, or T-shirts. If a satisfactory response is not received, the case is referred to the legal team in the relevant country. In Spain, this role is carried out by the law firm Elzaburu, which has represented CrossFit Inc. since 2015.

Over the past 10 years, 15 legal proceedings have been filed in Spain, 6 of which have resulted in convictions. Currently, there are eight active lawsuits pending in various national courts, although a significant portion of these disputes are resolved before they go to trial.

The amount of the claims has reached as high as 30,000 euros, a figure that may seem modest but reflects the fact that, in most cases, these claims are settled before the litigation becomes complicated.

Counterfeiting in Sports and Its Impact on the Market

The phenomenon of counterfeiting in sports is not new, but in rapidly growing disciplines such as CrossFit, it takes on a unique dimension. The professional appearance of many illegal facilities, the use of similar terminology, and the proliferation of social media as promotional channels make it difficult to distinguish between official and unauthorized operations. Added to this is the creation of disguised names such as “XtremFit,” “CrossBattle,” or “GarageWarriors.”

This practice is a clear example of unfair competition, as it creates confusion among consumers and undermines the efforts of those who comply with the regulations. Furthermore, piracy in CrossFit erodes the brand’s value, which has been built up over years of investing in its reputation and offering a unique athletic experience.

CrossFit’s legal strategy seeks not only to preserve the rights arising from its trademark registration but also to protect a business model based on certified training, standardized quality, and consumer trust. In this context, piracy in CrossFit represents not only a trademark infringement but also a structural risk that affects the identity and sustainability of the ecosystem built around this discipline.

The protection of industrial property rights in the sports sector is crucial to preserving market integrity and protecting both rights holders and consumers. At Elzaburu, we continue to work to ensure that trademark owners can effectively exercise their rights, promoting an environment of fair competition and respect for the law.

Carlos Morán, Partner in the Legal Department at Elzaburu.

According to a recent report, Spanish companies in sectors such as fashion, cosmetics, and pharmaceuticals are losing “more than 10% of their revenue due to counterfeiting.” The problem is well documented. For example, in a report by The New York Timeson street vendors selling counterfeit goods in Barcelona, the newspaper highlighted the significant challenges faced by the police in curbing these activities in Spain. As a result, vendors selling counterfeit goods are common in various parts of the country, especially in areas with high tourist traffic.

Below, we share the most effective way for brands to combat the sale of counterfeit products in Spain, as well as highlight some of the markets that rights holders should keep on their radar.

What should a rights holder know about anti-counterfeiting enforcement in Spain?

Enforcing intellectual property rights against counterfeiting in Spain requires an understanding of the country’s legal framework, which is aligned with European Union regulations and international agreements. Rights holders seeking to take action against counterfeit products in physical markets must be familiar with both the legal framework and the practical steps to follow.

Trademark infringement cases are primarily prosecuted through criminal proceedings, although trademark owners may also file civil suits, either independently or in conjunction with the criminal proceedings.

According to Article 274 of the Penal Code, trademark counterfeiting is punishable by imprisonment for six months to four years, with the possibility of up to six years in the most serious cases. Fines vary depending on the severity of the offense. Although trademark counterfeiting is classified as a public offense—which allows authorities to take action without the need for a formal complaint— it is recommended that rights holders file a complaint. This enables authorities to gather the necessary evidence, increasing the chances of a successful prosecution.

Once a criminal complaint has been filed and proceedings have begun, the trademark owner may choose to participate in the proceedings as a private prosecutor (which allows the owner to access evidence, present their own evidence, and appeal decisions) or leave the prosecution in the hands of the Public Prosecutor’s Office, which limits the owner’s participation and control over the case.

Are property owners liable in Spain?

The liability of property owners will depend on the extent of their involvement in and/or knowledge of the violation committed on their properties.

In the first instance, according to the Spanish Penal Code, property owners bear no liability. However, if it is proven that they were aware of these activities, they could be considered instigators, necessary accomplices, accomplices, or accessories after the fact.

Since their knowledge of the violation could make them liable, it is advisable to notify them of any illegal activity on their properties and to hold them liable in such cases, as recognized in the July 7, 2016, ruling of the Court of Justice of the European Union in Delta Centre (C-494/15).

Are there any organizations dedicated to combating counterfeiting in Spain?

ANDEMA (Association for the Defense of Trademarks) is Spain’s leading association of intellectual property rights holders. Founded in 1989, its primary function is to represent companies before government agencies to defend their trademark rights against infringements. It currently has 100 member brands from various sectors and countries.

5 Key Points About Counterfeiting in Spain

1. La Jonquera and Els Límits – Le Perthus (Girona)

• Location: La Jonquera, 17700, Girona.
• Does the market or area have a website with contact information? No.
• Risk level: very high.
• Counterfeit products: clothing, footwear, and fashion accessories.
• Law enforcement challenges in this market: Despite all the police operations carried out in this area, it remains one of the places where the most counterfeit goods are sold in Spain. Its strategic location on the border with France makes it difficult to combat counterfeiting due to the high volume of commercial traffic. Another added problem is the need for trademark owners to provide logistical support to law enforcement authorities, such as transportation, storage, and destruction of counterfeit products.
• Recommendations for trademark owners: work together with other affected trademark owners and coordinate with the police and the Public Prosecutor's Office.

2. Cobo Calleja Industrial Park (Madrid)

• Location: Cobo Calleja Industrial Park, 28947, Fuenlabrada, Madrid.
• Does the market or area have a website with contact information? Yes, at this link.
• Risk level: very high.
• Counterfeit products: mainly clothing, handbags, shoes, sporting goods, cell phone accessories, electronics, and toys.
• Law enforcement challenges in this market: The Cobo Calleja Industrial Park is one of the largest industrial parks in Europe and a major logistics and distribution hub in Spain. It is home primarily to wholesale warehouses operated by Chinese importers, making it a hub for the import and distribution of products, many of which are counterfeit. One of the main problems is the enormous volume of goods moving in and out daily, which makes it difficult to monitor all products. In many cases, counterfeit goods arrive in large containers from Asia, hidden among legitimate products.
• Recommendations for trademark owners: Hire private investigators and conduct detailed preliminary investigations of establishments and warehouses to gather evidence of the activities taking place there.

3. PICA Business Park (Seville)

• Location: This industrial zone is located in Seville, and the facilities are managed by Chinese importers.
• Does the market or area have a website with contact information? Yes, at this link.
• Risk level: very high.
• Counterfeit products: clothing and electronics.
• Law enforcement challenges in this market: The Carretera Amarilla Industrial Park in Seville is a major industrial and commercial area in southern Spain. Although it does not have the same concentration of counterfeit goods as Cobo Calleja or La Jonquera, it remains a significant distribution hub. One of the main problems is the difficulty in identifying who is actually responsible for the stores, since often the person who appears to be in charge is merely an employee, while the actual owner remains hidden to avoid detection. Additionally, other challenges include difficulties in conducting investigations due to sellers’ distrust, as well as the sale of unbranded products and the separate sale of logos and trademarks for later affixing to products.
• Recommendations for trademark owners: hire private investigators and conduct thorough preliminary investigations of business premises and warehouses to gather evidence of the activities taking place there.

4. Badalona Sud Industrial Park (Barcelona)

• Location: An industrial park located south of Badalona (province of Barcelona). The businesses are run by Chinese importers who supply counterfeit goods to street vendors throughout Catalonia.
• Does the market or area have a website with contact information? No.
• Risk level: very high.
• Counterfeit products: mainly clothing, handbags, shoes, sporting goods, cell phone accessories, and toys.
• Challenges in law enforcement in this market: This industrial area is a key hub in Catalonia for the distribution of counterfeit products, most of which originate in Asia. The challenge here is the complex structure of the distributors and warehouses, which hinders inspections and raids. In many cases, the people listed as store owners are not actually the owners but are merely employees. Often, when stores are implicated in product counterfeiting—or believe they are under investigation— they change ownership, making it difficult to identify the true owners of the stores.
• Recommendations for trademark owners: Hire a private investigator to track down the sale of counterfeit goods, and once sufficient evidence has been gathered, file a complaint with the police.

5. Carrús Industrial Park (Elche, Alicante)

• Location: Located in the city of Elche (Alicante), this area is primarily managed by Chinese importers.
• Does the market or area have a website with contact information? No.
• Risk level: very high.
• Counterfeit products: clothing, handbags, shoes, sporting goods, electronic accessories, and toys.
• Law enforcement challenges in this market: There are clandestine workshops dedicated to the production of counterfeit footwear that pose a significant problem in the area. Although Elche is known for its legitimate footwear industry, the illegal trade has taken advantage of the local infrastructure to manufacture copies of well-known brands. Furthermore, as in other markets, there is mistrust toward investigators and a high volume of unbranded products to which logos are added after the sale.
• Recommendations for trademark owners: Hire a private investigator to track down the sale of counterfeit goods, and once sufficient evidence has been gathered, file a complaint with the police.

Alberto Gallo, Associate in the Legal andAnti-Piracy Department.

Originally published on WTR on October 8, 2024

Spain ranks among the European countries with the lowest consumption of illegal content online, coming in fifth place among the countries with the fewest accesses to this type of material. According to the latest report from the European Union Intellectual Property Office (EUIPO) on online piracy, Spanish users access illegal content 8.5 times per month, a figure significantly lower than the European average of 10.3 times.

Key Findings from the EUIPO Report on Piracy in the EU

Prepared by the author based on the official EUIPO report

The study, which analyzes the Internet usage habits of users aged 15 to 74, highlights the following key points:

1. Stabilization of Illegal Consumption

Overall piracy increased through the end of 2021 and has since plateaued, averaging 10.3 illegal accesses per user per month. While illegal access to television content shows a slight increase, the decline in consumption of other types of content, such as movies, has offset this trend.

This phenomenon is primarily attributed to factors such as:

• The rise in popularity of legal streaming platforms such as Netflix and Prime Video.
• Awareness campaigns about the legal and economic consequences of piracy.

2. Television Program Piracy

Television leads the way in illegal consumption, accounting for 50% of all illicit accesses—that is, 5.1 visits per month to pirate sites per user.

The report also highlights that television content continues to attract interest because:

• Many popular shows and series are available only on specific platforms, leading users to seek out illegal alternatives.
• The diversification and proliferation of streaming platforms, which lead users to resort to piracy to avoid paying for multiple subscriptions.

3. Streaming is the preferred method

Streaming remains the predominant method for consuming illegal content. Pirated IPTV platforms not only provide immediate access without the need for downloads, but they now also mimic legal services in terms of their interface and user experience, making them more appealing and leading to a 10% increase in visits to these sites over the past year.

4. Specific Trends by Content Type

• Movie piracy has declined, possibly due to the near-immediate availability of movies after their release.
• Music and software are on the rise, driven by easy access to shared files and specialized websites.
• Unauthorized access to live sports broadcasts also continues to rise.
• The illegal consumption of books, magazines, and other texts remained stable.

Toward More Responsible Consumption

The report paints an encouraging picture, with signs of stabilization and even a decline in certain categories of illegal consumption. This reflects progress toward greater use of legal services.

However, the path toward the complete elimination of piracy requires a profound cultural shift. It is essential that users understand the impact of piracy and adopt habits that value and respect the work of creators. Hence the importance of educational initiatives, along with the development of attractive and accessible legal alternatives to combat this problem.

Alberto Gallo, Associate in the Legal and Anti-Piracy Department.

Product counterfeiting is a problem that affects various sectors, but when it comes to toys, the implications are even more serious. These items are intended for young children, and any defect or failure to meet quality standards can have devastating consequences.

Among the most commonly counterfeited toys are everything from dolls, surprise toys, and building blocks to characters from video games, animated TV series, and animated movies.

The Dangers of Piracy to Children's Health and Safety

Counterfeit toys often fail to comply with the safety standards established by the competent authorities. Article 116.1 of the Penal Code states that any person criminally liable for a crime is also civilly liable if the act results in damage or harm. In the case of counterfeit toys, the harm can be considerable. The materials used in these products may contain toxic substances, such as lead or phthalates, which are extremely harmful to children’s health. In addition, small parts can easily come loose, causing choking.

The Most Common Tricks Used by Counterfeiters

Among the most common techniques used by counterfeiters to smuggle goods into the country is the counterfeiting of labels. For nearly two decades, there has been a serious problem with products bearing the CHINA EXPORT mark, which is nearly identical to the CE (European Conformity) mark. Products with the China Export mark do not meet the quality standards required by the European Union, putting consumers’ health at risk.

CE Marking (European Conformity) vs. China Export Seal

Another tactic used by counterfeiters is to ship counterfeit products in small packages, which makes it virtually impossible for Spanish customs officials to stop each and every one of those packages for inspection.

How can manufacturers take action to combat piracy?

Toy manufacturers have several tools at their disposal to protect themselves against counterfeiting. Not only can they register the trademark for the toy in question, but they can also choose to register the toy as a three-dimensional trademark. To register a toy as a three-dimensional trademark, the toy’s shape must have at least one feature that is not inherent to the generic function dictated by the nature of the product.

On this matter, there are several court decisions, such as the Judgment of the Court of Justice of the European Union of September 18, 2014, HAUCK, C-205/13, and the Judgment of the General Court of the European Union of December 6, 2023, BB SERVICES GMBH, T-297/22. In addition, toys can be protected by copyright, industrial design rights, and even patents.

What about consumers?

A buyer could only take legal action if they purchased a counterfeit product believing it to be genuine, as they could be considered a victim of fraud. In such cases, the consumer could file a complaint against the seller for fraud under Article 248 of the Penal Code.

Ultimately, the fight against counterfeit toys is a battle in which all stakeholders—from manufacturers and authorities to consumers—must play a role. Raising awareness of the risks and taking preventive protective measures can help mitigate this threat.

Alberto Gallo, Associate, Legal Department, Anti-Piracy

The wine market, like other products with a protected designation of origin or protected geographical indication, faces a growing threat: counterfeiting. This problem is becoming increasingly common in the wine industry given the high demand and the considerable prices that some wines can command. Furthermore, the relative ease with which wine can be replicated and counterfeited makes it an attractive target for criminals.

Such is the scale of this phenomenon that a recent operation in France, Italy, and Switzerland dismantled a network counterfeiting renowned French wines, which were sold for up to 16,000 euros through legitimate retailers who, in many cases, were unaware of the bottles’ fraudulent origin. This case illustrates the sophistication and scope that counterfeiting in the wine industry can reach, impacting not only the economy but also consumer confidence.

What is the economic impact of counterfeits on the wine industry?

One of the main threats to the wine industry's economy is counterfeiting. According to a study by the EUIPO, losses associated with counterfeit wine amount to 1.3 billion euros, affecting both large wineries and small producers.  

This illegal activity not only reduces revenue but also leads to the loss of 4,800 jobs in the industry and undermines the efforts of legitimate producers, who work to offer high-quality wines in an increasingly saturated market.

What health risks do counterfeit wines pose to consumers?

Counterfeit wine not only affects the wine industry’s economy but also posesa serious health risk to consumers. Due to a lack of quality and health controls, many of these bottles contain additives, colorants, and, in some cases, even highly dangerous substances such as methanol, toxic dyes, and other unregulated additives, which can cause poisoning, irreparable damage to the nervous system, and even death.

Furthermore, counterfeit factories are often located in unsanitary conditions, which puts consumers’ health at risk and causes other serious harm, such as environmental damage, job losses, and tax evasion.

Strategies to Combat Counterfeiting and Protect the Wine Industry

This problem must be addressed through collaboration among various stakeholders: wineries, law enforcement agencies, and regulatory bodies. Wineries, for example, can provide valuable information to authorities regarding illegal distribution routes, illicit trade channels, and detection methods. It is also crucial to strengthen border controls, particularly with regard to imports from outside the European Union.

Prevention is a cornerstone in the fight against counterfeits. Consumers must be aware of the risks and have the information they need to make informed decisions when purchasing wine. Here are some useful recommendations for choosing authentic products:

• Verify the product's source: Research the seller's information, including their address and contact details. Legitimate retailers' websites usually have clear return and refund policies.

• Check labels and packaging: Look for possible errors or slight variations in logos, seals, or packaging. These details may indicate counterfeit products.

• Evaluate prices: Be wary of prices that are excessively low and do not align with market prices.

Wineries and producers can also take preventive measures, such as implementing traceability technologies, QR codes, and security labels that allow consumers to verify the authenticity of their products.

In short, counterfeiting in the wine industry is a problem that requires a coordinated response. Consumers should exercise caution, while wineries and authorities have a responsibility to strengthen control mechanisms and security measures to prevent counterfeit products from entering the market.

Tránsito Ruiz, Associate in the Anti-Piracy Practice Group at Elzaburu

As part of this series, we now turn our attention to Spain, delving into the complexities of trademark protection challenges and the best solutions at the country’s borders and points of entry.

Juan José Caselles, Head of the Anti-Counterfeiting Department at Elzaburu, shares his insights on fostering effective collaboration with customs officials at Spanish border crossings and ports. He then provides a comprehensive guide to successfully monitoring and enforcing measures against counterfeit and gray-market products in the marketplace.

Can rights holders register information about trademarks and intellectual property with customs authorities, and if so, how?

In Spain, as throughout the EU, Regulation (EU) No. 608/2013 on customs measures to protect intellectual property rights applies. The application for customs intervention (AFA) is filed with the Department of Customs and Excise of the Tax Agency, using the form provided in the aforementioned EU Regulation. It can be submitted online using an electronic signature. In this application, the applicant may select all or only some of the EU countries in which customs protection is sought and designate representatives in each country for notification purposes. Currently, no administrative fees are required. The applicant for customs intervention in the country of origin may make any changes to the application by updating the information.

In addition to trademark registrations, can copyright registrations be filed with customs?

The latest amendment to Regulation (EU) No. 608/2013 provides for the protection of all intellectual property (IP) rights, including trademarks, copyrights, patents, designs, geographical indications, and plant varieties. The only difference among all these IP rights is the different methods of proving their existence or registration; any reliable means of proving the asserted right is valid. In addition, the right invoked must have EU-wide scope. If the right has only national scope, the AFA must be requested with coverage for the Member States in which it is valid.

Can trademark owners provide customs officials with a product information guide or any other supplementary materials to help them identify genuine products?

The more information provided to customs authorities, the more effective the monitoring will be. The information required on the application form includes: specific and technical details about the genuine products, including marking elements such as barcodes and images where applicable; the information necessary for customs authorities to easily identify the products in question; and information relevant to the customs authorities’ analysis and assessment of the risk of infringement of the intellectual property right or rights in question, such as authorized distributors. At least in Spain, the AFA and all information provided must be in digital format. This ensures that all customs officials have access to the same information and can communicate with authorities in other EU countries.

What is the standard procedure for seizure or further investigation if customs officials identify potentially counterfeit products?

Customs officials review the shipment’s documentation and assess risks from various perspectives, such as the country of origin, the route taken, the declared value of the goods, and the importer. If they need more information, they request it from the person declaring the shipment. When customs officials detect a suspicious shipment, they detain it.

How are trademark owners typically contacted when suspicious or counterfeit products are identified?

Once the shipment is officially detained, the party subject to the customs protective measures is notified and given 10 days to inspect the products. These actions may include requesting the destruction of these counterfeit products and, if the importer refuses to destroy them, filing civil or criminal charges within the same 10-day period. If these actions are not taken within the deadline, the shipment will be released.

Are there any time-sensitive factors that trademark owners should take into account regarding the protection of IP rights at customs?

All actions must be taken within the aforementioned 10-day period. Although an extension may be requested, there are no specific rules governing whether it will be granted; therefore, it is at the discretion of each customs office. Because this is a short timeframe, IP rights holders must act as quickly as possible in the event of a detention.

What are the potential costs of working with customs officials to protect a brand's intellectual property?

The party responsible for the customs intervention must bear the costs associated with the detention, such as the costs of storing and destroying the detained goods. In addition, they must also cover the costs of translations into certain EU languages. Currently, no fees are required to be paid to the customs administration. This fee-free policy was a practice adopted by Spanish customs authorities that eventually spread to the rest of the EU. It is essential to proceed with destruction as soon as possible to save on storage costs.

Can you provide examples of successful collaborations between international companies and customs authorities that have yielded tangible results?

Of particular note are Operation Fake Star and other joint international EMPACT operations. To this end, the private sector used IPEP’s alert and “cases of interest” features to share relevant information with the various competent authorities, while the authorities could request data from the private sector by submitting “suspicious cases.”

Meanwhile, the European Commission has just published the results of customs seizures in the EU for 2022. In terms of both the number of items seized and their estimated value, the top six Member States accounted for nearly 97% of all seizures in the internal market in 2022. Italy tops the ranking with more than 63% of the total number of items seized and nearly 55% of the total estimated value. Spain, France, the Netherlands, and Hungary also rank among the top six in both the number of items and the estimated value of seizures, while Bulgaria and Greece round out the ranking in terms of the number of items seized and estimated value, respectively.

What proactive strategies can trademark owners use to improve their collaboration with customs officials?

Close collaboration between customs authorities and rights holders, as well as the quality of the information provided by rights holders in their communications, are of the utmost importance for risk assessment in the area of intellectual property rights protection.

The first step is to request customs protection in the EU by appointing a representative in each country who has extensive experience in these matters and maintains excellent relations with the authorities. In addition, the information provided to customs must be kept up to date. If we have information—as detailed as possible—about the upcoming arrival of a suspicious shipment in Spain or another EU country, we recommend using the “red alert” mechanism so that the shipment is physically inspected upon arrival. Another very useful measure is to conduct training sessions for customs officials on how to identify infringements of the rights of IP-holding companies. Finally, since the ultimate goal is to locate the manufacturing site of counterfeit products, the customs information obtained must be analyzed intelligently, cross-referencing data and conducting investigations in the country of origin.

Juan José Caselles, Associate Partner at ELZABURU

Originally published on WTR on December 8, 2023.