Counterfeit jewellery, watches, and handbags cost Malta €8 million a year

Counterfeit jewellery, watches and handbags are costing Malta an estimated €8 million a year, according to the European Union Intellectual Property Office.

The losses include €7 million in the jewellery and watches sector and a further €1 million in handbags.

Counterfeiting has become a major concern across the EU, causing an estimated €12 billion in annual losses in the clothing sector and another €2.7 billion in handbags, jewellery and watches.

This is especially significant given the economic weight of design-driven industries, which employ around 28 million people, account for approximately 13% of EU employment and generate more than 16% of EU GDP.

The figures come from EUIPO findings that 72% of European consumers consider product design important when deciding what to buy, while nearly three in four say they would pay more for a product with better design.

Design matters most in the furniture and fashion sectors. According to EUIPO, 76% of EU consumers consider design very important when buying furniture, while 66% say the same for clothing and accessories.

Young consumers place the highest value on design, with 80% of people aged 18 to 24 saying it influences their purchasing decisions. They are also more likely to associate good design with positive emotions and to pay more for better-designed products.

But this focus on design also exposes a contradiction, with young consumers more likely to buy counterfeit goods that imitate the look of genuine products. Around 13% of Europeans say they have intentionally bought such products, rising to 26% among those aged 15 to 24.

EUIPO said these findings highlight how design-led products remain especially vulnerable to copying and counterfeiting.

The study highlighted that SMEs are particularly vulnerable, as they often rely on a limited number of distinctive designs and have fewer resources to monitor or enforce their rights.

It said small businesses that register their designs generate almost 30% more revenue per employee and pay almost 25% higher wages than those without registered intellectual property rights. However, only around 1% of EU SMEs hold registered design rights.

To address this, EUIPO is promoting design registration as a way for businesses to better protect themselves from counterfeiting and unauthorised copying.

“European design is one of our greatest competitive strengths. It shapes the products we trust, value and enjoy every day while helping businesses stand out in the global market,” EUIPO Executive Director João Negrão said. “Protecting designs gives creators the confidence to innovate and businesses the edge to compete - generating the growth and competitiveness on which Europe's economy relies.”

However, the issue extends beyond economic losses. EUIPO said counterfeit goods can also pose health, safety and environmental risks, as they often fail to meet safety or quality standards. The organisation also linked the trade in counterfeit goods to organised crime and, in some cases, labour exploitation.

A separate EUIPO study linked counterfeiting to labour abuse, finding that countries most often identified as sources of counterfeit products tend to have weaker labour-market conditions.

These include insufficient labour protections, child labour and a higher incidence of fatal occupational injuries. The analysis also found that the prevalence of forced labour is associated with the value of counterfeit trade.

According to the study, weak governance, limited enforcement and social vulnerability can create conditions in which such practices flourish.

It called for stronger labour governance, enhanced trade and customs enforcement, improved data collection and closer cooperation between labour, customs and law-enforcement authorities.

EUIPO is one of the EU’s largest agencies, managing the registration of trade marks, designs, and craft and industrial geographical indications across all 27 member states.