Fashion piracy causes massive economic and social impacts in Brazil

The fashion industry faces significant economic, social, and environmental challenges due to piracy. In Brazil, the National Institute of Industrial Property (INPI) notes that industrial design is the primary method used by the fashion sector to protect product appearance and configurations.

Research by the OECD and the European Union Intellectual Property Office (EUIPO) indicates a statistical link between counterfeit trade and increased labor exploitation, including forced and child labor. Specifically, a one percent increase in forced labor prevalence is associated with over US$ 35 million in counterfeit trade value.

In Brazil, the economic impact is substantial. Data presented to the Chamber of Deputies estimates that piracy will cause R$ 473.2 billion in losses to the Brazilian economy in 2025, including R$ 146.8 billion in direct tax evasion.