Losses from piracy exceed R$ 30 billion, in addition to tax evasion and loss of formal jobs
In pursuit of the legalization and protection of the national market and in the fight against piracy, counterfeiting and smuggling of the most diverse consumer goods that are present in the daily lives of all Brazilians, the Brazilian Institute of Competition Ethics (ETCO) and the National Forum Against Piracy and Illegality (FNCP), together with over 20 entities representing a good part of Brazilian production, launched on September 16, during a press conference held in Brasília (DF), a letter of commitment to be delivered to candidates and current holders of legislative office. O document points out a series of measures that are necessary to change the current situation of lack of control and lack of supervision that directly affects the taxpayer's pocket and the health of the population.
The executive president of the Brazilian Institute of Ethics in Competition (ETCO), Evandro Guimarães, stresses that it is a priority to make a systematic effort to combat smuggling, counterfeiting and piracy. “This manifesto letter is a warning for national industry and commerce that tenacity, political and administrative will is needed to protect the internal market. For this reason, we are forwarding a letter to the candidates and current representatives with a public policy commitment, which establishes a profound change in the way our authorities face this serious problem”, he says.
The ETCO/FGV Underground Economy Index, an estimate of this economy, surpassed the mark of R$ 782 billion, which places it as the fourth largest GDP in Latin America – this index includes the production of goods and services not reported to the government and which is outside the national GDP.
For ABES, this manifesto is an opportunity to show candidates for the Presidency of the Republic, the National Congress and state governments that the sector suffers from piracy and illegal use of software in the country. “With a piracy rate of 50%, our segment is highly affected by the losses caused by this practice. With the reduction of software piracy in Brazil, we will certainly be able to generate many more jobs and further increase the impact of the ICT segment on Brazilian society”, adds Antônio Eduardo Mendes da Silva, Autodesk do Brasil License Compliance Manager, who represented the association at this event.
Serious crimes and health at risk
The trade in illegal products is linked to a series of other, much more serious crimes, such as arms, ammunition and drug trafficking, money laundering, theft, kidnapping and human trafficking. Serious health risks exist in the consumption of smuggled cigarettes, which are not inspected by the sanitary control agency. A study carried out by the State University of Ponta Grossa verified the presence of heavy metals in large quantities, in addition to rat hair, fungi and mite colonies.
The same occurs with drugs, especially those intended to combat more complex diseases, which, because they are more expensive, attract criminals who sell placebos in place of the active element. A survey by the Ministry of Health in 2012 pointed to the existence of 1,200 sites selling illegal drugs in Brazil
participating entities
ABES – Brazilian Software Association;
ABIFUMO – Brazilian Tobacco Industry Association;
ABIHPEC- Brazilian Association of the Personal Hygiene, Perfumery and Cosmetics Industry;
ABIÓPTICA – Brazilian Optical Industry Association;
ABIPLA – Brazilian Association of Cleaning and Related Products Industries;
ABIT – Brazilian Textile and Apparel Industry Association;
ABIVIDRO – Brazilian Technical Association of the Tobacco Industry;
ABPI – Brazilian Association of Intellectual Property;
ABRINQ – Brazilian Association of Toy Manufacturers;
ABTA- Brazilian Association of Pay Television;
ADIPEC – Association of Perfumes, Cosmetics and Similar Distributors and Importers;
APROVA – Brazilian Association of Automatic Audio and Video Reproduction and Similar Companies;
BPG – Brand Protection Group;
ETCO – Brazilian Institute of Competitive Ethics;
FNCP – National Forum against Piracy and Illegality;
INSTITUTO BRASIL LEGAL – Brazilian Institute for the Defense of Competitiveness;
INTERFARMA – Research Pharmaceutical Industry Association;
MOVE – Brazilian Association of Sporting Goods;
MPA – Motion Picture Association – Latin America;
UBV&G – Brazilian Union of Video and Games.
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