What is Intellectual Property Right Violation?

The unauthorized use of a brand, design, patent, or copyright—whether through production, sale, or distribution—is generally defined as **intellectual property infringement** or **intellectual property theft**. Despite existing national and international regulations for protecting intellectual property rights, the **Organisation for Economic Co-operation and Development (OECD)** estimates that the trade of counterfeit, illegal, and fake products exceeds **$500 billion globally**. In Turkey, this trade is estimated to be over **$20 billion**, though this number is likely an understatement due to a lack of awareness and ineffective enforcement against counterfeit sales.

**Counterfeit products** are widespread in many sectors, including **pharmaceuticals, food and beverages, clothing, alcoholic drinks, automotive parts, electronics, tobacco products, fuel, perfume, cosmetics, and personal care products**. This illegal trade not only causes significant economic damage but also poses irreparable harm to public health and employment.

Legal Framework and Intellectual Property Infringement
In cases of **intellectual property right infringement**, such as unauthorized use of a product by others, the right holder can take legal action. For example, if a **trademark right** is violated, the trademark owner has the right to pursue legal remedies. Violations of trademark rights have both **criminal** and **civil consequences**. Upon determining infringement, criminal sanctions apply, with punishments including **1–3 years of imprisonment** and fines up to **20,000 days of judicial fines** depending on the nature of the offense. Additionally, trademark holders can seek **compensation for damages** through lawsuits.

Unfortunately, the lack of sufficient awareness campaigns and measures to combat counterfeiting leads to the continued occurrence of these damages.

What Are Counterfeit, Pirate, and Fake Products?
- **Counterfeit products** are items that carry a registered trademark or a mark indistinguishable from it, without the permission of the rights holder. These products violate laws like the **Industrial Property Law**.
- **Pirated products** refer to unauthorized copies of works protected by copyright, design rights, or related rights, as per **Law No. 5846 on Intellectual and Artistic Works**. These products can be either physical or digital, especially given the rise of technology.

Effects of Intellectual Property Infringements
The damages caused by counterfeit, fake, and illegal products impact multiple areas, including the **economy, public health, and employment**.

1. **Impact on rights holders (producers):**
   - Economic loss due to the sale of counterfeit goods.
   - Inability to provide adequate employment.
   - Risk of suspending **R&D** activities.
   - Damage to reputation as consumers suffer from counterfeit products they believe to be genuine.

2. **Impact on consumers:**
   - In **G20 countries**, over **3,000 people** die annually from counterfeit products.
   - While some consumers knowingly purchase counterfeits due to lower prices, many are deceived, especially when fake goods are sold in well-known stores or hotels.

3. **Impact on employment:**
   - Loss of sales by legitimate businesses leads to a shift in employment to infringing firms with poor working conditions.

4. **Impact on innovation and growth:**
   - The decline in sales leads to reduced investment in **innovation, R&D**, and other creative activities.

5. **Societal impact:**
   - Increased revenue for criminal organizations engaged in counterfeit and illegal trade.
   - Environmental damage due to substandard counterfeit products and their disposal.

6. **Impact on governments:**
   - Loss of tax revenue from legitimate businesses.
   - Failure to properly tax counterfeiters and illegal traders.
   - Financing of criminal organizations through illegal trade.

Overall, intellectual property rights violations have profound negative impacts on the economy, public health, innovation, employment, and society at large.