The Observatory explains that internet websites and mobile applications that provide access to infringing content, goods or services on a commercial scale use the sale of advertising space as one of their revenue sources. In addition to providing a revenue stream to IPR infringers, the presence of advertising for legitimate brands on infringing websites and mobile apps can confuse consumers.

The study looks at online advertising on IPR infringing websites and mobile apps during 2021, evaluates the estimated amount and type of such advertising, and estimates the associated ad revenues. The total worldwide revenue generated was estimated at EUR 912.7 million, while the worldwide revenue generated was EUR 57.1 million.

The figures show that infringing websites and apps not only derive revenue from their infringing activities, but also from advertising by legitimate brands on such websites unwittingly, partly as a result of the very complex internet advertising ecosystem. To access the study, click here.