Lego Fakes: USD 30 Million Losses

The case is making international headlines: In April 2019, the police in Shanghai smashed a ring of counterfeiters that manufactured and distributed counterfeit toys made by the Danish company Lego.

The goal of the action was the Chinese toy manufacturer Lepin. The police raided three locations with ten assembly lines, which were subsequently closed. This involved the confiscation of 90 toy manufacturing moulds, more than 630,000 finished products and around 200,000 manuals and 200,000 packaging boxes. The value of the counterfeits – and thus the damage to the original manufacturer – amounts to approximately USD 30 million.

The case illustrates the financial dimensions of Chinese brand and product piracy. The costs of combating them, on the other hand, are marginal.

Picture: Weibo / Shanghai Police

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