The European Observatory on Infringements of Intellectual Property Rights has issued a very interesting report on digital advertising on suspected infringing web sites. The report can be viewed here .
According to the conclusions of the study, there is a broad diversity of advertising on suspected IP infringing websites. Such diversity may increase the ‘credibility’ of those websites in the eyes of consumers and, down the road, lead to higher revenues for such IP infringing web sites.
Moreover, suspected IP infringing websites represent “a brand-rich ad environment with 1,581 uniquenamed Brands identified. Well-known and premium European and global Brands areadvertising on these websites. In this study, 1,514 Mainstream Brands were identified and 46 of the top 100 global companies by ad spend had at least one Brand advertised. These Brands may be funding infringement, risking their own reputations through ad placement associations and lending the websites credibility.“
Finally, 54% of the advertising identified on the Selected Websites was High Risk (ads with malware, fraudulent and adult content). These ads may pose a risk both to consumers and to brand owners, who may be risking brand repute.