Intellectual property crime such as counterfeiting and piracy is on the rise, and seizures at EU external borders have increased dramatically, according to a government report released today by The Patent Office. 

The study found that the internet has become a major avenue of trade for counterfeit sellers, particularly using online auction sites.

The Business Software Alliance estimates that Microsoft has taken down more than 35,000 auctions from a leading UK-oriented auction site since August 2005. 

Music piracy is now seen as "endemic" and the British Phonographic Industry estimates that there is now "somebody on every street in the UK" manufacturing content illegally, either privately or commercially. 

Against the background of this growth in criminal activity, the report expresses deep concern about the prevailing public perception that intellectual property crime is victimless.

"Not only is the rise of counterfeit and pirated products a threat to consumers, businesses and the national economy, it is also used to launder money and fund illegal activities," said Lord Sainsbury at the launch of the report.

"We suspect that all international crime organisations are now involved in counterfeiting, and the government's message to these criminals is that the UK is no longer a safe environment for you."

Lord Sainsbury pointed to a series of weekend raids at Wembley Market that were successful because of the joint intelligence of trading standards officers, the police, the Immigration Service, Jobcentre Plus and the Patent Office.

"While the focus is often on music or DVD piracy, there is even more worryingly a large increase in fake goods which are dangerous to the health and safety of consumers," said Ron Gainsford, chief executive of the Trading Standards Institute.

"We need to bring about a change in public opinion in that it is not acceptable to purchase or trade in counterfeit or pirated goods."

The Intellectual Property Crime Group, established by The Patent Office following the 2004 launch of its National Intellectual Property Crime Strategy, has received more than 500,000 intelligence reports in the past nine months. 

The Patent Office has also set up a national intellectual property crime intelligence database, named TELLPAT, which is used by the police, intelligence officers and trading standards.