Businesses believe that the recession and the growth of the internet has placed them at a much greater risk of counterfeiting than ever before, according to new research by Marks & Clerks.

The survey of over 200 firms found that 97% think that counterfeiting will increase in the recession while 80% believe businesses will be at "much greater risk" than in previous downturns due to the growth of the internet.

Over three quarters (76%) feel that the law has failed to keep up with the challenges posed by the rise of the internet and 61% argue that the solution lies in the creation of a more powerful cybercrime authority, with stiffer penalties being imposed directly on infringers.

"This is the first recession in the digital era and businesses are anxious about the consequences," said Pam Withers, Partner at Marks & Clerk.