Justice Minister Christoph Blocher has launched a nationwide campaign to raise public awareness of the damage counterfeit products cause to the economy.
Switzerland is a hub for cheap imitations and illegal copies of trademark goods transiting between European Union countries.
Blocher called for increased efforts to inform consumers and punish producers and traders of imitations at a news conference at Zurich airport on Tuesday.
All too often it is considered a minor offence to deal in counterfeit products, such as watches, or to download illegal copies of music and videos from the internet, Blocher added.
He said Switzerland is used primarily as a transit country to move illegal imitations of branded goods across Europe.
"Fake products are not being manufactured in Switzerland," Blocher said.
About five per cent of all such goods confiscated by EU customs have passed through Switzerland. China tops the list with 84 per cent, according to EU statistics.
The piracy of brand products causes an estimated SFr2 billion ($1.6 billion) in damages to the Swiss economy.
"The sales of fake goods often help to finance other criminal activities, drugs, human trafficking, prostitution and terrorism," Blocher warned.
Customs checks
Blocher said the planned amendments to the law on patents - currently under discussion in parliament and due to come into force next year – would allow the customs authorities to increase checks on transiting goods and confiscate illegal products.
The watch industry warned of job losses as a result of product piracy, while the music industry appealed on consumers not to let down their favourite artists.
The Swiss had to become aware of health hazards if they bought imitation drugs or life-style products, Blocher said.
The initiative, dubbed Stop Piracy is a joint effort by the Federal Institute of Intellectual Property and the Swiss chapter of the International Chamber of Commerce.
A billboard campaign, due to be begin in the nine largest cities across the country on Thursday calls on consumers to bear in mind the potential risks of counterfeit wares.
However, the posters will only be printed in German and French, but not in the third national language, Italian.
"We had to concentrate our efforts," Felix Ador of the Federal Institute of Intellectual Property told swissinfo.
He also regretted that neither the machinery sector industry nor the food industry, are taking part in the campaign.