Hanover, Germany  - German engineering companies lost 7 billion euros (11 billion dollars) in intellectual property theft last year, with China the chief culprit, the VDMA engineering association said on the first day of the Hanover Fair Monday.

VDMA President Manfred Wittenstein said the product piracy losses were up from 5 billion euros in 2006.

"Once again, China is the lead country producing illicit copies," Wittenstein said, as the 60th Hanover Fair, the world's main showcase for machine tools and industrial automation, got underway.

While 46 per cent of the copies were sold in China itself, some 17 per cent were reaching Germany, he said, citing a survey of 241 VDMA members.

In most cases, entire machines were copied, although in some cases designs for parts were also taken.

Wittenstein said VDMA lawyers were on hand at Hanover to advise member firms on taking measures to counter product piracy.

Wittenstein said the German engineering sector was riding the crest of the wave at the moment and predicted it would create 30,000 new jobs this year on the basis of projected growth of 5 per cent, after creating 50,000 jobs last year. (dpa)