Watch makers surprisingly don’t have copyright protection on the design of their watches. I am not going to get into a long intellectual property discussion, but the issue is that while designs are something you can protect, things that are “functional” need to be protected under patent law, not copyright. Patents filed long ago have since expired, or there is so much copying going on between brands, that nothing is “original” any longer. What brands can protect however is their name and logo. Those fall under trademark protection and cannot be copied legally. So what fakes are actually doing is illegally copying a name and logo, as well as other trademarked elements that are designed to tell people who made the watch.Regarding the law in Germany there is a Patent on Design called "Geschmacksmuster" - I rather would be sure that the designs are in detail protected by this claims and so import in the involved coutries could be a big problem .
There is a big trade fair in Germany about rather everyting of daily use - and the police and the lawyers anually take out several hundred samples of things protected by this law - Worth some Millions of Euro