Counterfeit products (more commonly known as knockoffs or fakes) are essentially imitation products offered for sale by third parties not connected to the brand owner. Since they are made to look like the original, consumers find it difficult to distinguish the genuine product from the counterfeit, thereby tarnishing the brand’s reputation and devaluing the investment made by the brand owner. So, what are some other problems with counterfeiting and what can a brand owner do to protect his or her business?
What's the problem?
The problem for the brand owner is obvious. Brand owners devote considerable time, money and effort to develop their products and reputations. Counterfeiters undermine this investment, and as such, the legitimate interests …show more content…
Whilst this represents a fall in the number of goods detained from the previous year, the value of the detained goods is almost the same.
Why is it a problem?
The impact of counterfeit goods on a brand’s reputation is both a social and economic. Where counterfeit luxury products are being sold as though they were original, the brand being imitated risks losing its luxury status, not to mention revenue and market share as a result.
Customers who don't know they bought knocked-off products might attribute their lack of quality and durability to the brand itself - a situation sure to impact future sales. Furthermore, in the fast-paced world of social media, word of mouth is more important than ever as as such the image of the brand could suffer through negative communications on the web.
Finally, counterfeiting is often related to organised crime activity and counterfeit products are frequently manufactured in sweatshops - dramatically increasing already hugely negative potential social …show more content…
Brand owners must act quickly to identify and deal with any counterfeit goods. To that end, brand owners should adopt the following strategies to protect themselves and their brand:
Make sure their rights are in order. Manufacturers and brand owners have the ability to create value in their products through utilising intellectual property rights (“IP rights”). By having a sound IP rights strategy, brand owners can use the law as a tool against counterfeiters to enforce their rights in their products, logo, designs, inventions, know-how and brands.
In the UK and EU, IP rights fall into two broad categories: registered rights (e.g. trademarks, registered design rights and patents), and unregistered rights (e.g. copyright, unregistered design rights, brand reputation and confidential information).
Generally speaking registered rights offer the best protection when dealing with counterfeits and infringement in general. At the same time as providing protection, these IP rights provide value to the brand. IP rights are assets that can be licensed and assigned, and so can also act as a revenue
What's the problem?
The problem for the brand owner is obvious. Brand owners devote considerable time, money and effort to develop their products and reputations. Counterfeiters undermine this investment, and as such, the legitimate interests …show more content…
Whilst this represents a fall in the number of goods detained from the previous year, the value of the detained goods is almost the same.
Why is it a problem?
The impact of counterfeit goods on a brand’s reputation is both a social and economic. Where counterfeit luxury products are being sold as though they were original, the brand being imitated risks losing its luxury status, not to mention revenue and market share as a result.
Customers who don't know they bought knocked-off products might attribute their lack of quality and durability to the brand itself - a situation sure to impact future sales. Furthermore, in the fast-paced world of social media, word of mouth is more important than ever as as such the image of the brand could suffer through negative communications on the web.
Finally, counterfeiting is often related to organised crime activity and counterfeit products are frequently manufactured in sweatshops - dramatically increasing already hugely negative potential social …show more content…
Brand owners must act quickly to identify and deal with any counterfeit goods. To that end, brand owners should adopt the following strategies to protect themselves and their brand:
Make sure their rights are in order. Manufacturers and brand owners have the ability to create value in their products through utilising intellectual property rights (“IP rights”). By having a sound IP rights strategy, brand owners can use the law as a tool against counterfeiters to enforce their rights in their products, logo, designs, inventions, know-how and brands.
In the UK and EU, IP rights fall into two broad categories: registered rights (e.g. trademarks, registered design rights and patents), and unregistered rights (e.g. copyright, unregistered design rights, brand reputation and confidential information).
Generally speaking registered rights offer the best protection when dealing with counterfeits and infringement in general. At the same time as providing protection, these IP rights provide value to the brand. IP rights are assets that can be licensed and assigned, and so can also act as a revenue