A counterfeit is an imitation, usually one that is made with the intent to fraudulently pass it off as genuine. Counterfeit consumer goods are also called knock-offs. Counterfeiting activities have been on the rise in recent years, though the figures cannot be substantiated because counterfeit goods are difficult to monitor . Since imitations are not validated, keeping track becomes a real challenge.
In a global economy, the losses incurred by industries because of counterfeiting are huge. Studies show that recent unrecovered losses may add up to $400 billion.
Counterfeit goods are produced in various forms. The intent is to make the customer believe that he is buying a legitimate brand, and most customers are fooled into believing it. In reality, they are buying a product that only looks like an authentic brand.
High tech industries, pharmaceutical companies and companies dealing in luxury goods often have factories in developing countries. This is seen as a cost cutting solution. The cost of goods becomes lower and companies are able to procure greater profits in the long run. Although this is a smart business move, it also exposes the goods to counterfeiting. Even before an end product is officially launched, an imitation can have already reached the gray market.
Smart anti-counterfeiting solutions
Without tenacious anti-counterfeiting solutions, brands will continue to be disrupted. Fortunately, there are several smart ways to implement anti-counterfeiting strategies. Some of them are
Trademark system - For trademark rights, it is important to have an effective system. The system should be organized such that trademark rights can be examined, analyzed and approved. Any disputes should be solved swiftly.
Penalties for Counterfeiting Penalties should be issued on all counterfeit products. Individuals involved in counterfeiting activities should be held responsible for the imitation of brands. The enforcement should take place in such a way that companies are able to recover their losses and prevent them in the future.
Furthermore, civil procedures could ensure that the plaintiff (companies) is not forced to spend much time on costly trials. Companies have every right to protect their brand from being destroyed.
