Counterfeiting Advantages And Disadvantages

Counterfeiting is just the official term for imitation. It is the practice of manufacturing, importing/exporting, distributing, selling or otherwise dealing in goods, often of inferior quality, under a trademark that is identical to or substantially indistinguishable from a registered trademark, without the approval or oversight of the registered trademark owner. Counterfeits are most commonly known as “fake goods” or “knock-offs.” Many well-known and successful brands, spanning various industries, are victims of counterfeit branding.

Counterfeiting is different from traditional trademark infringement or passing off, which involves, inter alia, the selling of products under confusingly similar trademarks or service marks.

DEVALUATION OF THE

In fact, counterfeiters may even charge the same or a similar price as that of the genuine item, therefore, on the face of it, the goods appear genuine.

Consumer confidence and the value of branding may suffer when purchasers discover that the product they bought, believing that it was being sold under a recognized brand, is in fact not authentic. Damages do not stop with brand owners and consumers; counterfeiting also deprives national economies of customs duties and tax revenues.

ORIGIN OF COUNTERFEIT:

The production of counterfeit goods is most prevalent in developing countries with strong but low-cost manufacturing capability, including a number of nations in Asia, Eastern Europe and Latin America, although counterfeit goods are sold around the globe. Counterfeits are manufactured to a lesser degree in developed countries. Finally, counterfeiting is often related to organised crime activity and counterfeit products are frequently manufactured in sweatshops - dramatically increasing already hugely negative potential social implications.

HOW ARE THEY

To deceive consumers into thinking that a product sold online at a discounted price is the real thing, online sellers of counterfeits often advertise the discounted product under a nice photo of the real product. Only after the consumer has received the product in the mail will that consumer realize that he or she has been tricked into buying a counterfeit.

TYPES OF COUNTERFEITED PRODUCTS:

Any branded product that is successful can be counterfeited. Counterfeit goods include, among other things, clothing, jewelry, purses, personal care products, home care products, food, alcohol, pharmaceuticals, cigarettes, electronic equipment and parts, airplane and car parts, CDs, DVDs and toys. Service marks, such as names of restaurants, dealerships and gas stations, can also be counterfeited.

PRECAUTIONS AND MEASURES TO AVOID COUNTERFEIT:

One can take various legal, technological and business steps to prevent, or at least minimize, counterfeiting. 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