Implications Of Counterfeiting

Counterfeiting affects manufacturers in many ways, it is therefore as a results in the erosion of genuine brands, loss of sales and market share, the closure of production facilities and unfair competition from counterfeit goods, (Kenya Association of Manufactures: Policy briefing). This is because traders in counterfeit products do not pay taxes as opposed to genuine business people. Their goods will normally bypass the systems and those that are in the scheme of counterfeiting will benefit. Hanzaee, K. H. and Saeed, J. (2012) indicates that counterfeits are often at a lower price, the expectation of quality would not be equivalent to that of the genuine article. As long as the basic functional requirements have met or the visibility and

This chapter aim to provide a clear understating of counterfeit and historical background. The analysis will be outlined entire counterfeit industry and key driver of such behaviours of counterfeiting either be the manufactures, consumers and supplier as well as the environment or area that promote and encourage counterfeiting. Therefore in the conclusion this chapter will outline the impact of counterfeit in the whole Western Cape

The monies received from the sale of counterfeit products can be channelled towards the further production of fake goods or other illicit activities. The trade in counterfeit products can result in increased corruption and law enforcement costs; have a serious impact on public health and safety, lead to social and environmental concerns, and result in the infringement of other criminal and administrative laws such as tax and customs evasion as well as fraud OECD/EUIPO (2016). Corruption and bribery are inherently linked to the illicit trafficking of counterfeit goods, particularly when these are shipped internationally, the counterfeiters will ensure that whoever is involved in the supply chain gets bribes in order to allow their business to go through. Should a counterfeiter from China to Cape Town ports see that there is opportunity to bribe any officials that could be involves at the ports they will also offer