How have Chinese counterfeit goods aggravated the online counterfeiting problem?
It was not long ago that the International AntiCounterfeiting Coalition (IACC) found that close to 80% of counterfeits seized by U.S. customs authorities originated in China. This was in 2007, and the scenario has not changed much since then. Close to 80% of counterfeits sold worldwide are produced in China. As China continues to steal brand values from legitimate manufacturers, counterfeiting has doubled in size and growth, causing it to be coined the crime of the new decade. Counterfeit products ranging from breakfast cereals to medicine have caused injuries and sometimes even death for some unsuspecting customers.
U.S. Commerce Department estimates indicate that close to 20% of consumer products in the Chinese market are fakes. Such counterfeits can easily corrode the real brand’s image and reputation. Seen as a disease that seriously derails global business, counterfeiting ensures loss of brand, revenues and also jobs.
Ever since China became part of the WTO in 2001, it has been subject to the same Trade-Related Aspects of International Property Rights (TRIPS) agreement that the U.S. and other countries follow. So despite having similar protections against counterfeiting as the United States, China finds it difficult to curtail these nefarious activities, and the scale of this activity has become too large to fully close down. So, simply put, it would seem that China takes advantage of the R&D supplied by other countries and gains economic growth by producing so many counterfeits!
So what can be done to stop counterfeiting? Recently the U.S. has seen firsthand the way rogue websites corrode brands, and therefore a bill is being proposed to seriously tackle online counterfeiting. The bill will soon be advanced to the Senate. So while the government is trying to come up with solutions to tackle counterfeiting problems, enterprises should be better prepared for such illegal activities. Most companies realize that pursuing counterfeit manufacturers is difficult because it requires aggression, and Chinese law enforcement authorities do not take these cases seriously. Bigger companies have enlisted private detective agencies to assist them in tracing fraudsters who tamper with their products and image. While the cost of hiring detectives and fighting court cases can be very expensive, the best method for dealing with the growing menace of counterfeiting is to put in place the right kind of anti-fraud or anti-counterfeiting solutions. There are solutions that can provide protection against such fraudulent products in the market and stop them from impinging on your brand.
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