Why Counterfeiting Matters

The range of goods subject to infringement has increased in recent years and the spread of counterfeits has become global. Is the general perception that counterfeiting is an inevitable offspring of globalisation correct?

There is no dispute that brand owners invest in extensive product research and development, engagement of marketing and advertisement agencies, marketing and sales promotion campaigns. High organisational costs are entailed to develop long-term business sustainability and increase profits.

Proliferation of counterfeiting has been fuelled by several factors. These include: high profitability, consumers treating the problem as a non-issue for the lower prices they pay, difficulty in recognising counterfeit goods, and law enforcement agencies are not sufficiently educated or equipped to monitor and deal with the problem.

Authored by Binny Kalra and Saif Khan.

This article was published in Managing IP’s Special Focus: Anti-Counterfeiting 2010.

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