Is Brand Protection Moving into a New Era?

1. Is Brand Protection Moving into a New Era? As brand theft and fraud has become more prevalent, it is becoming increasingly important to maintain a watchful eye over Brand Protection and Counterfeiting issues.

2. As many global companies move into the new financial year and with economies starting to move in the right direction, people are starting to have that feel good factor and want to spend a little more of their disposable income. There are so many places people can buy things from. Many items can be purchased for a lot less money on the internet.

3. Who is the Victim? The consumers who have purchased the product at a low price may or may not know the product is a fake but even so they perceive it as value for money. The poor quality affects consumers, as they are very unlikely to receive a refund. The brand owner, not only loses in terms of revenue by missing out on sales and marketing effort; but also their reputation that is being affected, due to substandard quality of the counterfeit products. The governmentsand other statutory revenue gathering organisations are losing revenue on VAT and other equivalent purchase tax. This ultimately means, we are all losing money due to counterfeit crime. The original brand owner or the person who purchased the item?

4. What Damage Does it Cause? • Health Hazards: Counterfeits are often made using low quality materials that can pose potential health hazards to the consumers. • Loss of Money: The brand owner has to face reputation and monetary damages. Counterfeiters do not pay customs duties and tax revenues which incurs loss to the government. And sometimes the customers are not aware that the product is not original, and has to compromise on quality by paying the same price as that of the original. • Supports Child Labour: To save money counterfeiters pay less wages to its workers and often use forced or child labour. • Supports Organized Crime: Counterfeiting has been linked to funding terrorist activities and other organised criminal activities. • It is Illegal: In most countries, counterfeiting is punishable by criminal laws as well as civil laws. Purchasing counterfeit goods can also put the buyer at risk.

5. Where Does the Money Go? Global Organised Crime gangs are very much at the forefront and they are exactly as the description suggests “Organised”. The biggest issue potentially is where do the revenues from their illicit sales go? Well, no doubt into the crime bosses accounts but now there is a connection being made between this type of activity and terrorism.

6. How Do We Tackle the Counterfeiting Issue? It is fair to say that it is an issue that will never be eradicated but it can certainly be reduced.

7. So is Brand Protection worth the fuss? Probably a Brand Protection Software can help you handle it without hassle.