Counterfeiting Damaging to Business Reputation
The counterfeit trade is expanding rapidly and some estimate its yearly value to be as high as half a trillion US dollars. Unfortunately, many consumers, politicians, and businesses still view the counterfeit trade as a minor issue, and remain ignorant as to how infringement
affects a business on a much wider scale.
The private sector is heavily impacted by the counterfeit goods trade and brand-owners not only suffer a lack of sales when consumers unknowingly or intentionally purchase illegal copies of their products – their whole brand and image can be negatively affected by counterfeits.
The danger to companies now is that they may be using counterfeit products and parts in their manufacturing processes without even knowing it. When these products make their way into e-commerce platforms’ legitimate stocks, or when counterfeit parts infiltrate a company’s own manufacturing process, fake products are being relayed to consumers under the actual, authentic brand name.
The low quality or defective products can lead to health and safety hazards for consumers and litigations for businesses. Proving that the faulty product was in fact the result of a counterfeit part purchased unknowingly, and because it is shipped from the brand’s warehouse, is a very difficult task and the damage to reputation can be staggering.