Counterfeiting a Huge Threat to Businesses

The global counterfeit goods trade is currently valued at up to US$500 billion and is one of
the largest economic contributors to organised crime. An extremely lucrative trade for
fraudsters, it causes enormous difficulties and financial losses for governments in the form
of taxes, for businesses in the form of revenue losses, for the workforce as demand for legal
employment drops, and for consumers due to the incredible health risks and safety hazards
posed by fake products.                                                                                                                                 
To combat counterfeiting effectively, a joint effort from all members of society is required,
and in order to achieve this we should all be aware of how infringement affects us
specifically and why action should be taken immediately. For instance, although many are
aware of its existence, few of us fully understand how counterfeiting affects businesses
beyond lost sales.                                                                                                                                           
Companies whose products are being copied and sold on a large scale can suffer incredible
damage to their reputations as their knock-offs become almost identical, at least at first
glance, to their own products. The fact that the knock-offs tend to be of poor quality, rarely
abide by safety regulations and may fall apart upon use will, in the best case scenario, only
lead to the loss of one customer. However, in a more realistic situation, word spreads,
disappointed consumers leave bad reviews on online marketplaces and some may even take
legal action.                                                                                                                                                    
Counterfeiting is a complex, global issue and it seems natural for all parts of society to
contribute and collaborate in order to put an end to the illegal trade of fake goods.

 

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