What are the key trends in online counterfeiting?
The explosive growth and spread of digital commerce is a major paradigm shift, which has generated a number of sub-trends we should be aware of.
* The incentive to make money off someone else’s good name is enormous. According to the International Chamber of Commerce (ICC), the counterfeiting and piracy market is expected to reach $1.77 trillion in 2015 – a 300% increase compared to 2014. The problem is now so widespread that it impacts not only all industries and product categories, but also government tax receipts. If left unchecked, a huge chunk of sales could be lost to counterfeiters.
* As the number of generic top-level domains (gTLDs) surges from 22 to around 1,400 over the next several years, the demand for robust online brand protection is set to grow considerably. Businesses will confront a number of challenges, including sites diverting customer traffic, the sale of fake products and the registration of domain names that violate trademarks.
* The growth of China is a trend with major implications for online brand protection. With over 130 million broadband accounts (2013) and anticipated online sales of $650 billion by 2020, the business potential of the world’s second largest economy is staggering – for both legitimate businesses and counterfeiters. According to a UN report, (“Transnational crime in East Asia and the Pacific”), almost 70% of all counterfeit goods seized globally come from China.