A ‘counterfeit’ is generally an write-up which is intentionally made to look like an original short article so that shoppers are deceived into buying the counterfeit for the original. As a rule, counterfeits are substantially less pricey than the original.
“Counterfeiting” is a illness that infects and erodes the brand value of a trade mark. The brand value is the perception of a brand in the minds of customers. As a brand begins becoming counterfeited gradually but surely, the perception of the branded item starts to erode and when customers see a branded solution in the market or in the possession of other prospects they wonder whether it is genuine or counterfeit.
20 euro bill that a brand has been infected by counterfeiting is [a] the complaints the brand owners begins receiving about defective or substandard goods and [b] reduction in sales in locations where counterfeiting is taking place.
In most jurisdictions all more than the world the law has prescribed incredibly productive treatments to fight the counterfeiting illness: The Trade Marks Act in several jurisdictions, for instance, dispenses a deterrent punishment for counterfeiters which might include a jail sentence and stringent fines apart from the confiscation and destruction of the counterfeiting articles. In Thailand for instance counterfeiting is punishable even by death. Punishments below the Copyright Act are also stringent with a prescribed punishment of a jail sentence and with an escalation series of fines. In addition to treatments beneath the criminal law the law of most nations also deliver the brand owner remedies below the civil law by which suits for damages can be filed and damages obtained swiftly and effectively. In some nations, for instance in China, administrative remedies are available by which while jail terms are not prescribed, fast seizures of counterfeit merchandise are readily available. Numerous of the laws relating to trans-border sales of goods also have built in treatments for inspecting and confiscating suspected counterfeit goods. In most jurisdictions the process for taking recourse to efficient treatments has also been streamlined with sufficient safeguards against misuse of the provisions, such as the requirement of taking approvals from the trade mark registry just before initiating criminal proceedings. In spite of these remedies, having said that, now the counterfeiting disease is as rampant as ever and has infamously accomplished epidemic status.
In this dissertation an try is created to analyze exactly where we went wrong, to give an effective approach for controlling this disease and lastly to present techniques to eradicate the disease by implementing these tactics.
To comprehend the ramifications of the counterfeiting disease, we should 1st realize its aetiology: the causative factors and the conditions favorable for the growth and proliferation of the counterfeiting virus.
The single most vital causative aspect for counterfeiting is ‘greed’. Counterfeiting will flourish in an environment exactly where the expense of the original product that is sought to be counterfeited is reasonably high, the original solution is in brief provide and has a significant demand and the appear and feel of the solution is easily reproducible. Pharmaceutical counterfeiting falls normally in this class. A further environment in which counterfeiting thrives is exactly where the original product has snob appeal. Luxury goods, such as designer accessories are species of this genus. Customers who cherish the original high value items for their snob appeal are willing to obtain the much reduce priced counterfeits knowingly for flaunting purposes.
A demographic atmosphere necessary for counterfeiting is an area where there is a comparatively substantial population, with a thriving often unregulated market place and a consumer profile that is upwardly mobile. This makes countries like China, India, Indonesia, Pakistan, Bangla Desh and Thailand locations eminently suitable for the counterfeiting virus to thrive and proliferate. A recent trend is the proliferation of what are named absolutely free trade zones exactly where there is minimum regulation of goods coming in and going out. These free trade zones such as in Dubai, Hong Kong and near the Panama Canal have become transit points for the transfer of counterfeit goods especially counterfeit drugs, from countries exactly where they are cheaply manufactured to nations exactly where these goods have a profitable industry value. Pharmaceutical goods are especially properly suited for transfers via the absolutely free trade zones.
Counterfeiting activity broadly falls into two categories: Locally produced or domestic counterfeits and counterfeit goods imported from abroad or foreign counterfeits. We advocate various techniques for tackling domestic and foreign counterfeits. A different slightly different category of counterfeits is refilling, which has been now refined to an art kind. In refilling original packages are recycled to the customer soon after being refilled with locally made product. Printer cartridges, Alcohol and perfume bottles are especially susceptible to this sort of counterfeiting.
In most jurisdictions, counterfeiting is becoming attacked, in our opinion, in a random, haphazard and unsatisfactory manner. This has truly exacerbated the illness and increasingly the counterfeit virus has come to be resistant to remedy. Anti counterfeit actions are handled either by law firms or agencies headed by retired police or government officials. These actions take the kind of minimalistic investigation by ‘informants’ followed by ‘raids’ on ‘unearthed retailer of counterfeit goods’. The raids are performed with the enable of police officials either directly or under the orders of a nearby judicial officer such as a magistrate. Following these raids, the typical technique is to settle the matter with the particular person or enterprise raided. Counterfeit goods seized in the course of these raids are confiscated and destroyed and the individual who is raided commonly ends up paying ‘compensation’: a portion of which goes towards financing the raid in the first spot and a fraction goes to the brand owner. If a case is registered, this is necessarily needed to be compounded or quashed in legal systems exactly where criminal circumstances relating to IPR can not be compounded. The brand owner is proudly presented periodically with a report on the quantity of raids successfully performed, the quantity of counterfeit goods seized, and the compensatory amounts collected along with undertakings from individuals not to repeat the activity. There is virtually no initiative to pursue complaints to conviction. For a conviction what is necessary is a trial. Criminal trials have to have to be meticulously conducted by lawyers proficient in the criminal method. These trials are time consuming and comparatively additional pricey than the process of acquiring the initial orders and conducting ‘raids’. Even so, this failure to oversee the proceedings to its conclusion, is in my opinion the root cause of the escalation of the challenge. I will when again clarify this with respect to the analogy of an infected state of becoming. Truncating the anti-counterfeit proceedings by settlement is like stopping therapy prematurely on the second day of a 5 day course of antibiotics, when the patient feels significantly far better and healthier. This outcomes in the danger of a relapse and also the possibility that the microbe becomes resistant to the remedy.
What actually occurs is that the counterfeiter realizes this tactic adopted by the brand owner and the collateral harm of the ‘raid’ and the ‘compensation’ is then built in into the counterfeiter’s price range as an actuarial workout. For each and every a single front that is raided there are ten that are left untouched. As far as undertakings, provided by the persons caught in the act, are concerned, they commence afresh under a new name and a new identity. Once more usually the counterfeiter ‘indemnifies’ the raided retailer. The counterfeiter produces a lot more counterfeit goods to compensate for the loss suffered simply because of the raid. Generally the persons raided are the retailers and it is not uncommon that the counterfeiter ‘compensates’ the raided retailer with whom the counterfeit articles are placed for sale on a consignment basis in any case. The brand owner and the genuine buyers are the eventual sufferers.