How have Chinese counterfeit goods aggravated the online counterfeiting problem?

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By: lisasmith

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It was not long ago that the International AntiCounterfeiting Coalition (IACC) found that close to 80% of counterfeits seized by U.S. customs authorities originated in China. This was in 2007, and the scenario has not changed much since then. Close to 80% of counterfeits sold worldwide are produced in China. As China continues to steal brand values from legitimate manufacturers, counterfeiting has doubled in size and growth, causing it to be coined the crime of the new decade. Counterfeit products ranging from breakfast cereals to medicine have caused injuries and sometimes even death for some unsuspecting customers.

U.S. Commerce Department estimates indicate that close to 20% of consumer products in the Chinese market are fakes. Such counterfeits can easily corrode the real brand's image and reputation. Seen as a disease that seriously derails global business, counterfeiting ensures loss of brand, revenues and also jobs.

Ever since China became part of the WTO in 2001, it has been subject to the same Trade-Related Aspects of International Property Rights (TRIPS) agreement that the U.S. and other countries follow. So despite having similar protections against counterfeiting as the United States, China finds it difficult to curtail these nefarious activities, and the scale of this activity has become too large to fully close down. So, simply put, it would seem that China takes advantage of the R&D supplied by other countries and gains economic growth by producing so many counterfeits!

So what can be done to stop counterfeiting? Recently the U.S. has seen firsthand the way rogue websites corrode brands, and therefore a bill is being proposed to seriously tackle online counterfeiting. The bill will soon be advanced to the Senate. So while the government is trying to come up with solutions to tackle counterfeiting problems, enterprises should be better prepared for such illegal activities. Most companies realize that pursuing counterfeit manufacturers is difficult because it requires aggression, and Chinese law enforcement authorities do not take these cases seriously. Bigger companies have enlisted private detective agencies to assist them in tracing fraudsters who tamper with their products and image. While the cost of hiring detectives and fighting court cases can be very expensive, the best method for dealing with the growing menace of counterfeiting is to put in place the right kind of anti-fraud or anti-counterfeiting solutions. There are solutions that can provide protection against such fraudulent products in the market and stop them from impinging on your brand.

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Many problems are faced by the Auto industry due to online counterfeiting and the gray market

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By: lisasmith

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Counterfeiting is such a menace that even the Federal Bureau of Investigation has termed it the crime of the 21st century. If you don't believe this, perhaps some number crunching can shed some light on the kind of hazards that this activity creates for automotive businesses worldwide. For example, the global automotive parts industry suffers losses pegged as high as $12 billion a year, $3 billion of which is in the U.S. The total global counterfeit market is pegged at a whopping $350 billion. The Motor and Equipment Manufacturer's Association (MEMA), realizing the grave situation of counterfeits affecting its businesses, formed the Brand Protection council to take matters of fake counterfeit products in the automobile sector seriously.

What are fake automotive parts? How does one distinguish them from the originals?

Some counterfeits are simply imitations of real automotive parts and look exactly like the original so as to fool the buyer into believing that they are buying the original. Other times, fake or counterfeit automotive parts are simply packaged to look like the original. Counterfeiters often utilize the same brand image, colors and font sizes to ensure that the packaging looks similar to that of the real product. Some of the most common counterfeit automotive parts are things like fan belts, spark plugs, engine mountings, wheel covers, alloy wheels, air filters, fuel filters and oil filters. Sometimes the products carry the logo of the original. Other times counterfeiters simply use outdated parts that have been thrown out by the original company or dealer, renew them with some work and sell them again in the grey market.

There are many problems associated with fake automotive parts.

Such gray market products affect the brand and the reputation of the original manufacturer. Despite being made to look like the original, these products are not the original product. Even though they may be sold at perhaps 1/4th of the original price, the worth is much less than the real product. The safety of your vehicle could be compromised, and it could have many different kinds of problems, from part failure to higher fuel consumption to higher levels of pollution. The most pressing problem with using fakes is that, while you might feel you have gotten a great deal in terms of price, you will never get the intended effect that the original product can offer. In terms of quality and durability, you will always be at a loss if you opt for counterfeit products.

 

 

 

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