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Counterfeit Sales: What are You Doing About It?
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Counterfeit Sales: What are You Doing About It?

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Five dollar headphones, ten dollar knives, and twenty dollar smart phones; other than a great deal, what do these three things have in common? They represent the potential end of your business. As …

Five dollar headphones, ten dollar knives, and twenty dollar smart phones; other than a great deal, what do these three things have in common? They represent the potential end of your business. As counterfeit and gray market sales increase, a surprising amount of business owners are either unaware their products are being counterfeited, or just deny the very existence of a problem.

How can you find out if you are affected? Or if you know of a violation what can you do?

We have the answer to that, and insight into what the future holds for enforcement and industry changes. Spend a quality hour with us to learn what you can do to protect your company and its bottom line.

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  • 1. Webinar | March 28, 2013 Counterfeit Sales: What Are You Doing About It? David Howell Director, Brand Protection Channel IQ Channel IQ 350 W Ontario St, 6th & 7th Floors Chicago, IL 60654 #CIQBP 312.846.1199 www.channeliq.comWebinar | Counterfeit Sales: What Are You Doing About It?| March 28, 2013 | © 2013 Channel IQ Tweet It: #CIQBP
  • 2. David Howell Director, Global Brand Protection Channel IQ With over 13 years of experience in the service, delivery and the development of Online Brand Protection, Gray Market, Anti-Counterfeit Sales, Global Domain Management and Reputation Management for Fortune 1000 companies. David has consulted such brands as Apple to Wal-Mart for enforcement strategies and collaboration with cross function teams such as legal and marketing Currently consults for clients in a variety of industries, including consumer electronics, apparel, entertainment, footwear, media, and industrial equipment. 2Webinar | Counterfeit Sales: What Are You Doing About It?| March 28, 2013 | © 2013 Channel IQ Tweet It: #CIQBP
  • 3. The Counterfeit Sale! Today’s Topics: • What is the state of Counterfeits? • Best practices for protecting brands against counterfeiters • Question and Answer NOTE: Questions may be submitted throughout the session via the chat component of your webinar toolbar. 3Webinar | Counterfeit Sales: What Are You Doing About It?| March 28, 2013 | © 2013 Channel IQ Tweet It: #CIQBP
  • 4. The Counterfeit Problem What is a Counterfeit? • Counterfeit Goods by definition are goods infringing the rights of a trade mark holder by displaying a trade mark which is either identical to a protected trade mark or by using an identification mark which "cannot be distinguished in its essential aspects from such trade mark.” Source Wikipedia 4Webinar | Counterfeit Sales: What Are You Doing About It?| March 28, 2013 | © 2013 Channel IQ Tweet It: #CIQBP
  • 5. The Counterfeit Problem If it’s manufactured, be assured it’s counterfeited • If it’s manufactured, it’s counterfeited. 5Webinar | Counterfeit Sales: What Are You Doing About It?| March 28, 2013 | © 2013 Channel IQ Tweet It: #CIQBP
  • 6. Why are Counterfeits so Detrimental? Counterfeiting is devastating to Manufacturers • Diversion of sales • Loss of market share • Health and Safety risks to consumers • Decrease in reputation and brand value • Possible Liability issues 6Webinar | Counterfeit Sales: What Are You Doing About It?| March 28, 2013 | © 2013 Channel IQ Tweet It: #CIQBP
  • 7. The Counterfeit Problem Global Trade Impact Source: dhs.gov 7Webinar | Counterfeit Sales: What Are You Doing About It?| March 28, 2013 | © 2013 Channel IQ Tweet It: #CIQBP
  • 8. The Counterfeit Problem A Quick Poll What is the Most Frequently Counterfeited Product Category? 8Webinar | Counterfeit Sales: What Are You Doing About It?| March 28, 2013 | © 2013 Channel IQ Tweet It: #CIQBP
  • 9. Top Counterfeit Goods Top 5 Counterfeited Goods clothing multimedia pharmaceuticals shoes electronics 8% 9% 9% 14% 22% 9Webinar | Counterfeit Sales: What Are You Doing About It?| March 28, 2013 | © 2013 Channel IQ Tweet It: #CIQBP
  • 10. Top Counterfeit Goods Most recognizable Counterfeited goods All designated trademarks and brands are the property of their respective owners. 10Webinar | Counterfeit Sales: What Are You Doing About It?| March 28, 2013 | © 2013 Channel IQ Tweet It: #CIQBP
  • 11. Top Counterfeit Brands The top 10 brands counterfeited All designated trademarks and brands are the property of their respective owners. 11Webinar | Counterfeit Sales: What Are You Doing About It?| March 28, 2013 | © 2013 Channel IQ Tweet It: #CIQBP
  • 12. Now the Big Question? Where are these counterfeits being sold? 12Webinar | Counterfeit Sales: What Are You Doing About It?| March 28, 2013 | © 2013 Channel IQ Tweet It: #CIQBP
  • 13. Where Are These Counterfeits Being Sold? Top Global Marketplaces All designated trademarks and brands are the property of their respective owners. 13Webinar | Counterfeit Sales: What Are You Doing About It?| March 28, 2013 | © 2013 Channel IQ Tweet It: #CIQBP
  • 14. The Alibaba Phenomenon The Alibaba Group is Amazon.com & Ebay.com into ONE! Source: Alibaba.com 14Webinar | Counterfeit Sales: What Are You Doing About It?| March 28, 2013 | © 2013 Channel IQ Tweet It: #CIQBP
  • 15. The Alibaba Phenomenon Lets take a closer look 15Webinar | Counterfeit Sales: What Are You Doing About It?| March 28, 2013 | © 2013 Channel IQ Tweet It: #CIQBP
  • 16. The Alibaba Phenomenon Monster Beat’s © Headphones as an example Source: MonsterCable.com 16Webinar | Counterfeit Sales: What Are You Doing About It?| March 28, 2013 | © 2013 Channel IQ Tweet It: #CIQBP
  • 17. The Alibaba Phenomenon Alibaba.com 17Webinar | Counterfeit Sales: What Are You Doing About It?| March 28, 2013 | © 2013 Channel IQ Tweet It: #CIQBP
  • 18. Alibaba.com Example Monster Studio Beats by Dre © Headphones MSRP $299 - $399 USD 18Webinar | Counterfeit Sales: What Are You Doing About It?| March 28, 2013 | © 2013 Channel IQ Tweet It: #CIQBP
  • 19. Alibaba.com Example Monster Studio Beats by Dre © Headphones MSRP $299 - $399 USD 19Webinar | Counterfeit Sales: What Are You Doing About It?| March 28, 2013 | © 2013 Channel IQ Tweet It: #CIQBP
  • 20. Alibaba.com Example Monster Studio Beats by Dre © Headphones MSRP $299 - $399 USD 20Webinar | Counterfeit Sales: What Are You Doing About It?| March 28, 2013 | © 2013 Channel IQ Tweet It: #CIQBP
  • 21. The Alibaba Phenomenon AliExpress.com 21Webinar | Counterfeit Sales: What Are You Doing About It?| March 28, 2013 | © 2013 Channel IQ Tweet It: #CIQBP
  • 22. Alibaba.com - AliExpress.com Example Monster Studio Beats by Dre © Headphones MSRP $299 - $399 USD 22Webinar | Counterfeit Sales: What Are You Doing About It?| March 28, 2013 | © 2013 Channel IQ Tweet It: #CIQBP
  • 23. Alibaba.com - AliExpress.com Example Monster Studio Beats by Dre © Headphones MSRP $299 - $399 USD 23Webinar | Counterfeit Sales: What Are You Doing About It?| March 28, 2013 | © 2013 Channel IQ Tweet It: #CIQBP
  • 24. Do I Have These Problems? This is a question we all should be asking. 24Webinar | Counterfeit Sales: What Are You Doing About It?| March 28, 2013 | © 2013 Channel IQ Tweet It: #CIQBP
  • 25. How to Enforce Counterfeit Sales Should we solely rely on our Government? 25Webinar | Counterfeit Sales: What Are You Doing About It?| March 28, 2013 | © 2013 Channel IQ Tweet It: #CIQBP
  • 26. How to Enforce Counterfeit Sales Register Key Trademarks (Brands) • Register Trademarks for your brands • Most business mistakenly skip foreign TM registrations. • Trademarks are central to any enforcement strategy. 26Webinar | Counterfeit Sales: What Are You Doing About It?| March 28, 2013 | © 2013 Channel IQ Tweet It: #CIQBP
  • 27. How to Enforce Counterfeit Sales Domain (brand) and infringer strategy • Identify the infringer(s) • Use an enterprise level investigation service. • Qualify the data and find the depth of the problem • Form an educated, enforcement strategy • Implement solutions immediately 27Webinar | Counterfeit Sales: What Are You Doing About It?| March 28, 2013 | © 2013 Channel IQ Tweet It: #CIQBP
  • 28. How to Enforce Counterfeit Sales Where to look for infringement online? • Global Marketplaces • Typo Domain Names • Cybersquatting • Online auctions • Social Media • Paid search ads 28Webinar | Counterfeit Sales: What Are You Doing About It?| March 28, 2013 | © 2013 Channel IQ Tweet It: #CIQBP
  • 29. How to Enforce Counterfeit Sales How to begin implementation? • Secure appropriate domain registrations • Purchase both Gtlds and Cctlds as needed • Identify and Recover Typographical domain names • Proactive, is far cheaper than reactive, posturing 29Webinar | Counterfeit Sales: What Are You Doing About It?| March 28, 2013 | © 2013 Channel IQ Tweet It: #CIQBP
  • 30. How to Enforce Counterfeit Sales Actively Monitor for Online Counterfeits • Utilize Online Brand and Trademark Monitoring • Regularly crawl the Internet and online marketplaces for sale of unauthorized and counterfeit items • Search for paid advertisement placement 30Webinar | Counterfeit Sales: What Are You Doing About It?| March 28, 2013 | © 2013 Channel IQ Tweet It: #CIQBP
  • 31. How to Enforce Counterfeit Sales Next steps to take? • Compile list of infringements and qualify results • Uncover identities of infringers • Collect necessary evidence • Send Cease and Desist and Demand letters • Submit evidence and filings to appropriate agencies • Escalate where applicable 31Webinar | Counterfeit Sales: What Are You Doing About It?| March 28, 2013 | © 2013 Channel IQ Tweet It: #CIQBP
  • 32. How to Enforce Counterfeit Sales What outlets exist for dispute escalation? • eBay VeRO program • Alibaba Aliprotect program • TaoBao IPR program • DHGate IP rights process • Made-in-China Compliance Department • UDRP - Universal Dispute Resolution Procedure • Country Specific escalation (CDRP, India, etc) • Cease and Desist correspondence. 32Webinar | Counterfeit Sales: What Are You Doing About It?| March 28, 2013 | © 2013 Channel IQ Tweet It: #CIQBP
  • 33. How to Enforce Counterfeit Sales Implementing Anti-counterfeiting Techniques • Consider badging to identify authorized sellers • Make it known you will not honor warranties for items purchased from an unauthorized seller. • Remove all products and authorization from online retailers with ineffective escalation policies • Create whitelist on website of authorized retailers 33Webinar | Counterfeit Sales: What Are You Doing About It?| March 28, 2013 | © 2013 Channel IQ Tweet It: #CIQBP
  • 34. How to Enforce Counterfeit Sales Work with Experienced Brand Protection • Select a qualified Brand Protection solution • International and U.S. IP experience • Enforcement that can work independently or in conjunction with your inside and/or outside counsel • Monitoring and Enforcement under one roof • Offers enterprise level investigations • Flexibility to adapt a solution to your specific needs 34Webinar | Counterfeit Sales: What Are You Doing About It?| March 28, 2013 | © 2013 Channel IQ Tweet It: #CIQBP
  • 35. Just Keep in Mind You don’t have to be the top brands in the world!!! Source: businessweek.com 35Webinar | Counterfeit Sales: What Are You Doing About It?| March 28, 2013 | © 2013 Channel IQ Tweet It: #CIQBP
  • 36. Thank You Questions? March 28, 2013 Counterfeit & Gray Market Sales: What Are You Doing About It? David Howell Director, Brand Protection, Channel IQ dhowell@channeliq.com Channel IQ 350 W Ontario St, 6th & 7th Floors Chicago, IL 60654 #CIQBP 312.846.1199 www.channeliq.comWebinar | Counterfeit Sales: What Are You Doing About It?| March 28, 2013 | © 2013 Channel IQ Tweet It: #CIQBP

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