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How to Fight Product Counterfeiting with Investigative Strategies and Tactics

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  • 1. How to Fight Product Counterfeiting with Investigative Strategies and Tactics A Complimentary Webinar from Aurora WDC 12:00 Noon Eastern /// Wednesday 8 January 2014 ~ featuring ~ Tim Stone The Intelligence Collaborative http://IntelCollab.com #IntelCollab Derek Johnson Powered by
  • 2. Tim Stone has more than 40 years of experience in national intelligence, commercial business intelligence, counterintelligence, and information security. During his career he has created highly successful competitive intelligence programs in several corporations. Tim Stone Through his work in establishing competitive intelligence programs companies such as Motorola, Baxter Healthcare, and Home Depot, Mr. Stone gained practical experience in supporting the exact issues outlined within this learning framework. Email: stonecreek2@att.net The Intelligence Collaborative is the online learning and networking community powered by Aurora WDC, our clients, partners and other friends and dedicated to exploring how to apply intelligence methods to solve realworld business problems. Apply for a free 30-day trial membership at http://IntelCollab.com or learn more about Aurora at http://AuroraWDC.com – see you next time! The Intelligence Collaborative http://IntelCollab.com #IntelCollab Powered by
  • 3. Questions, Commentary & Content α α You are welcome to tweet any comments on Twitter where we are monitoring the hashtag #IntelCollab or eavesdrop via http://tweetchat.com/room/IntelCollab α Slides will be available after the webinar for embedding and sharing via http://slideshare.net/IntelCollab α The Intelligence Collaborative http://IntelCollab.com #IntelCollab Use the Questions pane on your GoToWebinar control panel and all questions will be answered in the second half of the hour. To view the recording and download the PPT file, please register for a trial membership at http://IntelCollab.com. Powered by
  • 4. Agenda ► The Counterfeiting Problem ► The Supply Chain for Counterfeiting – Parsing the Threat ► Useful Investigative Methods to Combat Counterfeiting ► Case Studies – what worked & what fell short ► Summary, Q&A and Discussion The Intelligence Collaborative http://IntelCollab.com #IntelCollab Powered by
  • 5. How Big is the Counterfeiting Problem? ► > $250 billion business globally (OECD) ► $75 billion in fraudulent medicines ► > 60% of counterfeit products sold by legitimate companies ► FTC took action against more than 10K websites selling counterfeit products in 2013 The Intelligence Collaborative http://IntelCollab.com #IntelCollab Powered by
  • 6. How Do Counterfeit Products Come to Market? ► Knockoffs of top product brands ► Diverted and tampered legitimate products ► Counterfeit product components ► Substitute materials made by offshore suppliers ► Many others The Intelligence Collaborative http://IntelCollab.com #IntelCollab Powered by
  • 7. Combating the Problem – Expectations of Clients ► “Make it go away” ► Don’t want to talk about “internal problems” ► Who are these people? ► Stop the supply of counterfeit product ► Prosecute the counterfeiters The Intelligence Collaborative http://IntelCollab.com #IntelCollab Powered by
  • 8. Important Aspects of Counterfeiting Investigations ► Counterfeiters can be dangerous criminals ► Local government officials can be involved ► Identification is difficult – names change frequently; false information plentiful ► Counterfeiting supply chains are complex and often multi-national ► Counterfeiting cases cannot be easily stopped The Intelligence Collaborative http://IntelCollab.com #IntelCollab Powered by
  • 9. The Investigation Key Steps The Intelligence Collaborative http://IntelCollab.com #IntelCollab Powered by
  • 10. Step 1: Parse the Threat ► Collect all available facts concerning Prod Mfg appearance(s) of counterfeit product Exporter ► Identify all parties involved – “chain of custody” Product Synthesis Exporter Background checks on key outside people/orgs Importer ► Check other markets, customers, distributors Importer Distributors ► Create detailed timeline for incidents Local agent Customers ► Synthesize supply chain for the counterfeiting The Intelligence Collaborative http://IntelCollab.com #IntelCollab Powered by
  • 11. Step 2: Assess the Sophistication ► Thorough product examination including materials and process testing     Key materials, active ingredients Packaging Printing and barcoding Anti-counterfeiting measures on product ► Assess levels of technology and manufacturing equipment required ► Identify critical sources/suppliers of equipment and processes needed The Intelligence Collaborative http://IntelCollab.com #IntelCollab Powered by
  • 12. Step 3: Identify the Players ► Sales, distribution, marketing, suppliers, customers linked to counterfeit product ► Client supply chain organization ► Customs/import/export agencies ► Government agencies and officials ► Potential vendors/suppliers to counterfeiters The Intelligence Collaborative http://IntelCollab.com #IntelCollab Powered by
  • 13. Step 4: Developing a Course of Action ► Team with legal counsel to develop a plan ► Background checks on key individuals/organizations ► Contact local law enforcement & govt agencies ► Evaluate the depth of local govt and customs data – manifests, etc ► Determine requirement for licensed private investigation resources The Intelligence Collaborative http://IntelCollab.com #IntelCollab Powered by
  • 14. Step 5: Obtaining Critical Evidence ► Engage with company counsel and law enforcement authorities to identify critical needs ► Develop full profiles of key individuals -- their business and financial affairs, contacts, pseudos, etc. ► Verify linkages with client supply chain, equipment, sales and distribution activities ► Primary research – who knows what? The Intelligence Collaborative http://IntelCollab.com #IntelCollab Powered by
  • 15. Case Study #1: Product Diversion Situation: Branded pharmaceutical product appears in wrong market, looks authentic but is it? Investigation: Client supply chain and customer inventories examined Customs data collected and reviewed Samples of diverted product collected and analyzed Background investigation of local individuals, supply companies, pharmacies conducted; law enforcement contacted Counterfeit supply chain synthesized Results supplied to company counsel Resolution:  Source of diverted medicines terminated Distributor agreements strengthened The Intelligence Collaborative http://IntelCollab.com #IntelCollab Powered by
  • 16. Case Study #2: Stolen & Modified Product Situation: Customers of company products reporting high rates of failure; sample products contain counterfeit parts Investigation: Samples of product evaluated; counterfeit components verified Sources of all components reviewed including suppliers Client supply chain and employees investigated Distribution network for product examined Results supplied to company counsel & security Resolution:  Supplier agreements ended Employees removed The Intelligence Collaborative http://IntelCollab.com #IntelCollab Powered by
  • 17. Case Study #3: Benchmarking Anti-Counterfeiting Measures/Technology Situation: How quickly are other companies adopting the new anti-counterfeiting technology? Investigation: Benchmark strategies and implementation steps Monitor standards groups Separate claims from reality Identify issues (costs, technical difficulties, equipment etc) that may delay implementation Track market entry – availability of new barcoded product Evaluate samples Resolution:  Cautious strategy recommended Enhance participation on standards bodies The Intelligence Collaborative http://IntelCollab.com #IntelCollab Powered by
  • 18. Strengthening Investigative Resources & Techniques ► Local presence (in country) is critical – connections! ► Deep knowledge of customs and govt. databases ► Strong relations with government officials and law enforcement ► Access to local information bases not online ► Ability to reach “trusted” and licensed investigators The Intelligence Collaborative http://IntelCollab.com #IntelCollab Powered by
  • 19. Summary ► Plan carefully before proceeding ► Engage legal counsel & review applicable laws ► Work closely with local client resources in country ► Know when to engage law enforcement ► Be careful! The Intelligence Collaborative http://IntelCollab.com #IntelCollab Powered by
  • 20. Thank you! Now how about a little Q&A? Tim Stone Email: stonecreek2@att.net The Intelligence Collaborative is the online learning and networking community powered by Aurora WDC, our clients, partners and other friends and dedicated to exploring how to apply intelligence methods to solve realworld business problems. Apply for a free 30-day trial membership at http://IntelCollab.com or learn more about Aurora at http://AuroraWDC.com – see you next time! The Intelligence Collaborative http://IntelCollab.com #IntelCollab Powered by

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