Counterfeiting Activities Damaging the BrandsBusiness environment today has provided enterprises with opportunities to grow online andexpand globally. The ever-growing customer requirements for technological enhancements suchas upgrading of business environment, wider web presence and changes in products andservices, also provide scope for fraudulent activities, counterfeiting and patent thefts that leavea negative impact on the brands reputation.A brand showcases the intrinsic character of an enterprise and its business and needs to beprotected from counterfeiters and fraudsters. Effective brand management requires enterprises’to understand the type of threat and their origin. Counterfeiting is one such threat that affects thebrand reputation in a big way as it involves manufacturing of duplicate products and sellingthem illegally. The term also includes creating imitations of brands, trademark, documents,software, pharmaceuticals, electronic goods, luxury products, patents and currencies to deceivethe customer. These goods produced illegally have fake logos and brands which leads to patentand trademark infringement. Nevertheless, these counterfeit goods which are sold at a lesserprice than the originals have a wider market.The counterfeiting market is growing at a fast pace and to control this one must first understandthe reason for it. To meet the growing demands of the customer as well as to withstand thecompetition, enterprises tend to outsource the production of goods and development of softwareapplication to third party vendors. This leads to loss of control over their critical data, designs,operational strategies, processes, trademarks and copyrights. The survey conducted by theCounterfeiting Intelligence Bureau (CIB) of the International Chamber of Commerce (ICC)showcases that counterfeit goods take up nearly 5-7% of the annual world trade which amounts to$700 billion every year.
Further, todays technology landscape having enabled a wide use of e-commerce for both B2B andB2C markets provides the counterfeiters also with an online market for their activities. With suchthreats affecting the bottom line enterprises lookout for anti-counterfeiting solutions that willhelp them overcome the counterfeiting activities and increase the market share. For organizationswith a widespread global and online presence, leading service providers have developed brandprotection solutions that will help overcome the counterfeiting threats.The anti-counterfeiting solutions provides a dynamic visibility that enables enterprises to identifythe culprits and protect their trademarks. The inclusion of quantitative methods and marketintelligent practices into the solutions ensures easy identification of counterfeit copies evaluatesthe risks and monitors their activities in real-time, enabling enterprises to take up effectivemeasures to curb the counterfeiting activities.Read More About: enterprise risk management, Anti-Fraud, gray market.