Yellow Brand Protection is a global anti-counterfeiting specialist that works to protect brands from online infringement. It searches 700 online markets and social media platforms to identify over 3 million infringing listings. Through persistent enforcement efforts, Yellow Brand Protection is able to typically reduce global infringement levels by 80% within the first year. A key challenge is the vast number of counterfeit goods sold through Chinese online marketplaces, with over 50% of listings coming from just 150 marketplaces.

1. MIP LUXURY BRANDS & RETAIL
LONDON, SEPTEMBER 2015
DANIEL BENNETT
CEO, YELLOW BRAND PROTECTION

2. ABOUT YELLOW BRAND PROTECTION
• A global online anti-counterfeiting specialist, working discreetly
for many of the world’s most recognized brands.
• Broadest search capability in the industry: Websites & Domains,
Social Media, Mobile Apps, and 700 Online Market Places.
• Dedicated “Team China” with strong local relationships and
takedowns on Taobao within 24 hours on average.
• Very successful enforcement rates, regularly exceeding 95%.
Over 3m listings enforced. “We Stop at Zero”.
• Online investigation: identifying ‘key offenders’ and gathering
evidence. Strong ties to ‘real-world’ enforcement stakeholders.
• Actively lobbying Alibaba Group and Facebook/Instagram to
improve IPR protection for our clients.
2
OVER 3 MILLION
INFRINGEMENTS
REMOVED
700+
Online
Markets
20+
Social
Media
Platforms
World-
Wide
Websites
10+
Mobile
App
Platforms
ON AVERAGE YELLOW BRAND PROTECTION REDUCES ONLINE INFRINGEMENT
LEVELS BY 80% IN YEAR 1 AND HAS REMOVED 3 MILLION INFRINGEMENTS TO DATE

3. 3
COUNTERFEITING
• Deliberate attempt to deceive consumers by copying
and marketing goods bearing well-known trade marks
• 31% of UK consumers that bought counterfeits,
believed they were buying genuine
• $1.77 Trillion - Projected Value of Global Trade in
Counterfeit and Pirated Goods in 2015
• The counterfeiting industry accounts for 8% of China’s
GDP.. and is not changing anytime soon.
• Trademark, design, patent and copyright: IP being
abused in order to mislead buyers
And other Intellectual Property crimes

4. • Most knockoffs are of luxury goods carrying a well
known trademark. Today nearly every consumer
and industrial product is subject to counterfeiting
• Imitation is a form of flattery. Counterfeiting
deceives the consumer and tarnishes the reputation
of the genuine manufacturer and brand value can
be destroyed
• Fakes are recognised by low price and poor quality.
Counterfeiters are getting better and better at
copying the quality. Prices are often just under retail
price in order to mislead the buyer
4
MYTHS AND FACTS
Facts about counterfeiting needs to be updated

5. • During a meningitis epidemic in Niger in 1995, more
than 50,000 people were inoculated with fake
vaccines resulting in 2,500 deaths
• A man from Wallasey, UK was killed when a
charging e-cigarette exploded in his home
• A boy of seven was electrocuted by a counterfeit
Gameboy charger while on holiday in Thailand.
• Mechanical parts, food & drink, tobacco…
5
FATAL FAKE
Counterfeits can be extremely dangerous

6. 6
COUNTERFEIT ONLINE
• Easy to fool consumers into thinking they are
buying genuine goods at discounted prices
• Sellers can be anonymous and as easily as they
appeared, they disappear
• The volume of pirated and counterfeit goods sold
online will soon surpass counterfeit sales on the
physical markets
A global and complex issue

7. 7
ONLINE SALES CHANNELS
• Webstores/Domains – where most infringing and
counterfeit activity originated
• Marketplaces - have become a key battle-ground
for many brands. Vast quantities are being sold
through these sites
• Social Media – the new frontier. Most brands are
unaware of the trend in selling fakes through social
media profiles
• Apps – an upcoming channel: Some brands are
more affected than others
The internet is endless – where does the action take place?

8. • The No. 1 online sales channel among counterfeiters
• 150+ Chinese online marketplaces
• More than 50% are B2B sites offering vast quantities
• More than 50% have global buyers
• The Alibaba Group sites are the most famous
(Taobao, Alibaba, Aliexpress, 1688 and Tmall)
8
CHINESE MARKETPLACES
An ever-growing problem

9. 9
• Ad captured from Alibaba – one of the
biggest online marketplaces
• MOQ – 500 pieces
• Supply ability 100 000 pieces per month
• Place of origin: Guangdong
• 50 pieces in a carton
A Rolex watch
THE CLASSIC COUNTERFEIT/REPLICA

10. STRATEGIES/SOLUTIONS

11. • Counterfeits are dangerous and can
significantly impact sales
• Counterfeiters don’t care about the
environment or the welfare of workers and they
are often linked to large criminal networks
• It is easy to feel lost and loose faith – but it is
absolutely possible to get back in control of
your brand
11
AIM HIGH. STOP AT ZERO.
TAKE
CONTROL
Why you should be taking action

12. SUCCESS METHODOLOGY – ONLINE MARKETS
12
ON AVERAGE YELLOW BRAND PROTECTION REDUCES WORLD-WIDE INFRINGEMENT
LEVELS BY 80% IN YEAR 1 AND HAS REMOVED 3M ONLINE INFRINGEMENTS TO DATE
SEARCH EVERYWHERE
Iden fy suspicious
lis ngs by searching
ALL online market
places. Find the bad
guys even when they
move markets to
hide from you..
BE PERSISTENT
Hit them quickly and
o en over 6-12
months minimum.
Make it too much
trouble to go a er
your brands..
FOCUS EFFORTS
Iden fy the “key
offenders”, who are
clearly profi ng from
your valuable brands.
Inves gate, collect
evidence and
prosecute if possible.
HUGE REDUCTION IN
COUNTERFEITING
ACTIVITY

13. 13
THE RISE AND FALL
No issue is too big - it's about technology, structure and resources
• In most cases it takes 9 -12 months to stabilise the volume. Most of the sellers will drop the
brand and pick on someone else

14. 14
700+ Online Markets,
150 in China
20+ Social media
10+ Mobile apps
Web Shops & Domains
world-wide
Expert counterfeit detection
and tagging
Automated filtering
“Alias tracking”
Identify key targets for
prosecution
80%+ Infringements
removed in year 1
95-100% Success
24hr Taobao actions
3 Million infringements
removed to date
SUCCESS METHODOLOGY

16. • A total of 22 fake Apple stores have been
uncovered in one Chinese city
• Wanda Square in Shenyang has a cornucopia of
shops bearing familiar names - all with incredible
knock-off prices
• In Kunming – the furniture shop “11 Furniture” has
copied the whole interior of an IKEA store
16
WHY COPY ONLY THE PRODUCTS?
The extent of how far they can take it

17. • Synthetic eggs are cheaper and quicker to make -
with the proper equipment and materials, one
person could produce 1,500 fake eggs per day
• Full of chemicals; glucolactone, benzoic asic, alum
and calcium chloride to mention a few
• Side effects; metabolism disorder, harmful to brain
and nerve cell. May cause liver diesease and affect
the ability to produce blood
17
CRAZY FAKES
Fake chicken eggs

18. 18
• Purely Natural Royal Viagra Enlargement
Pills
• Minimum order: 10 boxes
• Price: 1.5 -3.8 USD
• Supply Ability: 100 000 pieces per week
• 9 bottles per box
• Location: Guangdong
Even though it is supposed to be against site policies to offer drugs, it’s still there
CHEAP MEDICINE