 |  |
 |
|
|
 | | A dangerous form of flattery | | |
Want to buy a Rolex for 20 bucks? Most people who have ever received such an offer recognise it immediately for what it is – an offer for an inferior counterfeit, copy-cat, or look-alike. Such scenes take place thousands of times daily on the streets and in small storefronts in Milan, Antwerp, Dubai, Istanbul, Hong Kong, and New York. Counterfeiting of watches, furniture, clothing, and, even, cosmetics and perfume has become big business. It has been said that imitation is the sincerest form of flattery, but try telling that to companies that hold the rights to the designs being copied. These illegal activities cost manufacturers of luxury articles billions. For some it is the cost of lost sales, but for others it undermines the cachet of their brands and reputation for quality, while reducing the return on investment generated through the creation of new products and brands. |
|
Brand killers
Much to the chagrin of luxury goods manufacturers, new technologies, such as computer-aided design and computer-aided manufacturing, are making it easier for counterfeiting to duplicate at least the outward appearance of luxury articles. Makers of designer furniture in Italy, watches in Switzerland, fashion in Paris, or porcelain in Germany – few producers of luxury goods are immune from this insidious phenomena. In a nutshell any industry is affected that produces branded goods that fetch a premium price on the market. This price makes it more than worth the while of forgers to copy.
Some 40 million counterfeit watches are produced every year with a street value of CHF 10 billion. The fakes are estimated to cost premium Swiss watchmakers, such as Rolex, Piaget, IWC, and Cartier, as much as CHF 800 million. The damage goes beyond the profits of wealthy manufacturers. According to the EU, some 100,000 jobs are lost to counterfeiting every year. The International Chambers of Commerce estimates that the practice accounts for as much as 5% of the world economy (around EUR 93 billion). |
|
New channels
While seedy markets or side alleys may be the stereotype, counterfeiters have gone upscale, selling their products in stores and, of course, the Internet. eBay has become a favourite platform for selling these wares. The sale of counterfeits is expressly prohibited on the Web-site, but the management of eBay has a difficult time keeping track due to the sheer volume of auctions at its sites around the world. For this reason, it works with members and brand manufacturers to monitor and prevent counterfeiting. To protect the rights of intellectual property holders, eBay has created the VeRI-Programme, which allows these companies to demand the removal of auctions that infringe on their rights. “Despite all of these measures, we still have cases of members inadvertently buying counterfeits,” admits Maike Fuest, who handles communication for eBay Germany. “In these cases, we offer buyer reimbursement programme up to EUR 200 with a EUR 25 deductible.” |
|
Buyer beware
The onus is also on consumers to recognise counterfeits. “The best way to avoid inadvertently buying a counterfeit is to buy from an authorised dealer,” underscores Dominique Tadion, spokesperson of Rolex. Unfortunately, many consumers who are typically law abiding have no qualms about buying copy-cat or counterfeit goods for a lower price. This only encourages counterfeiters to increase their production. Few take in consideration that these products undermine public health and safety. Many of the same organised business rings that produce counterfeit luxury goods also produce counterfeit parts for airplanes and pharmaceuticals. |
|
Enforcing the law
Worse still, law enforcement authorities often turn a blind eye to this crime. R.E. Kendall, Secretary General of the ICPO Interpol takes the threat seriously, citing damage to the economy, competitiveness, and the reward for bringing out new innovations to the marketplace. “Counterfeiting is a fully fledged criminal activity. It is not peripheral to other criminal activities, but at the very heart of them.” |
|
Protecting intellectual property
Manufacturers have some recourse through design and trademark protection. Unfortunately the lack of uniform laws makes enforcement difficult. “The best way for manufacturers to protect themselves is by registering and defending their intellectual property,” says L. Pasche, the legal spokesperson at the Swiss Federation of Watch Industry. “The companies can not fight counterfeiting alone, it is vital that they create a network. We have teamed up with manufacturers in other sectors, to fight counterfeiting across a broad front. Lastly, manufacturers have to be vigilant about enforcing their rights on the international market.” One place manufacturers can start reducing the danger is in their own supply-chains. It is not uncommon for suppliers privy to details regarding original design to profit themselves from the production of the complete product.
Still, the battle against counterfeits is far from over. “Counterfeiting can never be stopped completely,” admits Mr. Pasche. “Our goal is to curb or limit counterfeiting as much as possible. We are working with lawmakers to strengthen the laws protecting intellectual property. Lastly, consumers need to take a stand.” Clearly counterfeiting and the manufacture of copy-cat products have little to do with flattery and are not at all sincere. They are, rather, an insidious threat to manufacturers of branded products and consumers. |
|
|
|
|
|
| |
|
© September 2010 - European Publications GmbH
|
|
|
