Counterfeit

Counterfeit

Counterfeiting refers to the production and selling of cheap imitation of similar products or goods of brands of know and trust. Counterfeiting is mainly concerned with the issue of trademark infringement. It is highly profitable and the risks are mediocre. Counterfeiters have several advantages that have been called “economies of counterfeiting.” These include “free- rider” effects and economies of scale and scope. Counterfeiters can free ride on the creative and innovative efforts of legitimate companies’ technology and market development efforts. Product counterfeiters seek high profits by controlling expenses and seeking competitive advantage. There are many features that shape the opportunity for product counterfeiting. The expansion of the global economy, along with the accessibility of the Internet, provides product counterfeiters a firm foundation for operations. This is further fueled by consumer demand for goods they cannot afford (Shorenstein, 2013), and by counterfeiters taking advantage of environments that offer low-cost manufacturing opportunities and little interest in protecting intellectual property. Counterfeiters can bolster their welcome in such an environment by offering local value such as employment and tax revenues.  Securing and presenting as new scrap, returned, obsolete, excess, reconditioned materials are some options as they are usually less than manufacturing and shipping new product to the point of distribution.  Counterfeiters seek out distributors who look to maximize their profit by mixing less expensive counterfeit with authentic product, which increases their overall profit for each shipment. At the retail level, savvy counterfeiters keep the cost of their product close to the genuine so as to not alert brand owners, law-enforcement officials, and sometimes consumers that the product is counterfeit. Counterfeit pharmaceuticals, which could contain incorrect and unsafe ingredients, or no or insufficient active ingredients, are thought to represent upwards of 15% of the world’s drug supply (World Health Organization, 2008).

Incentives for counterfeiting are created by the limited awareness consumers, law-enforcement officials, and even some brand owners have of this crime. The motivation behind counterfeiting covers various agendas: setting aside the goal of making profits, experts reported that counterfeiters don’t always have a criminal intention. For example, many firms use counterfeiting to close a technological gap with the longer-term aim of becoming legally operating competitors in their own right. In addition, most counterfeiters have cost advantages over their legal competitors due to lower reproduction costs, lower safety standards, tax savings and lower labor costs (if production is off shored). Counterfeiting is also exploited by governments as a well-directed instrument to harm (foreign) legally operating firms and to strengthen and protect local industries.

Counterfeits also take advantage of advances in technology, such as 3-D scanners and printers that enables inexpensive production of components, products and packages. Likewise, the internet offers a low-cost form of communication and marketing to the global customer that is simultaneously instant and anonymous. 

 

There is not a legal distinction between deceptive and no deceptive counterfeits—both are illegal and damage the trademark owner and result in other detrimental economic and social consequences. By comparing two types of counterfeiters – deceptive, so infiltrating an illicit (but complicit) distributor, or non-deceptive in an illicit channel, insights into the impact of anti-counterfeiting strategies on a brand-name company, a counterfeiter, and consumers are to be provided. Highlighting that the effectiveness of these strategies depends critically on whether a brand-name company faces a non-deceptive or deceptive counterfeiter. For example, by improving quality, the brand-name company can improve her expected profit against a non-deceptive counterfeiter when the counterfeiter steals an insignificant amount of brand value. However, the same strategy does not work well against the deceptive counterfeiter unless high quality facilitates the seizure of deceptive counterfeits significantly. Similarly, reducing price works well in combating the non-deceptive counterfeiter, but it could be ineffective against the deceptive counterfeiter. Moreover, the strategies that improve the profit of the brand-name company may benefit the counterfeiter inadvertently and even hurt consumer welfare. Therefore, tradeoffs among different objectives in implementing anti-counterfeiting strategies should be carefully considered while looking out for ways to protect the brand name along with maximizing profits. The presence of counterfeits in the marketplace reduces sales and increases litigation, which inhibits profits. At the same time, it is necessary for brand owners to combat product counterfeiting through prevention, detection, investigation and enforcement. These costs, like the others, affect the bottom line. However, it is important to acknowledge that, like other risks, investment in preventing product counterfeiting can ultimately save the company far more than its cost while also protect the safety and well-being of its customers.

The more successful the brand is and the greater the demand for the product the more likely it is to be counterfeited, especially when there are few legitimate alternatives in the market place. Many of those in position to identify and response to counterfeits do not think to question the authenticity of the products or even know what to do if they suspect a product is not authentic. This makes allocating resources to the problem difficult. Moreover, would-be offenders are lured by the reality that counterfeiters generally face low risk for detection, prosecution, or penalties Investigations are time consuming and expensive, and, given the complexity of cases, not all are eventually caught and then charged criminally or sued civilly. Further, the penalty levied against those that are convicted or receive a ruling against them may not be as great as the damage caused. Collectively, these circumstance result in low deterrence.

 

  • A product that is unauthorized and imitates another design or product with confusing trademark or logo
  • A copyrighted product that has been illegally copied
  • With the growing consumer demands verticals and lack of awareness about counterfeiting among general public counterfeiting has been fueled in assorted industry
  • Conventionally all the governance operations were paper based. verticals and lack of awareness about counterfeiting among general public. Forgery of important identification proofs from to passports, to driving licenses, to national ID cards, to educational certificates and to financial documents growing with digital advancement. moreover the associated risk of accepting are a threat to financial and legal consequences.
  • Counterfeiting is a threat to population for more than thirty years which has evolved into a multinational problem .
  • With the widespread use of internet along with cheap and high-quality equipments, it has made possible for people without sophisticated training to easily mass produce counterfeit products. In conjunction to this, enforcement laps of rigorous trademark rules in various countries have also been a fuelling factor for this global phenomenon.
  • With the advancement of technology there is a boom in counterfeiting. Various measures were taken traditionally to eradicate counterfeiting but technological leap has helped in development of various sophisticated tools such as Security Holograms, Security Printing, Biometric Solutions, Digital Security, Card-based Technologies etc.

Products that are counterfeited

  • Anything from FMCG,AUTOMOBILE,CLOTHING,FOOD,ALCOHOL,ELECTRONIC GOODS

IdentifIcation of counterfeit goods

  • Quality of the product is the most convenient way to identify a fake product
  • Spelling mistakes of the product or package
  • A definite low price as compared to the original product

Online Counterfeiting

  • Product image: The best way to identify a products authenticity is to compare the product image with the corresponding image of the manufacturer whether it looks same or not.
  • Claiming to be Genuine: Products that claims to be ‘100% genuine’ and tagged as ‘guaranteed original’ underlined by the product are generally counterfeited
  • Pricing: when the product price is very low on the internet as compared to the original price it is generally counterfeited
  • Payment mode: if the site is encrypted wherein lock image comes next to website payment and the migration protocol changes to http it is a genuine site. if happens otherwise it is suspicious
  • Suspicious Vendor: The information of vendors like address, name of a vendor, company can never be found in the website. If it has it is sure a sign of suspicious actor

Reasons for not buying counterfeit goods

  • Counterfeiting can diminish the quality of product despite lower price the price quality ratio is often poor
  • Counterfeiting can be an international crime
  • Counterfeited spare parts in airlines and cars can cause accidents due to its inferior and damaged products
  • Medicines can be toxic or can carry hazardous substance which has effect on health
  • Electronic devices can involve short circuits
  • The sale of counterfeited products can be a punishable offence

Report A Fake

NASCAP encourages customers /partners/ members to make careful decisions to purchase products.

STOP THE CRIME

The production sale and purchase of counterfeited goods ia a crime. If anybody falls prey of counterfeiting or has information for production of counterfeit merchandise they can use one of the methods outlined below to stop counterfeiting program.Anonimity is guaranteed.

  • By Phone

You can use Nascap Hotline Number to Report Counterfeiting.Anonimity Is guaranteed.

Hotline No : ***********

  • By SMS

Send your message with CRIMES At ********** .Complete your message. Your Message will be secure and anonymous

  • Report to Local Police

If you come across any dangerous fake you can call your local police agency and report the crime.

NASCAP works closely with team of highly qualified officials, lawyers, investigators, police officers with the sole purpose to provide citizens a free counterfeiting country. Cash Rewards are offered to people who Report fake whose information leads to arrest.

ANTI –COUNTERFEITING OPERATION

Counterfeiting is a thriving billion dollar global industry which is highly profitable and the risk of legal consequence is low. From CDs DVDs to high end luxury goods no product is immune of counterfeiting.

Counterfeiters will imitate and sell any product disregarding the products safety, quality or the law. They manufacture cheap goods with the goal to maximize their return. The profit is shared by consumers, manufacturers, retailers and entire economy.

NASCAP has taken an aggressive step against counterfeiting through comprehensive programs that involve law enforcement agencies. Nascap has a network with different industries which helps to distinguish between original and counterfeited products.

NASCAP’s mission for anti-counterfeiting program is two fold: First is to protect the safety of hazardous counterfeited pharmaceuticals and various electrical products and secondly is to put a safeguard to the trademark property of the client

COUNTERFEITING: SOLUTION AND MEASURE

NASCAP investigation team is all set to catch the Big Fish starting from the ground up at the retailer level and out the all the contacts from wholesalers, then the distributor, and end with the manufacturer. We are investing significant resources in a multi-pronged strategy aimed at preventing counterfeit

COUNTERFEIT PRODUCT INVESTIGATIONS

NASCAP investigators keep track and proper feedback of the counterfeit manufactures, retailers wholesellers as once they are located and raided, the inflow of the counterfeits in the market would be condensed, these raids result in large scale awareness among public.

NASCAP believes that a successful investigation starts with proper planning. Clients security measure are evaluated which includes manufacturing of the products, distribution channels, and sales of their Intellectual Property. The investigators then informs and outlines the brand owners through which investigations are conducted.

The Undercover operations of NASCAP gather relevant data’s from grey market evaluate out the all the contacts from wholesalers, then the distributor, and end with the manufacturer. We are investing significant resources in a multi-pronged strategy aimed at preventing counterfeit.