What companies should consider before striking back against the rise of the sophisticated counterfeiters and expanding illicit trade.
Rise of Illicit Trade and Counterfeiters
Rapid technology advancement in manufacturing and distribution have made it easier for counterfeiters to connect to buyers, supply chains and jurisdictions that have traditionally been beyond their reach.
Where luxury products and expensive medications were once the focus of illicit trade, today’s counterfeiters have embedded themselves in a wide range of industries and corporate sizes. From fake auto parts to knockoff toys, counterfeit software to fake condiments, pharmaceuticals, beauty products and beyond.
Effects of Illicit Trade
The effects of illicit trade are varied and far-fetching, including negative impacts on corporate reputation and profit margins for rights holders and ongoing pressure to reduce prices as the industries is flooded with large volumes of counterfeit or pirated products.
How should companies react?
Increasingly, companies are utilizing technologies and are coming together to organize strategies, promote consumer awareness and assist each other in pursuing infringers. While many are partnering with law enforcement agencies to fight counterfeit activity, many are leading the charge by themselves.
There are, however, risks in doing it completely alone. For instance, purchasing counterfeit goods for research can land companies in legal trouble, and giving a government official anything of value in exchange for information on illicit trade activity can be construed as a bribe in certain countries.
Companies that wish to pursue their own actions are therefore advised to seek professional advice to conduct proper risk assessments, and take necessary precautions to ensure their well-meaning actions aren't endangering their business.
Find out more about illicit trade today in our article and contact us to discuss how we can assist you in your fight against counterfeiters.