Industry world-wide loses large amounts to counterfeiters. These losses not only affect the producers of genuine items, but they also involve social costs. The ultimate victims of unfair competition are the consumers. They receive poor-quality goods at an excessive price and are sometimes exposed to health and safety dangers. Governments lose out on unpaid tax and incur large costs in enforcing intellectual property rights. There is also an increasing concern that counterfeiting is related to other criminal activities, such as trade in narcotics, money laundering and terrorism.
It is estimated that trade in counterfeit goods is now worth more than 5 per cent of world trade. This high level can be attributed to a number of factors such as advances in technology, increased international trade, emerging markets and increased share of products that are attractive to copy, for example branded clothing and software.
Companies are becoming increasingly aware of the problems of counterfeiting. All companies need to make sure that their trademarks are adequately protected and to implement anti-counterfeiting policies to deal with the menace. A number of technologies, such as holograms, smart cards, biometric markers and inks, can be employed to protect and authenticate genuine products. These devices vary considerably in the degree of sophistication and cost. However, in order to be implemented the technology must be cost-effective, compatible with the product and distribution chain, resistant and durable.
It is estimated that trade in counterfeit goods is now worth more than 5 per cent of world trade. This high level can be attributed to a number of factors such as advances in technology, increased international trade, emerging markets and increased share of products that are attractive to copy, for example branded clothing and software.
Companies are becoming increasingly aware of the problems of counterfeiting. All companies need to make sure that their trademarks are adequately protected and to implement anti-counterfeiting policies to deal with the menace. A number of technologies, such as holograms, smart cards, biometric markers and inks, can be employed to protect and authenticate genuine products. These devices vary considerably in the degree of sophistication and cost. However, in order to be implemented the technology must be cost-effective, compatible with the product and distribution chain, resistant and durable.