This study deals with the growing problem of piracy and counterfeiting successful
companies have to face nowadays. The aim of the study is to recommend suitable
strategies that victim companies should adopt in reaction to Intellectual Property
Rights (IPR) infringement and trademark counterfeiting. In order to formulate
appropriate strategies, one must first gain an understanding of the rationale behind
counterfeiting for both producers as well as purchasers. It is also imperative to
distinguish between different types of counterfeiting as some types certainly have a
greater potential for harm. Each category requires a different approach. A look into
buyer behaviour is necessary in order for firms to be able to formulate a successful
anti-counterfeiting advertising campaign and to target the right audience as well as an
investigation into the varying vulnerability to counterfeiting of different product
categories. Companies as well as society as a whole are plagued by a phenomenon that is clearly
not yet receiving the attention it deserves. Theft is a problem for every employer. It
occurs in shops where would-be customers shoplift but it does not stop there.
Employees stealing company property is a much bigger problem. This does not
merely refer to a company’s own workforce but also everyone at any stage of the
supply chain. The trend toward outsourcing certainly has not helped as it is difficult
enough to keep an eye on your own workforce without having the additional problem
of policing the supply chain. Products can and do go missing due to theft. The
phenomenon this study investigates is not conventional theft but rather theft of a
different sort: theft of intellectual property and counterfeiting. Piracy and counterfeiting are not theft of finished products but of ideas, inventions, creations and discoveries, which are protected by trademarks, patents and copyrights.
Table of Contents
Chapter One
INTRODUCTION
DECEPTIVE vs. NON-DECEPTIVE COUNTERFEITING
METHODOLOGY
EFFECTS OF COUNTERFEITING
Chapter Two
DEMAND FOR PIRATED AND COUNTERFEIT GOODS
THE RATIONALE FOR COUNTERFEITING AND ITS ANTECEDENTS
IP INFRINGEMENT AND THE INTERNET
Chapter Three
EVIDENCE OF VICTIM FIRMS’ RESPONSES
ISD
Diageo
Procter and Gamble
US Olympic Committee
Cartier
NEC
Microsoft
Nike
Reebok
New Balance
Miscellaneous
SUMMARY
Chapter Four
ESTABLISHING ANTI-COUNTERFEITING STRATEGIES
NO ACTION
LOBBY GOVERNMENT AUTHORITIES FOR IMPROVED LEGISLATION AND ENFORCEMENT
CO-OPT OFFENDERS
ANTI-COUNTERFEITING ADVERTISING CAMPAIGN
WARN/ALARM
APPEAL
THREATEN
PRIVATE INVESTIGATION
MOVING TARGET & AUTHENTICATION DEVICES
ANTI-COUNTERFEITING ALLIANCES
EDUCATION AND SUPPORT OF ENFORCEMENT AGENCIES
EDUCATION OF CHANNEL MEMBERS
USE OF TELEPHONE HOTLINES FOR CUSTOMER REPORTS
PRICE REDUCTIONS
SELECT DISTRIBUTION
MARKETING & PRODUCT DEVELOPMENT
LICENSING
CONCLUSION
Research Objectives and Topics
This dissertation addresses the escalating challenge of piracy and counterfeiting faced by modern enterprises. The primary objective is to recommend effective strategies that victim companies can implement to counter Intellectual Property Rights (IPR) infringements and trademark counterfeiting, based on an evaluation of reactive and proactive corporate measures.
- The distinction between deceptive and non-deceptive counterfeiting.
- An analysis of consumer behavior and the motivations behind purchasing illicit goods.
- Evidence-based evaluation of anti-counterfeiting strategies from high-profile corporate cases.
- The role of technology in product authentication and supply chain monitoring.
- Legal and strategic approaches to lobbying and enforcement in diverse global markets.
Excerpt from the Book
ISD
International Spirits Distributors (ISD) is a wholly-owned subsidiary of a major European alcoholic beverage producer possessing exclusive import and distribution rights to the firm’s products in Thailand (Green et al 2002). The company name and all associated brand names have been disguised at the firm’s request. The time period in question was between 1988 and 1991 and details about the operation were only released ten years later, which indicates how sensitive an issue this is for victim companies.
ISD was formed to serve Thailand but its brands were targets for counterfeiters from the point of introduction. ISD employed several anti-counterfeiting measures as advised by consultants in the field. For example, the “moving target” strategy of regularly changing product packaging, i.e. the labels and shape of the bottles, was employed as the counterfeiters needed recycled bottles. The next step was the introduction of a bottle with a spout ISD claimed to be non-refillable. Soon, counterfeiters managed to get sufficient supplies of the newly designed bottles and even found a way to circumvent the non-refillable spout. ISD also pursued legal and political channels and gained support from the higher levels of police and government, but counterfeiters were still able to limit and prevent enforcement respectively through their links to the mid and low levels of law enforcement, which were maintained through bribery.
Summary of Chapters
Chapter One: Provides an introduction to the pervasive nature of piracy and counterfeiting and defines the study's scope regarding intellectual property protection.
Chapter Two: Examines the economic drivers of demand for illicit goods and explores consumer motivations behind purchasing counterfeit products.
Chapter Three: Presents an evidence-based review of corporate responses to counterfeiting through detailed case studies of international firms.
Chapter Four: Synthesizes various anti-counterfeiting strategies, offering a framework for corporations to establish proactive defense and enforcement mechanisms.
Keywords
Piracy, Counterfeiting, Intellectual Property Rights, IPR, Trademark Infringement, Brand Equity, Consumer Behavior, Anti-Counterfeiting Strategies, Supply Chain, Enforcement, Deceptive Counterfeiting, Non-deceptive Counterfeiting, Brand Protection, Product Authentication.
Frequently Asked Questions
What is the fundamental focus of this research?
The dissertation focuses on the growing threat of piracy and counterfeiting to successful companies and identifies effective strategies to mitigate these risks.
What are the primary themes analyzed in this study?
Key themes include the rationale behind counterfeiting, consumer behavior, the effectiveness of various corporate response strategies, and the legal challenges associated with intellectual property enforcement.
What is the core objective of the dissertation?
The primary objective is to recommend a new framework for victim companies to adopt in reaction to IPR infringement and trademark counterfeiting.
Which scientific method is utilized in this paper?
The study employs a case-study methodology, drawing from existing literature to evaluate both reactive and proactive measures taken by victim firms, which are then synthesized into a new conceptual framework.
What topics are covered in the main section of the work?
The main sections cover the demand side of illicit goods, evidence from various corporate cases (e.g., ISD, Diageo, Microsoft, Nike), and a detailed classification of strategic responses like lobbying, education, and authentication.
How are the keywords for this work characterized?
The keywords highlight the intersection of legal, economic, and managerial aspects of brand protection, specifically emphasizing the mechanisms of piracy and the strategies for remediation.
How does the author characterize the role of 'out-the-backdoor' counterfeiting?
The author identifies this as a significant threat where former partners or current licensees produce unauthorized goods in excess of their legal agreements, noting it is particularly prevalent in the apparel industry.
What role do telephone hotlines play in the author's proposed strategies?
The author argues that hotlines are crucial for early detection, as they encourage deceived consumers to report counterfeits, thereby allowing companies to address infringements before they escalate and erode brand equity.
- Quote paper
- Jörg Drischel (Author), 2004, A New Framework For Combating Piracy And Counterfeiting, Munich, GRIN Verlag, https://www.grin.com/document/26691
