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In the following first chapter of the study, a few basic remarks on brands and Ecommerce are first considered. In addition, the concept of brand and its functions are presented, followed by an overview of the development and use of eBusiness in general. After a brief description of the Nike brand in the second section, the following chapter provides a concrete account of brand and product piracy. Forms in which fake products appear, strategies of counterfeiters, causes and effects are explained. Particular emphasis is placed on the factor of the Internet and the effect of online auction houses as well as the problem of piracy for the Nike brand.
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The fourth part presents possibilities and measures for fighting brand and product piracy. This includes, as a first step, becoming aware of the problem and recognizing the potential danger for a company. Following recognition of the problem of piracy, the second step is implementing suitable response measures. In addition to the legal situation and international approaches, measures for protecting the value added chain are discussed together with specifically adapted responses of different areas of companies such as Research and Development, Marketing, and Sales. Measures involving company strategies and policies are also considered. The last step deals with some concrete recommendations for how to deal with the problem from the point of view of Nike, which serves as a focus in developing methods for such areas as working together with government authorities, strengthening communication and security, and developing technological means of providing security.
Finally, the fifth chapter of the study summarizes essential points and provides some recommendations. In addition to the need for more extensive legislation and greater efforts from companies to take legal steps – both certainly necessary – constant monitoring of the piracy situation must also be ensured, especially on the Internet. The development of effective communication activities as well as fine-tuning of distribution also promise much success in the fight against lost sales and damaged image.
Table of Contents
1 THE BRAND
1.1 SIGNIFICANCE OF A BRAND
1.2 TYPES OF BRAND
1.2.1 The brand as a product identifying discriminating criterium
1.2.2 Competence of a brand
1.2.3 Brand development
1.3 FUNCTIONS OF A BRAND
1.3.1 Function through Ancestry
1.3.2 Differentiation-, Individualisation- and Identification function
1.3.3 Quality-, Warranty- and Trustee function
1.3.4 Communication- and Advertising function
1.4 THE VALUE OF A BRAND
1.4.1 Protectability
1.4.2 Components of brand value
1.4.3 Brand vulnerability
1.5 ECOMMERCE: REVIEW OF DEVELOPMENT AND USAGE
1.6 EBUSINESS ON THE INTERNET
1.6.1 B2B business
1.6.2 B2C business
1.6.3 C2C business
2 NIKE: THE BRAND
2.1 THE EVOLUTION OF THE BRAND
2.1.1 Overview of Nike as a company
2.1.2 Nikes distribution policy
3 BRAND- AND PRODUCT COUNTERFEITING
3.1 THE TERM BRAND- AND PRODUCT COUNTERFEITING
3.2 VARIETY OF COUNTERFEITING
3.3 GROWTH AND EFFECTS OF COUNTERFEITING
3.3.1 Causes of exponential changes
3.3.2 Economic and social effects of counterfeiting
3.3.2.1 Effects for companies and brand owners
3.3.2.2 Effects on consumers
3.3.2.3 Effects on the national economy
3.3.3 Demand for pirated and counterfeited goods
3.3.4 Types of counterfeiting strategies
3.3.5 China
3.4 COUNTERFEITING ON THE INTERNET
3.4.1 Impact of eCommerce
3.4.2 Distribution and Production in eCommerce
3.4.3 Auction Platforms
3.4.4 Online deception strategies
3.5 COUNTERFEITING AND NIKE
4 REMEDIES & PRESENT MEASURES
4.1 A LOOK AT THE LAW
4.1.1 Law security and trademark rights protection
4.1.2 Judicial position on auction-platforms
4.1.3 Criminal or civil remedies
4.2 COUNTERFEITING: METHODS AND RESOLUTION IN THE MARKET
4.2.1 Commercial Web- and Brand monitoring
4.2.2 International Resolutions
4.2.2.1 WIPO
4.2.2.2 TRIPS Convention
4.2.2.3 Community brand Law
4.2.2.4 Product Piracy Regulation
4.2.3 Strategies of international companies
4.2.4 International & national anti-counterfeiting organizations
4.2.5 Customs
4.3 NIKE´S METHODS OF RESOLUTION
4.4 IMPROVEMENTS IN FRAUD RESISTANCE
4.4.1 Technical security features in products and packaging
4.4.2 Coverage of the value added chain
4.4.2.1 Activity in the product development phase
4.4.2.2 Distribution and Marketing
4.4.2.2.1 Communication and public relation
4.4.2.2.2 Price- and condition strategy
4.4.2.2.3 Distribution Supervision
4.4.2.2.4 Logistic actions
4.4.2.2.5 Activity in the production phase
4.4.2.3 Strategic activity
4.4.2.3.1 Do nothing or laisser faire
4.4.2.3.2 Integration and cooperation
4.4.2.4 Political actions
4.4.2.4.1 Cooperation with organizations and associations
4.4.2.4.2 The new bill of Home Secretary Zypries
4.5 THE PROSPECTS FOR NIKE
5 CONCLUSION
Research Objectives & Core Themes
This study aims to examine the extent to which the Internet, particularly online auction platforms, functions as a distribution channel for counterfeit goods, and identifies effective strategic, legal, and technological countermeasures for companies like Nike to mitigate these threats.
- The role of the Internet and auction platforms in facilitating the global trade of counterfeit goods.
- Methods of brand and product piracy, including the strategies employed by counterfeiters.
- Economic and social consequences of product piracy for companies, consumers, and national economies.
- Nike’s specific challenges with counterfeiting and their internal/external resolution strategies.
- Technological solutions and legislative approaches to improve fraud resistance and brand protection.
Excerpt from the Book
1.2.2 COMPETENCE OF A BRAND
A brand is a symbol of quality and service that the consumer attaches to the product. A good brand increases the customers confidence and expectation as to what will be experienced by using a particular product. In a sense, the brand represents an implied contract between the producer and the consumer as to the attributes that can reasonably be expected by purchasing the good – design, durability, taste, attractiveness, after-sales service, functionality, reliability and so on. A brand is often bolstered by a combination of names, logos, slogans, marks and other symbols (see figure 1) and sometimes colours are strongly associated with a brand. An example could be the very strong brand McDonalds represented by the “golden arches” logo, the pictures of the clown Ronald McDonald and by slogans like “I´m lovin´it”.
Summary of Chapters
1 THE BRAND: This chapter introduces the definition and significance of brands, their functions for consumers and companies, and the role of brand value in a global economy.
2 NIKE: THE BRAND: This section provides a historical overview of the Nike brand, its evolution as a company, and its multi-channel distribution policy.
3 BRAND- AND PRODUCT COUNTERFEITING: This chapter analyzes the scope of the counterfeiting problem, defines different piracy types, explains its economic effects, and evaluates how the Internet has become a key distribution channel for fakes.
4 REMEDIES & PRESENT MEASURES: This chapter discusses legal, strategic, and technological measures that companies can implement to protect their brands, with a focus on Nike’s specific approach and fraud resistance strategies.
5 CONCLUSION: The final chapter summarizes the findings of the study, emphasizing the need for stricter regulation and proactive brand protection in the digital age.
Keywords
Brand, Product Counterfeiting, Product Piracy, Nike, eCommerce, Online Auction Platforms, Brand Protection, Intellectual Property, Trademark Infringement, Internet Fraud, Distribution Channel, Counterfeit Strategy, Consumer Behavior, Brand Value, Anti-Counterfeiting
Frequently Asked Questions
What is the primary focus of this research paper?
The research explores the impact of product piracy on brands in the digital age, specifically examining how the Internet and online auction platforms serve as conduits for counterfeit goods, using Nike as a primary case study.
What are the main categories of brand piracy discussed?
The paper categorizes piracy into various forms including trademark infringement, imitation of product design (trade dress), patent violations, copyright infringement, and the complex strategies employed by pirates to deceive both consumers and authorities.
What is the central research question?
The core objective is to determine if the Internet, particularly auction sites, facilitates the flow of counterfeit goods, and to identify effective response measures for brand owners like Nike to protect their intellectual property and reputation.
Which methodologies are used in the research?
The study utilizes a mix of theoretical analysis of trademark law and market protection, as well as an empirical online survey involving 111 participants to compare the ability of regular consumers versus industry "experts" to distinguish between genuine and fake Nike products.
What does the main body of the work cover?
The main sections cover the theory of branding, the history of Nike, the mechanics of counterfeit trade, the impact of eCommerce on fraud, and a detailed look at the legal and technological remedies companies use to mitigate piracy.
Which key terms characterize this thesis?
The most important terms include Brand, Product Counterfeiting, Intellectual Property, Online Auction Platforms, Brand Protection, and the specific case study of Nike.
How does the author analyze the role of online auction platforms like eBay?
The study highlights how eBay's open marketplace, combined with user anonymity and difficulty in verifying product authenticity, creates an environment where counterfeiters can flourish, forcing brand owners to invest heavily in monitoring programs.
What role does China play in the counterfeiting landscape according to this research?
China is identified as the world's largest producer of counterfeits, and the text explores the cultural and structural reasons—such as the prevalence of joint ventures and complex local administrative environments—that make enforcement challenging.
- Quote paper
- Dipl.Kffr.(FH), BBA Annika Kristin Baiker (Author), 2006, Fighting brand counterfeiting in E-commerce, Munich, GRIN Verlag, https://www.grin.com/document/78947
