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Smart Anti-counterfeiting Solutions

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Smart Anti-counterfeiting Solutions Powered By Docstoc
					A counterfeit is an imitation, usually one that is made with the intent to fraudulently
pass it off as genuine. Counterfeit consumer goods are also called knock-offs.
Counterfeiting activities have been on the rise in recent years, though the figures
cannot be substantiated because counterfeit goods are difficult to monitor . Since
imitations are not validated, keeping track becomes a real challenge.

 In a global economy, the losses incurred by industries because of counterfeiting are
huge. Studies show that recent unrecovered losses may add up to $400 billion.

 Counterfeit goods are produced in various forms. The intent is to make the customer
believe that he is buying a legitimate brand, and most customers are fooled into
believing it. In reality, they are buying a product that only looks like an authentic
brand.

 High tech industries, pharmaceutical companies and companies dealing in luxury
goods often have factories in developing countries. This is seen as a cost cutting
solution. The cost of goods becomes lower and companies are able to procure greater
profits in the long run. Although this is a smart business move, it also exposes the
goods to counterfeiting. Even before an end product is officially launched, an
imitation can have already reached the gray market.

 Smart anti-counterfeiting solutions

 Without tenacious anti-counterfeiting solutions, brands will continue to be disrupted.
Fortunately, there are several smart ways to implement anti-counterfeiting strategies.
Some of them are 鈥?

 Trademark system - For trademark rights, it is important to have an effective system.
The system should be organized such that trademark rights can be examined, analyzed
and approved. Any disputes should be solved swiftly.

 Penalties for Counterfeiting 鈥 ?Penalties should be issued on all counterfeit
products. Individuals involved in counterfeiting activities should be held responsible
for the imitation of brands. The enforcement should take place in such a way that
companies are able to recover their losses and prevent them in the future.

 Furthermore, civil procedures could ensure that the plaintiff (companies) is not
forced to spend much time on costly trials. Companies have every right to protect
their brand from being destroyed.