How Will Counterfeiting Be Reduced in the Open Market?
According to a recent survey, the market price of counterfeit goods stands at $532.93 billion, with counterfeit pharmaceutical drugs holding the highest position, followed by counterfeit electronics and web video piracy. within the us alone counterfeiting is worth $225 billion. Let's examine what keeps the counterfeit industry booming, what the risks of counterfeiting are and the way to curb those risks.
Counterfeiting may be a threat to
trademarked products because it damages the reputation and consumer loyalty
that the trademark owners took years to earn. From watches, auto parts,
batteries, drugs, pirated movies, electronic goods, toys, designer clothes and
pirated software to medicines, counterfeiters have made inroads into every
segment of each industry. As counterfeit products became a booming industry,
the magnitude of losses experienced by legitimate companies in terms of revenue
and credibility is much beyond what we will fathom.
Why is that the counterfeit
industry booming?
The credit for creating
counterfeiting such a booming industry goes to the consumers, the legitimate
business owners, and therefore the law enforcers.
Consumers: 80% of today's
consumers, from both the developed and developing world, purchase counterfeit
and pirated products. the will to have branded goods without dispensing a fortune
motivates people to choose fake products. These consumers are unaware of the
potential risks involved when buying illegal products.
Legitimate business owners: to
extend their margin of profit, companies shift their manufacturing operations
to 3rd world countries where labor laws and regulations are weak and
inadequate. Usually those that manage businesses in Third World countries are
given freedom by their parent companies, with little or no monitoring of their
activities. This results in product counterfeiting. Moreover, to avoid issues,
certain companies tolerate counterfeiting, resulting in the mushrooming of this
industry.
Law enforcers: Law enforcers who
are entrusted with the duty of curbing these illegal activities often join
hands with counterfeiters for private gain. The loopholes within existing
policies also make it easy for counterfeiters to urge away with lighter
punishments. Some government officers even own factories that produce fake
products, thus adding to the woes.
Measures to scale back the risks
of counterfeiting
Counterfeit activities can never
be curbed unless and until the demand for fake products dies down. And this is
often possible if and as long as consumers stop buying these products. Most
consumers buy counterfeit goods unknowingly because they fail to differentiate
real products from the fake ones. and people who buy fake goods knowingly,
lured by the worth range, are unaware of the health, legal, and safety risks
related to counterfeit goods. Therefore it's necessary that folks be made
conscious of the results of shopping for counterfeit goods. quite aged the
incorrect side of the law, it's the health and safety risks that require our
attention. There are several instances where faulty auto parts, electronic
goods or medicines have led to accidents and even death.
Legitimate business owners, on
the opposite hand, must strictly make sure that no counterfeit parts or
components are used anywhere in their supply chain. Serial numbers and
holograms also can go an extended way toward identifying fakes from originals.
Government officials got to come
up with effective anti-counterfeiting strategies and policies to wipe out the
menace of counterfeit products. they ought to implement harsher penalties,
which might function a deterrent for those that enjoys these illegal
activities.
Counterfeit products are slowly
killing our economy and our society, which makes it imperative for consumers,
legitimate business owners, and governments to require a robust stand against
counterfeiters.
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