... people buy counterfeit products? 1 Running head: Why do people buy counterfeit products? Why people by counterfeit products? Monica Rodriguez American Intercontinental University Dr. Yamil Guevara Why do people buy counterfeit products? 2 ABSTRACT The elaboration and commercialization of counterfeit products is an issue that has been growing prominently within the last 20 years. There is no place in the world free with this type of products. The modernization and the globalization make the counterfeiting process more difficult to control, affecting not only the countries economy, but also its safety and the citizens’ general integrity. Knowing the importance of this problem, different organizations around the world are making a big effort trying to create a variety of countermeasures in order to stop the development of this sector and of course the negative consequences. In order to create effective measures, it is necessary to completely understand the counterfeiting process and the specific reasons why people acquire counterfeit products. The objective of this study is to describe what are the different variables, and their direct influence on the purchaser’s behavior at the moment of buying counterfeit merchandise. The data collection method is based on focus groups, interviews and questionnaires. The results obtained from this study can help to understand the complete counterfeit process and facilitate...
Words: 3730 - Pages: 15
...Industry and Business Administration will contact the police to enforce the law. The police will not do much about it because counterfeit software and products provide the people of China with affordable necessity. On the other hand, Intellectual property is heavily protected in the U.S. By filing Patent, Copyright or Trademark individuals are able to protect their property and have the right to sue people are producing their products. The Federal Fraud Department is in charge of investigating these cases. China’s police force is not able to do enforce the laws in the rural areas, where most of the counterfeiting happens. The police in those areas are understaffed and lack the technology to gather evidence. Counterfeits are looked upon differently in these two countries and thus have different retail regulations. In the U.S. retails need to get permission from the manufactures to shelf their products and because of this they are not able to sell counterfeit products. In China, retailers need a license and certificate to run their store, but they are allowed to house and sell counterfeit products. The Patents, Copyright and Trademarks allow manufactures to sue stores that sell counterfeits, but since China does not protect these property rights retailers in China are able to sell counterfeits. Three types of counterfeiting First type of counterfeit: replica the logo or trademark: In this type, people replica the product of those registered brands with exactly the same logo...
Words: 1865 - Pages: 8
...Creative community behind the Shan Zhai Culture China has bad reputation on the massive production of counterfeit goods. It scares the Western world by the report of the huge amount and variety of the fakes. Chinese people name this counterfeit production in a ironic way- “Shan Zhai Culture” where the words “Shan Zhai” original means “mountain village”. Shan Zhai is to describes those electronic products, like cell phone, MP3 that have the similar names or appearance of famous brands but were made in the village. 1 Because of this, many people blame Chinese industries for copying the original products without approvals. Some people even concluded that China is a nation lacking of innovation. But how can a national rapidly developed in 30 years without spirit of innovation and creativity? Shan zhai is different from simply counterfeiting; it means more to China. Some people believe that the thriving Shan Zhai culture is because of the Chinese Styled Education System where teacher centered classes and text-based education killed the creativity of Chinese kids 3. Some says counterfeiting and following the developed countries is a characteristic of emerging world 2. From the cultural to economic reasons, the fact that Shan Zhai is badly needed in China cannot be denied. In other words, China is not a country without innovations, but it has to have the Shan Zhai that imitating others as a process of development4. Shan Zhai on one hand is a good strategy for marketing 2. It...
Words: 636 - Pages: 3
...If you have looked at the cases of many products, you wouldn't be unfamiliar with the words "made in China". More than 80% of products are made in China. These products are cheaper, more beautiful and delicate than those made elsewhere because of China's technology, its productivity, and its economy are in a stage of high pace development. In addition, China has an advantage in population that other countries do not have, which creates a cheaper labor force. Consequently, more and more investors decide to establish their produce factories in China in order to reduce their production expense. However, not every made-in-China-product is genuine. There are lots of Chinese companies that are producing fake or imitational products and then inject them into the Chinese market. Consequently, fake products play an important role in the Chinese market. It's a pretty big problem because the fake products reduce the original companies' profit, decrease designer's passion, and produce so much inconvenience. It is clear that the fake product-problem has to be solved in the future. The existence of fake products is the 2nd largest problem of Chinese market economy. It would reduce some original companies' profit and increase transaction expense of consumer. Because the market of a product might be seized by its similar but fake products, the company need to spend great sums of money to attack the fake products company. The purchaser also needs to spend lots of money to avoid fake products...
Words: 1042 - Pages: 5
...before giving a presentation. In order to find out more about your audience, presentations have been conducted online and various students have showed their ability as well as their character through the Engagement Activities. The audience as person, individually, has their own unique sense and opinions about a particular topic when it comes to a point where they are to watch and listen to a specific topic that they may or may not know about. The speech that we all have to perform next week will have to be an informative speech. Initially, I have short-listed many topics when it came to performing this speech as it had to be both factual, important, and also interesting. I finally decided that I want to present my speech about “Piracy and Counterfeit Goods in Iran”. Most of us have already been affected and know already about piracy is our own country, but I want to focus in on a specific country where it has not been outlawed and the reasons to why it has not been achieved as of yet. Everyone has their own views on what could be interesting to them regarding this topic. It could be the reason that it is still allowed and the police and other forces of power are willing to let that happen in order to achieve something out it or the interest could actually cloud in the audience on to why the speaker decided to choose Iran over a different country such as Sweden, which is the host country of one of the most popular piracy torrent downloading website, The Pirate Bay. In order to convince...
Words: 819 - Pages: 4
...is/post/what-would-a-post-sopa-internet-look-like http://news.yahoo.com/internet-could-sopa-passes-194753995.html I - Attention Getter: (Pictures from SOPA blackout protest) Before I begin my presentation, I’d like to show you some pictures. I think that you all know about I am presenting before you And for those who don’t, this is the blackout protest whose target is the controversial U.S. House of Representative bill, SOPA – STOP ONLINE PIRACY ACT Before going any further, I’d like to explain what is SOPA? It is a United States bill which is introduced by U.S. House of Representative, sponsored by Lama S. Smith to expand the ability of U.S. law enforcement to fight against online infringement of copyrighted intellectual property and counterfeit goods. And Wednesday 18 January marked the largest online protest in the history of the internet This is a quick view of SOPA protest through numbers (This is statistic from website digitaltrends) 75,000: Number of websites that participated in the blackout 25,000: Number of WordPress blogs that completely blacked out their sites to protest the bills 12,500: Number of WordPress blogs that placed the “Stop Censorship” ribbon on their blogs 162 million: Number of people who saw the Wikipedia blackout page 4.5 million: Number of people who signed Google’s anti-SOPA petition on Wednesday 1.458 million: Number of people who signed other similar anti-SOPA petitions 35,000: Approximate number of people who sent letters to their...
Words: 1051 - Pages: 5
...scheduled trimming and upkeep of grass covered areas like public fields and in housing estates. Moreover Majlis Daerah Bachok also receive, accommodate, and ensure that each complaint from the public, whether it is a disturbance, matter of sanitation services, or an obstacle to traffic, is identified, recognized, and addressed in the best possible way. They also help other units in terms of enforcement for collection of outstanding debt and collection of assessment tax, to ensure the target set by management is met. They also have to ensure smooth flow of traffic, especially near main council market areas. They also facilitate in, or carry out operations with other agencies in addressing the piracy menace, be it pirated VCDs or other counterfeit goods at night markets. The Management of Majlis Daerah Bachok. The concilor of Majlis Daerah Bachok is En. Nik Abdullah Bin Nik Daud. Then he is helped by Mohd Shamsul Baharin Bin Isa who is the secretary of Majlis Daerah Bachok. Under Majlis Daerah Bachok, there are...
Words: 411 - Pages: 2
...In America, how we look is important to many of us. This is shown through the amount of Coach handbags you see on the arms of teenage girls. In 2013, 40% of the sales for designer handbags were counterfeit, (totaling up to $700.2 million lost from the global economy.) They were later seized. Along with the handbags were the following eight categories: Watches/Jewelry Electronics/Parts Pharmaceuticals/Cosmetics/Personal Care Shoes Movies, Compact Discs, Music Downloads Classes & How People Spend. “Many assumptions regarding the Chinese middle class market are untrue. For one, it’s not as large as many think. And its disposable income is not a sound guide to estimating sales…” In 2008, China’s population exceeded 1.3 billion people who were separated...
Words: 561 - Pages: 3
...Anisha Castro Omar PA 206 Status Signaling and Conspicuous Consumption: The Demand for Counterfeit Status Goods Counterfeiting is a multimillion pound business and one which depend on the complicity of the consumer. Often seen as a victimless crime, it is a difficult trade to control because as long as consumers desire brands, the greater the market for counterfeits. Since almost no investments in brand name recognition and research & development are required, the production of these fake goods offers strong financial incentives to counterfeiters. As modern technologies are available globally, the production of counterfeits has become less expensive and rather easy to set up. Unfortunately, revenues gained from counterfeiting are at the expense of legitimate marketers. The damage to their brand reputation and profits is tremendous. For consumers, purchasing of counterfeit products offers advantages as well. The fake or counterfeit products are usually of low physical, performance and financial risk, but carry the high image and prestige connected to a well-known brand name such as Louis Vuitton, Gucci, Rolex or Chanel. By buying the fake product instead of the original, the consumer takes advantage of the benefits sought-after from branded products, such as prestige, image or design, without paying for them. The demand for counterfeit products may be considered an aspect of aberrant consumer behavior, however, only under the condition that the consumer...
Words: 836 - Pages: 4
...IPC APEX INDIA – Technical conference Seema Sabikhi Date: 06 May, 2013 Process Quality Engineer Barco Electronic Systems (P) Ltd. A-38 B&C, Sector- 64, Noida-201301 U.P. India. Sub: Electronics Engineering Management - Counterfeit Electronics components Abstract Counterfeiting has a long and despicable history, ranging from art and literature to manufactured goods. Unlike other industries, counterfeiting in the aerospace industry may have life or death Consequences. We take the problem seriously. Thus, all stakeholders from industry and government must work together to effectively reduce the introduction of counterfeit parts into the aerospace supply chain and minimize their impact. The introduction of counterfeit parts whether they are electronic, mechanical or other adversely affects government, industry, consumers which includes National security or civilian safety issues and costs of enforcement. Counterfeit parts are an escalating global supply chain challenge where a single occurrence represents widespread risk to product cost and quality, human safety, and national security. Aerospace and defense products are targets for counterfeiters because the systems are intended for use over extended time, leaving them vulnerable to obsolescence of parts, materials, subsystems and technologies. As the time of system use increases, a substantial number of the...
Words: 434 - Pages: 2
...Counterfeiting and piracy are terms used to describe a range of illicit activities linked to intellectual property rights (IPR) infringement. Those are longstanding problems which are growing in scope and magnitude. Quantitative analysis carried out by the OECD indicates that the volume of tangible counterfeit and pirated products in international trade could be up to USD 200 billion. With a figure like this, sales of counterfeit goods world-wide exceed the GDP of approximately 150 States on the planet. This figure does not, however, include counterfeit and pirated products that are produced and consumed domestically, nor does it include the significant volume of pirated digital products that are being distributed via the Internet. If these items were added, the total magnitude of counterfeiting and piracy worldwide could well be several hundred billion dollars more. In spite of all the efforts made up to now, counterfeiting and piracy are a plague that affects practically every economy on the planet and, what is more, they are expanding rapidly via various distribution channels that obviously include the Internet. In 2006, all the records were smashed with more than 250 million counterfeit articles intercepted at European borders, compared with 75 million the previous year. The number of seizures also exploded, increasing from 26,000 to 37,000 from one financial year to the next. Some see the rise in counterfeiting of goods as an inevitable product of globalization. As more and...
Words: 1458 - Pages: 6
...Topic Outline Crime and Cyber Risk RMI 4300-Klein Distinctive Features of Crime Risk Common Crimes • Burglary • Robbery • Shoplifting • Fraud • Embezzlement • Forger and Counterfeiting • Vandalism • Arson • Espionage • Computer Crime Fraud • Fraud involves inducing another to act to his or her detriment. • Examples of fraud • A merchant collects payment in advance for good that will not be delivered or will be greatly inferior to what was promised • A customer accepts delivery od goods with the interntion of not paying them • And inventor sells all rights to an invention that has been developed and patented by another • A unauthorized person acquired and uses the account number or pin of someone credit or debit card to change items to that person’s account Forgery and Counterfeiting • Both forgery and counterfeiting involve fraudulently creating or using false or unauthorized versions of currency, documents, artwork or other property that only specified entities or persons have the right to make or use or unauthorized versions of documents such as stock certificates, birth records, lottery tickets, licenses , passports or other papers that only government agencies or other entities can issue. • Two broad types of crimes losses from forgery/counterfeiting o Inducing an organization to accept falsified documents, etc, to exchange something od valye for something that is valueless o Impersonating an organization using and unauthorized or...
Words: 632 - Pages: 3
...Intellectual Property Theft in the Automotive Industry Scope, Trends, and Mitigating Strategies Table of Contents Introduction………………………………………………………………………………..3 Scope of Intellectual Property Theft………………………………………………………3 Intellectual Property Theft and China……………………………………………………..4 Intellectual Property Theft in the Automotive Industry…………………………………...5 The Subtle Pick-Off……………………………………………………………….5 Piracy and China’s Global Emergence…………..………………………………………..6 Consequences of IP Theft…………………………………………………………………7 Mitigating Strategies………………………………………………………………………7 The Autoweb Intellectual Property Exchange…………………………………………….8 Fusion-DX………………………...………………………………………………9 GlobalSource………………………………………………………………….…..9 Data Integration Services……………………………………………………….…9 GlobalSource...………………………………………………………………….…9 Integrated Translations…………………………………………………………….9 Autoweb Company Overview……………………………………………………10 Bibliography………………………………………………………..……………………11 www.autoweb.net 2 Introduction I ntellectual Property protection in the manufactured goods sector is not a new idea. Laws prohibiting manufactured goods counterfeiting and piracy activities existed as far back as the Middle Ages when bakers, artisans, and craftsmen used distinctive marks to distinguish their products and work from would-be counterfeiters. The general problems associated with modern day counterfeiting and intellectual property piracy have long been recognized, yet today’s high-tech economy has magnified the problem of...
Words: 3125 - Pages: 13
...Normandale, a retailer, sells high-end products in malls throughout the country. With Mathis’s high costs, Normandale is unable to make a profit from the sale of Mathis’s products. Countess Lori-Ann (CLA) is a Mathis competitor. Normandale sends photographs and samples of the Mathis line to CLA and instructs them to make an identical line at a lower price. Mathis labels are easily discernable in the photographs and the samples have the Mathis label attached. CLA copies the Mathis line for Normandale. CLA sells the clothing to Normandale at a low price allowing Normandale to sell the products for a total gross profit of nearly $3 million, an increase of nearly 50% over its sale of Mathis products. Mathis discovers that Normandale is selling counterfeit products, and sends several cease-and-desist letters to them—to no avail. Mathis then sues Normandale alleging Normandale has engaged in illegal conduct. Normandale counters that it did nothing wrong. Research business law in regard to protection of intellectual property, using your textbook, the Argosy University online library resources, and the Internet. Based on the facts of the case and research, write an analytical paper. In the paper, respond to the following questions: • Was it ethical for Normandale to sell the alleged knock-off products at a lower price? Explain. • What federal or state laws protect owners of intellectual property? How do they apply here? Explain. • What damages, if any, has Mathis suffered because of Normandale’s...
Words: 375 - Pages: 2
...competitiveness, trade, and investment in research and innovation. In 2007, EU Customs seized more than 79 million counterfeit and pirated goods and handled more anti-counterfeiting cases than ever before. A total of more than 43 000 cases were dealt with in 2007, up nearly 17% from 2006. These figures reflect the fact that seizures involving smaller quantities of counterfeit and pirated goods have increased. Comparing to 2006 we see an increase in almost all product sectors. Besides medicines, which have gone up by 51% compared to 2006, the 264% increase of intercepted articles for personal care is also a very worrying factor considering that creams, toothpaste and razor blades are amongst them. Another worrying sector is the one of electrical equipment in which we find fuse boxes, switches and other safety equipment under the seized goods. The increasing use of the internet to sell fakes (mainly medicines) and the fact that the high quality of fakes often makes identification impossible without technical expertise, increases the challenge customs face. One of the reasons for this explosion in trade in fakes is that criminals can now produce them on an industrial scale. This provides increased profits and a lot of international criminal organisations are now involved in counterfeiting. It is also believed that terrorist groups are involved in counterfeit and piracy as a means of financing their...
Words: 261 - Pages: 2