...The topic I have selected for research is counterfeiting. Many of us know that counterfeiting is a growing problem throughout the world. Most countries have some trade in counterfeit goods, but some have become notorious for producing and exporting large quantities of fake goods. One of the largest is China. China is the world’s largest producer of counterfeit goods, and has the largest market for counterfeit goods. Counterfeiters employ between 3 million and 5 million people in China alone. Does this mean it is acceptable in behavior in Chinese culture for counterfeiting? What are the impact and cost to the China and the rest of the world? And what are the Chinese government and other countries doing to fight back against counterfeiting. These are all question I’m going to address throughout my research paper. Why is counterfeiting so wide spread throughout China? Counterfeiting is a problem with various causes. One reason is China’s traditional culture that has deep roots in the Chinese mind. With a relatively short history of intellectual property laws and an unbalanced enforcement system, has allowed the growing spread of counterfeiting. China has a population of more than 1.3 billion people, which is that largest in the world; it has 56 different nationalities with a highly diversified culture; and a history that dates back to 2100 BC with four different eras. Chinese culture does not allow for a monopoly. The culture that has dominated China...
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...Counterfeiting Counterfeiting is one of the oldest jobs in the world. Basically if there is a way of even trying people would do anything to make money and take advantage of the benefits of having money. Many people try to produce “fake” money however even though the standards are so high and the chances are small, more and more people get a way of falsifying money. Most of these bills are sold to drug dealers, and they are little by little “washed” and spread across the country. There are bad bills, the ones that cannot pass certain checks, and there are the good ones, made by people like Art Williams. The bills that someone is trying to “master” over the years, the bills that someone puts so much effort into that is considered almost a pure hobby. For Art Williams counterfeiting money was not all about the benefits that money could bring, as much as it was for his accomplishment as being a master in what he does. Even though that was against the law. Banks have tried for years to design money in different ways just so less and less notes are provoking loss among customers. “A secure design offers a means of avoiding counterfeiting by reducing the profitability of doing so, but comes at the price of higher production cost for the central bank.” (Y. Lengwiler) If the notes are overlapping, as soon as they are in circulation and the bank realizes that there are more money out there than they should be, the cost of things is raising...
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...Control strategies, prevention and reduction of counterfeiting, as applied today in different countries, pose, in the particular case of China, a real problem at two levels. On the one hand, knowledge of the motivations and logics that lead to the consumption and purchase of counterfeit products remain inadequate, given the different needs of consumers, on the other hand, they pose a problem coping methods counterfeiting reduction, to the extent effective strategies were designed for a transnational action against the proliferation of counterfeiting. In this paper we analyze, using the individual interviews method, firstly, the logical and motivational factors that lead to the consumption of counterfeit luxury goods,...
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...What are counterfeiting and piracy? 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...
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...Suraj Commuri The Impact of Counterfeiting on Genuine-Item Consumers’ Brand Relationships An often-overlooked constituent in the debate on counterfeiting is the consumer of the genuine article—a brand manager’s primary constituent. These consumers are drawn to premium brands in part because of the exclusivity and connotation of prestige associated with them. These characteristics are also the reason such brands are attractive targets of counterfeiting. When premium brands are counterfeited, which in turn gives a variety of consumers access to them, how do consumers of the genuine items react to the erosion of exclusivity and prestige? An investigation involving premium brands in Thailand and India reveals that consumers of genuine items adopt one of three strategies when faced with the prospect of their favorite brands being counterfeited: flight (abandoning the brand), reclamation (elaborating the pioneering patronage of a brand), and abranding (disguising all brand cues). The author examines these strategies in detail, revealing how the potential loss of exclusivity and prestige can either drive genuine-item consumers away from the brand or impel them to make strong claims to their patronage. Keywords: counterfeits, counterfeiting, brand relationships, conspicuous consumption, fashion, competitive consumption irms invest substantially in building their brands. In some product categories, such efforts are aimed at making a brand prestigious and exclusive. For brands...
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...3 Strategies to combat counterfeiting Extensive research on measures and strategies to combat counterfeiting has been con-ducted. Those strategies against counterfeiting can be taken in different areas and have to be seen as complementary. This part of the paper analyses approaches measures and strategies that have been formulated and discussed by relevant literature. 3.1 Legal strategy The first strategy that is often suggested is the legal prosecution of counterfeiters. De Chernatony and McDonald (1988) write that registration of trademarks and patents are of paramount importance for successful brand protection strategies. Hoecht and Trott (2014), on the other hand believe that this common approach is of little success and does not combat...
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...Modelling the Counterfeiting of Bank Notes: A Literature Review Ben Fung and Enchuan Shao, Currency Department • Ensuring that the threat of counterfeiting remains low is critical to maintaining the public’s confidence in bank notes as a means of payment . In the past 50 years, Canada has experienced two major episodes of counterfeiting at levels that threatened public confidence . The Bank of Canada has since developed a comprehensive anti-counterfeiting strategy that has brought counterfeiting under control and that supports public confidence by staying ahead of counterfeiters . Research that models the behaviour of relevant parties—the counterfeiters, the merchants and the central bank—helps to improve our understanding of their respective decisions: whether or not to produce counterfeit notes, whether or not to verify and accept bank notes offered, and what level of security to apply to bank notes . This research also sheds light on the importance of policies against counterfeiting . • I n June 2011, the Bank of Canada unveiled its new $100 and $50 notes to the public. The Bank’s new series of polymer bank notes, which incorporates innovative security features that are not only easy to verify but also difficult to counterfeit, marks a significant advance in counterfeiting deterrence. Issuing new, more-secure bank notes is one of four components in the Bank’s comprehensive anticounterfeiting strategy, which was developed during the most recent episode of high levels...
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...Different treatments against counterfeiting Counterfeiting is looked at differently in US and in China. As a large contributor to the Chinese GDP the Chinese government looks the other way when it comes to enforcing intellectual property infringement. The Industry and Business Administration are in charge of regulating intellectual property infringement in China. When reports are filed the 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...
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... Product Counterfeiting in China and One American Company’s Response A Case Study and research report on corporate activity relating to national security and strategy Prepared for the Director of the Secretary of Defense Corporate Fellowship Program by David J. Clark Lieutenant Colonel United States Army Secretary of Defense Corporate Fellow Dr. Clayton Chun Project Advisor The views expressed in this academic research paper are those of the author and do not necessarily reflect the official policy or position of the U.S. Government, the Department of Defense, or any of its agencies. It also does not reflect any policy or position of Pfizer Incorporated. U.S. Army War College Carlisle Barracks, Pennsylvania 17013 - This Page Intentionally Left Blank - ABSTRACT AUTHOR: Lieutenant Colonel David J. Clark TITLE: Product Counterfeiting in China and One American Company’s Response FORMAT: Civilian Research Project DATE: 4 April 2003 PAGES: 36 CLASSIFICATION: Unclassified When America, the world’s largest economy, interacts with China, the world’s most populated country, matters of strategic and global importance are inevitably raised. Using his fellowship position in a major U.S. corporation as a vantage point, the author describes the impact of counterfeiting of consumer products and how an American corporation is responding. China is a known major market for “knock-off” products and counterfeiting production....
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...stores can be found in upscale shopping district and inside high end department stores or through ecommerce section of its website to ensure authentic LV products. LV grows its business by extending its product lines from women’s collection to men’s collection. LV make use of prestigious stars, high profile celebrities, models, musicians and actors for the launching of marketing campaigns. LV is one of the most counterfeited brands. However, the counterfeiting is not always negative whereas some positive effect can be created instead. From LV perspective, the counterfeiting issue triggers LV to redefine its marketing strategies time to time. It speeds up LV to design innovative and creative products to lure customer in order to position itself as a trendy and fashion brand. For pricing strategy, LV never have discount promotion to differentiate it from low end and counterfeiting products. Instead, VIP programme is launched to reward loyal customers. LV closely controls the distribution channels of its products to minimize counterfeiting. LV products are mostly available at authentic LV boutiques. The boutiques in department stores operates independently and have their own LV staff....
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...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...
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...manufactured goods counterfeiting and past twenty years has caused immense piracy activities existed as far back as economic harm to legitimate goods the Middle Ages when bakers, artisans, manufacturers, as well as amplified and craftsmen used distinctive marks to health and safety concerns. In order to distinguish their products and work from mitigate the risks associated with would-be counterfeiters. The general increased levels of intellectual property problems associated with modern day theft, manufacturers must assess their counterfeiting and intellectual property intellectual property strategy and adopt piracy have long been recognized, yet more sophisticated methods of today’s high-tech economy has protection to keep pace with today’s magnified the problem of intellectual more refined counterfeiting operations. property theft, allowing counterfeiting Scope of Intellectual Property Theft T he illicit business of copying other’s products and designs and selling them as cheaper, usually substandard dollars from the global economy. In 1996, this figure jumped to as much as an estimated $200 billion. The look-a-likes is an underground industry economic value of global counterfeiting worth billions. In a written statement in 2003 is estimated at $500 billion. before the Senate Committee on the Various organizations, including Judiciary, Thomas J. Donohue, President Interpol, estimate that the trade in and CEO of the U.S. Chamber of counterfeit goods ranges...
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...competitive sectors. Businesses are advised to use contracts in regulating all relationships that delve on IP rights. Special IP courts have been created to resolve possible violations including piracy and counterfeiting. Italian law recognizes and protects all standard classes of intellectual property, including patents (industrial inventions, utility models, designs and models, plant varieties, semiconductor topographies), trademarks and service marks, and copyrights. The IP codes definition of intellectual property covers designations of origin and geographical indications, which reflect the definitions, set by the European Union. Registration does not provide protection of corporate confidential information, but the code states that using or revealing confidential corporate information to third parties is illegal. Italy has progressively strengthened penalties for counterfeiting in recent years. Law 99/2009 of August 3rd 2009 increased the fines and set prison terms for counterfeiting. Trademark counterfeiting became punishable with fines of and prison sentences of three months to six years. Earlier legislation only allowed confiscation of the counterfeit goods. The new law allows confiscation of goods of an equivalent value. The law provides for creation of a National Counterfeiting Council, an upgrade of the monitoring committee that existed previously. It is important to use contracts to regulate all relationships involving intellectual-property rights. Investors should not...
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...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 intellectual property theft, allowing counterfeiting and piracy activities to flourish.1 A rapid increase in intellectual property rights violations throughout the world in the past twenty years has caused immense economic harm to legitimate goods manufacturers, as well as amplified health and safety concerns. In order to mitigate the risks associated with increased levels of intellectual...
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...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 fits needs for a broader range of customers, especially in developing countries. People buy the Shan Zhai products not because they are convinced that the product is original, but because they need the cheaper counterfeits. Even though some counterfeiting products are labeled with famous brands, this won’t make the product more valuable, but it’s more like showing the worship to the big brands...
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