Essay On Counterfeit Products

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Introduction: Assets, such as goodwill and brand, constitute a significant share of equity capital of many companies. They are often the result of enormous investment in R&D, careful brand management and consistent commitment to high quality, reliability and exclusivity. However, the rise of emerging countries, markets in Asia - where these intangible assets are difficult to protect - and more generally trend towards dismantling border controls to facilitate the flow of international trade, and integration and increasing interaction between organizations in disparate places require new measures to protect assets and safeguard companies against unfair practices competition. Counterfeit products in particular - the unauthorized manufacturing articles that mimic certain characteristics of genuine products and that can pass themselves as products registered trademarks of their lawful societies - has developed into a serious threat to legitimate businesses and consumers. The effects of counterfeit branding for manufacturers and brand owners are multi-faceted. On one hand, companies are likely to face a loss of income due to substitution effects from illegal goods and constraints on product prices, inferior imitation of products that are difficult to differentiate from original products may reduce the quality level associated with a product or company. In addition, a large number of low-cost fakes can reduce the perceived exclusivity of luxury products. On another…show more content…
Buyers can purchase counterfeit goods, either because they are not aware of the underlying intellectual property infringements (misleading fake) or knowing full well the illegality of the product (non-deceptive counterfeiting). In both cases, consumer behavior and sales tactics illicit actors are different, and both have implications on brand owners and

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