Moreover, counterfeiters use low-quality material in the construction of these goods. They try to sell low-quality material by using the name of popular brands so that they can attract more customers. Unfortunately, it has become a great business now.

The anti-counterfeiting market suggested that this business has reached $128.6 Billion by 2019. In 2013, the Department of Homeland Security has taken over counterfeit goods of $1.7 Billion at US borders. Illegal trade of goods has been reached up to the US $917 billion years. Whereas digital piracy in movies and software has been extended up to US$213 billion in 2015. This growth is increasing rapidly because of consumer demands. 

Which type of Product can Be Counterfeited?

Almost every product or goods can be counterfeited. These products include accessories, music, songs, software, medications, cigarette, automobiles, cars, parts of the airplane, consumer goods, toys, and electronics. 

What are the Disadvantages of Counterfeiting?

Counterfeiting has a harmful effect on society and business. It has enormously decreased economic development. There are the following ways that how counterfeiting is damaging our society.

• Loss of Economic Activity

People knowingly buy counterfeit products because these products are affordable as compared to the original ones. It implies that companies face competitors that steal their intellectual property without the owner’s consent. These competitors or third parties illegally use the company’s product without paying them taxes or following other rules.

These competitors replace the original creators or companies, which in turn discourages them. Sometimes, the creators start using the same process, and hence, economic development will suffer greatly. The ICC Business Action to Stop Counterfeiting and Piracy (BASCAP) suggests that counterfeiting has replaced authentic economic activity of US $470 billion to US $597 billion in 2013.

• Reduced public money for roads and schools

Businesses generate great tax revenue for the government. The business provides corporation tax, income tax of employees, and sales tax. The BASCAP report indicates that displacement effects cause a decrease in sales tax, which is about the US $89 billion per year. It implies that there is a decrease in government revenue. So, there are fewer funds for the development of roads, hospitals, and schools.

• Decreases innovation

Counterfeiting also affects the foreign direct investment (FDI) of a country so it also reduces innovation. Modern and advanced economies get productive gains and tremendous growth through foreign direct investment (FDI). As intellectual property rights trigger FDI, similarly when IP rights are not enforced it can largely affect FDI. Specifically, IP-sensitive areas such as the construction of equipment and pharmaceuticals suffer a lot.

• Biggest crime

Counterfeiting and piracy are not only the biggest crimes but also paves the way for other crimes. These crimes support a great variety of crimes by giving illegal funds. Hence, it in return builds up criminal organizations and it becomes more difficult to eradicate these crimes from society.

• Serious Health Hazards

Counterfeits products are not made from quality ingredients so it can cause a severe health hazard. These products are not constructed under the standard construction procedure and have not followed general instructions thus it is dangerous to use these products. For example, in Russia, 17,000 people died in 2012 due to the consumption of counterfeit beverages.

Protection from Counterfeiting

Nowadays, companies greatly focus on the brand’s reputation and the integrity of products. So, there are the following ways to protect your products from counterfeiting.

• Safe global protection of IP

You need to get a patent, trademark, or copyright if you want to avoid other manufacturing and using your products without your consent. Moreover, you can also register them in different countries especially where counterfeit products are manufactured.

• Embrace technology

Without technology, it is not possible to examine counterfeiting. Therefore, the business uses technology to predict and stop counterfeiters. You can also use various patterns or packaging that can be detected only with specific devices. These high technology devices enable you to differentiate between fake and authentic products.

• Keep it easy for consumers

Various people will not use counterfeiting products after a very bad experience. Therefore, you must provide enough information that consumers can identify authentic products. This information can be a product description or anything. Moreover, if consumers think that they got a counterfeit version of your product then they will report it easily.

• Specify resources to find counterfeiters

You need to search for counterfeiters who are destroying your brand’s reputation. For this, you need to examine the market thoroughly and break the channels of the counterfeiters.