Counterfeit

Goods

The term “counterfeiting” commonly refers to:

the unauthorized reproduction of goods protected

by an intellectual property right.

In Canada, intellectual property rights are extended to:

patented inventions registered trademarks

copyright material industrial design

integrated circuit topography

Generally speaking, registration of these rights gives the owner protection against unauthorized use of the intellectual property.

The value of counterfeiting is estimated by the OECD to be in the region: $250 billion per year

while the World Customs Organization has identified counterfeit products destined for 140 countries.

Fraudulent medicines:sales from Asia to South-East Asia and Africa alone amounting to some $1.6 billion per year.

It is estimated that one third of malaria medicines used in East Asia and sub-Saharan Africa are fraudulent.

PHARMACEUTICALS

Wholesale Distributors

Group Provider

Organizations

Hospitals

RetailersClinics

Physicians andprofessionals

Raw Materials

Pharmaceutical Supply Chain

ELECTRONICS

VIDEOhttp://abcnews.go.com/2020/video/inside-500b-world-counterfeiting-24136999

https://youtu.be/pEshiF3Hz3c

CostSales

Lead TimesSecurity

Often the temptation for consumers can be too strong to resist, with many not understanding the risks and ramifications attached to this illicit industry.

Buying a counterfeit handbag or pair of jeans, for example, might not be regarded as an illegal transaction - simply a cheaper way to wear the latest fashion goods.

However, often little thought is given to how the money may ultimately end up in the hands of organized crime groups or how the industries that rely on legitimate sales suffer.

The flood of counterfeit and pirated products creates an enormous drain on the global economy by creating an underground trade that deprives Governments of revenue for vital public services and imposes greater burdens on taxpayers.

 

Lost sales

Counterfeit goods also undermine employment, as products are copied and produced illegally, thereby displacing sales of original merchandise and reducing the turnover of legitimate companies.

In just the last couple of years, supply chains around the world have been shaken up by a series of unexpected events and developments. Volcanoes in Europe and South America have disrupted airfreight routes and schedules.

Lead time

The Japanese earthquake, tsunami, and nuclear power disaster confirmed the fragility of extended supply chains. Political instability continues to wrack the Middle East. Wages and currencies have been rising in China and other relatively low-labor-cost countries (LLCCs). Transportation costs have soared along with crude oil prices.

Several causes on inbound lead time variability:

Transportation schedules

Capacity limitations

Equipment shortages

(e.g. rail cars, especially for shipments into ports in the west that are moved via rail to the

east)

Inspections/customs

Misrouting

Data errors that delay processing

Weather

Labor issues

Security

EconomicAccording to most estimates, businesses worldwide are losing between $600 billion and $700 billion annually to the black market trade of counterfeit goods and theft of intellectual property.

A large majority of these goods include clothing, handbags and multi-media products like CDs and DVDS, but more recently, counterfeiters have delved into pharmaceuticals and car parts, putting a large portion of the public at risk.

Check the internet constantly to see if anyone is selling counterfeit versions of your product

It therefore behooves you to do your utmost to conduct business with well-run and reputable companies and to keep your eye on them nonetheless.

Do something to stop counterfeiters once found. When we find someone on the internet selling counterfeit versions of our clients’ products, we typically send the seller a cease and desist letter. If, as is usually the case, the seller is based in China, we send that letter in both Chinese and in English. 

ANIL KUMARCARL VINCENT ALBAN

DEVIKA BALCHAND