THREE IMPORTANT REASONS NOT TO BUY COUNTERFEIT OR PIRATED PRODUCTS
Most people in the United States who knowingly buy counterfeit products do it simply because they don’t understand why they shouldn’t. Professionals in our business, at a minimum, should explain at every opportunity the three reasons not to buy counterfeit or pirated products. Most people, regardless of education level, do not know this information.
The three reasons no one should buy counterfeits or pirated goods and my thoughts on what to convey:
Think about it. Counterfeit manufacturers don’t care about the consumer past the point of purchase. At the same time, any product you buy which comes into contact with your skin has the potential to harm you. Match these two facts together for a witch’s brew of toxic products. Even items most people think of as innocuous, like purses, watches, and clothing, can hurt you. Strange smells coming out of that fake handbag? It should make you wonder what chemicals went into it. What about that counterfeit watch? The metal that is in contact with the skin on your wrist for hours at a time could potentially be seeping dangerous heavy metals like mercury, cadmium, or lead into your body. Own a fake sports jersey? Yes, even clothing can be dangerous. Lead is an element we outlawed in paint years ago – but counterfeiters have no compunction in using it. In 2017, tests done on a load of counterfeit backpacks made for children showed illegally high levels of lead (IPRC Connections, August, 2017). This was not likely an isolated case. Counterfeits are often sold at a much lower price point than the original, insidiously exploiting those looking for discounts.
Pirated movies, music, and software, usually delivered by streaming, downloading, peer to peer software, or even thumb drives, are not safe either. By inviting a pirated product into your system, you allow someone you don’t know access to all your data, including financial and other stored information, while allowing them to introduce malware, spyware, ransomware, viruses, and allow botnet commandeering.
Transnational organized crime accounts for a significant amount of counterfeit sales. The FBI considers counterfeit goods a “keystone” of transnational organized crime (FBI.gov) and the United Nations Office on Drugs and Crime (UNODC) notes “…organized criminal groups have not hesitated to cash in on the trade in counterfeit goods…” (UNODC, Focus On the Illicit of Counterfeit Goods and Transnational Organized Crime).
Counterfeit sales have also been linked to terrorism and human trafficking in several instances. There are countless examples of counterfeit product distributors using human trafficking as a source of low-cost labor, with the added advantage that their victims are less likely to talk to the authorities. These criminals are the worst of the worst. Don’t donate to their cause.
Counterfeit goods sales steal money away from legitimate companies and owners of the original products. When companies do not have access to that revenue, they have less money to hire workers. In addition, there are no taxes charged on counterfeits, since they are usually sold on the black market. This erodes the tax base and ability of a government (local and federal) to support its citizens. That means less money for schools, roads, and law enforcement. Lastly, people who make their living from creativity (painters, artists, and writers, as well as inventors, software designers, and problem solvers of all stripes) don’t last long in places where their ideas are stolen. They often either move somewhere where they feel safe to create, or worse, stop creating.
GLOBAL EFFECTS
Although manufactured primarily in China, the effects of counterfeit products are global. The People’s Republic of China is one of the worst sources of violations of IP rights in the world. According to the Organisation for Economic Cooperation and Development, China and Hong-Kong, the latter of which is a significant transshipment hub, “have been dominating global trade in counterfeit goods” (OECD/EUIPO, 2019 Trends in Trade in Counterfeit and Pirated Goods). These counterfeit products displace genuine goods, often manufactured in developing countries. Although some steps are being taken in China and elsewhere, there is no reasonable expectation that the flow of counterfeit goods will significantly lessen anytime soon. We need to complement interdiction efforts with a concerted effort to raise consumer awareness of the dangers of counterfeit products to do what we can to reduce demand. This starts with dispelling the misconceptions that people may have, because, in fact, counterfeit products are not safe to use, the profits go to bad people, and counterfeit sales undermine economies.
THE BRAND PROTECTION PROFESSIONAL | MARCH 2020 | VOLUME 5 NUMBER 1
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