Product Counterfeiting & Illicit Markets

Product counterfeiting is a serious, global problem that is increasingly attracting the attention of academics, businesses, brand protection practitioners, law enforcement, and transnational organisations. Previous research found that consumers’ confusion over the definition of the “counterfeit” term fuels the illicit trade. This paper examines definitions published across a range of sectors and shows that there is little consensus as to the meaning of the “counterfeit” term. It has become chameleon term, appearing in different guises depending on the author’s purpose…

For firms operating in the global marketplace, effective brand protection is a critical defence against competitive risks. Firms allocate resources both internally and externally to protect their brand from the threat posed by counterfeit products. However, little is known about firms’ brand protection resourcing in general, and their reliance on external professional suppliers in particular. Drawing on prior research and interviews with anti-counterfeiting and brand protection practitioners representing 35 multi-national firms, this study provides actionable insights into the resourcing problem.…

An important recent trend is the increased role of social media influencers in facilitating the trade. Influencers are regarded as trusted opinion leaders in their online communities, so their views matter to followers. Rights holders leverage this trust by offering products to influencers who can help promote them. However, some complicit influencers promote the illicit wares whilst reassuring potentially susceptible followers that buying counterfeits is both rational and acceptable. Previous research commissioned by the Intellectual Property Office (IPO) focused on…

Online marketplaces have developed over the past 20 years into a vigorous, innovative and hugely successful industry. It supports large corporations and empowers emerging entrepreneurs by connecting them with customers across the globe. However, there is a dark side to this success: it also facilitates the trade in counterfeit goods. In contrast to other facilitative industries, such as logistics and payment providers, online marketplaces attract special attention because the visibility of the counterfeits in their shop windows create obvious opportunities…

Product counterfeiting is a large and global economic crime that causes significant economic, social and personal harms. Facilitated by the efficiency and convenience of e-commerce, finding and buying counterfeits have never been easier. Going beyond product listings on websites, counterfeiters are now using sophisticated marketing techniques to promote their illicit wares. This includes employing deviant social media influencers who violate social norms and the law to peddle counterfeit goods via channels such as YouTube and Instagram. However, very little is…

***WINNER OF THE AMERICAN SOCIETY OF CRIMINOLOGY DIVISION ON WHITE-COLLAR AND CORPORATE CRIME OUTSTANDING BOOK AWARD*** Product counterfeits and other brand infringements represent a growing and substantial risk to firms, consumers, and society. While policing such illicit activity is important, there is much that firms can do to protect themselves and their customers. Grounded in field research and practice, this book presents a total business solution approach to brand protection that enables firms to prevent infringement from occurring and respond…

Brand protection practitioners struggle with several common questions. These include the nature of the risk, its size, articulating the need for resources to address it, effectively allocating these resources, and demonstrating the value of a brand protection program. Little systematic research has been available to help practitioners address these questions. This volume reviews the principles of a total business solution for brand protection and means for implementing it. Its chapters on assessing the nature of product counterfeit risk discuss how…

Though the value of their brands is among their most valuable assets, firms may have little in place for brand protection. Those that do have brand protection programs in place often rely on reactive actions rather than including strategies for prevention as well. This chapter introduces the elements of a total business solution program model for a brand protection program. This model goes beyond initial reaction to a brand protection problem and describes a proactive solution. Its elements include problem…

Previous research notes several strategies that firms may use to address product counterfeiting but offers few integrative approaches. Many current approaches are ‘siloed,’ with little interaction across functions. A total business solution for brand protection promotes a holistic approach that integrates and coordinates all parts of the firm for brand protection. To better understand the tactics that firms may use in a total business solution to brand protection, we asked 42 experts and practitioners to identify the tactics that a…

Much academic research on product counterfeiting is disjointed and sporadic. It focuses on topics such as prevalence and not on tactics for reducing counterfeiting. Nevertheless, academic research on tactics can offer insights to practitioners. Such research is likely to be more independent, comprehensive, and rigorous than what researchers can do for themselves. This chapter reviews academic research on anti-counterfeiting tactics that businesses may use. It compares the distribution by category of such tactics with those that practitioners offer. While practitioner-suggested…