IP Outreach Research > IP Crime
Reference
| Title: | Preserving intellectual property rights: Managerial insight into the escalating counterfeit market quandary |
| Author: | Peggy E Chaudhry [Villanova University], Alan Zimmerman and Jonathan R Peters [City University of New York], Victor V Cordell [Cordell Associates] |
| Source: | Business Horizons 52, no. 1: 57-66 |
| Year: | 2009 |
Details
| Subject/Type: | Counterfeiting |
| Focus: | Brands (deceptive counterfeits), Brands (non-deceptive counterfeits) |
| Country/Territory: | United States of America |
| Objective: | To collect data from US managers regarding their views on global protection of intellectual property rights and on effective anti-counterfeiting strategies. |
| Sample: | 16 international business managers in the US |
| Methodology: | In-depth interviews |
Main Findings
Managers rate the following product attributes as important when it comes to distinguish legitimate from counterfeit products: price (88%), point of purchase (88%), slight difference in brand name (75%), and packaging (56%).
Their most frequently used anti-counterfeiting tactics are: attempting to educate channel members (e.g. by warning distributors and retailers of possible damages from selling counterfeits); lobbying international organisations for stronger protection against pirates; focus on the pirates themselves (e.g. by creating a company enforcement team); and internal strategies (e.g. educating employees, acquisition and joint venture strategies to minimise counterfeiting, etc). Managers would not likely target actions at consumers, nor would they frequently lobby home or host governments.
According to the respondents, the five most effective anti-counterfeiting actions are: “registering trademarks/patents”; “encouraging distributors to notify manufacturer”; “educating employees about counterfeit goods”; “educating channel members”; “warning distributors and retailers about possible penalties”.
The five least effective anti-counterfeiting strategies are: “acquisition/joint venture with counterfeiter”; “aggressively cut prices”; “provide financial incentives for distributors/retailers to reject counterfeits”; “offer site licenses (software)”; “stress the harmful effects of counterfeiting in advertisements”.
The authors highlight the following managerial implications: “manage the registration of all trademarks and patens in key markets”; “establish a formal or informal enforcement team”; “create a monitoring program to quickly funnel any information about counterfeits to a central information repository”; “develop a multi-pronged action plan with programs directed at employees, your distribution channel, local law enforcement, and international organizations”; “prepare to fight pirates by investigating retailers and distributors as well as manufacturing sources, pursing injunctions, and working with local law enforcement”.
[Date Added: Oct 22, 2008 ]