Curbing counterfeits

A new generation of designer brand obsessed Nigerian consumers are prepared to risk their lives and health in order to flaunt their status. Counterfeit goods have gone mainstream. The spread of E-commerce has made it possible for more foreign made goods to enter our shores, among them a flood of fakes, fueled by the internet. Counterfeit goods cost Nigerian businesses billions of naira in lost revenue annually. The attitude of consumers towards this issue is paramount in curbing it.

Counterfeiting simply means to make a copy of an original usually with the intent to defraud; to make fraudulent copies of something valuable. An imitation of what is genuine with the intent to defraud: e.g.: a counterfeit naira notes… etc.

It is believed that the illegal business accounts for between 10 per cent of world trade. Product counterfeiting is a form of consumer fraud: a product is sold, purporting to be something that it is not.

Counterfeiting is the unauthorised application or use of a trade mark on goods that do not originate from or were not made under license from the brand owner. Fake products are designed to imitate the original products, with the intention of deceiving customers into believing they are buying genuine goods.

The increasing economic losses to the rising wave of counterfeiting and its danger to the Nigerian economy, as it is to other economies around the world, has propelled key stakeholders in the Nigerian economy to renew calls for concerted efforts directed at tackling the menace of counterfeiting in the country.

“The volume of counterfeit goods in Nigeria is about 60 – 80 per cent based on a survey recently conducted in pharmaceuticals, luxury goods, software and computer hardware, audio and visual sector, motor vehicle spare parts, food and beverages.”

Counterfeiting exists in virtually all the sectors of the nation’s economy. Counterfeiters, who according to Organisations for Economic Co-operation and Development (OECD) are often linked to organised crime, are becoming increasingly sophisticated in their methods, making it more difficult for customers to recognise counterfeit products.

Counterfeit products are not only potentially harmful to consumers but also have a negative impact on the local economy and on supporting local innovation.

When it comes to counterfeit devices, it is a buyer’s market. As long as there is demand, there will be supply. So, we have to work together to highlight the dangers that these substandard devices pose to the health and well-being of the people. Basically to get them better informed thereby eliminating demand for these devices.

National Mirror checks at various IT/electronic products markets across Lagos metropolis including, but not limited to, Alaba International Market and Computer Village IT market at Ikeja, revealed that counterfeit products still thrive in Nigeria.

It was found that products ranging from home electronic appliances, software products and applications, hardware and printing consumables such as cartridges and the likes, have counterfeit versions being sold to unsuspecting customers either at slightly lower rates than the original products or are sold at the same price. Most customers are hardly conscious that they are being sold fake products.

However, counterfeiting is not peculiar to Nigeria alone as studies have shown that counterfeiting impacts global trade through lost revenue, damage to brands and negative effects on hard – earned reputations and consumer confidence.

According to Business Action to Stop Counterfeiting and Piracy, the anti-piracy consortium of International Chamber of Commerce estimates the yearly global economic and social impact of counterfeiting and piracy valued at $ 680 billion.

Also, the World Customers Organisation and the ICC believe that counterfeiting drains an estimated amount of 600bn euro per year from the global economy; and this is equivalent to the loss of about 5-7 per cent of trade in brand – name goods worldwide.

In addition, it is estimated that around 2.5 million jobs are lost due to counterfeiting across G20 economics alone. Similarly, a survey by the ICC and IFO economic research considered counterfeit products and the theft of intellectual property among the most pressing problem of global business today.

Experts say economic losses to hardware counterfeiting and software piracy has been hurting the nation’s economy. A recent world economic forum report presents Nigeria among the countries where the manufacture and distribution of fake printing supplies and other illicit merchandise is widespread.

We believe that if the average consumer is aware of the potential hazards that he exposes himself to every time he purchase a counterfeit device, chances is that he would have a rethink. The need for all hands to be on deck in public enlightenment about the dangers of counterfeit devices cannot therefore be over emphasised. The more people are aware of this danger, the less vulnerable they become. The bait of cheap prices of these counterfeit devices becomes less attractive.

Counterfeiting of luxury goods

Counterfeiting is generally perceived by society as a victimless crime with ‘fakes’ simply constituting a cheap alternative purchase, and seen by criminals as having a low risk of prosecution with light penalties relative to the large profits to be made.

It is not only damaging to businesses and investment opportunities but is having a negative impact on society and the global economy.

Trade in counterfeit goods is a lucrative and growing area and there is increased evidence to show that in addition to the historical links between counterfeiting and organised crime, some terrorist groups are now also using this type of trade to finance their activities worldwide.

The range of counterfeit product is extremely broad and the trends indicate that counterfeiters no longer confine their activities to luxury goods but are increasingly exploiting everyday consumer goods such as baby food, medicines, cosmetics, aircraft and vehicle parts. This is not only illegal but constitutes a serious threat to public health and safety since these counterfeit products are not subject to safety checks.

Companies and industry associations report that the quality of packaging used by counterfeiting is also improving making it difficult for both consumers and enforcement personnel to distinguish between real and fake goods. Counterfeiters have often shown that they are well organised, adaptable and are now using more covert and sophisticated measures to avoid detection and persecution.

Counterfeiters are increasingly shipping their products around the world for final assembly and distribution, thereby minimising the risk of seizures of the countries where components are produced. Trademark owners are increasingly finding counterfeit production and distribution operations in Russia and the former Soviet Republics, China, India, The Philippines, the Middle East and Africa and some Latin America countries. Intellectual property crime costs the public and business hundreds of billions naira every year, and in addition to the financial issues.

Damages investment and innovation;

Has potentially disastrous economic consequences for small businesses; Almost always escapes taxation, because goods are either smuggled into countries or come in with forged or invalid documents; Diverts government resources from other priorities and creates a strain on the limited assets available to law enforcement and other government bodies that must deal with counterfeit problems.
10 most counterfeited goods in the world

Handbags, purses, wallets

Let’s be honest. We all know someone who owns a fake Prada or Gucci handbag. That’s because when it comes to counterfeit goods, knock-off handbags, purses and wallets reign supreme. Guess, Hermes, Givenchy and Versace are all popular global brands that are regularly counterfeited and sold for cheap.

Fake handbags are most popular, but so too are branded purses and wallets. The reason for this is simple – the real item costs too much money. Prada handbags sell for as much as N1.2 million Why pay that much when you can get one that looks identical to the real thing for N12,000 in the street? And the fake handbags, purses and wallets look very close to the real product. The logos are slightly different, but the style, design and colors are nearly identical to the real brand. And it is this proximity to the true brand that makes the investment in a counterfeit handbag worth the risk for many people. Just don’t tell that to the police.

Watches

More people are walking around with a fake Rolex on their wrist than we’d like to acknowledge. Fake watches continue to be among the most pervasive and popular counterfeit goods around the world. Seemingly every conceivable brand of watch – Rolex, Omega, Tissot, Hublot, Seiko, Swatch— seems to have a counterfeit version. And they are widely available for sale in most places. While a real Rolex can cost N21 million or more to purchase, a fake Rolex can be had for as little as N8,000 from a street vendor. And while the quality of the counterfeit item is not great, the fake branding is increasingly sophisticated and believable. People can be forgiven for finding it difficult to spot a fake Tissot watch from the genuine article. The branding by counterfeiters has gotten that good.

Jewelry /accessories

From a Cartier necklace to Tiffany earrings and Ray-Ban sunglasses, jewelry and fashion accessories are among the most often seen counterfeit products. Fake jewelry and sunglasses are regularly put on display along busy streets in major cities such as Lagos and Abuja.

They are the counterfeit items many of us are most familiar with. This is because fake jewelry and accessories such as sunglasses are typically the cheapest items to counterfeit and sell. And they are popular with tourists and people who are willing to spend money on vacation for a decent looking bracelet or pair of shades. Of course the quality of these items usually leaves something to be desired. But for N500, can you really go wrong with a pair of ‘Bay-Ran’ or ‘Ray-Bun’ sunglasses.

Smartphones

Everybody wants the latest Apple iPhone or Samsung Galaxy smart phone. However, top brands of these devices are expensive and out of reach for many people, particularly teens and young adults. And it is this high price point that is fueling the rapid rise in counterfeit smart phones. Tech experts say that the counterfeiting of smart phones is overwhelming the industry, while law enforcement peg consumer electronics as the fastest growing area of counterfeit goods around the world.

Sneakers/shoes

Whether it is a pair of Nike sneakers or Jimmy Choo pumps, knock offs of popular footwear brands is big business for counterfeiters. Nike shoes are the most knocked-off brand in the world. People all over the world seem willing to pay for fake footwear that is close to the real brand but at about 10 per cent of the cost.

In fact, fake shoe brands have gotten so good and so sophisticated that law enforcement agencies admit it is increasingly hard to spot counterfeit footwear. Last year, executives at Nike stated that for every one pair of legitimate Nike sneakers sold in the world, there is a fake pair sold as well. Among the most popular counterfeit shoes are Nike Air Jordan, Puma, Fendi and Doc Martins. And, the sale of fake shoes is one of the fastest growing segments of the worldwide counterfeit trade.