BUSINESS OPTIMA

BRAND PROTECTION | ANTI-COUNTERFEITING | REPUTATION VERIFICATION | SUPPLY INSPECTIONS

WHAT IS COUNTERFEIT.

 In the everyday sense, counterfeit is understood as a fake, in the legal sense, original products are also supplemented, but used without the consent of the copyright holder or with violations of the contract. In the context of our dialogue, we will understand counterfeit as counterfeit.


THE MAIN TYPES OF COUNTERFEIT

• Counterfeit packaging (with a trademark) and counterfeit products themselves

• Original packaging (used) and counterfeit of the products themselves

• Original packaging (used) and original products (used) and issued as new

• The use of imitation (Look-alike) made "under the brand". The designation is not used identically, but has minor differences leading to consumer confusion about the manufacturer of the product. This product has a designation confusingly similar to the original brand and is designed to confuse buyers and thereby take away the market share of the original brand. Recently, the use of Look-alike has been very popular, since it is already dangerous to deal with outright forgery in places, but Look-alike is more difficult. At the same time, the profitability is not lower than an outright fake, and promotion and sales are carried out essentially through marketing and promotion of the original brand.

METHODS OF DETECTING COUNTERFEIT PRODUCTS.

There are two methods of identifying counterfeit products

1. Household: 

• Packaging quality inspection

• Inspection of the text (for typos)

• Checking QR codes, via the app (if available)

• Checking the content

• Glue inspection

2. Professional: 

There are several ways to determine the signs of counterfeit products, depending on the category of the examined product, its purpose and other characteristics. In addition to assessing the conformity of original products, the following will help in determining counterfeit: computer-technical expertise that allows you to detect and identify software; commodity research that evaluates the quality and consumer characteristics of the object; chemical expertise that determines the substances and materials from which the goods are made, as well as their composition; examination of product documents for their authenticity, and other laboratory examinations. The complex of studies will reliably establish the presence of signs of substandard or counterfeit products and will become the main evidence when applying to the court.

Types of responsibility.

The spread of counterfeit goods has negative consequences for both consumers and manufacturers of original products, since the latter not only incur losses, but also lose their established reputation.

In order to prevent the spread of counterfeit goods on the market of Kazakhstan, measures are being taken to improve legislation in the field of intellectual property and law enforcement practice.

Responsibility for the use and distribution of counterfeit products in our country is provided for by the Criminal Code of the Republic of Kazakhstan - Article 198 "Violation of copyright and (or) related rights", according to which a fine of up to eighty monthly calculation indices is provided. Article 222 "Illegal use of a Trademark", and also provides for administrative liability by the Code of Administrative Offences of the Republic of Kazakhstan - Article 158 "Illegal use of someone else's trademark, service mark, appellation of origin or brand name", which provides for a fine for individuals in the amount of twenty, for small businesses or non–profit organizations – in the amount of thirty, for medium–sized businesses - in the amount of forty, for large businesses - in the amount of eighty monthly calculation indices, with confiscation of goods containing an illegal image of a trademark, service mark, appellation of origin of goods or confusingly similar designations for similar goods or services.

The harm of counterfeit goods.

ANTI-COUNTERFEITING PROGRAMS.

The HP ACF Program can be called an exemplary anti-counterfeiting program, which has existed for decades and is allowed to effectively combat counterfeiting all over the world. Each brand (Copyright Holder) he determines the methods, approaches, as well as the framework for combating counterfeiting.

At the same time, as a rule, the anti-counterfeiting program contains the following elements

• annual training of "field" employees on

  • Signs of counterfeit products
  • Certification of experts to give conclusions on counterfeiting

• Ongoing analysis

  •  Market shares (original/counterfeit)
  •  The most counterfeited models (SKU) of products 
  • Channels for the sale of counterfeit products

Implementation of free inspections of deliveries to customers – Customer Delivery Inspection (CDI) 

• Advertising company - be careful counterfeit

• Introduction of special features in packaging design (workart) 

  • Artificial Subtle Typos/dots/lines
  • Inconspicuous cuts/cutouts
  • Using holograms
  • The use of special codes (on the packaging and the products themselves). 
  • Using QR codes
  • Warning signs

• Training of law enforcement and other bodies (customs, police, government experts, etc.).

• Conducting seminars, round tables with law enforcement agencies to discuss the search for effective methods to combat counterfeiting

• Formation of the base of law enforcement practice (decisions of investigators/ judicial acts)

• Using a special CRM to work and monitor the anti-counterfeit program

  • The use of signal forms to collect information about suspicious Entities.
  • Tracking information about the work for each Subject (from the signal to the act of the right of application). 
  • Collecting information for analytics (market share, counterfeit sales channels). 
  • Formation of reporting.

• Training of own regional managers, for the effectiveness of control. 

• Budget management. Definition and achievement of concrete results (KPIs).

WHICH IS USUALLY FORGED. 

Counterfeit business is focused on excess income, i.e. at the expense of minimum costs (cost) to get a large margin. At the same time, the speed of turnover of counterfeit products also matters, and therefore it is forged as usual:

• Only the most popular (usually not expensive SKUs) and sold products of the original brand, the so-called sales leaders. 

• Easy-to-manufacture products. Examples below: 

IT sphere 

Almost never counterfeited: Computers, Servers, Laptops, printers and MFPs

Forged: Accessories and components: cords, chargers, flash drives, hard drives, mice, cartridges, etc.

Auto

Practically not counterfeited: Vehicles, Motorcycles, etc.

Forged: Accessories and spare parts: brake pads, spark plugs, belts, badges, engine oil, etc.

Household chemicals 

Practically not faked: Highly specialized household chemicals. 

Counterfeited: Bulk: toothpaste, brushes, shampoos, deodorants, etc.