How long will taxpayers tolerate brand protection?

BBC recently published a fascinating article about brand protection, counterfeiting and anti-counterfeiting activities. Their view is quite similar to the one promoted on this blog, but BBC goes deeper. It shows that fight against counterfeiters step by step changes in the fight against customers. No corporation can win in long-term perspective. The article is available here.

There are some market segments with broad consensus between manufacturers and customers about the necessity of brand protection and fakes elimination. It is the case for drugs, alcohol, critical machine part and any other industry where purchasers expect some critical qualities. Buying products without these qualities can damage health or cause an accident.

However, in other market segments, such as handbags, luxury watches and brand clothing there are no significant risks other than revenue loses.

In the U.K., there are three million people who purchase counterfeited goods intentionally. On the other hand, only Louis Vuitton yearly initiates 10 000 police raids and 30 000 anti-counterfeiting procedures (worldwide). It is no wonder that more and more voices ask if it is really necessary that activities focused on private revenues protection are paid by tax-payers.

It is especially serious that premiere brand manufacturers are not able to offer a strong justification. Most frequently, the following arguments are used, according to BBC.

  • Profits from selling counterfeited goods are allegedly used to fund drug dealing or other types of organised crime. However, in real life, these criminal activities do not need to be subsidised.
  • Counterfeiting allegedly destroy jobs. However, in real life, the brand and the fakes are manufactured mostly in China.
  • Genuine manufacturers are allegedly deprived of their profits because of fakes. But people don’t love corporations with huge profits. Moreover, it is not sure what part of the revenue is lost. Most of the customers who purchase Breitling watches for 10 dollars would never even consider buying genuine Breitling.

Each raid or legal proceeding thus strengthen an image of evil greedy corporation wasting taxpayer resources on its profits.

What to do about it? It is the time to move to products which can be easily differentiated from any fake and whose credible counterfeiting exceed possibilities of any counterfeiter. It must be based on an application of protection elements that are distinctive, inimitable and create the core of product design.

What about a hologram with a distinctive visual effect? Or the application of tiny grains enabling anybody to look through a magnifier and see holograms. Thay may play such a central role in the marketing communication that their inspection becomes a sexy fashion.

To všechno by znamenalo, že na výrobku začne záležet víc než na logu na reklamě. Což by nakonec byla výhra pro všechny.

Such move would mean that product is more important than a logo in promotion video. The win for all.


Optaglio helps through its products and services that include:

Continuous innovation and technological development to keep advantage against counterfeiters.

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