Product and brand piracy
Counterfeiters burden German economy
The German economy is caused by counterfeit branded an annual loss 25 to 30 billion euros.
Production and distribution of plagiarism have become a significant economic dimension, which is partly in substantial sales losses reflected. To report 18% of the companies concerned in accordance with VDMA investigation "piracy and counterfeiting in the capital goods industry 2007" sales declines of 10% or more, 4% reported sales declines of 20% or more and 27% of companies reported sales declines of at least 5% and more.
Threat of piracy is increasing
Also, the study "Plagiarism Protection - action in the manufacturing industry against piracy" has come to the conclusion that the threat posed by pirates in recent years has steadily increased. According to current estimates, it is in this study assumed that the damage that this form of economic crime caused, at around 660 billion euros, or 9 percent of world trade volume is.
Not only brands affected
From imitations or fakes are not only consumer goods producers. More and more industrial products also come into the focus of plagiarists. These products are sometimes accurate and imitated worldwide - mostly to significantly lower prices than the originals, because the forgers of the enormous research and development costs.
This development is facilitated by the already mentioned VDMA study. In numerous cases were observed complete machine reconstructed. Spare parts and components, for example, where the enterprises of mechanical engineering the largest margins, are also copied by pirates.
Manufacturing and sales markets of plagiarism
In the manufacturing countries of the plagiarism was China at 75% of the companies concerned as the country of origin of the buildings mentioned. Taking into account the continued listing of other Asian countries like Taiwan and Korea, the vast majority of counterfeit products originate in this region. With 14% are increasingly also in India unauthorized replicas manufactured.
Within Europe, the plagiarism comes with 17% from Italy, followed by Turkey with 11%.
In the markets of counterfeits, China is once again front-runner and was 49% of the affected companies. Increasingly, however, reach the plagiarism on deneuropäischen market (22%), and the world (18%).
Consequences for the affected companies
The threat of piracy has many implications for businesses. Besides the loss of sales are direct consequences of piracy, in particular to consider:
* Rising costs for protective measures, particularly the cost of hedging by rights, the subsequent market surveillance and enforcement for violations.
* Cost of technical protection measures to the products themselves as well as costs for technical and organizational measures in the company (installation of access control, etc.).
Among the possible indirect effects that only a certain time delay will be felt, mainly include:
* A drop in the price, because the original manufacturers - at least partly - be forced to adapt to lower prices.
* Loss of know-how advantage, since the converted knowledge into products no longer unique in the market place.
* Loss of reputation, since the brand's exclusivity will be reduced and also negative experiences of customers with the imitations of the originals may have an effect.
Building an effective piracy protection
Companies ensure their products are, in most cases only by legal measures. However, the law enforcement in many foreign markets yet with big problems - even if the legal position on the paper is clear. In addition, legal resources on the basis of property rights (patents, design rights law, trademark, etc.) are of great importance, but their effect only develop if the injury has occurred.
In the future, businesses must equip their products with comprehensive strategies specifically protect against piracy. You need to have protection on the entire value chain extended. This must be included not only the business divisions (including purchasing, development, production, personnel department, IT and distribution), but the entire logistical chain through customs and dealers to customers.
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The German economy is caused by counterfeit branded an annual loss 25 to 30 billion euros.
Production and distribution of plagiarism have become a significant economic dimension, which is partly in substantial sales losses reflected. To report 18% of the companies concerned in accordance with VDMA investigation "piracy and counterfeiting in the capital goods industry 2007" sales declines of 10% or more, 4% reported sales declines of 20% or more and 27% of companies reported sales declines of at least 5% and more.
Threat of piracy is increasing
Also, the study "Plagiarism Protection - action in the manufacturing industry against piracy" has come to the conclusion that the threat posed by pirates in recent years has steadily increased. According to current estimates, it is in this study assumed that the damage that this form of economic crime caused, at around 660 billion euros, or 9 percent of world trade volume is.
Not only brands affected
From imitations or fakes are not only consumer goods producers. More and more industrial products also come into the focus of plagiarists. These products are sometimes accurate and imitated worldwide - mostly to significantly lower prices than the originals, because the forgers of the enormous research and development costs.
This development is facilitated by the already mentioned VDMA study. In numerous cases were observed complete machine reconstructed. Spare parts and components, for example, where the enterprises of mechanical engineering the largest margins, are also copied by pirates.
Manufacturing and sales markets of plagiarism
In the manufacturing countries of the plagiarism was China at 75% of the companies concerned as the country of origin of the buildings mentioned. Taking into account the continued listing of other Asian countries like Taiwan and Korea, the vast majority of counterfeit products originate in this region. With 14% are increasingly also in India unauthorized replicas manufactured.
Within Europe, the plagiarism comes with 17% from Italy, followed by Turkey with 11%.
In the markets of counterfeits, China is once again front-runner and was 49% of the affected companies. Increasingly, however, reach the plagiarism on deneuropäischen market (22%), and the world (18%).
Consequences for the affected companies
The threat of piracy has many implications for businesses. Besides the loss of sales are direct consequences of piracy, in particular to consider:
* Rising costs for protective measures, particularly the cost of hedging by rights, the subsequent market surveillance and enforcement for violations.
* Cost of technical protection measures to the products themselves as well as costs for technical and organizational measures in the company (installation of access control, etc.).
Among the possible indirect effects that only a certain time delay will be felt, mainly include:
* A drop in the price, because the original manufacturers - at least partly - be forced to adapt to lower prices.
* Loss of know-how advantage, since the converted knowledge into products no longer unique in the market place.
* Loss of reputation, since the brand's exclusivity will be reduced and also negative experiences of customers with the imitations of the originals may have an effect.
Building an effective piracy protection
Companies ensure their products are, in most cases only by legal measures. However, the law enforcement in many foreign markets yet with big problems - even if the legal position on the paper is clear. In addition, legal resources on the basis of property rights (patents, design rights law, trademark, etc.) are of great importance, but their effect only develop if the injury has occurred.
In the future, businesses must equip their products with comprehensive strategies specifically protect against piracy. You need to have protection on the entire value chain extended. This must be included not only the business divisions (including purchasing, development, production, personnel department, IT and distribution), but the entire logistical chain through customs and dealers to customers.
Budget Tools i Use:
Free Budget Worksheets
Personal Finance Budgeting
Personal Budget Worksheet
Make a Personal Budget
Personal Budget Planning