What is counterfeiting and how much damage does it cost every year?

WHAT DOES ‘COUNTERFEIT’ MEAN?

“To counterfeit” means to falsify, to reproduce something in such a way that it can be mistaken by consumers for the original. Counterfeiting, in particular, means the illegal alteration, unlawful reproduction and sale of a good, in violation of a right of:

  • intellectual property on brands and other distinctive signs;
  • industrial property on patents, utility models, industrial designs.

Counterfeiting, indeed, happens not so much on the basis of a perfect copy of the brand mark or other typical characteristics of a company’s product, but rather by taking into account the overall impression of authenticity felt by the average consumer towards the counterfeit brand.

Punished by Article 473 of the Penal Code, counterfeiting is a widespread economic crime at global level, capable of seriously impacting both at macroeconomic level on the country system and at microeconomic level on production sectors.

THE IMPACT OF COUNTERFEITING ON PRODUCTIVE SECTORS

According to the Direzione Generale per la Tutela della ProprietĆ  Industriale – Ufficio Italiano Brevetti e Marchi (DGTPI – UIBM), the national authority responsible for fighting counterfeiting through policies to prevent and contrast the phenomenon, counterfeiting now affects all production sectors. More specifically, according to the 2021 study on counterfeiting in Italy, conducted by the Ministry of Economic Development and the UIBM in collaboration with Censis, the three most bought categories of counterfeit products belong to the traditional fake categories: clothing (40.4%), accessories (38.4%) and footwear (30.5%).

THE DAMAGE OF COUNTERFEITING ON THE COUNTRY SYSTEM

An activity often linked to organised crime, the dissemination of counterfeit branded products not only seriously endangers the health and safety of consumers, but can also deeply damage the country’s economy by causing:

  • economic losses for the production system and the State
  • damage to the image of Made in Italy products,
  • jobs losses due to the benefit of increased ‘black’ labour;
  • negative impact on tax and social security revenues;
  • reduction of business investment in innovation and creativity.

AN INCREASINGLY WIDESPREAD PHENOMENON: SOME DATA

Proving capable of evolving in relation to new ICT technologies, today new production and distribution strategies for counterfeit goods have been developed to meet the market demand of the modern consumer, who is increasingly inclined to buy online. According to the same study carried out by the Ministry of Economic Development and the UIBM, in cooperation with Censis, in fact, 25.7% of e-consumers have come across counterfeit goods on the web at least once and 20.3% have purchased counterfeit goods, for a total of 8,300,000 buyers. Of these, around 3 million later returned the counterfeit goods once they realised that the product was not authentic, which was considered essential by most consumers.

HOW TO PREVENT COUNTERFEITING?

In this increasingly widespread context of the crime of counterfeiting, therefore, the need for companies to implement measures to protect themselves from the economic and image damage caused by counterfeiting and, at the same time, protect their consumers from buying counterfeit products is evident.

lab-go’s Brand Protection and Authenticity Certification service was created for this purpose: to guarantee the products authenticity purchased online and offline in a simple and innovative way and to eliminate any risk of counterfeiting. Want to know more?

13 / 01 / 2023

Recent Post

EU Digital Product Passport

EU Digital Product Passport: from theory to practice

The idea of a digital passport, in particular, comes from the Commission's desire to create a tool capable of accelerating the transition towards a more circular and sustainable economy.

19/05/2023

Customer engagement

Customer engagement: current trends and future developments

Customer Engagement refers to the need to create a relationship and a deep connection with the customer through the creation of personalized and engaging content.

20/04/2023

Customer engagement: why it increases the value of your company

Customer Engagement literally means ā€œcustomer involvementā€, in marketing it's defined as the interactions aimed at creating a strong relationship connection with the customer.

20/03/2023

How-to-identify-an-authentic-product-and-distinguish-it-from-a-counterfeit-product

Authentic or counterfeit product? How to distinguish them

For a consumer to verify the authenticity of a product is not always easy. In particular for some types of products such as specific medicines, particular cosmetics or foods, this is quite complicated.

20/02/2023

Lab-go & The Nemesis together for an innovative project

Lab-Go & The Nemesis have signed a new partnership: an ambitious and innovative project that brings authenticity certification in the metaverse with Anti-Counterfeiting Project.

07/02/2023

Atalanta & lab-go: new partnership for authenticity

Lab-go has entered into an important partnership with the football club Atalanta B.C. to provide all Atalanta fans with a more unique and authentic customer experience with their favourite team.

27/01/2023

Share this post on: