Updated: Jun 22
The amount of total counterfeiting globally has reached to 1.5 Trillion USD in 2018 and is bound to reach 1.82 Trillion USD by the year 2020 – a figure that totals the value of counterfeits of all equipment/products. The Global Brand Counterfeiting Report, 2018 had estimated that the losses from online counterfeiting globally has amounted to 323 Billion USD in 2017. The high end consumer goods sector suffered an estimated loss of 98 Billion USD due to counterfeiting which includes counterfeiting from offline as well as online transactions. According to the report, losses incurred from counterfeit sales of Luxury Brands through internet accounted to 30.3 Billion USD. The growth in global trade and technology has given an impetus to counterfeiting, apart from positively affecting and creating multiple global markets. Although business organizations continue to spend a lot of money, time and resources on protecting their brand and trademarks, they are under major threat. The Global Brand Counterfeiting Report, 2018 notes a significantly heightened risk of proliferation of trademark counterfeiting due to the increasing sophistication of technology. The globalization of trade and communication offers unparalleled opportunities for organized crimes to engage in illicit trade and counterfeiting. These also give rise to organized crime with illicit global chains, posing a serious economic challenge along with social and environmental harm. Counterfeiting also poses threats to the welfare of consumers, along with that it also disrupts the whole society on various levels and harms the reputation of the businesses.
1. The amount of counterfeit goods traded annually is greater than the GDP of 150 of the world’s countries.
An International Chamber of Commerce report estimates the total value of counterfeit and pirated goods globally could be as high as $1.77 Trillion- roughly equal to the annual nominal GDP of Canada - the 11th biggest economy in the world!
2. Global counterfeits growing at breakneck speeds. According to US. government estimates, value of global counterfeits increased by 1700% in the past decade
3. Online counterfeit sales have likely overtaken street sales. Rising global internet adoption rates and Chinese dominance are destroying brand integrity. Legitimate courier services being for delivery makes it harder for customs.
4. The losses from counterfeit pharmaceuticals is 10 times greater than other categories like counterfeit clothes & shoes. Estimated losses from counterfeit pharmaceuticals exceeds $200 billion vs $24 billion for fashion products. Mostly predominant in developing & African economies.
5. IP holders desperately need technological solution
• Consumer safety is at risk.
• When counterfeit items are sold, both consumers and businesses lose because unauthenticated goods are often substandard or worse. Poor, fake goods damage your valuable brand.
· Counterfeit goods threaten economic prosperity.
· IP-intensive industries create 40 million
· U.S. jobs, two-thirds of U.S. exports, and $5.8 trillion in
· U.S. output. All under threat
· 750,000 American jobs are lost,
$250 billion a year in revenues lost,
53 billion visits to rogue websites are made each year.
Social, ethical and health consequences
· Employment rights, decent pay and working conditions neglected by counterfeiters.
· Workers placed in a vulnerable position and not granted same protection
· Safety and security concerns ignored, benefits non-existent.
· Threat to public health and safety as no legal regulation nor recourse,
· Consumers at risk from unsafe and ineffective medicines.
· Adversely impacts overall growth of the businesses. Affect job creation and tax collection. The government and business organizations are concerned because of the adverse impact of such illicit activities.
· Sizeable returns go into the illicit economy.
All sectors affected:
· From children’s toys to car parts, alcohol to agricultural tools, clothes to cosmetics, auto parts, cigarettes and whisky, computers & IT..list is endless
· Faulty counterfeited products can lead directly to injury and death especially auto spare parts
· Fraudulent Medicines
· Manufacturing, trade and consumption of these
· products pose a dangerous threat to public health.
· 1 per cent of medicines in developed world are likely fakes (World Health Organization)
· Is big business: fake medicine sale from East Asia and the Pacific to South-East Asia and Africa alone amounts to some $5 billion per year
· Nearly 10 per cent in various developing countries, and in parts of Asia, Africa and Latin America,
· About 30 per cent in certain markets
· Contain the wrong dose of active ingredients/ none at all/ completely different ingredients
· Can contain highly toxic substances such as rat
· Deprives sick people of treatment, leaving them vulnerable to the disease
· Make diseases difficult to treat by enabling development of drug-resistant strains.
· Toxic dyes and chemicals disposed of unlawfully, and unregulated- attack the environment
· air pollution endemic in the fakes’ manufacturing
· Perpetrators mostly untraceable- hence no legal recourse- consumer rights are virtually non-existent
· No organized/ environmentally safe way of disposal of counterfeits undertaken
Veritech has unparalleled reputation of being technically advanced thus reiterating the mandate to protect the best brands. By continuously investing in Research & Development, we have created a steady pipe-line of new products to meet customer's requirements on demand.
A sound technical understanding of customer's needs enables us to provide optimum solutions at all times to our esteemed customers We believe in going the extra mile. In line with this philosophy, our team has developed a host of value added features. This technological upgradation & customization helps our customers to stay ahead of counterfeiters at all times.
Veritech specializes in identifying customers’ specific needs and offering a variety of solutions.
Be it Brand Protection, Document Security, or Packaging Solutions; we provide end-to-end solutions for all requirements. Each solution comes with its own strengths and is devised keeping the customer's budgetary constraints in mind. Our unwavering commitment to innovation ensures that our products are designed to complement each solution. From concept to execution, we help you to implement effective brand protection & enhancement programs