Importance of anti-counterfeiting solutions for the manufacturers

Counterfeiting is growing on a monstrous scale. According to a report by Research and Markets, the global value of counterfeiting has reached a value of 1.2 trillion dollars. The report further states that as per the current growth rate counterfeiting will become a $2.81 trillion industry by 2022.

For the past many years, manufacturers have tried their best to curb the menace of fake products, however little progress has been achieved related to the same. The extra costs in fighting fakes have further deteriorated the problem. Manufacturers also suffer from a tarnished brand image due to the counterfeiting of their products.

Most importantly, in a highly competitive market, one bad experience for a customer can change his loyalty for a product or brand.

Amidst this grim scenario, anti-counterfeiting technologies can play a decisive role in preventing counterfeiting, tampering, and diversion. Holostik is a leading player in offering customized anti-counterfeiting solutions to different industries. With a legacy of 28 years, the company has provided anti-counterfeiting solutions to more than 10,000 clients in 75+ countries.

Holostik believes that with the proper use of anti-counterfeiting solutions manufacturers can prevent the following challenges posed by counterfeiting:

  • Loss of sales revenue and profit margin: Sales and profit margins are the veins and nerves of any organization. A company’s success is determined by the number of sales it has earned in a specific time frame. A good number of sales is a visible indicator of a company’s wellbeing and vice-versa. The sale of duplicate items leads to a drop-down in the sale of a company’s products. If it goes unchecked, then it can lead to a complete downfall of the company. Due to multiple sale locations of the product, it is quite hard for a company to trace the manufacturing location of counterfeits.
  • Poor brand and product image: No wonder, the sale of counterfeits lead to a tarnished image of the brand and its products. The sale cheap fakes lead to a false perception among consumers regarding the quality of the product and the brand. Unaware consumers often think that they are buying original products but instead, they receive fakes.
  • The added cost of fighting fakes: Companies incorporate different strategies for fighting counterfeiting of their products. This comes in the form of added costs for the organization already facing the problem of duplication.

To know more about our products and solutions call us on +91–785-785-7000 or mail us at connect@holostik.com.

What are the reasons behind the growth of counterfeiting in India?

In the past few decades, there has been an enormous growth in the field of innovation and technology in India. This is further supplemented by the rising impact of globalization and an increase in spending power of the average consumer. However, the scenario has brought along many problems.

Among the many problems, the menace of counterfeiting is growing on a humungous scale. The current value fake products in India has reached more than 1 lakh crore annually.

Counterfeiting also referred as piracy in common trade parlance mean the unlawful acquisition by a person of the property of another person without his consent. Counterfeiting includes forgery of currency, documents, software, pharmaceuticals, jeans, watches, electronics and company logos and brands.

So, what are the reasons behind the growth of counterfeiting in India, let’s discuss:

  • Lack of knowledge about fake products: In India, one can find fake products anywhere. From street shops to malls, e-commerce to retail outlets, counterfeit products can be found anywhere. Consumers in India have little or no awareness related to product authentication, so they are duped with fake items umpteen times.
  • Lack of use of anti-counterfeiting solutions: Despite heavy losses many companies don’t take the problem of counterfeiting seriously and remain susceptible to the losses due to fake products. Anti-counterfeiting solutions like security holograms, security labels, holographic shrink sleeves, holographic strips can secure products from the problem of counterfeiting.
  • Poor intellectual property laws and regulations: India still suffers from weak laws related to counterfeiting. In absence of stringent laws, forgers find it easy to sell of their fake products in the market.

Established in the year 1991, Holostik India Ltd. is a leading manufacturer of customized anti-duplication solutions with the aim of securing products and industries. The company offers security holograms, security labels, revenue stamps, hot stamping foils, wads, shrink sleeves etc. along with digital product authentication, supply chain management, track & trace, reward management and much more. Holostik has 5 state-of-art manufacturing facilities with most advanced industry certifications. In 28 years of its legacy, Holostik has catered to 10,000+ clients from different industries and has worldwide outreach in 75+ countries.

 

 

 

Counterfeit Nintendo Pro Controllers allegedly being sold on Amazon

In a recent development, it has been noticed that fake Nintendo Pro Controllers are being sold on Amazon India. A Reddit user tough_luck has posted on /r/Indian Gaming Subreddit talking about fake Switch Pro controllers being sold on Amazon India.

The seller tough_luck spoke about, Micromini reportedly selling fake controllers.

According to Reddit post, it has been revealed that there were certain points through which tough_luck came to know that the product was fake. In addition, the packaging was of low quality, the texture of the controller’s shell felt different from an official Pro controller while the transparent shell of the original Pro controller in much clearer than the fake one.

One of the best ways tough_luck has pointed out to test whether your Switch Pro controller is the real deal is to plug it into a OnePlus Dash charging cable.

There are only certain cables through which you can charge the Nintendo controller and the Switch, so a legitimate controller wouldn’t be able to charge off OnePlus’s charger. Fake controllers will still charge off the OnePlus Dash chargers.

Authorities arrest scammers making fake milk out of shampoo and detergent

Authorities in Madhya Pradesh recently raided three factories where fake milk was being manufactured. The spurious milk was being supplied to different branded outlets in six states including Delhi, Rajasthan, Haryana, Uttar Pradesh, and Maharashtra. Police found out that the factories were producing highly toxic milk made out of paint and chemicals.

As reported by media sources, in every one litre of milk 30 % was composed of refined oil, detergent, shampoo, white paint and glucose powder.

Rajesh Bhadoria, STF, Superintendent of Police said that the police teams seized around 10,000 litres of fake milk, around 500 Kg of mawa and 200 Kg of synthetic paneer in Morena and Bhind districts of Madhya Pradesh. Large quantities of detergent, refined oil and glucose powder were also confiscated.

Until now, around 57 people have been arrested in the scam. Sources reveal that the milk was produced at a cost of Rs 5 per litre and was sold at Rs 40-50 per litre while paneer was being sold at a high of Rs 100-150 per Kg. In 2018, an official of the Animal Welfare Board had noted that 68 percent of the milk and milk products sold in India are below the standards recommended by FSSAI and WHO.

The fake milk was made from chemicals which have serious repercussions on health ranging from kidney & liver failure, stomach diseases, and even cancer. The spurious milk also had maltodextrin which leads to a spike in the blood sugar levels- quite harmful for diabetics. The detergent in the milk not just damages the stomach lining but also causes severe food poisoning.

It has been found that the food inspectors in the area are part of the scam and investigating officials will take appropriate action against all those involved in the heinous crime.

Source: Vice.com

The rise of counterfeiting in the footwear industry

According to a report by OECD (Organisation for Economic Co-operation and Development) and EU’s (European Union’s) Intellectual Property Office states that the footwear industry is the most affected by the problem of counterfeiting. Some of the famous brands affected by counterfeiting or duplication are Nike. Adidas, Sketchers, Reebok, Asics, etc.

Fake footwear represented around 22% of the overall share of counterfeited and pirated goods seized in the year 2016.

Nowadays consumers have become highly brand conscious, but everyone cannot afford a costly branded product. In order to satiate their need for buying luxury goods at low prices, people have shifted their focus towards fake goods. Selling and buying of fake items are illegal as they violate the intellectual property rights of the brands.

With the growth of e-commerce, it has become quite challenging to stop the sale of counterfeits. This is because a consumer cannot differentiate between a genuine and an original product by just seeing an image online.

According to a report, the global footwear market was valued at approximately USD 246.07 billion in 2017 and is expected to generate revenue of around USD 320.44 billion by the end of 2023, growing at a CAGR of around 4.5% between 2017 and 2023.

Fake footwear may fulfil your urge for branded goods, but they easily wear out or may cause injury or accidents many times. Counterfeit footwear leads to loss of profits, drop down in the reputations of the brands and also leads to massive unemployment.

Duplicate footwear can be curbed with the help of effective regulatory measures, the use of anti-duplication technologies and most importantly by generating awareness among the consumers and retailers regarding the drawbacks of fake footwear items. Some of the anti-counterfeiting measures are holograms, security labels, QR codes, holographic films, and other flexible packaging products.

To get the best anti-duplication solution call us on +91-7857857000 or mail us at connect@holostik.com.

Counterfeiting on the global level-An overview

Counterfeiting or duplication is a growing problem across the world. It badly affects the government, businesses, and consumers. People across the world are suffering from the menace of duplicate products which is regularly authenticated by different reports and news coming from different parts of the world.

Market experts believe that the growing globalization is the main reason behind rampant duplication. They say that in order to increase their manufacturing capacity and hire cheap labor big companies shifted their base to developing and third world countries. However, the major problem in these areas was that of lack of anti-duplication regulation and poor IP laws.

This made the way for counterfeiters and they were easily able to steal technology to manufacture duplicate goods. With the passage of time, they became more organized and took counterfeiting on a much larger scale.

According to a report by OECD (Organisation for Economic Co-operation and Development) United States, Italy, France, Switzerland, Japan, and Germany are the hardest hit countries, with the majority (83%) of fake goods originating (not surprisingly) from China and Hong Kong. European brands are among the most impacted, with an estimated 5% of all goods imported into the European Union (EU) being fake. This represents as much as $118 billion.

With the growth and penetration of internet technology counterfeits are now being sold on different internet platforms. According to the International Trademark Association, “Criminals prefer to sell counterfeits on the Internet for many reasons. They can hide behind the anonymity of the Internet with the Dark Web even their IP addresses can be hidden. The Internet gives them the reach to sell to consumers globally-outside of the national limits of law enforcement.”

The global problem of counterfeiting must be addressed on multiple fronts with collaborative efforts of the government, industry players and anti-counterfeiting solution providers.

New invisible nano ink may help in preventing counterfeiting

Duplicating and counterfeiting of goods is a growing problem across the world. Different anti-counterfeiting measures like printing barcodes or holograms can prevent counterfeiting of products.

Now nanotechnology may provide a solution to get rid of the menace of counterfeiting. The technology depends on the changes that happen in nanoparticles when subjected to certain conditions. These changes can be easily identified but the technology is difficult to copy or replicate.

Recently, researchers at the Advanced Polymer and Nanomaterial Laboratory (APNL) Tezpur University have developed a new, light emitting nanocomposite-based ink that is not visible under light but can be detected when kept under an ultra-violet light. The ink is quite useful in preventing counterfeiting on paper and plastic.

Niranjan Karak, Group Leader of APNL said, “The nanocomposite has an intricate structure to prevent imitation. By dispersing it in organic solvents like xylene, it transforms into an ink that can be used to mark a label. The liquid appears pale-yellow under visible light and glows with a cyan tint when exposed to UV light of specific length.”

The performance of the ink was tested by writing a few letters on paper and plastic. It was found that the letters were not visible in daylight, whereas when kept under UV light, it glowed with a cyan hue.

For convenience the ink can be loaded into the refill of a sketch or gel pen and has a shelf life of up to ten years and degrades in a few months only under the action of soil microbes.

Source: thehindubusinessline

Cosmetic products in UK are the most counterfeited goods

According to a recent survey by global investigation firm Kroll, perfume and cosmetic products are the most counterfeited goods in the UK. The report states that cosmetic or beauty products were the sixth most counterfeited products after toys, chargers, clothing, bags and sports shoes.

The firm stated that duplicate consumer products are a growing part of the global economy and pose a risk to the economy and consumers. The outcomes of the counterfeit goods are dangerous and have many negative effects.

Benedict Hamilton, Managing Director at Kroll said, “We have seen how the counterfeiting of seemingly harmless clothing items such as jeans and t-shirts is actively contributing to the financing of global terrorist activity, so in addition to consumers’ health, there is also the broader world impact to consider.”

He also said that counterfeits don’t begin and end with the seller on the street; there is an entire supply chain in operation to create bogus goods and to stem the flow, we need to find the source.

On tackling the counterfeit goods, he said, “Only by following the chain of fake goods all the way up to those producing them and raising awareness of the problem, will we be able to safeguard against the potential dangers posed by counterfeits.”

Source: cosmeticsbusiness.com

The link between counterfeiting and organized crime

International law enforcement and market experts have established a close link between counterfeiting and other forms of criminal activities. It has been found that the counterfeiting business helps criminals to fuel other illegal activities and vice-versa. EUROPOL (European Union Agency for Law Enforcement Cooperation) has even warned that counterfeiting is an increasingly attractive avenue for organized crime syndicates to diversify and increase their illicit businesses.

It has also been found that counterfeiters use similar routes and modus operandi to supply counterfeit goods as they do to smuggle drugs, firearms and human trafficking. Profits from other crimes and illicit activities also help in the production and distribution of counterfeit goods. Many reports from different countries have established the fact that profits from crimes like drug trafficking and other crimes were used to promote the business of counterfeiting and, similarly proceeds from the sale of duplicate goods were used to promote the criminal’s other illicit activities.

One of the main reasons why criminals choose counterfeiting over other criminal activities is due to its favourable ratio between potential profits and possible risks. According to Executive Director, UNODC (United Nations Office on Drugs and Crime) Yuri Fedotov, “In comparison to other crimes such as drug trafficking, the production and distribution of counterfeit goods present a low-risk/high-profit opportunity for criminals. Counterfeiting feeds money laundering activities and encourages corruption. There is also evidence of some involvement or overlap with drug trafficking and other serious crimes.”

As per trade, reports counterfeiting is now placed amongst the highest income sources for organized criminal activities. Counterfeiting or duplication also helps in money laundering by providing a platform through which criminal organization can invest the proceeds of their illicit activities. In a nutshell, organized crime syndicates use counterfeiting as a medium to optimize their other criminal activities.

Countries involved in counterfeiting of US goods

One of the biggest reasons behind the US-China trade war is due to China’s involvement in the practice of unfair trading practices and IP theft to make counterfeit and cheap goods. The biggest hints of counterfeit items are that their prices are too good to be true. The total value of counterfeit items had a value of $1.2 billion.

The enforcement of IP laws is done by US Customs and Border Protection and US Immigration and Customs Enforcement. Homeland Security’s investigations branch is involved in bringing down the financial and welfare risks caused due to imports of such illicit products. Let’s have a look at the product seizures that violated US trademarks and copyrights across the world.

  • China: 48%
  • Hong Kong: 39%
  • Turkey: 2%
  • Canada: 2%
  • Taiwan: 2%
  • All others: 8%

Positive move

In the 1980s, China became a member of the World Intellectual Property Organization and began to strengthen its intellectual property framework and enact related laws. China stated in recent trade talks that its intellectual property royalties paid to the U.S. surged from $3.46 billion in 2011 to $7.2 billion in 2018.

What’s getting counterfeited?

The seizures of ripped-off intellectual property in the U.S. is only a fraction of all that is sold worldwide. The total seizures of counterfeit goods in the fiscal year 2017, with a retail value of $1.2 billion, down from the fiscal year 2016 seizures that totalled $1.38 billion.

International Patents

According to the World Intellectual Property Organization, the U.S. and China file the most international patents under the Patent Cooperation Treaty.

Source: ocregister.com