Product piracy
A danger for your company too!
60 billion euros of damage per year!
The dimensions of the problem - Bigger than expected!
A well-known chronometer for only a fraction of the RRP, or the cheaply purchased designer wallet made of "genuine crocodile leather", bought at a weekly market on a holiday abroad - with such products, it doesn't take much sense to question the originality of the purchased goods.
These two products represent only a small part of all counterfeiting, which permanently weakens the local economy of the respective country. Estimates put this damage at 60 billion euros per year. [2]
The problem is illustrated by the figures of the European customs authorities. According to these, the value of seized goods in 2018 was 738 million euros. [3]
The spectrum includes every imaginable product category. From food to electronics, cosmetics to complete machines, everything is represented.
There seems to be no limit to the criminal energy of the product counterfeiters. For example, brand shops are also imitated in order to make the unsuspecting buyer believe in good faith.
[2] https://de.fashionnetwork.com/news/60-milliarden-euro-verluste-durch-falschungen-in-der-eu,984672.html
[3] https://ec.europa.eu/taxation_customs/sites/taxation/files/2019-ipr-report.pdf
Protecting the authorities - Or not?
95% OF THE GOODS ARE NOT CHECKED!
For a better understanding of the problem, it is advisable to take a look at the press releases of the German customs authorities. The following reports are only examples of a large number of other reports. [4]
Even though customs were able to seize goods with a total value of almost 225 million euros in 2019 [5]Despite the size of this figure, it must be noted that the capacities of the authority only allow for spot checks.
The expert Prof. Dr. Prof. h.c. Arndt Sinn, who holds a chair for German and European criminal law and criminal procedure at the University of Osnabrück, puts the rate at just 2-5%. [6]
In other words: 95-98% of the goods are not inspected due to lack of capacity.
[5] BMF-Monatsbericht Mai 2020 - Bilanz des deutschen Zolls 2019 (bundesfinanzministerium.de)
[6] https://bit.ly/36ixnba
Frighteningly well faked.
Plagiarius - The Oscar of the product counterfeiters
Every year, the best product counterfeits are awarded a prize by the registered association Plagiarius. The aim of this association is to bring the problem of counterfeit products into the public eye.
Since 1997, the best counterfeits have been awarded a prize every year - the Plagiarius. The golden nose represents "the exorbitant profits that product pirates make at the expense of innovative companies". [7]
The consequences - More far-reaching than you think!
Danger for the customer
Studies by the German Technical Inspection Agency (TÜV) show that counterfeits not only cause enormous economic damage, but can also result in health hazards.
He compared original rims with deceptively genuine-looking copies and carried out various tests on both specimens. The frightening result - due to the use of inferior materials, damage to the counterfeit rims became apparent after only a short distance of driving. [8]
Brand damage for them
Furthermore, counterfeits also pose a risk to the image of your company. The customer's trust in the brand can be permanently damaged by the inferior quality.
Another reason that speaks in favour of proof of authenticity on the part of the manufacturers.
Conventional protection not safe!
How could one protect oneself until now?
The European Union offers manufacturers of products basically two possibilities to allow customers to prove the quality of their products.
On the one hand, this includes the GS mark, the legal standards of which are laid down in the Product Safety Act (ProdSG). It is also the only legally regulated test certificate.
And secondly, the CE marking, which is mandatory for certain products. The basis for this is formed by a large number of European directives that regulate the necessity for this marking.
A product that carries a CE certificate guarantees conformity with the EU regulations that apply to the product in question. Unfortunately, product counterfeiters have also recognised the effect of such a label and simply copy it - but without their "product" ever having been tested for compliance with European standards.
Other possibilities
Maximum protection
Serialisation - BrandTracker
However, maximum protection can only be made possible through the use of serialisation. This technology makes it possible to ensure effective protection against grey market shifts, through advanced tracking and tracing technology.
For this purpose, we offer the "BrandTracker", which is based on the concept of the Track & Trace procedure.
Track means the exact location of the product and trace means the traceable course in the supply chain.
The use of unique serial numbers, which are used as product identifiers and printed on the products, in combination with the "BrandTracker", ensures complete traceability.
This results not only in maximum possible protection for your products, but also in potentials.
