How do you protect your brand against unauthorized use and counterfeit products?
Today it is more common to see counterfeit brand name products. As more and more consumers are looking for ways to save money today, there are predators developing ways to counterfeit products from reputable brands to make a dishonest profit. Frost and Sullivan’s analysis showed that counterfeiting could cost vehicle suppliers a cumulative total of more than $45 billion worldwide. In the electronics industry, the cost can be as high as $75 billion per year. In addition to costing reputable companies money, trademark infringement can also cost them in other ways. A solid brand protection strategy that incorporates digital brand protection solutions is essential today.
Understanding Trademark Counterfeiting
Dishonest people know which brands consumers like and produce counterfeit products that look like the brand. Many also use the brand logo or copy anything about the product to make it authentic. For example, consider a popular smartphone vendor that sells its own brand of headphones, known for their sound quality and longevity. However, there are many products advertised online for less money or even for the same price that are counterfeit. Counterfeit products last less and have poorer sound quality. This is just one example of a common type of counterfeit product. Although the practice is particularly common with electronics, it can even happen with products that people don’t suspect. For example, some people have purchased counterfeit toothpaste, dish soap or other household products. Businesses in any market can be targets of trademark infringement today with so many e-commerce sites out there.
The additional costs of trademark infringement
When a reputable company becomes the target of trademark infringement, it can cost the losing entity even more. Customers who buy counterfeit products and don’t realize they are fakes may think that the company is now sacrificing quality to make money, and they may start looking for another brand. If small businesses purchase the company’s products and unknowingly purchase from counterfeit suppliers, they may lose trust in the brand as their customers begin to return defective or shoddy products. These dissatisfied consumers may start speaking negatively about the brand online, which will damage the company’s reputation. As sales decline, the brand suffers. With a smart digital brand protection plan in place, businesses can mitigate these risks and protect a good reputation.
How brand protection solutions help
While technology can enable dishonest people to try to tarnish good brands, it can also help proactive brand protection companies prevent losses caused by counterfeiters. Today, there are brand protection software that can help businesses. A strong program should address four key areas to provide sufficient digital brand protection.
Search for violations
Many companies today have products or services that are offered online and in the real world. Thorough detection is an important strategic step in finding breaches that exist in the real world and virtually. Brand protection software designed to regularly scan for illegal sellers or counterfeit factories that may be producing fake replicas is a valuable asset.
Discerning true offenses
The laws regarding trademarks, patents and infringement actions can be complex. Sometimes a company may accuse another entity of infringement without realizing that that entity’s activity does not constitute intellectual property infringement. This can attract negative attention and damage a company’s reputation. A good brand protection service can help companies validate infringements and understand intellectual property violations.
Application of sanctions in case of violation
Using brand protection software to find out that counterfeiters exist and steal intellectual property doesn’t help companies unless they can do something about it. This is why a digital brand protection strategy must also include an action plan to stop illegal activity. This may include shutting down counterfeit factories, stopping shipments of counterfeit products, and removing product listings from online stores.
Addressing trademark infringement through detection and action can help eliminate active issues. However, a strategy must also have a prevention dimension to be optimal. Good brand protection software should also have analytical capabilities to show businesses where their greatest vulnerabilities lie in terms of potential infringements. Also, they must provide useful brand protection solutions for improvement.
Implement a brand protection strategy
In today’s fast-paced world, it is difficult for businesses to keep up with all the potential threats from trademark counterfeiters. Some modern tech companies are developing solutions that address current and potential brand security issues. Authena is one of those entities that helps brands proactively prevent counterfeiting, using multiple methods of digital brand protection. Authena has developed a solution that uses active and passive IoT devices to be applied to each product sold, backed by a blockchain network. IoT devices are safe from tampering and the blockchain network contains important product information that cannot be changed. For example, health status, location, and other pieces of information can be included. By combining cutting-edge technologies and applying them to brand integrity protection, companies designing innovative brand protection solutions are giving brands more effective tools to build long-term strategies. Learn more about Authena at https://authena.io/brand-protection-technology/.