Consumer Goods

A report published by the OECD indicates that a vast and growing range of Fast Moving Consumer Goods (FMCG) products are being counterfeited (‘The Economic Impact of Counterfeiting and Piracy’, 2007). The report also revealed a demonstrable shift in products targeted by counterfeiters, from luxury goods to common products, including those in the FMCG sector. The OECD Deputy Secretary-General Doug Frantz observed that the findings of the report “contradict the image that counterfeiters only hurt big companies and luxury goods manufacturers. They take advantage of our trust in trademarks and brand names to undermine the economies and endanger lives”.

The International Chamber of Commerce (the “ICC”) has analysed the effect of counterfeiting on the G20 countries (‘Estimating the global economic and social impacts of counterfeiting and piracy’, 2011). Its report concludes that counterfeiting costs governments and consumers approximately £53 billion annually in lost tax revenues and higher welfare spending. The OECD’s report estimated that the impact of counterfeiting on international trade resulted in £154 billion in losses in 2005, which the ICC projected would rise to £1.3 trillion over the next 10 years. Lost revenue inevitably leads to job losses, and the report estimates that 2.5 million jobs have been destroyed through counterfeiting and piracy. Furthermore, within the FMCG sector, counterfeit food and medicines are putting the personal health and safety of consumers at risk, resulting in an estimated loss of 3,000 lives annually in the G20 countries.

Studies in relation to the impact of counterfeiting on specific sectors have been undertaken by the EUIPO*. In the spirits and wine sector, counterfeit products amount to 3.3% of consumption in the EU, equalling £1.1 billion in lost sales. The EU cosmetics and personal care sector loses approximately £4 billion of revenue annually due to the presence of counterfeit products including counterfeit shampoos, deodorants and make-up. This equals 7.8% of the sector’s sales.

In the spirit and wine sector, counterfeit products amount to 3.3% of consumption in the EU, equalling £1.1 billion in lost sales.

It is clear that counterfeiting is not only affecting the prosperity of the FMCG industry but also the well-being of its customers and employees.

INCOPRO’s flagship product – TALISMAN is used by some of the world’s leading FMCG companies to deliver a comprehensive and prioritised system to tackle online infringement. Its simplified user interface enables easy assessment and enforcement. TALISMAN protect copyrights, design rights and trademarks, globally, using its proprietary clustering technology that provides intelligent cross-platform insights about infringements, and ranks and prioritizes them for a “one-click” action for the IP rights holder.

TALISMAN can help detect and enforce on the following IP infringements:

  • right-arListings of counterfeit fashion products on major B2B
    and B2C online marketplaces.
  • right-arAbuse of design rights online.
  • right-arUsing social media (e.g. Instagram) to engage with customers and sell counterfeit FMCG and attempting to bi-pass the difficulties of visibility of a domain or marketplace listing.
  • right-arAbuse of paid search to mislead customers by piggybacking on brands.
  • right-arUsing a domain name with a trademark or setting up rogue look-a-like websites to sell counterfeit products.

TALISMAN is supported by a multi-lingual team of expert analysts covering Mandarin, Cantonese, Arabic, Russian, Japanese, Hindi etc. These analysts are overseen by leading IP legal and law enforcement intelligence experts. This expertise enables them to identify abuse of design rights where no trademarks are infringed, leverage platform relationships and ensure swift resolution where infringements have been identified.

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INCOPRO can enable your company to:

Develop a targeted approach to tackle commercial scale operators abusing your brand online
Ensure that your consumers retain their trust in your legitimate e-commerce platforms
Protect brand equity and reputation globally
Increase efficiency and efficacy of enforcement – through an end to end solution
Reduce costly out of system legal action
Target resources where needed
Optimize revenue and marketing investment

Learn more about how INCOPRO can help your company