Modern companies invest heavily in intellectual property. A vivid illustration is multi-billion dollar valuations of prominent trademarks. After all, a recognizable trademark is the best way to attract a customer. A common side effect of trade mark popularity is unwarranted attention by pirates, plagiarists and other thieves. The easiest way to get consumer’s money is to label a counterfeit product with a popular brand.
Marketing think-tanks report that over 80% of world-wide sales occur or get initiated via the Internet. Thus trademark protection in virtual space demands the highest quality.
In-depth distribution analysis often uncovers that over 70% of end sales are made through channels, which are unknown and thus uncontrolled by a copyright holder. As a consequence trademark infringements on sales via the Internet occur every second.
Remember: only copyright holder or official representatives, with disclosed credentials, are entitled to use a trademark.
Trademark infringement consequences
Typically, trademarks are illegally used by little-known firms with dubious quality products with the hope to attract buyers by reputation and broad recognition of a popular brand. Counterfeiting results not only in reduced sales of copyright holder, but also damages brand reputation.
Direct financial losses
- Reduction in authentic product sales;
- Forced reduction in production
- Increase in ‘per unit’ marketing cost: counterfeits parasitize on copyright holder’s marketing budget;
- Increase in legal and security costs for counterfeit-fighting.
Trademark reputation damage
- Counterfeit products’ poor quality is projected on authentic products;
- Consumers often do not realize that they bought a fake, and direct their claims to the copyright holder;
- Efforts to mend brand image require time and expenses;
- Damaged brand reputation reduces business competitiveness and market share.
Protect your trademark on the Internet
Professional Internet trademark protection allows to track and stop illegal trademark usage in online stores, social networks, market places and other online sales channels.
BRANDPOL GROUP’s team has a successful track record of intellectual property protection and countering illicit trafficking of industrial products with the world’s top brand names for over 10 years.