It can also copy packaging and many other important characteristic of the origin product. This paper will discuss some problems caused by counterfeit and pirated goods. Not only will the problems be discussed but also the paper will suggest some possible solutions. This will be followed by evaluating if counterfeits goods are because of high prices of brand name.
Most Important of all, economic losses are one of consequences of counterfeit goods. As Bosworth (2006) has indicated, the producer of the branded goods may lose profit, especially, when consumer buys a fake product rather than their product. Additionally, they may lose future revenues because consumers will buy competitor goods, if they experience a lower quality in their goods. Also, Tungate (2005, 205, 206) reports that the amount of counterfeit goods is 500 billion all over the world a year according to the international Chamber of commerce, most of this trade is made in China. China is considered a fundamental resource of counterfeit goods and fake products globally. To quote from (Loke-khoon in Tungate 2005, 206), "China is the biggest factory of fakes in the world"... usually, when factories finish producing guanine goods at the end of day, counterfeiters imitate the same product just within hours.
The fact of the matter is that, counterfeit...
Similarly, (Arnault in Tungate 2005, 206) stated "when you buy a counterfeit product, you are funding crime, misery and hardship." Conversely, the counterfeiters and pirates can make more profit than selling illegal drugs with less likely to be caught (Haie-Fayle and Hubner 2007, 206). Counterfeiting has increased significantly, all the people in the world must work together to stop this criminal activity. As (Haie-Fayle and Hubner 2007) say:
"Counterfeiting is a global issue and governments; industries and consumers must take action together if they are to fight it. An obvious place to start is in legislation, by building on exiting global initiatives, including the WTO's TRIPS agreements to enforce IPR and exact penalties. While any countries have adequate legal frameworks and regulations in place, enforcements is often a weak link, reflecting a lack of resource, or corruption. Inaccurate information can also hamper efforts: the authorities might know there is a problem, but need more coherent data and intelligence before they can act".
Counterfeiting threatens people's life. There are thousands of products which are being affected because of the same such as food, drugs, cosmetics, shoes, and car parts. For instance, in china, there are many children who died and hundreds are enduring diseases after drinking counterfeit milk. Technical solution can help consumers to distinguish between genuine goods and fake goods which are called radio-frequency identification (RFID) tags. This tag consists of encrypted ID code which will be read by reading device. Unfortunately, RFID tags are useful just for supplier and retailers, not for consumers, because the reading devices too expensive (Fox 2004).
Consumers usually cannot