Trademark trouble consultation

Are you fully prepared for counterfeit products?

Do small and medium-sized businesses need countermeasures against counterfeit products?

"The counterfeit product problem is not just a problem for large companies and luxury brands." Nowadays, there is no big difference in the proportion of large companies and small and medium-sized enterprises that are affected by counterfeit products, and the number of cases in which small and medium-sized enterprises that provide superior products are also falling victim to counterfeit products is increasing.


Counterfeit product damage rate by company size (from the Japan Patent Office website)

Most of the damage caused by counterfeit products is due to trademark infringement.

In addition to trademark rights, intellectual property rights include patent rights, design rights, and copyrights, but the top cause of damage caused by counterfeit products is trademark infringement. Counterfeit products companies manufacture and sell counterfeit products with very similar products and packaging.

Let's take a look at counterfeit products that have been detained by customs due to trademark infringement.

(From the customs website)

Above is a copy of Zebra's permanent marker, and below is a copy of Riverlight V Limited Partnership's bag.

As you can see, it is difficult to tell whether it is genuine or not just by looking at the appearance, but the quality is usually far inferior to the genuine product.

What is damage caused by counterfeit products?

So, what kind of damage can you expect if a counterfeit product of your company's product goes on the market? Counterfeit products are often cheaper than genuine products because they use lower-quality materials or have lower manufacturing costs. When it is difficult to distinguish between genuine and counterfeit products, consumers may generally choose cheaper counterfeit products.

As a result,

- Decrease in sales of genuine products → Decrease in profits and market share

・Complaints come from consumers who purchased inferior counterfeit products → Collapse of brand image

Such a situation is expected.

The customer trust that we have accumulated in our trademarks is the result of many years of corporate efforts. Protect your customers' trust by taking proper countermeasures against counterfeit products.

Costs spent on measures against counterfeit products

In recent years, an increasing number of companies have been proactively taking countermeasures against counterfeit products. As a result, the cost that companies spend on measures against counterfeit products is also on the rise. The average amount per company that spent counterfeit damage countermeasures was approximately 2014 million yen in fiscal 720.


Composition of counterfeit damage countermeasure costs and trends in average counterfeit damage countermeasure costs (from the Japan Patent Office website)

In this way, measures against counterfeit products require a certain amount of cost. However, by continuing to take countermeasures, if the company establishes a reputation that ``○○ company is putting effort into measures against counterfeit products,'' it will serve as a strong deterrent against counterfeit product manufacturers. It can be said that countermeasures against counterfeit products require a certain degree of long-term perspective.

Key points to counter counterfeit products

There are many ways to counter counterfeit products, but here we will introduce the following two.

[Acquisition of intellectual property rights]

Obtaining intellectual property rights such as trademark rights is the most important measure against counterfeit products. If you have obtained the rights, you can apply for an injunction and compensation for damages against the infringer, as well as apply to customs to crackdown on counterfeit products.

◆Points◆

① It is not enough just to acquire the rights; it must be effective in countering counterfeit products.

② Many counterfeit products are manufactured and sold overseas, such as in China. Therefore, in addition to acquiring trademark rights domestically, it is also necessary to think strategically about acquiring trademark rights overseas.

[Improvement to the product]

If you add a device (identification point) to your own products that makes it easy to tell whether they are genuine or fake, it will lead to early detection of counterfeit products. It will also make enforcement easier at customs. As a result, damage caused by counterfeit products can be minimized and rights can be exercised more quickly.

◆Points◆

 In addition to identifying points related to the product or package itself, it is also worth considering adding a product control number that is assigned based on rules that are not made public outside the company.

”HARAKENZO more ” gives full support!

”HARAKENZO more " Our legal department, which is well-versed in trademarks, will do our best to help you obtain trademark rights that will work effectively in times of need. Additionally, as we have approximately 40 years of extensive practical experience as an international patent firm, we can smoothly obtain trademark rights overseas.

Countermeasures against counterfeit products are important, but taking them at random will incur considerable costs.”HARAKENZO more " We will listen to your company's business situation, future direction, etc., and consider a strategy that suits your company individually.

If you have any questions about countermeasures against counterfeit products, please feel free to contact us.

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