Fall 2019 - Inside Outdoor Magazine

By Rachel Jones Don’t Let ‘em Fake it When You Make It C ounterfeiting is big busi- ness and it’s showing no signs of slowing down. Indeed, the Orga- nization for Economic Co- operation and Development (OECD) value global imports of counterfeit goods at $500 billion. With the rise of online shopping and marketplaces, it has become ever-more difficult for brands to pro- tect their products from counterfeits. E-commerce sites such as eBay, Ama- zon and AliExpress are now rife with fakes, with those responsible making big money from stolen ideas. The harsh reality is that every sec- tor is affected by intellectual property abuse – not just luxury or high-end brands. Unfortunately, manufacturers of outdoor apparel and equipment have not escaped this threat. Specialized outdoor wear has become an increas- ingly lucrative target for savvy fraud- sters. In 2017, Canadian outerwear brand Moose Knuckles was awarded $52 million in a U.S. counterfeit case against 26 China-based counterfeiters. Fakes are bad for business. They cause devastating effects in terms of brand reputation and diverted rev- enue streams. Small businesses are extremely vulnerable as owners often lack the resources and know-how to defend their intellectual property. As a result, small to mid-sized organiza- tions manufacturing and selling prod- ucts online often find themselves strug- gling to combat counterfeits. They are also dangerous for consum- ers. Despite the lower prices, the reduction in quality means customers can find them- selves in harm’s way. Extreme outdoor wear brand Canada Goose, for example, has warned that the sub-standard materi- als used by counterfeiters can put custom- ers at an increased risk of frostbite. Despite these threats, this illegal trade is still booming. So how do they get away with it? Tricks of the trade The sad truth is that the list of counterfeiting “tricks of the trade” is long, and there are several common methods used by these online crimi- nals to dupe innocent shoppers. First is the use of genuine images to promote fake products. This is a common occurrence and probably the easier way for a brand with good knowledge of all their online sellers to spot their images being misused. Then there’s the misuse of trade- marks, design rights and patents. This is essentially just blatant copying of the orig- inal product and its original packaging. Customers are often duped into buying fakes because they are lured in by the cheaper price tags. However, in order to ensure customers don’t smell a rat, counterfeiters sell their goods for a slightly lower price than the usual sug- gested retail price, which simply implies that it is a bargain not to be missed. Another common hack used by counterfeiters is to replicate genuine sites in terms of the domain name used, as well as encompassing the site’s overall look and feel. This is a more complex but thorough way of ensnaring BrandWatch Inside Outdoor | FALL 2019 46 Counterfeiting  tricks of the trade