| GLOSSARY
Product security and protection |
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Counterfeit
A counterfeit (also referred to as falsification) is on hand, whensoever
the achievement of one person is misused by another. The falsification
should be seen as an original, because a counterfeiter tries to
imitate a product in all its characteristics.
Counterfeits are among other things common in the following areas:
branded goods, antiquities, tech-nical equipment, documents, spare
parts, art and currency. (q.v. classical counterfeit, colourable
counterfeit, plagiarism)
Classical Counterfeit
In opposition to the colourable imitations, classical copies also
have the same packaging and the same name but the ingredients
are mostly inferior, not existent, or actually harmful to health.
Brand
Brands or branded goods are qualified as benefit in kind or provision
of services, which fulfil the crite-ria of "same quantity",
"same quality", "check mark" and "ubiquity"
(available everywhere).
Legally, a brand is a particular symbol, which distinguishes the
commercial intercourse of specific goods or services of one company
from congenerous goods and services of another company.
A brand conduces to the labelling of goods or services of a company.
By protection of trademark the holder of the brand acquires exclusively
the right to strike back at illegal plagiarism (Deutsches Patent
und Markenamt).
All symbols, especially words, including names of persons, images,
letters, phonograms, three-dimensional figurations, including
the form of the goods or their packaging as well as other formats,
including colours and colour combinations can be protected as
a brand. They have to be qualified for the distinction of the
commercial intercourse of specific goods or services of one company
from con-generous goods and services of another company (§3,
para. 1, MarkenG).
Brand code
The genetic code of a brand (brand code) describes the genetic
components and interaction patterns, which give reasons for public
confidence and positive prejudice.
Trade mark
right
The trade mark right has its legal basis for suretyship in the
1995 "Law on the protection of brands and other labelling
(MarkenG)". It contains all fundamental demands on the brand
from the view of the producer but not the impact on the consumers.
Protection
of trade marks
The use of an identical symbol for identical goods and services
can be prohibited. As the case may be, claims for indemnity can
be asserted. This applies even if a danger of confusion exists,
because of the resemblance of the symbol and the resemblance of
the goods and services or the danger that the symbol is related
to the brand. (Deutsches Patent- und Markenamt)
Patent
A patent is defined as an entitled temporary industrial property
right. Only the holder is allowed to use the technical procedure
or the technical equipment in a commercial way.
Plagiarism
Plagiarism usually uses a slightly varied brand name. The products
hidden behind these names do sometimes not even exist in the assortment
of the OEM.
Product
The term product characterises an economic good, depending on
its position in the valued-added process, as the projected result
of an operative effort process, i.e. as output. It can be about
commodi-ties or services.
Product
liability
Product liability is defined as producer's liability for detriments
which result from the use of the producer's products. The product
liability is regulated in the "law on product liability"
(ProdHaftG). The precepts appear next to the liability as stipulated
in the German civil code (BGB). Therefore, warranty claims remain
unaffected by the liability from the law on product liability.
The law is compulsory and can not be changed contractually or
excluded from contracts.
§ 1 para. 1 ProdHaftG establishes an absolute liability,
which is impartial from fault. This means that the producer holds
responsibility even if he acted neither umpremetitated nor negligent.
He is also liable for non-avoidable faults on individual items,
so-called outliers. Since December 1st 2000 even agricultural
produces as well as and produces concerning hunt come under the
term product.
According to §1 ProdHaftG and §4 ProdHaftG the following
persons are liable: the de facto producer of the end product,
the component supplier in case the component was deficient, the
importer of a product from outside of the EU, the trader as far
as he affixes his name, trade mark or other distin-guishing marks
to the product, the distributor, if the producer of the product
is unknown.
According to §1 para. 2 and 3 ProdHaftG the liability is
excluded if the producer did not place the product into circulation,
e.g. the product was stolen. In this case the aggrieved party
is under the obli-gation of furnishing proof for the fault, the
damage and the interrelation of both (§1 para. 4 ProdHaftG).
The producer must proof the circumstances which can exculpate
him. This means, it is a case of shift-ing of the burden of proof.
Product
liability actions
In product liability actions the aggrieved party has to proof
that the injuring product was faulty for rea-sons, which lie in
the range of the organisation and danger area of the producer.
In case of a construc-tional fault or a manufacturing defect,
the producer has to proof, that the fault does not trace back
to him because of a breach of duty. Correspondingly he has to
exclude an actual fault.
If it is certain, that the injury is caused by a manufacturing
defect, the producer has to exculpate him-self (shifting of the
burden of proof). In case of a constructional fault or a manufacturing
defect, the producer bears the burden of proof, that he/she is
not responsible for the constructional fault or the manufacturing
defect concerning his/her product (Since BGH NJW 1969, 269 prevailing
case law).
Product liability cases are often protracted, expensive and mostly
linked with an substantial loss of the corporate image.
Product
information
A product security system should allow for codification of all
relevant product information, including sort of ingredients, class
of risk, producer, place of manufacture, designated chain of distribution.
Therefore numerous possibilities of codification and combination
are required.
Product
labelling
Common forms of visible product labelling are e.g. bar codes,
labels and seals of approval. Invisible information carrier, which
do not affect the appearance of the product, are also affixed
to the product for internal use or for communication with custom
authorities. These information carrier contain all relevant information
about the product.
Product
piracy
Product piracy means the imitating, copying or counterfeiting
of products. Trade mark right, patent right, copyright and other
commercial rights are systematically breached. World-wide, there
is an im-mense increase of these delicts during the last years.
In some countries, whole branches of industry only produce cheep
copies of branded goods. The so called product piracy can be only
roughly out-lined. Experts agree that "product piracy"
infringes trade mark rights in a commercial and criminal way.
Such actions are committed in a purposeful, copious and profit-making
manner.
According to the law from March 7th 1990 product piracy is prosecuted
with terms of imprisonment up to three years. Therefore product
piracy is not a peccadillo.
Product
safety
Technically there are many ways to secure products. A good security
feature fulfils the following condi-tions and consequently is:
· Unique: a security-feature
should be easy to identify. The product is uniquely recognisable
as an original.
· Forgery-proof: A good security-feature
requires that it can only be copied by third parties with greatest
effort and costs.
· Cost-efficient: To use a
security-feature should be as cheap and economic as possible.
Producer
protection
Product piracy is an acute and serious problem for the industry.
Immense economic damages emerge from product piracy, counterfeits
and unjustified claims concerning product liability. According
to the OECD, plagiarism and counterfeits cause an international
economic damage of 200-300 billions of EURO. According to estimations
of the German ministry of justice in Germany about 50.000 jobs
are dropped away. Pan-European, approximately 300.000 jobs are
affected. One can not numeralise the losses of a company when
the company's image and reputation is damaged without actual fault.
Con-cerning counterfeits it is as much important to protect the
consumers from defective products as to protect the producers
from immense losses of sale.
For producers it is essential to look ahead and to secure their
products as well as their company.
Safety
Safety denotes a status, which is extensively free of adverse
effects or is regarded as non-dangerous. [...] Security concepts
are constructed and used to reach the status of safety. Measures
of security are effective when they fend off expected and unexpected
damnifications. [...] (wikipedia.de)
Security
feature: checklist
· Exclusivity
· Close connection with the
product
· Containing visible and invisible
elements
· Easy monitoring and identification
· Not reproducible, not removable,
not changeable
· Efficient cost-benefit ratio
(Orgalime guideline: combating brand- and product piracy)
Colourable
imitation
The colourable imitation's aim is it to copy the original 1:1.
Packaging and brand name are usually identical. Concerning cosmetic
and pharmaceutical products, even the ingredients are possibly
the same.
Unique
Selling Proposition (USP)
Brands conduce to the accentuation of business competition. The
uniqueness of a well-positioned brand is reflected in the price
scope for providers. By brand policy, the supply is made heterogeneous.
Brands also provide a quick orientation for customers, because
originality, quality and service are known.
Packaging
The packaging is the outer wrapping of a product. It is the intended
purpose of the packaging to make a product readily sellable as
well as to protect it against damage and prevent it from deterioration
while storing. Furthermore the packaging is often the most relevant
element of a trade mark and conduces to advertising or communication.
Trade mark
The technical term "trade mark" is stamped by the law.
In the course of the trade mark right's reform in 1995, it was
replaced by the term "brand". Today, both terms are
used synonymously.
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