GLOSSARY Product security and protection
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.


   
Anti counterfeit
Product protection system - Anti counterfeit
SECUTAG security codes - Product protection system against product piracy and counterfeiting