Definition of product piracy Why investing in Research and Development when counterfeiting is so much easier? The so called product piracy can be only roughly outlined. 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. Product piracy requires not only the infringement of branded labels but also includes only slightly modified imitations of branded goods. In contrast to that the term "counterfeiting" implies the intentionaluse of brand name or packaging and the specific look of products by third parties.

Damage of 200-300 billions EURO
According to the EU, 10% of the world trade consist of plagiarism through product piracy, illegal overproduction and re-imports. That means an international economic damage of 200-300 billions EURO. Entrepreneurs suffer immensely from this development. Besides losses of sale and profit they also have to accept damages of the company's image and if worst comes to worst even product liability actions. Especially the new markets of the producers of branded goods in Eastern Europe an Asia are imperilled due to dramatic slumps in sale. Furthermore, copies, which are inferior in quality can not fulfil the expectations of the customers and so the reputation of the brand name can be damaged irreparably.

300.000 jobs in Europe are affected by product piracy
According to estimations of the German ministry of justice about 50.000 jobs in Germany are dropped away yearly because of product piracy. Pan-European, approximately 300.000 jobs are affected. Additionally one assumes that the profit made by the sale of counterfeited products has a share in the financing of organised crime.

Imitations, Plagiarism and Counterfeiting
Basically, one can distinguish between three kinds of imitations. 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. The output of long-lasting time of development and research of producers is destroyed by counterfeiters.
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 even harmful to health. Here the problem is not only that the market is flooded with cheep copies, but it's also dangerous for the producers, because the consequences of substandard imitations can be immense damages of the company's image and product liability actions. The third kind of imitations is plagiarism. These kind usually uses a slightly varied brand name. The products hidden behind these names do sometimes not even exist in the assortment of the producer of the original brand name.

Solutions against product piracy
Behind closed doors many people are working intensely on solutions to the problem. On a European level not only the governments of the member states but also the European committee, on a world-wide level even the UN is interested in a lasting solution. But the intensification of laws and even stricter controls won't be working if product labelling isn't implemented. The industry is forced to introduce such labelling and the security authorities have to control them continuously. Security experts explain that co-ordinated methods and short ways of information would be able to stop even car thieves and profiteers.
The affected industry has to support the efforts of the authorities by concerted actions. It may not only rely on the sanctions of the particular national governments or the EU to solve the problems of national organised product piracy. From the point of view of the VBP (association to combat product piracy) a co-operation of the affected companies and their subsidiaries, licensees and other affected producers of branded goods has to take place.
By concentrating the expert knowledge and the efforts in the battle against product piracy the actions which are to be taken can be co-ordinated in a better way, the possibilities to exchange data concerning counterfeiters and so called "piracy-centres" can be advanced, already existing sources of information can be used more efficiently and defences can be carried out more successfully. Moreover, the association's view is that in connection with suchlike methods one should be proactive to bring forward an effective legal framework which accounts for trade mark right. Adequate steps were already introduced because the association targeted to pass such a legal framework as fast as possible. Insofar, the association already acts for the interests of its members by co-ordinating with national and European public authorities.

Concerning product safety, it is necessary to distinguish between identification features and security features. A logo, for example, is an identification feature, but doesn't provide any safety. It can be imitated without great effort. The more difficult and complicated it is to copy a security feature, the more appropriate it is to protect products.

SECUTAG® can testify the originality of the product by the use of an unique forgery-proof colour code which is like the fingerprint of the product.

The SECUTAG® particles may be applied to the surface of your product, or incorporated into it, and cannot be mimicked. Possible uses are: Labelling/pasting, coating, embossing/stamping and spraying your products with SECUTAG®. It is possible to protect one-off items, whole batches or even entire productions using an individual code, covertly or overtly.

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How to protect your products against product piracy