Chinese counterfeiting and piracy continue to grow - in both quantitative and qualitative terms. The number of cases has increased substantially, and the theft of intellectual property has become more intelligent. Chinese counterfeiters by now have a strong understanding of intellectual property and industrial property rights. Their counterfeiting strategies have thus become much more sophisticated, ranging from clever avoidance of patent infringements to aggressive use of legal loopholes and the forgery of certificates. The construction of a Great Wall of Patents is supposed to block foreign competitors.
Because of counterfeiting, global secondary markets with cheap faked products based on plagiarism develop quickly. These competing low-cost markets slowly but surely undermine the sales volume of Western original brand-name manufacturers. The problem of Western companies is not only the present loss in sales and a dramatic drop in prices that result from imitations currently offered on the global market. A significant concern is the future loss in sales and market share in their export markets due to the emergence of global low-cost segments with faked products that can damage and ruin their own business. In some cases Chinese counterfeiters have been able to steal large market share from a Western original brand-name manufacturer within three years.
There is only one way to stop Chinese counterfeiters: Western companies need to fight in the lion's den with an integrated approach. They have to investigate the infringement of IP undercover, perpetuate evidence and bring the cases to court – conducting both civil and criminal lawsuits. They need to publish their success in the Chinese media to generate and maintain pressure in the Chinese counterfeiter scene. Organizational measures, security technology and political lobbying build additional barriers for counterfeiters.
Flyer Global Anti-Counterfeiting