Brand Integrity in a knock-off Marketplace

When in doubt, knock it off!  Yes, it's an easy thing to do in our industry, with 1000's of factories overseas ready - and willing - to knock off anything at any time with no real fear of consequences.  Unfortunately, what we as distributors don't necessarily think about is the fallout associated with knocking off a product, or putting a client's logo on a pre-made knock-off import.

Before this year's Super Bowl, $13.6 millon dollars worth of fake NFL merchandise was confiscated by federal authorities.  You might think that's a big haul, but really it's a drop in the bucket when compared to the unlicensed merchandise that is sold via the internet and retail outlets.  It's a big business, and the counterfeiters have sped up the production process to such an extent that they outrace the Federal authorities to the dollars, and undersell the licensed properties by more than 50%!

John Q. Public gets cheaper goods with their team/college/brand's name on it, however the brand receives no royalties - and John Q. Public is the one who is potentially on the hook if authorities want to go after him for damages.  The only winner is the retailer, and the chances of them being caught is minimal.

So, what is the harm?  Well the main thing is that it tarnishes your brand, aside from dropping your royalty rates considerably.  It's not relegated to the Sports Franchises, brands like Coca-Cola, Pepsi, Google, etc have all been knocked off at one time or another - and still have that done today.  Worse still, if you have a specific patent, God help you if unscrupulous foreign manufacturers get a hold of your product, you will see cheaper replicas of your stuff on the internet faster than you can Google it.  Ever bought one of those Green-wrist Rolexes in NYC?

How can a Brand protect itself?  One, work with suppliers who are reputable and, more importantly, work with ISO9001 factories overseas who have social compliance audits on hand. Secondly, license your brand with a recognized Brand Licensing company.  Thirdly, trademark, patent and register your brands or products correctly, if you haven't done so already.  That way, in the event of a knock-off - which will come - you have legal retribution available to you.