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counterfeit product issues. Asia and the Issue of Counterfeit Products October
4, 2006 Discussion I. Countries & Products II. Reasons ...
... This counterfeit product will tarnish Canon’s brand image ... to substantial investments
in product development and ... analysis has analyze some of these issues. ...
... The customer can run into support issues as it is the OEM that is ... When you buy unbundled
software you take a bigger risk of purchasing a counterfeit product. ...
... Bloks to a greater chance of counterfeit, they do ... drives down costs and reduces product
development cycle ... tool for addressing many of the issues like quality ...
... ID cards which are not so easy to counterfeit because the ... it is beneficial to always
address these ethical issues first prior to designing a product. ...
Submitted by oobie on October 15, 2006
Category: Business
Words: 1628 | Pages: 7
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Asia and the Issue of Counterfeit Products October 4, 2006
Discussion
I. Countries & Products
II. Reasons behind the issue
1) Profitability
2) Demand is strong
3) Penalties are low
4) Good way to launder money
III. Consequences of counterfeit products
1) Lost revenues
2) Tarnished company image
3) Societal Costs
(1) Child Labor
(2) Sweatshops
4) Consumer effects
(1) Fire
(2) Harm, death
5) Lost wages and jobs
6) Criminal Activity
(1) Terrorist funding
(2) Organized Crime
IV. Why is it so difficult to stop?
1) Little cooperation from Government
a. Chinese legal environment
(1) IP laws are very strong in China
(a) Condition to World Trade Organization admittance in 2001
(2) Legal Environment
(a) 200,000 judges to 140,000 lawyers
(b) Judges don’t have law background
(c) Judges are selected locally, paid locally, promoted locally, and fired locally
(3) Corruption – Paying for a decision is very common in Chinese courts.
b. Government
(1) Extensive use of counterfeit products and pirated software
(2) Economic dependency issues
2) Difficulty in identification
a. Legal question – Is it counterfeit if it is produced in the same factory using the same materials according to the same specifications?
b. Progress of technology in the printing, scanning, and copying fields.
3) New Balance in China
Current Events
1) Time Warner DVD sales in China
2) Microsoft Windows Genuine Advantage
3) Enforcement in China: too weak to stop pirates
4) Indian Pharmaceutical, Aurobindo Pharma, grows via pirating strategy
Appendix A - Current Events
Time Warner DVD sales in China
Business Week Online, “Take That You...
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