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The number of counterfeit products available on online networks has increased by 40% over the past year, according to a new report.
The findings were published by brand protection company Red Points in its 2020 Brand Intelligence Index report today, November 13.
More than 40% of IP experts surveyed for a new report also said that large-scale counterfeit networks had the biggest impact on eroding the value of their brands.
A third (33%) cited grey-market selling, or the sale of legitimate goods in unauthorised channels, as the biggest threat to brand value.
Geopolitical events are also expected to have a negative impact on companies’ ability to protect their brands online.
Just more than a third (37.4%) said the escalating US-China trade war would have the biggest impact among geopolitical trends on their brand’s strategy, while only a fifth (21.2%) cited a potential no-deal Brexit.
Some in-house IP experts also cited the growth of encrypted messaging apps as a danger, amid fears from brands that these private communication channels could be a safe haven for piracy.
The Recording Industry Association of America (RIAA) recently asked the office of the US Trade Representative to add one such app, Telegram, to its Notorious Markets list.
Red Points said that brands in the western hemisphere “should keep an eye on Telegram”, while WeChat marked a “big problem” for brands operating in China.
More than half (58%) of those interviewed said that the erosion of brand protection was the most harmful impact of counterfeiting and grey-market selling, while 40% said a loss of customer loyalty.
The industry is hopeful, however, that emerging technology may be able to provide some solutions: 45.5% said that blockchain would have a bigger impact than any other technology for brand protection within the next year.
The other popular answers included image recognition (37.4%) and machine learning (35.4%).
Red Points, trade war, brand protection, Telegram, RIAA, counterfeits, Brand Intelligence Index
