1. What is counterfeiting?

Counterfeiting is the practice of producing goods, often of inferior quality, and selling them under a brand name without the brand owner’s authorization. Generally, counterfeit goods are sold under a mark that is identical to or substantially indistinguishable from a mark that is registered for the same goods, without the approval or oversight of the trademark owner. Many famous brands, such as COCA-COLA®, MARLBORO®, and MICROSOFT®, are the subject of counterfeiting, as are brands associated with products ranging from peanut butter to aircraft parts. Counterfeiting should be distinguished from trademark infringement or passing off, which involves the use of confusingly similar indicia. Counterfeiting is most prevalent in developing countries with a strong manufacturing capability, including such nations as China and Brazil, although counterfeit goods are produced and sold around the globe.

2. Is counterfeiting illegal?

Yes, counterfeiting is illegal. In most countries, counterfeiting is punishable by criminal laws as well as civil laws, with penalties ranging from injunctions to damages to imprisonment. Put simply, trademark counterfeiting is theft.

3. If something is sold in a store or on the Internet, does that mean it is not counterfeit?

No. Counterfeits are sometimes found in legitimate-looking stores and websites, often because the retailer is unaware of their counterfeit status.

4. Is counterfeiting limited to luxury goods?

No. Anything that can be made can be counterfeited. Counterfeit goods include not only clothing, jewelry, purses, CDs, and DVDs, but also baby formula, drugs, cigarettes, electronic equipment and parts, airplane and automobile parts, and toys. Many counterfeits are dangerous, since they are not made with the same materials or to the same standards as the original.

5. Does counterfeiting cause any damage?

Yes. Although some believe counterfeiting is a victimless crime, it has many far-reaching consequences. To begin with, depending upon the nature of the product being counterfeited, there can be serious health and safety concerns—as, for example, in the case of counterfeit baby formula, drugs, car parts, or electronic goods. Needless to say, counterfeiting damages trademark owners’ goodwill in their products and detracts from their profits; in addition, it damages retailers selling legitimate products, resulting in missed opportunities to create jobs and actual job losses. Counterfeiting also deprives national economies of customs duties and tax revenues. Consumer confidence and the value of branding may suffer when purchasers discover that the product they bought, believing that it was  being sold under a recognized brand, is in fact not authentic.

6. How do I avoid counterfeit products?

The best way to avoid purchasing counterfeit products is to deal only with reputable retailers officially authorized by the brand owner. If a price seems too good to be true, it probably is.

7. As a business owner, how do I keep my products from being counterfeited?

Brand owners can take various legal, technological, and business steps to prevent or at least minimize counterfeiting. Once counterfeiting has become a problem for your company, consult with counsel regarding strategies to confront the issue. Depending upon the territory involved, you may be able to conduct raids, work with customs agents to prevent import or export of the counterfeit goods, or file civil and/or criminal actions against the perpetrator.

For more educational and informational resources regarding counterfeiting, visit the INTA website at www.inta.org, including the Anti-Counterfeiting section.