OtherPapers.com - Other Term Papers and Free Essays
Search

Manufacturing/ Selling of Counterfeit Products

Essay by   •  March 13, 2019  •  Coursework  •  936 Words (4 Pages)  •  14 Views

Essay Preview: Manufacturing/ Selling of Counterfeit Products

Report this essay
Page 1 of 4

Manufacturing/ Selling of Counterfeit Products

INTRODUCTION:

Counterfeit products are products, often of subservient quality, manufactured or sold under another brand name or copy of the original brand with minute changes without the brand owner’s consent.[1] Some very obvious type of counterfeit products are replica of currencies, branded clothes, shoes watches, handbags, electronic products, software’s etc.

                  [pic 2]

REASONS FOR COUNTERFEIT PRODUCTS:

  • To take advantage of the brand value and name of the original product.
  • To increase the market share and place because of real product’s popularity.
  • To increase market share by lowering down the price of replica of same product.

TYPES OF COUNTERFEIT PRODUCTS:

  1. Deceptive Counterfeit: When the consumers are unaware about the products they are buying are counterfeit.

      Deceptive Counterfeit Products:

              Who are the buyers?

  1. Illiterate/ Uneducated people
  2. Consumers unaware of brand

  1. Non-Deceptive Counterfeit: When consumer are aware of the counterfeit products they are purchasing but still are willing to buy those products

Non -Deceptive Counterfeit Products:

             Who are the buyers?

  1. People aware of brand but cannot afford to buy.
  2. People looking for status to show-off.

LEGAL POINT OF VIEW:

  • It is illegal to use trademark of some other company without permission as per the Trademark Act 1999, violation of which may cause heavy fines and imprisonment in some cases.[1]
  • Brand Protection act violates the copying of the product/ design.
  • Anti-counterfeiting Consumer Protection Act imposes criminal liability for trafficking of such products. [2]
  • It is an illegal activity, where the individual’s crime may not be obvious around them.
  • Copyright Act,1957 empowers the police to seize the counterfeit products.[3]

ABOUT COUNTERFEIT PRODUCT MARKET IN INDIA:

  • In India, about 80% of the market is flooded with the counterfeit products.
  • This is causing about 87% indirect tax loss to the government.
  • In FMCG sector, it is very surprising to know that every 5th product is faked or smuggled.
  • According to the report from “The Economic Times” in March 2018, Counterfeit market’s worth is over Rs. 40,000 Cr.[4]
  • The dependency of Indians on e-commerce sites in gradually increasing where there is flooding of 95% of duplicate products with heavy discounts which attracts people.
  • The situation is even more alarming when it come pharmaceutical products. Some products are not only fake but also sub-standard.

COUNTERFEIT PRODUCTS FRON MANUFACTURER’S POINT OF VIEW:

  • Loss of Market Share
  • Loss of revenue
  • Depreciating brand value
  • Increase in perfect competition
  • Decreasing credibility

COUNTERFEIT PRODUCTS FROM FAKER’S POINT OF VIEW:

  • Selling fake brands at lower cost which increase their market share.
  • Increase in revenue without showing the income.
  • Black money increases.
  • Tax evasion.
  • Easy Money.

COUNTERFEIT PRODUCTS FROM CONSUMER’S POINT OF VIEW:

In Favour:

  • Brand tagged products in significant cheaper rates.
  • Nearly same quality as of real brands in some cases.
  • Easy availability.

Against:

  • Poor quality.
  • Harmful contains/ materials used.
  • Less durability.
  • Zero Warranty.

MY OPINION:

In my opinion, Counterfeiting of products is not ethical and should be banned strictly for following reasons:

  • It is illegal in terms of laws.
  • It promotes child labour.
  • It may support organized crime.
  • It diminishes tax revenues.
  • It increases inflow of black money.
  • Weakens environmental, health and safety regulations.
  • May introduce dangerous products in market.
  • It can be a reason for major health issues.

According to survey conducted on e-commerce by “Quartz India” in April 2018, from about 3000 respondents from across Mumbai, Delhi, Hyderabad, Chennai, Kolkata and Ahmedabad;

...

...

Download as:   txt (6 Kb)   pdf (540.6 Kb)   docx (515.4 Kb)  
Continue for 3 more pages »
Only available on OtherPapers.com
Citation Generator

(2019, 03). Manufacturing/ Selling of Counterfeit Products. OtherPapers.com. Retrieved 03, 2019, from https://www.otherpapers.com/essay/Manufacturing-Selling-of-Counterfeit-Products/65581.html

"Manufacturing/ Selling of Counterfeit Products" OtherPapers.com. 03 2019. 2019. 03 2019 <https://www.otherpapers.com/essay/Manufacturing-Selling-of-Counterfeit-Products/65581.html>.

"Manufacturing/ Selling of Counterfeit Products." OtherPapers.com. OtherPapers.com, 03 2019. Web. 03 2019. <https://www.otherpapers.com/essay/Manufacturing-Selling-of-Counterfeit-Products/65581.html>.

"Manufacturing/ Selling of Counterfeit Products." OtherPapers.com. 03, 2019. Accessed 03, 2019. https://www.otherpapers.com/essay/Manufacturing-Selling-of-Counterfeit-Products/65581.html.