Counterfeiting: a threat that often comes from within, but not always.
Counterfeiting is much more than just copying. It’s a real threat that jeopardizes your sales, your brand image and the safety of your customers. While foreign counterfeiting networks are well known, it’s essential not to overlook internal risks. Indeed, employees – whether disgruntled, opportunistic or simply ill-informed – can become key players in the distribution of counterfeit products.
The internal origins of counterfeiting: an insidious threat
- Theft of intellectual property: Plans, prototypes, formulas, software: all this confidential information can be stolen by ill-intentioned employees and used to manufacture counterfeit products.
- Clandestine manufacturing: Employees may use company resources (equipment, tools, raw materials) to produce counterfeits on or off the job.
- Industrial sabotage: Sometimes counterfeiting is motivated by a desire to harm the company. Disgruntled employees may sabotage the production of genuine products in order to promote the sale of counterfeits.
- Collusion with external networks: Employees may be linked to counterfeiting networks, providing them with valuable information to improve the quality of counterfeit products.
Motivations for in-house counterfeiting
- Personal enrichment: Employees may be motivated by the financial gain of selling counterfeit products.
- Revenge: A disgruntled employee may want to harm the company by manufacturing and distributing counterfeit products.
- Opportunism: Some employees may seize an opportunity to make a quick buck by taking advantage of their position within the company.
The consequences of counterfeiting for your company
- Lost sales: Counterfeit products erode your sales and damage your profitability.
- Damage to your brand image: The presence of counterfeit products on the market can tarnish your reputation and damage your customers’ trust.
- Legal risks: Counterfeiting is an offence punishable by criminal and civil penalties.
- Damage to your supply chain: Counterfeiting can disrupt your relationships with suppliers and distributors.
Take preventive measures and don’t wait for counterfeiting to damage your business!
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