Abstract:

This study examines the determinants of the global growth in trademark counterfeiting and relates how this activity could result in significant negative effects on legitimate businesses, governments and consumers. The aim is to assist the businesses and relevant authorities in determining appropriate action to effectively deal with the problem. The study adopts qualitative approach as a tool for data collection in identifying the scale of counterfeiting and employs legal approach to analyse the provision of relevant laws. The study identifies few interconnected leading factors triggering the widespread of counterfeiting to include: huge profit with low risk of criminal sanction, weaknesses of legal system, globalization of businesses and technological advances. Counterfeiting harms relevant stakeholders in many ways: diminishing legitimate businesses’ reputation, depriving governments’ revenue and endangering consumers’ health and safety. The study finds that the extent, scope and negative impacts of counterfeiting cry for effective enforcement.  The study also identifies some important learning points for policy makers and recommends that the enforcement mechanisms used should have a deterrent effect against counterfeiters. This may include the availability of criminal enforcement and sanctions to deter further violation plus effective remedies to the injured parties in ensuring sustainability of legitimate businesses in developing national economies as well as protecting consumers from any anticipated further harm. It is also recommended that further analysis can be conducted on how joint efforts by government agencies and industry may yield better result to enhance the effectiveness of enforcement efforts in fighting counterfeiting.