Abstract:

This paper 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 discussion begins with the scale of counterfeiting activities based on seizures data from customs authorities emphasising the worldwide figures in order to show the extent of the problem and how its development concerns almost every country in the world. The paper identifies the 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 may also harm relevant stakeholders in many ways: diminishing legitimate businesses’ reputation, depriving governments’ revenue and endangering the health and safety of the consumers. The paper argues that the extent, scope and negative impacts of counterfeiting cry for effective enforcement to deter further violation and at the same time ensuring sustainability of legitimate businesses in developing national economies as well as protecting consumers form any anticipated further harm.