The Definitive Guide to Online Brand Protection

Counterfeiting should need little introduction. It is the manufacturing or distribution of goods under your brand name or IP rights, without your permission.

Yet there are subtle differences within the counterfeit trade that are important to define. Many counterfeiters produce knock-offs (non-identical imitation goods that do not feature branding or trademarks), for example, which are often very low quality and do not meet the criteria of what you might consider being a ‘true’ counterfeit.

True counterfeits, on the other hand, tend to be made at scale by criminal organizations. These criminal organizations often have access to materials that make their imitations very hard to differentiate from the genuine thing. They also tend to have wide distribution networks.

True counterfeiting is a much more problematic area because it makes it much more difficult for you and your consumers to see what is real and what is fake. It can also pose serious health and safety risks. Counterfeit bike helmets, for example, have been known to shatter at the slightest impact when made from inferior materials and without adherence to required industry standards.

We don’t really need to tell you. Ignoring these threats is not going to be a good idea – online platforms are unlikely to fight in your corner without your support and, left to their own devices, can exacerbate the problem.

You’re going to lose money. Your reputation is going to suffer. People are going to outright steal your ideas and come back and do it again.

But how do you even begin to quantify what that really means for your business – in real terms?

There’s plenty of research out there that will help you build your business case.

According to a recent study by Sapio Research, for example, 52% of US consumers say they have lost trust in a brand after unintentionally purchasing counterfeit products online.

That’s a huge potential hit to your brand.

Further Sapio research says that this lack of trust has a direct effect on buying behavior. A separate survey found that as many as 76% of consumers are less likely to buy products from a brand that is regularly associated with counterfeit goods.

The European Economic and Social Committee says that the probable overall value of trade in counterfeit products worldwide is likely to be between EUR 600 billion (UN) and close to EUR 1 trillion.

A recent report by the Organisation for Economic Co-operation and Development (OECD), meanwhile, says that the value of imported fake goods worldwide currently stands at over $500 billion annually.

Fake goods now make up 3.3% of world trade

Source: OECD and EU Intellectual Property Office, 2019

Clearly, the impact of counterfeit goods on brand value, buying habits and even wider societies and national economies is huge.

If you want to know more about the wider economic impact of counterfeiting, you can find out more in the full Sapio report.

So enough about the challenges. What about solutions? Before you even think about the technology you are going to need, your response needs to start with a well-thought-out strategy. But what exactly should that strategy include?

IP portfolio

Firstly, if you don’t already have the expertise in-house, you need to get some good IP portfolio advice that will help you to manage and protect your IP portfolio effectively. This might include performing clearance searches to screen new brands or dealing with trademark and design registration to secure your brand in all key markets. Bottom line: you will need to manage your intellectual property by ensuring it’s fully protected against any possible local objections to maximize its potential monetary value.

Business intelligence

Secondly, you will need to set up a mechanism for data collection and gathering business intelligence. This will also need to work across many e-commerce platforms and geographies. How much do you know about where your brand is being infringed online? Which products are most affected? In which regions? And where is the most traffic going? Gathering this kind of intelligence should be the cornerstone of your Brand Protection strategy and will help you to prioritize effectively.

Prioritization and threat analysis

With this kind of information and intelligence at your disposal, it’s possible that you’re also going to feel a little overwhelmed. This means your strategy is also going to need a level of prioritization and threat analysis that will help you manage and target your IP protection and anti-piracy/anti-counterfeiting efforts effectively.

Online advertising monitoring

As part of this strategy, it may be relevant for your brand to carry out extensive online advertising monitoring. This will help you identify where your ads are shown in undesirable locations and deliver the intelligence you need to rectify it.

Social media monitoring

Social media monitoring is equally important. This is because it often reveals networks of bad sellers that spread their influence through popular social media channels. Recently, a case was recorded where the discovery of a single Instagram account promoting counterfeit goods led to the exposure of a network of 531 social media accounts. This network had a combined total of 716,645 followers, 14,143 infringing URLs and 7,138 infringing listings on online marketplaces.

Network of partners

If you want to pursue your anti-counterfeiting strategy to the fullest possible extent, you will also need to put in place a network of ‘offline’ partners (such as law enforcement or government customs agencies) that you work with to chase down the most persistent offenders.

For some brands, though not all, this course of action is likely to lead you towards IP enforcement and Brand Protection litigation. This will often be the final piece in the Brand Protection strategy for those brands who pursue it.

Resources available

The truth here is often that very little time, money, and people hours are made available to focus on the challenge. For the individuals involved, brand protection also represents a small aspect of their overall role – a responsibility fighting for air time with the demands of their primary ‘day job.’

Tools

None.

Measure of success

At this stage, the only measure of success is the number of cases the team resolves (which is limited by the number they are aware of).

Goals

To deal with cases when they arise as efficiently as possible.

Resources available

Dedicated time and budget is in place, but still limited and sits under the legal department, siloed from investment and collaboration elsewhere.

Tools

Search-based tools monitoring online platforms for offending accounts.

Measures of success

The number of accounts identified and taken down.

Goals

To maximize takedown volumes and efficiency using available investment.

Resources available

A dedicated brand protection team bolstered by improving cross-functional relationships with departments such as marketing, e-commerce, PR and supply chain.

Tools

More advanced AI and machine learning empowered tools that not only flag accounts, but also identify links between them – pointing toward the individual(s) responsible.

Measure of success

Business impact, i.e. revenue generated or protected rather than takedown volumes.

Goals

At this stage, goals are beginning to align more with those of partnering functions throughout the wider business, such as e-commerce revenue or consumer trust for marketing.

Resources available

A dedicated brand protection team bolstered by crossfunctional relationships and investment from departments such as marketing, e-commerce, PR, cyber security, and supply chain, as well as the executive team. A steering committee comprising members of each area is commonly used at this stage.

Tools

As well as driving efficiency through automation, tools now deliver greater intelligence such as market insights and competitor benchmarking, acting as a source of insight for decision-makers throughout the business.

Measures of success

As well as having specific brand protection aims, the team is judged by its contribution to more general business targets.

Goals

To be a critical partner for all departments, with data and intelligence from brand protection central to business-wide strategic success.