Managerial Counterattack: Traditional and Novel Anticounterfeiting Strategies

It is clear that governments alone cannot solve the counterfeit product problem. Owners of intellectual property (IP) must take action to protect their rights. There are a number of anticounterfeiting strategies recommended by numerous researchers that target distribution channels, international organizations, and pirates. There are also internal, company-based initiatives. But, few if any of these studies assess the effectiveness of the recommended anticounterfeiting tactics. The authors have conducted in-depth interviews with US managers to measure their perceptions of the efficacy of various anticounterfeiting tactics. Our research indicates that corporate managers believe registering trademarks and patents is a must. They also believe encouraging distributors to notify the manufacturer about counterfeits, and educating both employees and channel members about the counterfeit problem to be very effective ways to fight pirates. These managers also report that many other tactics are far less effective, for example an acquisition/joint venture with a counterfeiter, aggressively cutting prices, providing financial incentives for distributors to reject counterfeits, or stressing the harmful effects of fake goods in consumer advertising.