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Counterfeits Increasing

January 30, 2018 by IPIA Leave a Comment

counterfeit

What Do Businesses Need To Do

According to a report published by the International Trademark Association (INTA) and the International Chamber of Commerce, the economic value of counterfeit and piracy globally is predicted to reach USD 2.3 trillion by 2022.

Anyone who has ever done any travelling, and particularly to the less developed and developing countries, can see first-hand that counterfeiting is a problem for many industries. No industry or country seem to be free from the threat. 

This is also true in Indonesia. The Indonesian Anti-Counterfeit Society (MIAP) offers some statistics on the market of counterfeit goods in Indonesia:

  • 3.8% drugs, 
  • 8.5% food and beverages, 
  • 12.6% cosmetics, 
  • 33.5% software, 
  • 37, 2% of leather goods, 
  • 38.9% clothing 
  • 49.4% of printer ink) 

It was the main cause for a loss of IDR 65.1 trillion in the national economy in 2014.

The United Nations Office on Drugs and Crime (UNODC) and The World Customs Organization estimates that 75% of counterfeit products entering the world market in 2010 were made in East Asia, generally in China. The cheap labour costs and the abundance of illegal workers make China the perfect choice of counterfeit goods producers.

In the past, products were placed on the general market and could be found in retail and traditional markets. However, now we have the digital era there has been a shift in the way sellers operate. Many counterfeit products are distributed through e-commerce and other online sales channels. In Indonesia one of the main e-commerce  channels that is notorious for distributing many counterfeit goods is Alibaba.

Last year, the United States Alibaba into its counterfeit goods watch list. Since then, Alibaba has claimed that their business has taken steps to combat counterfeiting in its seller network. One way has been to create a digital ledger system designed to track genuine products through the supply chain.

Counterfeiting Casualties

A consumer is said to be one of the victims of counterfeiting when they are unaware that the goods they buy are fake. The loss however is not confined to money – if the counterfeit goods that were bought are drugs or liquor, then there can also be a health threat (or even a threat to life as has been seen with counterfeit alcohol deaths in India and Indonesia).

There are also consumers who consciously buy counterfeit products as they are happy to get items that resemble the originals for a bargain price. However, many do not think that the counterfeit industry supports the violation of human labour and children’s rights. Dana Thomas, in her book “Deluxe: How Luxury Lost Its Luster” says that she witnessed how a child experiences violence and is forced to work to assemble a fake leather bag.

The list of victims does not however stop there. The original producers and brands are also of course deeply affected. The distribution of counterfeit goods will have a negative impact on the value associated with their brand. The circulation of fake branded products undermines the exclusivity and uniqueness of genuine branded products in the eyes of its consumers. It is little wonder that a worldwide brand such as Louis Vuitton is willing to allocate funds for brand protection efforts for up to € 15 million.

Brand Protection Efforts

It is almost impossible to completely eliminate the industry of counterfeit products and the black market. For manufacturers and brands, designing brand protection programmes is the only way to protect them from counterfeiting.

According to Kim Schneider, Avery Dennison’s Senior Director of Technology Solutions, brand protection is more of a counterfeit prevention effort, involving a multidisciplinary approach including supply chain management and science labelling.

The more elements involved in a brand protection strategy, the more difficult it will be to forge products. Manufacturers and brands can also work with third parties in implementing brand protection programmes in the supply chain. These include inspection and market surveys, trademark investigations, parallel trading investigations, and other related services.

In addition, it is important for manufacturers and brands to find the best way to communicate with their customers about product knowledge and other information related to the authenticity of the brand through its supply chain.


For more information on how IPIA, BEPIA or Business Due Diligence Indonesia can assist you with your brand protection efforts in Indonesia please contact us. 

Sources

http://kemenperin.go.id/artikel/9703/Kerugian-Akibat-Peredaran-Barang-Palsu-Capai-Rp-65-T

https://www.cnbc.com/id/38229835

https://www.voanews.com/a/global-trend-in-counterfeiting-and-piracy/3783360.html

https://www.forbes.com/sites/realspin/2015/06/25/as-louis-vuitton-knows-all-too-well-counterfeiting-is-a-costly-bargain/#3844f8af60d3

http://rbis.averydennison.com/en/home/about-us/industry-intelligence/how-to-protect-your-brand-from-counterfeit.html

Filed Under: Business Due Diligence Tagged With: business due diligence, letters

ISO 37001 Anti-Bribery

December 11, 2016 by IPIA Leave a Comment

Anti-Bribery

ISO 37001 Anti-Bribery Management Systems

Corruption raises the cost of business, undermines public trust and hampers growth. It disproportionately affects the poor and vulnerable by diverting resources from essential public services such as health care, education, transportation and water sanitation.

Bribery is one of the world’s most destructive and challenging issues. According to the Organisation for Economic Co-operation and Developmentthere are over US$ 1 trillion paid in bribes each year. The consequences are catastrophic, reducing quality of life, increasing poverty and eroding public trust.

Yet despite efforts on national and international levels to tackle bribery, it remains a significant issue. Recognizing this, ISO developed a new standard to help organizations fight bribery and promote an ethical business culture. It is designed to help an organization implement an anti-bribery management system, or enhance any existing controls. It helps to reduce the risk of bribery occurring and can demonstrate to stakeholders that an organisation has put in place internationally recognized good-practice anti-bribery controls.

ISO 37001 can be used by any organization, large or small, whether it be in the public, private or voluntary sector, and in any country. It is a flexible tool, which can be adapted according to the size and nature of the organization and the bribery risk it faces. 

What is an anti-bribery management system? 

An anti-bribery management system is designed to instil an anti-bribery culture within an organization and implement appropriate controls, which will in turn increase the chance of detecting bribery and reduce its incidence in the first place. ISO 37001, Anti-bribery management systems – Requirements with guidance for use, gives the requirements and guidance for establishing, implementing, maintaining and improving an anti-bribery management system. The system can be independent of, or integrated into, an overall management system. 

It covers bribery in the public, private and not-for-profit sectors, including brib- ery by and against an organization or its staff, and bribes paid or received through or by a third party. The bribery can take place anywhere, be of any value and can involve financial or non-financial advan- tages or benefits. 

What benefits will it bring to my business or organization? 

ISO 37001 is designed to help your organization implement an anti-bribery management system or enhance the controls you currently have. It requires implementing a series of measures such as adopting an anti-bribery policy, appointing someone to oversee compliance with that policy, vetting and training employees, undertaking risk assessments on projects and business associates, implementing financial and commercial controls, and instituting reporting and investigation procedures. 

Implementing an anti-bribery management system requires leadership and input from top management, and the policy and programme must be communicated to all staff and external parties such as contractors, suppliers and joint- venture partners. 

In this way, it helps to reduce the risk of bribery occurring and can demonstrate to your management, employees, owners, funders, customers and other business associates that you have put in place internationally recognized good-practice anti-bribery controls. It can also provide evidence in the event of a criminal investigation that you have taken reasonable steps to prevent bribery. 

Bali Eye Private Investigation Agency (BEPIA) along with our sister agency Indonesia Private Investigation Agency (IPIA) are  fully registered Private Investigation Agencies offering private detective and private investigator services to the Private and Business sectors throughout Indonesia and South East Asia.

For more focussed business due diligence work and analysis we would also refer you to Business Due Diligence Indonesia. 

Sources

https://anticorruption-integrity.oecd.org

https://www.iso.org/iso-37001-anti-bribery-management.html

https://www.iso.org/files/live/sites/isoorg/files/store/en/PUB100396.pdf

Filed Under: Business Due Diligence, Export, Export, Letters from a Private Investigator Tagged With: business due diligence, letters

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