Q. 1 What actions can companies and governments take to ensure that products can not be easily pirated? Be specific.
Nowadays fighting against counterfeits is too difficult because counterfeiters are using everything to fake expensive products and then sell them at lower prices.
Governments try to avoid counterfeits by using strict regulations against phony products, but there is no way to avoid a huge flow of law quality products that are faked.
We think that while producing some products the company should know its distribution channels very well, where and to whom the products are sold, and then control its network to avoid counterfeiting. For example when the company launches its product in one market it should be sure that there are no other products under the same trademark, and in case of existence of such products it should inform government to fight against counterfeiting. With such actions the company can protect its brand name and somehow reduce the counterfeit.
It was also mentioned in the case that the main havens of phony goods are China, India, South Korea, Malaysia, Taiwan, and Thailand. The main portion of counterfeits is produced in these nations, because of weak antipiracy regulations, even governments are operating in counterfeit actions. They do not protect organizations’ property rights. Using other company’s brand names, faking its products and selling them are common. Because these nations are supporters of counterfeiting, it is very important to reinforce antipiracy in these countries and not to let governments support such actions by controlling them strictly.
Companies in countries with strict antiparicy regulations are displeased because of unfair competition caused by counterfeiting. They should continue to lobby their governments and international organizations related to such affairs to force other nations into inducing stricter laws.
Meanwhile governments should take into account the bad affects of counterfeiting and try to assure and force other countries as possible to adopt fair regulations.
Q. 2 Do you think that the international business community is being too lax about the abuse of intellectual property rights? Are international companies simply afraid to speak out for fear of jeopardizing access to attractive markets?
U.S. Federal Patent Statute, World Trade Organization, United Nations, The Organization for Economic Cooperation and Development and The International Institute for the Unification of Private Law work to standardize rules of conduct in international business, including regulations about counterfeiting. Yet some areas of law need further progress across the world.
The main countries in creating phony goods are: China, India, South Korea, Malaysia, Taiwan, and Thailand. In these nations there are weak antipiracy regulations and at the same time economy is booming, so because of this, problem is expected to become more and more serious. In China government officials...