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Online counterfeiting is the illegal practice of creating consumer goods (also known as knockoffs) which violate the trademark of the rightful owners of those goods. This could be done by something as simple as using the same trademarked logo or symbol. The Adidas logo and the emblem for a Porsche are examples of symbols that are used by authentic brands and are produced by legitimate companies.

The proliferation of online counterfeiting is only increasing and threatening any type of basic brand protection that companies employ. This fact is only backed up via the large amount of websites that are seized by federal authorities. Counterfeiters are utilizing a wealth of sophisticated tactics to trick consumers and leading them to believe that those products are the real thing.

A probe a while back called Project CopyCat was led by US Immigration and Customs Enforcement. The investigation lasted 4 months and led investigators to shut down seventy websites that were built to be mirror images of authentic ones.

These online counterfeit sites tricked consumers by promoting goods such as Vuitton Bags and authentic team Jerseys and Dr. Dre Beats headphones. The web sites they used appeared similar to the true sites but actually went to fake sites such as LouisVuittonHandbagSale.net. The sites went so far as using images of SSL (Secure Socket Layer) certificates to lead consumers astray and leading them to believe that the sites were verified and financially secured.

Online sites that sell counterfeit goods have long used the internet to sell their wares, only now the technology has grown more sophisticated and more and more has become a threat to a company’ brand protection efforts.

This online counterfeiting extends throughout Social Media as fake PPC ads that use authentic symbols drive people to their sites, another challenge to a company’s brand protection strategy.

The cost for brands

It only goes without saying, the cost to brands can be intense. I’m not talking about millions, but billions lost to counterfeiters. Brands need to view a Brand Protection tool as not just a nice to have, but as a necessity for their brand to survive and thrive.

Luxury goods for example. Take the case of Prada, it is quite easy for any counterfeiter to come up with a website selling Prado. We’re not only talking about the financial costs, but the costs to a brand’s reputation. The person purchasing doesn’t realize if it’s a fake or not. If it tears and loses color after a month, most likely the consumer will see it as a negative against the authentic brand. Reputation could take years to build up after it has become tarnished.

The ICC (International Chamber of Commerce) estimates that the value of counterfeit goods, by 2015 will surpass $1.7 trillion dollars, a number that is over 2 percent of the total global current economic output. Think about all the lost tax revenue (Over $150B in developed countries) and the millions of jobs that vanish because of the rise of online counterfeiting.

Not to sound like an alarmist, but the threat to your brand is greater than ever and as I said, a brand protection tool is integral to to your anti-counterfeiting efforts. It is one that monitors the web for your brand’s counterfeiters, and is something that is needed and shouldn’t be put on a laundry list. It should be an integral part of your brand protection strategy. Not only has the sophistication of online counterfeiters grown, but with all the new gTLDs out there, your brand is now more at risk than ever.