Fake or knockoff products are often intellectual property violations. Your company may hold a patent to produce a certain product, but another business steals your design. They create cheap imitation products that appear to be the real thing and sell them in violation of your intellectual property rights.
As you work to stop this process, the first way it harms your business is that some consumers may be deceived. This is especially common in the internet age, where all it takes is one convincing website to make people believe they are buying authentic products. Even after receiving the products, some may not realize they’ve been tricked. Your business can lose significant sales, especially since consumers often prioritize the lowest price, and imitation products are usually much cheaper than genuine ones.
Issues with consumer trust
The second way this harms your company is by creating significant issues with consumer trust.
For instance, a consumer interested in your business may accidentally buy a knockoff product. If they’re unimpressed with the quality, they may never purchase from you again. Your company had nothing to do with this, of course, but the consumer doesn’t know that and so you are losing future sales.
Additionally, if a product gains a reputation for being frequently counterfeited, even consumers who see your authentic products may hesitate, unsure if they are looking at the real thing. This hesitation could prevent them from making a purchase they otherwise would have made.
Your legal options
In both cases, your company is losing money due to these intellectual property violations. It’s crucial to explore the legal options available to protect your rights and your brand.