Intellectual Property

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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 sh...

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...-time policing the site and forced the shutdown of about 19,000 auction sites on eBay. Tiffany randomly bought silver "Tiffany" jewelry on eBay and found that 73% of it was counterfeit, 5% of it was genuine and the rest was promoted as "Tiffany-like" but not promoted as genuine.

Sales of substandard counterfeit merchandise with the Tiffany name harm Tiffany's reputation.

The argument of Tiffany is that online auction giant eBay “facilitates counterfeiting” and should be held accountable for the sale of counterfeit Tiffany jewelry. While eBay claims that it should not incur any liability because does not take title or possession of the goods but rather only operates an online marketplace. "We're not clothing experts. We're not car experts, and we're not jewelry experts. We're experts at building a marketplace and bringing buyers and sellers together," – eBay insists.
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