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News Release from: tesa UK | Subject: Anti Counterfeiting
Edited by the Manufacturingtalk Editorial
Team on 06 February 2007
Cost of Piracy
The cost of piracy to UK businesses amounts to over GBP 10 billion according to the Alliance Against Counterfeiting and Piracy.
Worldwide, counterfeit goods are said to account for 5 to 7% of world trade costing the global economy $1000bn each year Cost to UK economy Brand manufacturing is a key factor in the UK economy
This article was originally published on Manufacturingtalk on 13 Feb 2006 at 8.00am (UK)
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A report by the Anti-Counterfeiting Group estimates that brand manufacturing accounts for GBP50bn of gross output, 400,000 jobs and exports of approximately GBP6bn per year - 14% of UK manufacturing.
Figures from the Global Anti-Counterfeiting Group confirm the economic importance of brand protection - in Europe brand counterfeiting results in a direct loss of 17000 jobs; 4100 of which are in the UK.
While the top fakes are Chanel, Rolex, Louis Vuitton, Nike Sports wear and Pokemon, fake goods also have a menacing nature that can be life threatening.
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Counterfeiting is believed to be a stronghold of organised crime and international terrorism.
Also, consider the consequences of substandard car parts and tools, poisonous alcohol, tea bags containing iron filings, washing powder containing caustic soda, health drinks with dangerous levels of ephedrine (that can cause irregular or very fast heartbeat, high blood pressure, stroke, vomiting, psychosis and even death), leaky condoms, unsafe toiletries and electronic goods.
Up to 10% of car parts sold in the European Union are thought to be counterfeit.
A UK Patent Office report reveals that seizures of counterfeit medicines grew by 45% in 2005.
Counterfeiting is increasingly infiltrating retailing circuits that are thought to be offering genuine products.
The problem is so serious that major international manufacturers are reviewing their UK supply chains.
While China, Taiwan and India are significant generators of fake goods (EU figures show that 54% of fakes seized in 2004 originated in China) the production of counterfeit goods is increasingly carried out within the UK according to Intellectual Property Group, a unit of The Patent Office.
Protecting brands, consumer confidence and safety.
The tesa Holospot system can identify and authenticate each product in any range.
It delivers the global benefits of traceability to businesses and their distribution networks, together with anti-counterfeiting protection to retail operations thus protecting their brands and their market share.
The technology operates at four levels to protect products - identifying, authenticating, dissuading and proving.
Authentication of each product, reducing the opportunity for product counterfeiting or manipulation Identification of each product to verify the entire production / retail chain, and combat the risk of over-production spilling onto the parallel market, or the misappropriation of stock Dissuasion of potential counterfeiters and retailers from skimming-off counterfeit products Providing proof that can be used in legal proceedings Safeguarding know-how, brand image, sales and market share Businesses benefit from advantages in marketing and greater ROI through enhanced brand protection.
The unique Holospot label on each product contributes to consumer safety and can help boost confidence and trust in the brand.
In doing so it adds value and optimises marketing investment.
In financial terms, the use of this technology solution helps businesses preserve their ROI by minimising commercial losses, stabilising prices and reducing customer complaints as well as the return of goods.
For manufacturers these benefits justify investment in the technology which includes a reading device for product verification together with the residual cost of each tesa Holospot label of between euro0.02 and euro0.05 per item.
For businesses operating in high risk territories such as Asia and Latin America tesa Holospot meets the need to protect products.
In similarly risky business sectors including pharmaceuticals, automotive, cosmetics, and luxury goods, tesa scribos is already positioned.
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