Piracy and counterfeiting will persist till the end of time, it seems. That was my conclusion after reading the latest annual Review of Notorious Markets from the Office of the United States Trade Representative (USTR), which identified numerous regions, countries, cities, and online sites that remain centers of commercial goods piracy and counterfeiting, despite persistent enforcement actions.
The report had previously been included in the USTR's Annual Special 301 Report, but the US government has opted to publish it separately to focus attention on the issue and give it greater prominence, in a bid to reduce the incidence of counterfeiting. Most of the online sites, towns, and regions described as "notorious markets" by the USTR are either physically in or operated from Asia, Russia, or South America. China features numerous such locations.
The USTR's list includes major online sites such as Baidu Inc. (Nasdaq: BIDU), "recently ranked as the number one most visited site in China and among the top ten in the world." Physical sites named include Bahia Market in Guayaquil, Ecuador; China Small Commodities Market in Yiwu, China; and other locations in Argentina, China, Colombia, India, Indonesia, Mexico, Paraguay, Pakistan, Philippines, and Thailand.
The list recognizes markets in which pirated or counterfeit goods are reportedly available, but is by no means an exhaustive record of all notorious markets around the world. "Rather, the list highlights with concern some of the most prominent examples of notorious markets in each of the categories referenced below," says the USTR. "The United States urges the responsible authorities to intensify efforts to combat piracy and counterfeiting in these and similar markets, and to use the information contained in the Notorious Markets List to pursue legal action where appropriate."
The activities carried out at the locations or online sites identified by the US government offer a range of products and services, including pirated music and counterfeit materials such as cigarettes, clothing, manufactured goods, pharmaceutical products, and sporting goods. China's Taobao is one such site. The USTR report concedes that Taobao is "making significant efforts to address the availability of infringing goods through its website." But, "it still has a long way to go in order to resolve those problems."
Some physical counterfeiting markets in Asia and South America have a particular emphasis on electronics goods: Ciudad del Este in Paraguay is one of those locations. According to the report, "this activity spills over into the entire Tri-Border Region of Paraguay, Argentina and Brazil, creating a hotbed of piracy and counterfeiting."
Of course, many locations listed in the USTR's report have been previously identified by local and international authorities, including the Chinese government, which has stepped up enforcement actions in recent years. Yet counterfeiting continues to flourish for the simple reason that it can be profitable. With any luck, next year, the list will be shorter -- the infringers highlighted in 2011 won't all want a permanent black mark against their names.
I want to also add that Piracy and Counterfeiting Markets do not necessarily want to engage in competition with the "original" companies, they just want to survive.
Consumers's pockets also play a big role in this matter. They sometimes will go for inferior products to save some money but sometimes at the expense of their comfort- I mean to say they spend more at the end of the day because the counterfeits don,t last when compared to the originals and sometimes they come without warranty
Exactly. But especially on materials I believe there is major concerns related to possible issues on safety and people health. Maybe vendors and Govs have ot improve education on how counterfeit could be dangerous for individuals.
I really share your opinion that piracy will forever be, the reasons are clear.
Fake goods do not cost as much as the originals and in some cases, the originals are not even available.
On the other hand, the counterfeits are made to look so much like the originals that people don,t even recognise them until you start to use them and you discover that it does not last at all due to inferior materials used.
If there will never be "originals" , there can never be "conuterfeits"
Unfortunately, like many other highly profitable 'businesses', as the incentives (or disincentives, in this case) to set up operations in one location decreases, the business moves to a more acceptable location. As someone stated earlier, dealing with counterfeit merchandise will always be a problem. In more recent years, the types of items that are being hijacked have become much more high-tech.
I agree with eemom; there's also another factor; it happens (sometimes) people buy counterfeit/pirate products because they are available on the market in advance and this is not a positive approach.
People buy counterfeit products because they are much cheaper than the original. People sell them because there is a huge profit margin in them. I would not make the leap that they are funding terrorist organizations.
I do tend to believe that piracy will forever continue to one degree or another.
Some School of thoughts submitted that the innocent purchases of counterfeit products from Internet sites and markets are funding terrorist and criminal organisations.Sales of fake goods, ranging from 'designer' clothes to powertools to pharmaceutical products are considered to have a direct link to international terrorism and crime.
The problem of counterfeit product goes beyond the fault of the original vendors and designers. While that may be a factor responsible for it in the sense that even when a company lay off her workers, those workers look for ways to keep doing what they have been doing before and if they find another company that is ready to absorb them to produce even if against their formal company- they would,nt mind and they also make use of inferior materials just to be in market.
while it is not their intention sometimes to engage in competition against their formal company or industry, they do so indirectly.
By moving to the core of the industry and offerings services that keep the system humming, a group within the electronics market has rendered irrelevant the question of ownership and control of the supply chain.
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Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Euro-Crisis: What It Means for High-Tech Firms Join EBN Editor in Chief Bolaji Ojo and Contributing Editor Jennifer Baljko on Thursday, July 12, at 10:00 a.m. EDT for a Live Chat on high-tech and Europe's economic difficulties.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.
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