Must Reads

EU-Backed Study Finds Counterfeits Pro-Consumer, Rejects Company Complaints

A new report funded by the European Union has concluded that counterfeits have pro-consumer effects while rejecting claims of losses by established companies.  The report concludes that most counterfeit purchases are not substitute for the genuine article and actually help promote the brand.  The report finds that the real cost could be one-fifth of previously calculated figures.

3 Comments

  1. A masters paper I did 3 years ago had exactly the same results…
    My two month research paper I completed back in 2008 found counterfeiting losses is HUGELY exaggerated similar to this study. That study found that those who would pay for a counterfeit item would never have purchased the original product in the first place. It would therefore be an incorrect assumption and a statistical error for any business entity to consider counterfeit goods as loss revenue.

    The only losses I could statically prove were from consumers purchasing counterfeit items they thought were the ‘Real McCoy’ – meaning retailers selling counterfeit copies of brand-name clothing, electronic goods, and media, but at MSRP prices. This accounted for up to 10% of all clothing and goods purchased.

    Using this information, I discovered reported losses from counterfeiting and piracy are over exaggerated by over 90%. Meaning, the data provided by special interest lobby groups including RIAA, MPAA, and clothing consortiums is grossly incorrect.

    My study also showed that there are intangible benefits of selling counterfeit products and that the free advertising and brand awareness these goods create far outweigh losses sustained by ‘consumers who are not your customers.’ Furthermore, my study showed that software companies who’s products are pirated, reap huge rewards on a future product version releases – a large percentage those who liked the product were likely to purchase a new version. Users of pirated software also were more inclined to use it legitimately at work – meaning, use it for free at home and then purchase it for use at work.

  2. ed reddy
    Ed reddy, where do we find your paper?

  3. Counterfeiting is an offence against the *purchaser*, not the *manufacturer*
    This confirms that the intent of “counterfeiting” laws are exactly correct – as long as the purchaser hasn’t been misled, there’s no counterfeiting involved.