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Counterfeit and Piracy - Essay Example
Pages 7 (1757 words)
The economy of the world is facing many serious problems which have affected both developed countries and developing countries. One of the most serious problems is counterfeit and piracy. Generally counterfeit goods are defined as products with the same characteristics as original one…
It can also copy packaging and many other important characteristic of the origin product. This paper will discuss some problems caused by counterfeit and pirated goods. Not only will the problems be discussed but also the paper will suggest some possible solutions. This will be followed by evaluating if counterfeits goods are because of high prices of brand name.
Most Important of all, economic losses are one of consequences of counterfeit goods. As Bosworth (2006) has indicated, the producer of the branded goods may lose profit, especially, when consumer buys a fake product rather than their product. Additionally, they may lose future revenues because consumers will buy competitor goods, if they experience a lower quality in their goods. Also, Tungate (2005, 205, 206) reports that the amount of counterfeit goods is 500 billion all over the world a year according to the international Chamber of commerce, most of this trade is made in China. China is considered a fundamental resource of counterfeit goods and fake products globally. To quote from (Loke-khoon in Tungate 2005, 206), "China is the biggest factory of fakes in the world"... usually, when factories finish producing guanine goods at the end of day, counterfeiters imitate the same product just within hours.
The fact of the matter is that, counterfeit ...