Five dollar headphones, ten dollar knives, and twenty dollar smart phones; other than a great deal, what do these three things have in common? They represent the potential end of your business. As counterfeit and gray market sales increase, a surprising amount of business owners are either unaware their products are being counterfeited, or just deny the very existence of a problem. How can you find out if you are affected? Or if you know of a violation what can you do? We have the answer to that, and insight into what the future holds for enforcement and industry changes. Spend a quality hour with us to learn what you can do to protect your company and its bottom line.

1. Webinar | March 28, 2013
Counterfeit Sales: What Are You
Doing About It?
David Howell
Director, Brand Protection
Channel IQ
Channel IQ
350 W Ontario St, 6th & 7th Floors
Chicago, IL 60654
#CIQBP 312.846.1199
www.channeliq.com
Webinar | Counterfeit Sales: What Are You Doing About It?| March 28, 2013 | © 2013 Channel IQ Tweet It: #CIQBP

2. David Howell
Director, Global Brand Protection
Channel IQ
With over 13 years of experience in the service, delivery
and the development of Online Brand Protection, Gray
Market, Anti-Counterfeit Sales, Global Domain
Management and Reputation Management for Fortune
1000 companies.
David has consulted such brands as Apple to Wal-Mart for
enforcement strategies and collaboration with cross
function teams such as legal and marketing
Currently consults for clients in a variety of industries,
including consumer electronics, apparel, entertainment,
footwear, media, and industrial equipment.
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Webinar | Counterfeit Sales: What Are You Doing About It?| March 28, 2013 | © 2013 Channel IQ Tweet It: #CIQBP

3. The Counterfeit Sale!
Today’s Topics:
• What is the state of Counterfeits?
• Best practices for protecting brands against
counterfeiters
• Question and Answer
NOTE: Questions may be submitted throughout the session
via the chat component of your webinar toolbar.
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Webinar | Counterfeit Sales: What Are You Doing About It?| March 28, 2013 | © 2013 Channel IQ Tweet It: #CIQBP

4. The Counterfeit Problem
What is a Counterfeit?
• Counterfeit Goods by definition are goods
infringing the rights of a trade mark holder by
displaying a trade mark which is either identical to a
protected trade mark or by using an identification
mark which "cannot be distinguished in its essential
aspects from such trade mark.”
Source Wikipedia
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Webinar | Counterfeit Sales: What Are You Doing About It?| March 28, 2013 | © 2013 Channel IQ Tweet It: #CIQBP

5. The Counterfeit Problem
If it’s manufactured, be assured it’s counterfeited
• If it’s manufactured, it’s counterfeited.
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Webinar | Counterfeit Sales: What Are You Doing About It?| March 28, 2013 | © 2013 Channel IQ Tweet It: #CIQBP

6. Why are Counterfeits so Detrimental?
Counterfeiting is devastating to Manufacturers
• Diversion of sales
• Loss of market share
• Health and Safety risks to consumers
• Decrease in reputation and brand value
• Possible Liability issues
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Webinar | Counterfeit Sales: What Are You Doing About It?| March 28, 2013 | © 2013 Channel IQ Tweet It: #CIQBP

7. The Counterfeit Problem
Global Trade Impact
Source: dhs.gov
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Webinar | Counterfeit Sales: What Are You Doing About It?| March 28, 2013 | © 2013 Channel IQ Tweet It: #CIQBP

8. The Counterfeit Problem
A Quick Poll
What is the Most Frequently
Counterfeited Product Category?
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Webinar | Counterfeit Sales: What Are You Doing About It?| March 28, 2013 | © 2013 Channel IQ Tweet It: #CIQBP

9. Top Counterfeit Goods
Top 5 Counterfeited Goods
clothing multimedia pharmaceuticals shoes electronics
8% 9% 9% 14% 22%
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Webinar | Counterfeit Sales: What Are You Doing About It?| March 28, 2013 | © 2013 Channel IQ Tweet It: #CIQBP

10. Top Counterfeit Goods
Most recognizable Counterfeited goods
All designated trademarks and brands are the property of their respective owners.
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Webinar | Counterfeit Sales: What Are You Doing About It?| March 28, 2013 | © 2013 Channel IQ Tweet It: #CIQBP

11. Top Counterfeit Brands
The top 10 brands counterfeited
All designated trademarks and brands are the property of their respective owners.
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Webinar | Counterfeit Sales: What Are You Doing About It?| March 28, 2013 | © 2013 Channel IQ Tweet It: #CIQBP

12. Now the Big Question?
Where are these counterfeits being sold?
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Webinar | Counterfeit Sales: What Are You Doing About It?| March 28, 2013 | © 2013 Channel IQ Tweet It: #CIQBP

13. Where Are These Counterfeits Being Sold?
Top Global Marketplaces
All designated trademarks and brands are the property of their respective owners.
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Webinar | Counterfeit Sales: What Are You Doing About It?| March 28, 2013 | © 2013 Channel IQ Tweet It: #CIQBP

14. The Alibaba Phenomenon
The Alibaba Group is Amazon.com & Ebay.com into ONE!
Source: Alibaba.com
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Webinar | Counterfeit Sales: What Are You Doing About It?| March 28, 2013 | © 2013 Channel IQ Tweet It: #CIQBP

15. The Alibaba Phenomenon
Lets take a closer look
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Webinar | Counterfeit Sales: What Are You Doing About It?| March 28, 2013 | © 2013 Channel IQ Tweet It: #CIQBP

16. The Alibaba Phenomenon
Monster Beat’s © Headphones as an example
Source: MonsterCable.com
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Webinar | Counterfeit Sales: What Are You Doing About It?| March 28, 2013 | © 2013 Channel IQ Tweet It: #CIQBP

17. The Alibaba Phenomenon
Alibaba.com
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Webinar | Counterfeit Sales: What Are You Doing About It?| March 28, 2013 | © 2013 Channel IQ Tweet It: #CIQBP

18. Alibaba.com Example
Monster Studio Beats by Dre © Headphones MSRP $299 - $399 USD
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Webinar | Counterfeit Sales: What Are You Doing About It?| March 28, 2013 | © 2013 Channel IQ Tweet It: #CIQBP

19. Alibaba.com Example
Monster Studio Beats by Dre © Headphones MSRP $299 - $399 USD
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Webinar | Counterfeit Sales: What Are You Doing About It?| March 28, 2013 | © 2013 Channel IQ Tweet It: #CIQBP

20. Alibaba.com Example
Monster Studio Beats by Dre © Headphones MSRP $299 - $399 USD
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Webinar | Counterfeit Sales: What Are You Doing About It?| March 28, 2013 | © 2013 Channel IQ Tweet It: #CIQBP

21. The Alibaba Phenomenon
AliExpress.com
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Webinar | Counterfeit Sales: What Are You Doing About It?| March 28, 2013 | © 2013 Channel IQ Tweet It: #CIQBP

22. Alibaba.com - AliExpress.com Example
Monster Studio Beats by Dre © Headphones MSRP $299 - $399 USD
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Webinar | Counterfeit Sales: What Are You Doing About It?| March 28, 2013 | © 2013 Channel IQ Tweet It: #CIQBP

23. Alibaba.com - AliExpress.com Example
Monster Studio Beats by Dre © Headphones MSRP $299 - $399 USD
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Webinar | Counterfeit Sales: What Are You Doing About It?| March 28, 2013 | © 2013 Channel IQ Tweet It: #CIQBP

24. Do I Have These Problems?
This is a question we all should be asking.
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Webinar | Counterfeit Sales: What Are You Doing About It?| March 28, 2013 | © 2013 Channel IQ Tweet It: #CIQBP

25. How to Enforce Counterfeit Sales
Should we solely rely on our Government?
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Webinar | Counterfeit Sales: What Are You Doing About It?| March 28, 2013 | © 2013 Channel IQ Tweet It: #CIQBP

26. How to Enforce Counterfeit Sales
Register Key Trademarks (Brands)
• Register Trademarks for your brands
• Most business mistakenly skip foreign TM registrations.
• Trademarks are central to any enforcement strategy.
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Webinar | Counterfeit Sales: What Are You Doing About It?| March 28, 2013 | © 2013 Channel IQ Tweet It: #CIQBP

27. How to Enforce Counterfeit Sales
Domain (brand) and infringer strategy
• Identify the infringer(s)
• Use an enterprise level investigation service.
• Qualify the data and find the depth of the problem
• Form an educated, enforcement strategy
• Implement solutions immediately
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Webinar | Counterfeit Sales: What Are You Doing About It?| March 28, 2013 | © 2013 Channel IQ Tweet It: #CIQBP

28. How to Enforce Counterfeit Sales
Where to look for infringement online?
• Global Marketplaces
• Typo Domain Names
• Cybersquatting
• Online auctions
• Social Media
• Paid search ads
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Webinar | Counterfeit Sales: What Are You Doing About It?| March 28, 2013 | © 2013 Channel IQ Tweet It: #CIQBP

29. How to Enforce Counterfeit Sales
How to begin implementation?
• Secure appropriate domain registrations
• Purchase both Gtlds and Cctlds as needed
• Identify and Recover Typographical domain names
• Proactive, is far cheaper than reactive, posturing
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Webinar | Counterfeit Sales: What Are You Doing About It?| March 28, 2013 | © 2013 Channel IQ Tweet It: #CIQBP

30. How to Enforce Counterfeit Sales
Actively Monitor for Online Counterfeits
• Utilize Online Brand and Trademark Monitoring
• Regularly crawl the Internet and online marketplaces
for sale of unauthorized and counterfeit items
• Search for paid advertisement placement
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Webinar | Counterfeit Sales: What Are You Doing About It?| March 28, 2013 | © 2013 Channel IQ Tweet It: #CIQBP

31. How to Enforce Counterfeit Sales
Next steps to take?
• Compile list of infringements and qualify results
• Uncover identities of infringers
• Collect necessary evidence
• Send Cease and Desist and Demand letters
• Submit evidence and filings to appropriate agencies
• Escalate where applicable
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Webinar | Counterfeit Sales: What Are You Doing About It?| March 28, 2013 | © 2013 Channel IQ Tweet It: #CIQBP

32. How to Enforce Counterfeit Sales
What outlets exist for dispute escalation?
• eBay VeRO program
• Alibaba Aliprotect program
• TaoBao IPR program
• DHGate IP rights process
• Made-in-China Compliance Department
• UDRP - Universal Dispute Resolution Procedure
• Country Specific escalation (CDRP, India, etc)
• Cease and Desist correspondence.
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Webinar | Counterfeit Sales: What Are You Doing About It?| March 28, 2013 | © 2013 Channel IQ Tweet It: #CIQBP

33. How to Enforce Counterfeit Sales
Implementing Anti-counterfeiting Techniques
• Consider badging to identify authorized sellers
• Make it known you will not honor warranties for
items purchased from an unauthorized seller.
• Remove all products and authorization from online
retailers with ineffective escalation policies
• Create whitelist on website of authorized retailers
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Webinar | Counterfeit Sales: What Are You Doing About It?| March 28, 2013 | © 2013 Channel IQ Tweet It: #CIQBP

34. How to Enforce Counterfeit Sales
Work with Experienced Brand Protection
• Select a qualified Brand Protection solution
• International and U.S. IP experience
• Enforcement that can work independently or in
conjunction with your inside and/or outside counsel
• Monitoring and Enforcement under one roof
• Offers enterprise level investigations
• Flexibility to adapt a solution to your specific needs
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Webinar | Counterfeit Sales: What Are You Doing About It?| March 28, 2013 | © 2013 Channel IQ Tweet It: #CIQBP

35. Just Keep in Mind
You don’t have to be the top brands in the world!!!
Source: businessweek.com
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Webinar | Counterfeit Sales: What Are You Doing About It?| March 28, 2013 | © 2013 Channel IQ Tweet It: #CIQBP

36. Thank You
Questions?
March 28, 2013
Counterfeit & Gray Market Sales:
What Are You Doing About It?
David Howell
Director, Brand Protection, Channel IQ
dhowell@channeliq.com
Channel IQ
350 W Ontario St, 6th & 7th Floors
Chicago, IL 60654
#CIQBP 312.846.1199
www.channeliq.com
Webinar | Counterfeit Sales: What Are You Doing About It?| March 28, 2013 | © 2013 Channel IQ Tweet It: #CIQBP