Qualitative problem statement
Counterfeit goods in the market have caused a lot of havoc both on trader’s and manufactures of original goods. Production of these goods denies the producers of genuine goods to earn money from their goods: this is because counterfeit goods may come at lower prices than genuine goods. Consumers have had their fair share of the problems caused by the goods. Counterfeit goods do not last that long. Thus, due to the problems caused by counterfeit goods it is wise to do a research on it (Lin 2011).
The number of counterfeit goods on the market has increased in the 21st century
Since the year 1995 up to date, a sharp increase in the number of counterfeit goods manufactured and released into the market have been observed (United Nations , 2010). Illegal traders fake many items of fashion including clothing, ornaments, jewelry and electronics and sell to many unsuspecting customers in stalls and shopping malls. Many substandard and unlicensed manufacturing industries are running plants that not only produce fake products but ensure penetration of these products to the end market (Lin 2011).
This trend is not encouraging because of the affected groups of people. Illegal traders deny many innovators their due copyright income (Jennings, 2011). Illegal traders also deny the government tax returns by individuals who are running this illegal business (Jennings, 2011). These traders deceive the public into buying goods that are not quality. Not only is the quality a problem, but the safety of the goods is also an issue of contention. In China, this business involves the use of child labor. The practitioners in the sale of counterfeit goods leads the government to invest a lot of money in constructing and running courts that settle cases arising out of the illegal business.
This business affects the peace and security of the world. The Spectator (1998) reports show that the sale of counterfeit goods is a major financing source for international terrorism and crime. This being the case, the whole of the business fraternity and other stakeholders should actively participate in alleviating the problem of counterfeit goods. If the government solves this problem, numerous groups of people will benefit. The community of developers stands to reap a lot of profit accrued from the possessions and time invested in the design of new products (The Spectator 1998). The citizens will receive value for their money because manufacturers will produce durable goods. This step will alleviate poverty levels due to child labor and mistreatment hence stable economic times (The Spectator 1998).
There are quite a number of reasons that influences the flourishing of the counterfeit business. Among the notorious ones are: the cost of buying genuine goods is high, leading many people to opt for the cheaper options provided by the producers of counterfeit goods. The loose grip of the law to the perpetrators of counterfeit business, has led many to engage in it. Many of the businessmen think that the law will not have an effect on them because the penalties the government gives are bearable. (The Spectator, 1998).
Another contributor to the counterfeit trade is the slow implementation of the authentication policies. Many standards organizations are slow in checking goods at the entry points and sea ports. This leads many traders to smuggle in imitations of the genuine in order to quench the desire in buyers to own a fashion item (United Nations, 2010). This trend is deep-seated such that local industries may be constructed in the country in order to produce these goods thus avoiding the inspection the government does at the ports. Limited skills in manufacturing quality and genuine products are a key supporter of the increase in the variety of counterfeit products (United Nations, 2010).
The cost of raw materials used for the manufacture of genuine goods is high. Together with the limited availability of these raw materials, many people interested in the production of a given product opt for other cheaper means. This results in the production of substandard goods.
The technological advancement of most countries is still low. China, for example, is the world’s capital of producing counterfeit products (United Nations 2010). The technology used in producing designer bags does not exist in the local industries built in most Chinese villages. Many buyers have supported counterfeit products. Many consumers indicate that counterfeit products function well. Some praise the durability of the counterfeit products, while some praise the affordable prices that traders quote for counterfeit products. This acts as a boost to the levels of production and the resultant demand levels in the consumer markets.
The attitude by the consumer also frustrates the effort of the government in stopping the spread of manufacturing and selling counterfeit products. If the government engages the community of designer producers in the fight against the sale of counterfeit products, the problem will be half-way solved. The commitment of the community of designers and innovators is a major boost to the fight against counterfeit products. The innovators need to track down the channels most traders engaged in the illegal trade use. The community of innovators should register their products with the copyright authorities and invoke the assistance of the legal authorities whenever they experience misuse of their copyright.
Another major solution to the problem of counterfeit goods is to include the population on a large scale on an awareness campaign. The community of developers and the government should take time to educate the population of the ills that come along engaging in counterfeit trade. Areas that the awareness team should focus upon include the role of counterfeit goods in international terrorism and child labor. Other areas should be the safety of the population due to the low quality of most of the counterfeit products. Research has indicated that an increase in publicity of genuine products has led to a decline in the sales of counterfeit goods.
In order to accomplish the solutions above, the government should set up an agency in the ministry dealing with trade. This agency should ensure licensing of 80% of all traders by the end of one year. A defaulter should face a penalty of not less than $10,000 or a jail term of not less than 6 months (Jennings, 2011).
The achievement of the solutions raised before will have the following tasks. A special department in business docket should handle the matters of forming consumer education teams. These teams will form a backbone, to influence a thorough drive of sensitizing the public against the ills of the illegal counterfeit trade. The teams will also provide a support infrastructure that will handle traders concerns related to the licensing drive (Jennings, 2011).
Apart from handling such tasks, this special department should track and prosecute any internet marketing service providers, who collude with illegal traders and host their services. This team work towards reducing the number of unethical hosts to less than 20% in a period of one year (Jennings, 2011).
Another task that comes up according to the legal strategy is the setting up of a special panel of judges. This panel of judges will form a knowledge base of all counterfeit trade related cases. The panel will work towards the arbitration of any copyright cases between the inventors and traders who breach the copyright laws (Jennings, 2011).
In conclusion, the manufacture and sale of counterfeit goods is a widespread illegal practice that is retarding the progress of the economy. Though the counterfeit business has taken root, the stakeholders in the business field have many ways they can help in reducing the trend and effects of counterfeit business. The commitment of the developers and innovators is a key requirement for the success of any strategy in this field. This should be backed up by government efforts to legislate against the manufacture and sale of counterfeit goods. The population also has a part to fulfill in this fight against the manufacture and sale of counterfeit goods. The role of the population is to decline supporting any individuals involved in this business. They can also educate their fellow citizens to develop a culture of cherishing genuine products.
References
Lin, Y. C. J. (2011), Fake Stuff: China and the Rise of Counterfeit Goods. New York, NY: Routledge.
Jennings, M. M. (2011). Business Ethics: Case Studies and Selected Readings. Cengage
Learning, CA
United Nations. (2010). The Globalization of Crime: A Transnational Organized Crime Threat
Assessment. United Nations Publications. Retrieved on 7 May 2012< http://www.unodc.org/unodc/en/data-and-analysis/tocta-2010.html>
The Spectator. (1998), The spectator. Volume 280, F.C. Westley.
