Counterfeit Products and Their Impact on Investment

By: Sebastián Rodríguez, Brand Protection Paralegal

Counterfeiting products is a lucrative business for those who infringe upon the rights protected by Intellectual Property. However, this practice poses a danger to a country's economy in several ways: By discouraging investment and causing economic losses for legitimate rights holders who invest in the research, development, and marketing of these products. By causing reputational damage, as consumers may associate the low quality or lack of safety of counterfeit products with the original brand. By impacting fair competition, as it can distort the market and affect businesses operating legitimately and complying with regulations and commercial standards. By posing risks to the health and safety of consumers, especially when it comes to products such as medicines, food, electronics, and toys. This can result in additional costs for the public health system and increase the risk of injuries or illnesses among the population.

Intellectual Property rights holders often choose to invest in countries that actively combat piracy and counterfeiting. In this regard, Romero Pineda's Brand Protection department offers various strategies to protect its clients' Intellectual Property, including civil and criminal legal actions against counterfeiting, as well as border measures.

The protection of our clients' Intellectual Property begins with collaboration with the General Directorate of Customs and the National Civil Police, through continuous market verification to ensure that available products are original, i.e., manufactured or marketed by legitimate rights holders or authorized distributors. Subsequently, legal actions can be taken before the judicial authorities to condemn Intellectual Property infringers.

According to the United States Department of Homeland Security1,[1]one of the most common methods used by counterfeiters is to prominently display the trade name or registered trademark of a well-known company, even though they were created outside specified specifications, to deceive consumers and create a false impression that the product is original and cheaper. This generates "profit" at the expense of the real owner, who produces and places their products in the market in good faith with a real value.

Romero Pineda's Brand Protection team has collaborated with customs in various seizures of products such as toys, health and beauty items, clothing, and technology, and has attended court hearings to prevent these products from entering the market and causing the damages mentioned above All of this is carried out in coordination with relevant governmental institutions.

If you have any questions on the topic, do not hesitate to contact us at info@romeropineda.com

[1] Mercancías falsificadas: Un peligro para la seguridad pública | ICE