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"The recent launch of the new .asia domain is a further warning to companies to consider their online brand protection strategies and avoid putting themselves at unnecessary risk via neglected registrations."
Jonathan Robinson, Chief Operating Officer
Counterfeiters target UK market through the web
The UK launch of Apple’s much anticipated iPhone has been dealt a blow by counterfeiters and grey market traders who are inundating the UK with fake and grey import iPhones in the days leading up to the launch this Friday. In the space of just three days, a week before the official launch, there were more than 450 online auctions for thousands of unofficial iPhones in progress, according to analysis from online brand protection specialist, NetNames.
The analysis, carried out through NetNames’ sister company Envisional alarmingly revealed that almost two thirds (62%) of the iPhones offered in these online auctions originated in the UK, where the iPhone is not launched until Friday 9 November. In addition to this, in the vast majority of these auctions (70%), the iPhones were advertised as unlocked, despite the fact that official iPhones in the UK are only being offered on the O2 network.
These iPhones offered online are selling mainly on ebay and other online auction sites for an average price of £335, alongside CECT iPhones which are sophisticated replicas from China, selling for an average of £56. This influx of unofficial iPhones is characterised by mass grey market traders who push large numbers of goods into the UK market through the Internet. In this case, the top 10 sellers are responsible for over a third (34%) of all UK iPhone movement prior to the launch.
Jonathan Robinson, Chief Operating Officer of NetNames, "Consumers need to be aware of the threats posed by counterfeit goods and grey market imports online and make sure that they only purchase from reputable sources. The Internet and growth of online auction sites has unlocked major new opportunities for counterfeiters and grey market traders to move large volumes of products, and major brands need to have a greater visibility of what’s happening to help protect the consumer and their own reputations."
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Research methodology
The analysis investigated the numbers of iPhone auctions taking place on ebay.co.uk for 60 hours between 30 October and 2 November, focusing on the following product sets: Apple iPhones on ‘buy it now’ and ‘bid driven’ auctions, Apple iPhones that were advertised as unlocked, and CECT iPhones (an iPhone copy).
About NetNames
NetNames is part of London listed Group NBT plc (LSE: NBT). Through its industry leading domain name management service, NetNames Platinum Service, the company is responsible for managing and protecting online brands for international corporates, including in excess of 30% of the FTSE 100. Following the acquisition of Ascio Technologies in January 2007 NetNames became Europe’s largest domain name management specialist. The acquisition of Envisional Solutions in July 2007 added a range of market leading online brand protection services to the existing domain name management expertise.
NetNames is headquartered in London, with offices in New York, Nice, Munich, Madrid, Copenhagen, Zurich and Oslo. For further information, visit www.netnames.com/platinum.
2008