The technology industry’s complex supply chains and reliance on manufacturing in the Far East make the sector extremely vulnerable to counterfeiters and grey-market profiteers. Counterfeit technology does not just endanger revenues and reputations, it also endangers customers – with instances of everything from exploding laptop batteries to substandard aircraft parts on the rise.
Counterfeit products and components are also a particular challenge for the telecoms industry, given surging global demand.
And reputations and revenues in the media industry are suffering severely too. Bootleg CDs and DVDs remain commonplace, but their impact pales in comparison with that of online piracy. Digital content can be shared rapidly, for free, across a wide range of ecosystems, from peer-to-peer file-sharing to content-streaming websites – creating the perception that such content is valueless, as well as potentially infecting consumers and businesses with dangerous malware. Content owners face a real challenge: how to serve the best content, in the best way, to their customers whilst piracy continues to erode revenues.
Counterfeit electronic chips and semiconductors cause losses of up to $169 billion a year to the electronics industry
Electronics manufacturers see counterfeits as affecting product reliability (84%), brand reputation (71%), and customer satisfaction (62%)
Counterfeiting is a $6 billion+ problem for the telecoms industry, and 8% (148m) of all mobile devices sold worldwide in 2013 were substandard or counterfeits
Counterfeit mobile phones can contain 35 to 40 times the accepted limit for hazardous substances such as lead
The global cost of digitally pirated music, films and software is $80 billion per year
A third of pirated movie sites spread malicious software, based on a report in 2015
In July, luxury brands won a significant victory in their battle with the billion-dollar online counterfeit industry. The Court of Appeal in London ruled that Richemont, owner of Cartier and many other prestigious labels, could ask internet service providers to block access to websites selling counterfeit goods.
It’s not been the easiest of times recently for luxury fashion labels as the cost of counterfeiting to their brands continues to grow. In the NetNames report Counting the cost of counterfeiting, published in 2015, we reported that the sale of counterfeit goods online alone increased 15.6% year on year, whilst counterfeiting and piracy are estimated to cost G20 governments and consumers more than $125 billion each year – and have destroyed 2.5 million jobs worldwide.
This report draws data from a wide range of reliable sources to provide an estimate of the shape and size of the piracy universe. It is based upon an in-depth study of a range of ecosystems commonly used for the distribution of infringing content.
The world has changed. Today, the average person spends 169 hours online every month, devoting more time to surfing the web than watching television, and browsing Facebook for longer than they read a daily newspaper.
National Wine Day today (May 25) is the perfect excuse for consumers to enjoy their favorite tipple and try out some new wines; however it is also a chance for producers and retailers to raise awareness of the darker side of the alcohol industry - counterfeit products.