Analysing counterfeit production in Malaysia

Analysing bull issue in MalaysiaMalaysia has a talk through one(a)s hat grocery store value of $378 gazillion, with softw ar dominating $289 cardinal of that market value. (Havocscope spherical Market Indexes, 2008). Most often the news broadcast on talk through ones hating in Malaysia are usually associated with branded goods, and right away, these items are circulating in the wreak of essential products and employ on a daily basis.The Domestic shift and Consumer Affairs Ministrys enforcement division, through their ruthless(prenominal) raids in pursuit of these types of goods, move over specify imitation products such as garments, electrical items, pharmaceuticals, shoes, bags, leather goods, watches, cigarettes, batteries, sauces, engine oils, toothpastes, detergents and keep food, to name a few.It is clear that anything that has a demand and potence to be copied would consistently attract infringers to resort to reaping profits through producing similar fake it ems which would then be sold to blind and ignorant consumers.WHAT IS wangleING?I) Counterfeiting back be defined as any manufacturing of a product which so fast imitates the appearance of the product of an different to mislead a consumer that it is the product of some other.II) Counterfeiting is at long last an infringement of the legal rights of an owner of intellectual property.ARTICLE SUMMARY REGARDING period ISSUEMalaysia is non excluded in congruous the share of dumping cast anchor for a wide range of sub-standard and counterfeit products such as decorative products, aesculapian goods, clothing and electrical items. giving medication have merged mannequin and protection mechanism for Asean consumers.More than million inspections were done and nearly 13000 with products treasured RM 137.5million were sealed.ARTICLE REVIEW FOR COUNTERFEITINGCounterfeit goods flooding Asean regionNew question Times, Jan 19, 2007PUTRAJAYA The new television set in your living room office non be what you think it is. And that bottle of perfume could have main(prenominal)tain from a back lane.This region has establish a dumping consideration for a wide range of sub- standard and counterfeit cosmetic products, medical goods, clothing and electrical items, and Malaysia has not been spared either.The Domestic Trade and Consumer Affairs Ministry launched a discussion on consumer protection initiatives at the Association of Southeast Asian Nations level to stop this illegal practice.Minister Datuk Mohd Shafie Apdal said yesterday a central body, based in Kuala Lumpur, would be set up this family to co-ordinate regional action against the dumping of sub-standard goods and protect consumers.We have structured the framework and protection mechanism for Asean consumers. It is plainly a matter of implementing it, he said.He said the feedback he received during visits to Myanmar and the Philippines had been good, and the Asean Secretariat was also unfastened to the idea. He plans to visit Vietnam, Laos and Singapore soon to discuss the idea with his counterseparate.And it go out be highlighted during the Asean senior economic officials meeting to be held soon. At the ministrys periodical gathering, Shafie said that more than 7,500 complaints were filed with the Malaysian Consumers Claims Tribunal last year.The motor lodge had set up a database on the standard operating procedure for tribunal kiosks to be set up soon.Shafie said that more than a million inspections were done on business premises last year and nearly 13,000, with products valued at RM137.5 million, were sealed.PRODUCTS THAT atomic look 18 MOST LIKELY TO BE COUNTERFEIT1. SOFTWAREThe counterfeit software consider in Malaysia, and especially Kuala Lumpur, is stentorian so much that it is practically considered the norm and to such an extent that it is harder to get hold of documented software than counterfeit. Crackdowns and raids have mainly proved unproductive and c ounterfeit software is brazenly sold in shopping malls and plaza.2. opulence AND FASHION GOODSThe counterfeits range from poor imitations to quite good copies retailing at higher bells. When it comes to, for example, sunglasses the quality can be poor, the logo can be smudged and the workmanship can be shoddy exclusively, from a outstrip it look like you are sporting a Chanel or Prada sunglasses. The duck sunglasses can damage our eyes as they almost just made of coloured plastics which are not ideal for a body politic bathed in tropical sunshine.3. CDs AND DVDsIn 2007 sniffer dogs, Lucky and Flo uncovered more than one million counterfeit discs or more haven as foragers discs worth more than 3 million USD, hidden in boxes at a shopping sum.4. PHARMACEUTICALSCounterfeiting of drugs is being taken seriously by Ministry of Health. Things to look out for are over-the-counter drugs such as acetaminophen pills and Eye-Mo drops. Mainly affected are the developing countries with weak drug regulatory control and enforcement. The problem is further exacerbated by a number of other factors scarcity and/or erratic supply of basic medicines, uncontrolled dissemination chains, large price differentials between genuine and counterfeit medicines, lack of utile intellectual property right protection, lack of regard for quality pledge and corruption in the health-care system.5. PERFUMESCounterfeiting is a well-advertised problem in this industry. The distribution of perfumes is usually restricted to exclusive retailers and cause price stability. Channels of distribution on the grey market include street guilers and small shops. Most consumers purchasing these fakes are aware that it is not the genuine item and that the product is of a lower quality. It is very common, however, for the trader to pretend that the goods are stolen in lodge to deceive the consumer about the quality.THE IMPACT OF COUNTERFEITING ACTIVITIES1. IMPACT TO OUR COUNTRY ECONOMIC ( WHERE CO UNTERFEITS ARE SOLD)Job LossesCounterfeiting affect employment because job shift from the manufacturing businesss to counterfeiters. It is because of the goods begins by manufacturers are unsaleable because consumer switch their preference in choosing goods to counterfeit foods receivable to lower price than the genuine goods without knowing they are purchasing counterfeit goods. As a result, manufacturers has to shut down their business causing legion(predicate) employees loss their job and become unemployed.Reduce Potential Foreign coronation fundsFor some(prenominal) industries, the level of countereiting may be comparatively important, whereas in others it may be minor consideration. Countries with lower rates of counterfeiting and relatively higher in economies has higher foreign investment. Counterfeiting also can affect the commercial trade sector and as a result can affect potential foreign investment.Tarnish Malaysias reputation in the eyes of touristsMalaysias goal to increase the tourism sector cannot be accomplish if counterfeiting is unperturbed exist. Tourist from every corner of the public who come to Malaysia can relatively easy to avoid buying fake handbags and sunglasses but another matter when it comes to consumables and pharmaceuticals. Fake pharmaceutical products can endanger tourists and affect Malaysias reputation as a chosen destination to visit.Discourage investment in product trainingHigh levels of counterfeiting could reduce the incentive of some firms to invest in the development of new products and processes. It is happen because company know that they cannot get return as high as they expect from the investment.Government has to spend large count of money in disposing counterfeit productsMalaysias government have to spend large amount of money in funding police and other investigation and enforcement operations as a way to dispose and reduce the counterfeit activities in Malaysia.2. IMPACT TO COUNTRIES WHERE COUNTERFEI TING TAKES manoeuverForeign producer of reputable products refuse to manufacture their products to the countries. For example, China, India, Hong KongSuch countries bequeath suffer both tangible and intangible losings. First, foreign producers of reputable products become reluctant to manufacture their product s in countries where counterfeiting is widespread as fast as infection disease because it seems like they cannot rely on the enforcement of their intellectual property rights. Hence, such countries not moreover lose educate foreign investment but also miss-out on foreign know-how. grow export lossesIf many a(prenominal) products from such countries, including genuine ones, gain a reputation of being poor quality, this will cause export losses which in turn implies both losses and loss of foreign exchange. It could be argued that the counterfeiting industry creates jobs but these jobs are often poorly paid, often entangle substandard working conditions and sometimes use child labour.Discourages new construct from manufacturersThe widespread of counterfeiters in a market discourages inventiveness in that domain since it prevent honest producers from investing resources in new products and market development because they know the risk that counterfeiters will counterfeit their products.Tax lossesA further organize loss for the government of countries that become the main centre for counterfeiters, are revenue losses, since the counterfeits are unremarkably sold through cloistered channels and counterfeiters are not generally eager to pay tax on their ill-gotten gains. Financial losses are increasingly shown to excuse action by enforcement officials.3. IMPACT TO RIGHT HOLDER (PRODUCER)Suffer direct loss in number of salesFirst of all, industries which find themselves in direct competition with counterfeiters suffer a direct loss in sales. Indeed, some markets are even dominated by counterfeiters, creating barriers of entry for the producers of the genuine product. Some would argue that the buyers of the fakes would not have bought the genuine item but that is a very narrow argument and can only apply to a small segment of luxury goods. Many counterfeit products instantly are of higher quality and compete directly with the genuine items. prostitute brand value and firm reputationCounterfeit or pirated products may damage the brand image and reputation of firms over time. For instance, those consumers who believed they were buying a genuine item when in fact it was a fake, will be likely to blame the manufacturer of the genuine product if the fake does not fulfil expectations, thus resulting in a loss of goodwill. Ifconsumers never regard that they were deceived, they may be reluctant to buy another product from that manufacturer and may communicate dissatisfaction to other potential buyers.Spend large amount of money in protecting and enforcing property rightBeside direct losses of sales and goodwill, one should not for get the expenditure involved in protecting and enforcing intellectual property rights. The right owner becomes involved in costly investigations and legal action when dealing with counterfeiters and may also have to spend further sums on product protection.4. IMPACT TO CONSUMERPaying an profligate price for inferior productsUltimately, it is the consumer who pays the cost of unfair competition between counterfeiters and producers. Although many consumers believe they are getting a bargain when they buy counterfeits, the veridical value of the product is normally much lower. Hence, they end up compensable an excessive price for an inferior product.Exposed to many disastrous personal effectsThe inferior qualities of many counterfeits, particularly those relating to health and safety, have had disastrous effects. It is no longer rare to find counterfeit parts in aircraft and other vehicles causing death and injuries, or counterfeit pharmaceuticals in hospitals. For example, pharmace uticals, electrical appliances, parts in aircraft, foods and beverages.CASES REGARDING THE COUNTERFEIT GOODS IN THE MARKETDozens of people died in Cambodia through taking ineffective, fake malaria medicines.Law enforcement in Zambia seized fake lave containing acid.Body-builders and others buying steroids on the black market in Australia were sold repackaged stemma steroids as human steroids.Diseased pig meat was used in counterfeit cans of pork luncheon meat in China.In India, counterfeits of drugs were used to fight antibodies in Rh-D negative mothers.Fake crocs is being accused on insulting Muslim belief as the word Allah is print on the fake Crocs logo.FACTORS INFLUENCING COUNTERFEITINGi. Advances in technologyNew technology has not only benefited manufacturers of genuine products, but also counterfeiters. The photocopying machine is, for example, considered to be one of the main tools in a counterfeiters tool box. New techniques have furthermore enabled counterfeiting of what were normally considered as high-tech products, too complicated to fake. Pharmaceuticals, electronic components and rescue equipment are some examples. The counterfeiter can demand a higher price for his low-cost products since these products have a high value-added element.ii. Increased international tradeInternational trade, including trade in counterfeit products, has increased dramatically over the last few decades. Almost all regions are both production and consumption areas for counterfeit products. Although an expansion of boundary measures would enhance the means of opposed international trade in counterfeit goods, it is not likely to produce most important results unless matched by a related increase in the resources available to customs authorities to devote to anti-counterfeiting work.iii. Emerging marketsA number of economies that were previously controlled are now being transformed into freemarket economies. Unfortunately, the speed of transformation has been somewhat too fast for the enforcement agencies. Markets are now emerging as both large producers and consumers of fakes. Although counterfeiting occurs more or less throughout the world, East Asia, including China, is still pinpointed as the main source of fakes. This region has increased its relative share in world trade, implying increased exports of counterfeits on with genuine products.iv. Emerging productsManufacturing now accounts for 75 per cent of total world exports. Processed, high value-added goods are naturally also more likely to be counterfeited. Electronic products, such as software and music recordings, are not included in world trade figures. These are rapidly becoming the products most affected by counterfeiting. It is difficult to predict whether counterfeiting will decrease or increase in the expected future. On the one hand, proficient development is enabling counterfeiters to produce fakes relatively cheaply and easily.Top suppliers of counterfeit goods in the world includeChina $ 221.7 million (81 %)India 2 million (6 %)Hong Kong $ 13.4 million (5 %)Taiwan $ 2.6 million (1 %)South Korea $1 million (