which reiterated that for several
years counterfeiting has been controlled by criminal organisations and
even terrorist groups.
The profits made from counterfeiting cost industry,
governments and the community millions each year. Statistics from the 1998
OECD report 'The Economic Impact of Counterfeiting' (see table above),
reveal just how much revenue is lost in some of the most highly
counterfeited products available.
The first victims of counterfeiting are businesses, which lose sales
revenue, market share and investments. Well developed brand images are
also at risk of devaluation.
Governments and communities also pay a high economic cost both in terms of employment
(100,000 jobs are lost each year in the EU) and lost tax revenues due to
the reduction in declared sales. In China, the authorities estimate that
they lose $3 billion in tax revenues each year, while the UK authorities
estimate VAT evasion at $2.4 billion.
Finally, the ultimate victims of counterfeiting are
consumers, who can receive poor-quality goods at excessive prices and be exposed to health and safety dangers. The OECD reports that it
is no longer rare to find counterfeit parts in aircraft and other vehicles
causing death and injuries, or counterfeit pharmaceuticals in hospitals,
none of which have passed safety and health tests.
Common security features like holograms, UV-ink and
security threads are easily copied by professional thieves.
The Solution
Incorporates
into a self-adhesive label, and is used for the prevention of
counterfeiting manufactured products. The
provides a means by which manufacturers can record overt or covert
information on their product, prove authenticity of a product and act as
an effective counterfeit deterrent. |
