Do Counterfeits Hurt Brands? Exploring Socioeconomic Factors And Legal Protections (From The Case Study Of Lacoste, Puma - India)
- IJLLR Journal
- 3 days ago
- 2 min read
Rishika Rani, BBA LLB, IIM Rohtak
I. INTRODUCTION
With the significant growth of the luxury industry in India due to rising influence of international trends , trademark infringement has become a rising concern for the luxury brands in the Indian Economy. For luxury brands, brand reputation and exclusivity plays a major role as key components of these brands. Consumers seek to buy a luxury product majorly due to it being exclusive and that makes it even more important for brands to protect themselves from infringement of trademark (Kapferer & Bastein, 2012.), that might lead to confusion or deter the consumers from making purchases.
In the global luxury market, counterfeit goods are now a major problem that threatens high- enterprises' brand integrity and financial stability. Luxury products are one of the industries most likely to be targeted by the global counterfeit industry, which is expected to reach startling numbers (OECD, 2021). Beyond monetary losses, counterfeits pose a challenge to consumer trust and brand exclusivity, two foundational elements of luxury companies. Consumers from a variety of socioeconomic situations who want access to luxury items at a significantly lower price are frequently the driving force behind the rise in counterfeit goods. According to studies, people with lower socioeconomic position are more inclined to buy counterfeit items because they believe they are more affordable than genuine ones (Staake et al., 2009).At the same time, wealthy buyers may occasionally purchase fake goods to test a brand before spending money on genuine goods (Chaudhry & Zimmerman, 2013). The intricacy of consumer incentives and the socioeconomic factors influencing the purchase of counterfeit goods are highlighted by this dichotomy. The foundation of trademark protection is intellectual property (IP) rights. However, the spread of counterfeited goods persists despite notable improvements in IP enforcement, casting doubt on the effectiveness of the current legal frameworks (OECD/EUIPO, 2021). This necessitates a deeper exploration into whether these frameworks effectively safeguard luxury brands or fall short in addressing the growing counterfeit crisis.
