When Rachel Jones, an Edinburgh-based entrepreneur and businesswoman, discovered that her own invention had been counterfeited, it sparked a lifelong professional commitment to fighting fraudulent goods.
She had created the Totseat – a portable travel highchair for babies – and was horrified that someone would create a sub-standard counterfeit version and potentially put babies at risk.
She was so outraged on finding the fake that she flew to China to challenge the online platform that was selling the product to ensure it was removed pronto, which it was.
Inspired by her experiences, she’s dedicated her career to fighting counterfeit and illicit goods and standing up for the legitimate inventors, entrepreneurs and businesspeople who are so often the victims of intellectual property theft.
She’s shared her top tips on how businesses can protect their intellectual property and always stay two steps ahead of the fraudsters.
“It can seem scary to find out that your business could be at risk of having its products, services or website faked,” said Jones.
“This hazard is not just limited to big business; unfortunately, small and medium-sized enterprises are regularly targeted by criminals in the hope that their leadership teams will not have the knowledge, experience or resources to be able to protect themselves and their business.
“The damage that these counterfeits and rip-offs can do are significant. As well as taking an undeserved slice of the pie from your profits, illicit product can be highly dangerous to the consumer who may not even know that the product they have bought is not authentic.
“Counterfeits do not go through the exacting design, manufacturing and quality procedures that genuine products must do before they are taken to market.
“They are simply the cheapest possible copies, or rip-offs, of what the genuine article ‘looks like’. They absolutely will not perform as the genuine product will, whether a beauty product or a car airbag.
“Counterfeit products have also been linked to multiple unethical practices including child and forced labour, environmental harm, smuggling and organised crime.
“It’s the responsibility of everyone involved in the supply chain, from the entrepreneur, to the manufacturers, to the consumers, to help put a stop to these practices.
“This can all seem like a lot to take in. But don’t worry, help is at hand. Here’s my tried and tested advice to keep your customers safe and protect your business.”
Protect your intellectual property
Businesses always stem from a unique idea – this could be an invention, a technique, know-how, a production method or even a secret recipe.
This idea should be formally protected as well as possible by registering the intellectual property involved.
This might be a trademark, design right, or patent. Your copyright is protected, automatically, with no registration required which means if your website is copied you can use copyright to prove your originality and have the copycat site taken offline.
In the case of a secret sauce, it may not be prudent to register anything other than the trademark – name and logo.
Many international success stories, notably KFC and Coca Cola, rely on their recipes being protected by Trade Secrets which are not made public.
Save your future self-time (and money)
Recognising, as early as possible, what intellectual property you have created and can protect is crucial to future success.
For an invention, taking out a patent may be relevant, but this can be relatively expensive and time-consuming.
If you do file a patent, ask your patent attorney to also file design rights, if applicable, at the right stage in the process. This step is often missed.
For most businesses, registering trademarks is the easiest and best form of first line defence. Words, sounds, logos and colours, in any combination can be registered.
Smells too, on rare occasions, have been registered when very distinctive. If you have a product, registered designs will help protect a product’s overall appearance
but not its function, when a patent may be a possibility if your product is truly unique.
Secure your supply and distribution chain
Always monitor the online world closely and if you find someone online copying what you do, protect your brand, business, and customers by immediately taking action and reporting the link, seller or site for immediate removal.
You can prove your originality using your IP, as mentioned above.
Trusted, secure supply and distribution chains are critical in preventing and fighting back against counterfeits.
Anti-counterfeiting measures such as holograms, serial numbers and additives are just some of the physical tools available if you need them.
If you’re importing or exporting, consider registering with the free IP Property Enforcement Portal which will enable customs and border officials to look out for counterfeits of your brand. Similar portals exist in Europe and the US.
Trust your processes
Always know where your logistics partner is going to ensure that your product is not mixed with fakes before setting off into the distribution chain.
Update your packaging regularly and always be sure to share SOME – not all – of the differences between genuine and fake products with trusted members of your team and your distributors and key customers.
Stay on top online
Online shopping makes it super easy for criminals to sell counterfeit goods to consumers. It is important to be aware of the tricks they use so that you can stay ahead of the fraudsters to protect your business and customers.
- Enforce any, and all, infringements – as described above;
- Check your domains regularly as fraudsters frequently buy and set up domains very similar to household names, conning unsuspecting consumers into ‘spending’ significant monies only to receive nothing and having had their credit card details stolen.
It is also important to keep Google clear of illicit links. Organisations like SnapDragon Monitoring can help you to identify and remove these online infringements – whether products, sellers, websites, ads, or NFTs, quickly, efficiently and without undue stress or cost.
Be honest with your customers
Perhaps the simplest and most important piece of advice. Be honest if you have fakes so customers know they are out there, and encourage them to report anything suspicious they see online which could damage your brand reputation.
All major online marketplace sites have a way of reporting fakes, including Amazon, eBay, and Facebook Marketplace.
If you’re worried that you have put your card details into a scam site, tell your bank immediately and reach out to Action Fraud in England and Wales, or Police Scotland.
Unfortunately, most great businesses – tiny and corporate – have had issues with copycats or counterfeits so you are not alone if you happen upon an infringement.
Take quick action using your intellectual property and the fraudsters are likely to move on to another brand, leaving you to grow your business as only you know best.
- Multi-award-winning Rachel Jones is the founder and non-executive director at SnapDragon Monitoring. She’s a NED at Equity Gap and is co-chair for the UK’s IPO Crime Group.