Crime of the 21st century.

Prevention--at the Manufacturer Level

For manufacturers, there are a number of steps to take ill order to prevent counterfeiting and violations of copyrights, trademarks and patents. The best first step is to get at least one person, or better yet, your entire upper management team

on board. Upper management needs to buy in to the Fact that counterfeiting poses serious risks, in terms of money, brand reputation and safety. Once this has been established, create a team that will focus on your company's anti-counterfeiting strategy. This should include making sure all trademarks and copyrights are registered both domestically and internationally, and devising a strategy for enforcing your intellectual property rights. Contact MEMA and consult with their Brand Protection Council to find out more about how to get started.

Entering those markets that are the most prominent exporters of counterfeit goods could also help. Market entry can be achieved in several ways--starting up a business in a foreign market, using a joint venture to enter a region or by licensing your intellectual property in international markets. While it is costly, starting to do business in foreign markets helps establish your legitimate presence and brand reputation in the region and helps you directly control your intellectual property and the quality of product entering the supply chain in those markets.

Reaction--for distributors, retailers and technicians

Distributors, retailers and technicians in the aftermarket and heavy-duty industries play a slightly different role in the fight against counterfeiting. While you may not be able to stop fake products from being made, you can prevent them from making it in to parts distribution inventories, or onto cars or trucks. This could be the most important role of all, potentially protecting innocent technicians and consumers from injury. It is important to con tact the legitimate manufacturer for the product you suspect may be counterfeit. Manufacturers use various markings and anti-theft devices (holograms, RFID tags, etc.) that would distinguish a genuine product from a Fake one. In addition, your information will assist the manufacturer in any investigations or legal proceedings and will protect you from lawsuits or potential criminal charges.

* According to the Federal Trade Commission, counterfeiting costs the global automotive parts industry $12 billion a year; $3 billion of that total is in the United States. Note that these numbers are from 1997. MEMA believes these numbers are very conservative.

* The International AntiCounterfeiting Coalition puts revenue loss to U.S. trademark holders at $200 billion per year.

* A National Council of Applied Economic Research (NCAER) study, commissioned by the Automotive Component Manufacturers Association of India (ACMA), said counterfeit auto parts constitute over 37 percent of the total market size of Indian aftermarket parts.

* The International Chamber of Commerce estimates that 7 percent of the world trade is in counterfeit goods and that the counterfeit market is worth $350 billion. In 1982, the International Trade Commission estimated counterfeiting and piracy losses at $5.5 billion--that ballooned to $200 billion in 1996.

* The FTC also estimates the auto industry could hire 250,000 additional American workers if the sale of counterfeit parts were eliminated.

* Counterfeiting benefits organized crime and terrorists: The FBI believes the 1993 New York City World Trade Center Bombing was financed by counterfeit tee-shirts and sports apparel. Product counterfeiting frequently plays a part in the laundering of drug money.