WHAT is brand protection?

Brand protection encompasses a comprehensive list of strategies, tools, and actions companies employ to safeguard their brand identity, intellectual property, and reputations in the digital space. One typical case that businesses protect against is counterfeits, illegal copies of genuine goods that are produced and distributed without the authorization of brand owners to deceive customers. Counterfeits are usually produced with cheaper materials and processes so that they are sold cheaper than the genuine products, luring customers with attractive prices.

Besides that, brand owners should also be aware of:

• Trademark infringement: unauthorized use of trademark, logos, and patterns associated with brands.
• Design infringement: unauthorized use of a registered design during the period of registration. In the EU, a registered design is valid up to 25 years.
• Brand impersonation: a cyberattack practice where a malicious actor mimics a brand to trick users into clicking malware links. Social media platforms are now also used by actors for phishing attempts.
• Gray market: distribution of legitimately manufactured products but via an unauthorized distribution channel.
• Knockoff: similar in appearance to genuine products but do not copy the exact trademark or logo. Consumers are generally aware that they are not buying the original.

WHO is susceptible to brand infringement?

When it comes to brand infringement, apparel and fashion industry is the one that frequently comes to mind. Shein, the Chinese fast-fashion giant known for its wide product catalogue and low prices, has been sued by Dr. Martens and Ralph Lauren for trademark infringement and unfair competition. The company has also been accused by independent designers that the they scrape data from online platforms to identify trendy design and then use AI algorithm to replicate these designs for sales.

Adidas is proactive in protecting its iconic three-stripe design. In the last years, Adidas was involved in a legal battle with Forever 21, claiming that Forever 21 sold products with three-stripe patterns. Adidas argued that the three stripes are not merely just used as design but was the result of million-dollar investments in advertising and marketing, disputing Forever 21’s claim that the three-stripe design is largely decorative and should be disqualified from trademark protection.

The automotive spare parts industry is also victim to brand infringement. The production and distribution of counterfeit components – brakes, pads, airbags, and engine parts – involve the illegal bearing of trademarks, designs, or packaging of established brands. These counterfeits are typically manufactured in regions with less stringent IP enforcement and sold in online marketplaces, making it hard to distinguish from genuine products. Replacement of fake parts can lead to vehicle malfunctions and even accidents, which not only undermines safety, but also erodes customer trust and damages financial interests of original equipment manufacturers (OEM). For example, Ferrari proactively takes measure in combating fake spare parts. In 2023, the company disposed over 400,000 counterfeit components.

The consequences of counterfeit medical devices and pharmaceuticals are dire. During the COVID-19 pandemic, Customs officials seized counterfeits such as safety equipment, unauthorized COVID-19 test kits, unproven medications, and substandard hygiene products, which posed great danger to public health and safety. In 2024, U.S. authorities charged 18 individuals that were involved in the manufacturing and distribution of counterfeit pharmaceuticals through fake online pharmacies. Deadly fentanyl pills were marketed to mimic legitimate prescription drugs, resulting in the death of at least 9 victims due to narcotics poisoning. Besides these industries, all companies with an active online presence needs to remain vigilant against brand infringement.

WHY is brand protection important?

Brand protection is essential for companies to build reputation, maintain customer trust, and prevent dilution of market value. Monitoring a brand is not only more important, but also more complex in the contemporary digital landscape, due to extensive social media usage and rapid advancement of generative AI technology. Social media platforms are used by billions of users to engage with others and to access information online. Many businesses collaborate with influencers to leverage their persuasive power to promote brand awareness, drive traffic, and increase sales. On the flip side, counterfeit companies also work with influencers in their marketing campaigns. Influencers worked with e-commerce companies such as Pandabuy to promote knockoffs, such as YSL, Chanel, Skims, and Stanley cups. They post videos on TikTok, Instagram, and Facebook, praising products’ high quality and encouraging followers to buy cheaper replicas of designer brands. The commission-based arrangement incentivizes them to boost sales. They even provide guidance on import declarations to prevent the packages from being seized by customs officials.

In addition, generative AI technology makes the production of replicas much easier. With a few short prompts, users can create text, images, videos, and audios within seconds. Generated output may mimic established intellectual property, as evidenced by ChatGPT-produced images that resemble the style of Studio Ghibli. When it comes to counterfeits, AI models may be employed to replicate existing trademarks and generate marketing content, facilitating production and distribution. Therefore, brand owners find it increasingly resource-intensive and complex to keep up with monitor and protection of brand assets.

Brand protection should be incorporated into the strategic planning for both established and emerging brands. Established companies invest significant resources into building brand equity and reputation. Brand protection is key to preserving the achievement and preventing dilution of market value. Illegal production of substandard products may erode customer’s trust and loyalty to these brands. It takes only one bad purchase of low-quality counterfeit for customers to walk away from a company for good. More counterfeits sold also suggests greater loss of revenue from original products. Financial success drives brand’s longevity and enables continuous improvement.

For new businesses, building a recognizable and trustworthy brand increases visibility and helps secure market position. Protecting intellectual property facilitates promotion of brand’s unique identity and prevents confusion. A well-protected brand is also more attractive to investors. The commitment and resources dedicated to safeguarding brand assets indicate growth potential and sustainability. And who knows, anything can go viral at any time. Implementing brand protection early ensures that you are never caught off guard by potential infringers.

HOW should companies engage in brand protection?

Understand your brand and its assets

Cataloging brand elements is the first step to know which areas need protection, including trademarks, logos, product designs, marketing content, etc. Bookkeeping helps companies organize existing brand assets and identify respective threats. For example, the retail industry relies heavily on images to promote products and should pay close attention to counterfeits and unauthorized sales. The IT industry may focus on cybersecurity and digital rights management to prevent malicious activities. A detailed analysis of the company’s positioning in the industry and its brand assets facilitates effective design of brand protection strategies.

Secure Legal Protection

After the company has a full picture of its brand assets, registering intellectual property of relevant assets gives company exclusive rights to use and enables them to take legal action against potential infringing activities. A registered IP strengthens legal standing in disputes, increasing the likelihood of winning infringement lawsuits. Besides IP registration, companies should also register domain and establish an online presence. This prevents cybersquatting and ensures control over company’s web address.

Proactive Monitoring and Detection

Besides IP and domain registration, consistent efforts in online monitoring of brand assets are crucial as well. Examples of such activities include (1) tracking online marketplaces like Amazon and eBay to take down counterfeits and unauthorized sales, (2) detecting brand impersonation to prevent malicious activities, and (3) watching social media platforms to stop promotion of counterfeits and knockoff. Since brand monitoring is a repetitive and demanding task, many companies have adopted software solutions to automate the process. Automation increases efficiency, reduces human errors and allows more room for strategic tasks. We at BRANDS-IDENT provide brand owners with AI-powered tools to monitor brand’s online presence and identify infringing activities timely.

Employee & Customer education

Employees should receive training on the fundamentals of intellectual property and brand protection so that they are well-equipped to identify and address infringing activities. A brand protection workshop with case studies can be integrated into the onboarding process. Since day one, employees have the knowledge and skills to become an active member in safeguarding brand assets.

Educating consumers also helps combat infringing attempts. Companies can launch awareness campaigns through website content, social media posts and customer service channels to avoid counterfeits and phishing scams. Informed customers feel confident with your brand and are more likely to have a positive purchase experience. Education on brand protection to both customers and employees is an effective approach to build a stronger, safer brand.

If you would like to know more about brand protection, please reach us at contact@brandsident.com.