Counterfeiting and piracy are two forms of theft which incidence rates have been growing at an alarming rate. Both forms of theft have a negative and costly impact on businesses, the economy and the population as a whole. In fact, counterfeiting of goods alone cost U.S. businesses up to $917 billion in 2015. Piracy, which is the act of stealing music, movies and software, cost companies an additional $213 billion. These values are only continuing to grow and are no doubt higher than they were in 2015. The cost of counterfeiting alone should encourage you to destroy imitation goods, but if you need more inspiration, consider the following ways in which counterfeiting hurts society.
Loss of Consumer Trust
When it comes to making online purchases, nearly 50% of consumers said they consider a brand’s reputation before making a decision, compared with just 3% who said brand reputation had no impact on their purchase decision. However, two-thirds of consumers who have been ripped off by purchasing a counterfeit good in the past said they lost trust in the authentic brand. A third of all consumers agreed that they were less likely to buy from a brand that had been the previous target of forgery.
Decline in Economic Activity
Counterfeiting doesn’t just hurt the company whose goods were forged. It also hurts the economy. While it’s true that many consumers want the real deal, there are just as many, if not more, that prefer the knock-off versions because they’re much cheaper. This results in more business going to thieves—who do not pay taxes or comply with product regulations or standards—and less to the companies who expend substantial resources creating a quality product. How does this hurt the overall economy? It causes unfair and illegal competition displacement.
One study estimates that competition displacement cost the U.S. up to $597 billion in economic activity. The study also estimates that counterfeiting resulted in the loss of up to 2.6 million American job losses, a number expected to soar to 5.4 million by 2022.
Increase in Crime Rates
Counterfeiting and piracy are crimes in and of themselves, but studies suggest they lead to wider criminal activity. Because the money gained from counterfeiting does not have to be reported to the IRS, they can be used for other illegal means. More money inevitably strengthens criminal organizations which makes it more difficult to stem their unlawful conduct.
If you’re dealing with a digital counterfeit file, you need to destroy it immediately. If your company produces products that have been counterfeited and you’ve secured the fake goods, you need to destroy them immediately. TechWaste Recycling can help you do so in a safe, secure and efficient manner. We conduct secure product destruction at our facilities and will provide on-site product destruction as needed. Brand reputation must be protected and guarded at all costs. TechWaste makes this a step easier.
TechWaste Recycling directly services all of Southern California and provides pickup services to its facilities from nationwide locations. Visit TechWaste Recycling’s website at www.techwasterecycling.com to schedule a counterfeit product pickup that works for your convenience and schedule.
Learn more about TechWaste’s product destruction process here: Secure Product Destruction Services
Contact Info:
Richard Steffens
1940 E. Occidental street
Santa Ana, CA 92705
Phone: 866-637-8469
