By Type: Articles

Does the Arrest of Telegram Founder-CEO Pavel Durov have any Implications for IP Owners?

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Author: Kathryn Olivier

By Bharat Kapoor, Vice President, Online Brand Protection, Authentix

The arrest of Pavel Durov, the founder-CEO of Telegram, has sparked off a wave of criticism and conspiracy theories. An official press release reveals that Pavel (now out on bail) was arrested for the purpose of questioning, as part of a judicial investigation. The judicial investigation followed a preliminary enquiry by the Public Prosecutor Office, National Jurisdiction against Organised Crime (JUNALCO), and was opened against unnamed persons on various charges. These charges included complicity in connection with multiple criminal offences, namely the possession and distribution of child pornography, the sale of narcotics, the sale and distribution of hacking tools, and “organised fraud”; money laundering; offering cryptology services without prior declaration; and non-cooperation with authorities seeking to intercept communications.

Pavel Durov, Founder-CEO of Telegram*

It is, of course, rare for owners and operators of online platforms to face such criminal action — as opposed to users on the platform engaged in criminal activity. The few examples one can think of would only encompass outrightly rogue platforms whose primary intent was to facilitate illicit commerce, with the active approval and encouragement of its operators. Two notable cases that come to mind are Ross Ulbricht of the Silk Road marketplace (convicted by a Manhattan federal court and sentenced to life imprisonment) or Kim Dotcom of Megaupload (whose extradition order to the US was signed by New Zealand’s Justice minister in August). An interesting facet of those two cases is the role of IP infringement. In the former case, Ulbricht was convicted on seven counts (concerning drug trafficking, trafficking in fraudulent documents, computer hacking services and malware, money laundering and “continuing criminal enterprise”). However, a statement from the prosecutor’s office mentioned that Silk Road was also involved in disseminating “pirated media content”. In the case of Mega Upload, the case against Dotcom was almost entirely centered around copyright piracy, and the Court of Appeal in New Zealand found that Kim Dotcom could be extradited on that basis.

It is no one’s case that Durov and Telegram fall in the same class as the charges raised against Ulbricht/Silk Road and Dotcom/Mega Upload. In fact, Telegram does have a mechanism through which one can report illicit activity, however, the platform has been non-compliant to takedown requests placed by IP owners. In comparison, other social media platforms are known to have more accessible channels to address the concerns of IP owners. Since the French authorities still found it worth investigating Telegram and arresting Durov, it must be asked why IP infringement was missing from the list of allegations, given the alleged high frequency of pirated content on Telegram, as well as the reported presence of counterfeit sellers. In recent experience, about 20 percent of IP complaints that Authentix has filed with Telegram have been taken down. Even there, the response time has been slower than other platforms, which vitiates the ultimate goal of reducing counterfeit traffic. Further, unlike many other marketplaces, Telegram lacks a separate channel to fast-track complaints involving particularly blatant violations — such as outright counterfeits, or cases where an IP assessment is not warranted to determine if a sale is illegal, such as public sales of restricted goods like prescription medicines, alcohol and certain types of chemicals.

Objectively, there have been examples, notably in India, where Telegram has shared the details of users engaged in copyright piracy which was beneficial to investigation and enforcement. Yet, many of these instances only took place after a court order, and after Telegram had contested such claims on grounds of privacy and jurisdiction. Further, a system was introduced where one could open a Telegram account without a SIM card — which pirates and counterfeiters and other rogue actors are allegedly using to seek anonymity. In the end, what we believe Telegram should do is institute a formal, transparent pro-active mechanism through which IP infringements can be addressed; a similar mechanism through which sales involving public policy violations (independent of IP) can be addressed; and a system through which ads (often the first point of contact between a counterfeiter and a user) can be better monitored.

Looking ahead, it is likely that French authorities will continue and try to pressure Telegram to improve its compliance mechanisms, rather than determinedly seek to prosecute Durov personally, with the goal that Telegram will relent and agree to make these changes. Intriguingly, Telegram just recently changed the language on its FAQ page, from “All Telegram chats and group chats are private amongst their participants. We do not process any requests related to them” to now read “All Telegram apps have ‘Report’ buttons that let you flag illegal content for our moderators — in just a few taps.” Yet, if IP infringement continues to lag and Telegram does not make a serious effort to improve compliance, copyright and brand owners will feel justified in feeling hard done by.

About Authentix Online Brand Protection

Authentix provides some of the world’s most recognizable brands with sophisticated online brand protection tools and services to address a broad range of online infringement and counterfeit risks. From global online surveillance and enforcement, online investigations and site takedowns, target verification, and even offline investigations, Authentix helps major brands proactively reduce the threat of counterfeit products being sold online. Our online brand protection solutions combine cutting-edge technological tools and expert analysis to reduce infringements for our clients on online marketplaces, social media platforms, and websites by up to 90%.

* Image from artist Nick Lubushko

Empowering Our Aging Population Through Thoughtful Brand Protection Solutions

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Author: Kathryn Olivier

By Donna Policz, Brand Protection Sales Director, Authentix

As life expectancy increases across the globe, a growing and aging population continues to become a larger subset of consumer purchasing. In fact, in the United States, the sector of individuals over 65 years is expected to grow to over 20% of the total population by 2030 compared to 16% in 2020. With the emerging intersection of technology, digitization, and brand protection, solution providers should begin to factor in this growing, aging population for consumer engagement and interaction with product packaging and labeling. An example of an industry being proactive in this area, the U.S. based National Association of Homebuilders, now provides certain contractors with a certification program known as CAPS (Certified Aging in Place Specialist) providing the designation on adapting certain technologies that will better serve an older population for home remodeling projects. As a seasoned professional in the brand protection industry, I believe it’s our responsibility to also act as ambassadors for the growing population of seniors, ensuring that the technologies we develop and implement are not only effective but also accessible and usable for everyone, including senior citizens and elderly consumers.

The Growing Need for Brand Protection and the Fight Against Product Fraud


Our aging populations are increasingly vulnerable to a range of threats induced by illicit trade including counterfeit goods and online scams. Elderly adults especially rely on over the counter and prescription medical and supplement products that can directly impact their health and well-being, making it imperative that these products are authentic and safe. As brand protection professionals serving a wide range of commercial companies and consumers, we must recognize that the stakes are higher when it comes to protecting this growing demographic. The consequences of counterfeit or substandard/adulterated products can be particularly adverse for these senior citizens, with many already dealing with multiple health challenges.

Leveraging Technology for Inclusivity

Advancements in consumer-based technology solutions such as QR codes and augmented reality for packaging and labels are a powerful tool in the fight against counterfeit goods, but as we advance these new solutions, we must also wield these with care and consideration for those older adults who may not be as familiar with smartphone and digital technology. QR codes, smartphone apps, blockchain, and other digital authentication methods requiring consumer interaction are a fast growing segment of solutions at the forefront of brand protection and can present challenges for senior citizens and others possibly challenged to fully utilize or understand how to use these new applications. A key role we can take as an industry is to ensure that the development of these digital and consumer facing tools are designed with these particular users in mind—making them more intuitive, easy to use, and accessible to those who may have visual, cognitive, or dexterity challenges.

For instance, QR codes should be in a large enough standard format to be easily scanned by older adults who may have vision impairment, and the associated websites or mobile apps should have simple user interfaces that don’t require extensive technological knowledge for interaction. Moreover, we should advocate for features like voice assistance or larger text options that cater to the specific needs of older users.

Serving as Ambassadors for an Aging Population

To better serve this growing and aging population segment, we should go beyond simply making our technologies accessible—we must actively engage with and understand the needs and limitations of this demographic. This means that during the development of these technology advancements, we also become ambassadors who champion the needs of these older adults within our organizations and the broader industry. It’s about fostering a culture of inclusivity where the voices and concerns of seniors are not only heard but prioritized.

We can do this by collaborating with other organizations that focus on aging, participating in community outreach programs, and whose missions are advocating for policies that support the accessibility of brand protection technologies. For example, we can partner with large senior citizen advocacy groups to help provide input and establish general standards for these emerging digital authentication tools. We could also extend our work to state and national policymakers to ensure that future regulations around product safety and authenticity consider the needs of these older adults.

The Benefits of Inclusivity

By making brand protection technology more accessible and usable for older adults, we not only protect this vulnerable group from adverse health and safety impacts from counterfeit products, but also empower them to make better and more informed decisions. This empowerment can lead to greater independence, confidence, and ultimately, a better quality of life. As we develop technologies that are more inclusive, we set a standard for the industry—demonstrating that brand protection is not just about safeguarding products, but also about safeguarding all consumers who rely on them being legitimate.

Conclusion

As brand protection professionals, we have a unique opportunity to serve as ambassadors for this growing segment of our aging population. By ensuring that our brand protection technologies are accessible and user-friendly, we can protect senior and elderly adults from the many threats faced in today’s growing practice of illicit trade. It’s not just about reducing counterfeit products, it’s about creating a safer, more inclusive world where everyone, regardless of age, can trust the products they rely on. Through thoughtful design, education, and advocacy, we can lead the way in making brand protection an industry focused on a cornerstone of support for our seniors, ensuring that they live their later years with the dignity and security they deserve.

Donna Policz, Brand Protection Sales Director, Authentix
Donna Gavitt Policz is a seasoned brand protection expert with over 15 years in the industry. Her concentration of expertise extends across multiple sectors, and has allowed her to work with the most prestigious and leading brand owners to establish long term success for these companies. Donna’s also holds the designation of Certified Aging in Place Specialist (CAPS) from the National Home Builders Association, ensuring that service providers to this segment of the population providers the products and technologies that enable seniors to remain in their residences longer. This cause is deeply integrated into her professional endeavors, reassuring the audience of her unwavering commitment to accessibility and safety. To learn more about Authentix brand protection solutions and how we can help you, email Donna at donna.policz@authentix.com.

What To Look for in a Brand Protection Partner

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Author: Kathryn Olivier

Part 4 of our series of topics from Your Complete Brand Protection Guide by Authentix. Our guide helps brands develop holistic and secure brand protection strategies and solutions that safeguard their company, products, customers, and revenue.

Having an external brand protection partner allows companies to have an entire team of experts in their corner providing custom brand protection solutions built for each company’s unique situation using the most advanced technology paired with expert analysis.

A brand protection partner will be able to share valuable insights and analytics to make further recommendations for what next steps your company can take to combat counterfeits.

The right security technology should come from a company with sufficient industry experience, technical skills, implementation capabilities, and ongoing program management to properly support the program for multiple years.

Qualified brand protection solution providers will work with individuals, teams and vendors to develop, implement, and manage a proactive strategy to cover all company objectives. The following factors should be considered when vetting potential partners:

Industry Knowledge and Expertise: It’s critical that the authentication partner offers consultative services, has experience with the company’s products, and understands their industry inside and out. The partner should fully understand the company’s challenges, articulate exact problems and work to set goals for the program. In this way, a trusted relationship can be established that will provide:

  • Common vision for the goals, resources and time management of the authentication plan
  • Covert, machine-readable inks detected in the field by inspection staff with appropriate readers
  • Forensic markers only detected under laboratory analysis

Customized Solution Offerings: Companies should select an authentication partner who can fully customize a solution to fit not only the unique challenges of their industry, but also the needs of the specific organization. The partner should have the necessary expertise on what types of security features are needed for different types of product packaging, such as tamper-evident seals, foils, labels, etc. This will allow the company to take a proactive approach in combating counterfeit products. Companies need a partner who offers:

  • State-of-the-art color marking systems
  • Multilayered security features
  • Monitoring and enforcement
  • Ability to function properly in a multi-channel distribution environment
  • Data capabilities – dashboards and cloud platforms

Multilayered Approach and Implementation Support: Ensure the provider offers consultative services, implementation ownership, and ongoing program support after the program is launched.

Decades of experience have proven that there is not a simple “silver bullet” technology that can be applied to all products for perfect brand protection security. As discussed earlier, a multilayered approach in which overt, covert, and forensic features are applied in various ways is the most effective long-term solution against counterfeiting.

Supply Chain Integration: More than likely, the company’s current supply chain is complicated and has many moving parts. A good authentication partner should be able to instantly integrate within that chain. In addition, the partner should be a “third-party agnostic” solution integrator without any prejudice toward other links in the supply chain. This partner will be able to objectively analyze the supply chain, identify where potential problems lie, and make recommendations on correcting them. A provider should have the following attributes:

  • Third-party printer, logistic partner certification and support
  • Integration with existing systems and manufacturers
  • Trial runs with actual samples for testing purposes/quality assurance

Talent and Reach: The partner should have technical and commercial teams to provide the appropriate level of experience required to authoritatively advise on the features of their technology and its implementation. In the case of a global brand, the provider should have a global footprint. This includes global reach for delivery, servicing, technical support, dealing with customs, and regulatory expertise to handle regional and country-based compliance issues.

Implementation: An experienced authentication partner should be able to certify and conduct print trials with the company’s manufacturing printers. All manufacturing of security materials should be produced in a secure facility under a full chain-of-custody protocol. A security audit is the best way to determine this. The brand owner must be confident that appropriate physical security and auditing procedures are maintained in the potential partner’s facility. It is important to only work with a partner with quality accreditations appropriate for the subject matter and technologies involved.

Some potential partners might be great at strategy and planning and not-so-great at implementing those plans. It’s important that the partner provides extensive documentation of their experience in implementing a strategy, including a resume consisting of several multi-year customer relationships.

In addition, the partner must understand the company’s business inside and out, become an integrated part of the team, and extend that support to third-party vendors. Companies need a partner who is flexible enough to adapt to their culture, challenges and processes. A good implementation strategy should encompass:

  • Execution across the entire global supply chain
  • Training and enablement for all involved parties
  • Flexibility to expand and grow with changing needs

Commitment: An authentication partner must be willing to see a company through the good times and challenging times, too. An ongoing relationship with the partner allows the company to stay one step ahead of counterfeit issues. An established, trusted strategy is the only way the brand protection program can sustain long-term success. It should include:

  • Dedicated project manager to handle programs
  • Security features testing
  • Ability to retain sample programs to ensure consistency
  • Ongoing reports and result interpretation that provide actionable insights
  • Regular auditing of third-party vendors for proper use of security materials

Employing an effective brand protection solution brings a wide range of benefits to businesses. Improving sales and revenue is always important in any industry. By eliminating infringements and counterfeits, a company can increase revenue and market share.

For a more complete guide to brand protection- why it is necessary, how infringement harms brands and customers, how to develop and implement an effective program, and insights into the brand protection strategies of the future – download our Complete Brand Protection Guide.

Download the Guide

READ PART 1     |      READ PART 2     |      READ PART 3

About Authentix

As the authority in authentication solutions, Authentix can help brands create a customized plan to tackle counterfeit products from every angle, collect actionable data, and protect brands and consumers. Authentix works with each company to determine which brand protection solutions are right for their situation.

Authentix brings enhanced visibility and traceability to today’s complex global supply chains. For over 25 years, Authentix has provided clients with physical and software-enabled solutions to detect, mitigate, and prevent counterfeiting and other illicit trading activity for currency, excise taxable goods, and branded consumer products. Through a proven partnership model and sector expertise, clients experience custom solution design, rapid implementation, consumer engagement, and complete program management to ensure product safety, revenue protection, and consumer trust for the best known global brands on the market. Headquartered in Addison, Texas USA, Authentix, Inc. has offices in North America, Europe, Middle East, Asia, and Africa serving clients worldwide.

The Future of Brand Protection

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Author: Kathryn Olivier

Part 3 of our series of topics from Your Complete Brand Protection Guide by Authentix. Our guide helps brands develop holistic and secure brand protection strategies and solutions that safeguard their company, products, customers, and revenue.

In an era where the digital and physical realms are increasingly intertwined, brand protection has emerged as a critical battlefield for businesses aiming to preserve their integrity and consumer trust. It is critical for companies to defend their brand identity and maintain their reputation against the threats posed by counterfeiters, copycats, and various forms of illicit trade and IP abuse. The future of brand protection lies in harnessing innovative technologies and strategies to outsmart counterfeiters and safeguard intellectual property. This article explores the cutting-edge tools and methodologies that are setting new standards in securing brands against the evolving threat of counterfeits.

More and more, the ubiquity of technology enables counterfeiters to produce higher-quality products that mask inauthenticity. Brand owners must begin to think differently about their supply chains and how to secure them. This means not only working with trusted partners across the supply chain, but also deploying advanced tools and technologies for brand protection. Yes, it means fighting fire with fire. This is the future of brand protection.

Counterfeiters are creative, resilient, and constantly evolving. Therefore, it is important for the industry to innovate and develop new technologies. New printing techniques, for example, along with the complexity of the designs, make features more difficult for counterfeiters to replicate.

These advancements deter counterfeiting and safeguard consumer goods such as food and beverages, fashion, and even cleaning products, which are increasingly targeted by counterfeiters. In addition, developing security printing techniques and features that are economically feasible for smaller brands to adopt is essential, ensuring widespread protection across various industries.

With the increasing reliance on online platforms to sell products, brands are more vulnerable to cyber threats, hacking, and ransomware attacks. This will only increase in the years to come. And, as more people turn to social media to purchase products, companies must be ready to combat negative reviews, false information, and social media attacks. Active social media monitoring and engagement are essential for the future. Implementing strong cybersecurity measures to safeguard customer data will also be crucial.

AI, AR, and Machine Learning in Brand Protection
Two main benefits that AI brings to brand protection are counterfeit detection and image and video recognition. AI algorithms can analyze vast amounts of data to identify patterns indicative of counterfeit products. This can include monitoring online marketplaces, social media, and other channels for unauthorized sellers. Advanced image and video recognition algorithms enable brands to quickly identify instances of unauthorized use of their logos, trademarks, or product images across various platforms.

Emerging technologies like augmented reality (AR) also hold immense potential to revolutionize brand protection. AR can offer an additional level of digital verification of documents or products while fostering consumer engagement and enhancing security measures.

By giving consumers the ability to scan documents or labels on products using their phone, two significant outcomes are achieved:

1. Consumers can participate in interactive brand engagement activities, fostering brand loyalty
2. Consumers inadvertently become inspectors in the field as the absence of AR features upon scanning could indicate a counterfeit product, allowing them to instantly report it.

For a more complete guide to brand protection- why it is necessary, how infringement harms brands and customers, how to develop and implement an effective program, and what to look for in a brand protection partner – download our Complete Brand Protection Guide.

Download the Guide

READ PART 1     |      READ PART 2

About Authentix

As the authority in authentication solutions, Authentix can help brands create a customized plan to tackle counterfeit products from every angle, collect actionable data, and protect brands and consumers. Authentix works with each company to determine which brand protection solutions are right for their situation.

Authentix brings enhanced visibility and traceability to today’s complex global supply chains. For over 25 years, Authentix has provided clients with physical and software-enabled solutions to detect, mitigate, and prevent counterfeiting and other illicit trading activity for currency, excise taxable goods, and branded consumer products. Through a proven partnership model and sector expertise, clients experience custom solution design, rapid implementation, consumer engagement, and complete program management to ensure product safety, revenue protection, and consumer trust for the best known global brands on the market. Headquartered in Addison, Texas USA, Authentix, Inc. has offices in North America, Europe, Middle East, Asia, and Africa serving clients worldwide.

What Brand Protection Solutions Are Right for My Company?

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Author: Kathryn Olivier

Part 2 of our series of topics from Your Complete Brand Protection Guide by Authentix. Our guide helps brands develop holistic and secure brand protection strategies and solutions that safeguard their company, products, customers, and revenue.

Infringement and illicit trade can create a web of negative impacts that harm brands and their customers, often jeopardizing the consumer experience when customers unknowingly purchase a product that proves to be falsified. Fake products result in economic harm to businesses through decreased revenue and increased warranty or return claim reimbursements. They also degrade the brand’s reputation, leading to a loss of consumer trust.

The effects stretch beyond financial loss, often posing environmental risks and endangering public health and safety with hazardous products. In addition to the potential risk of harm to consumers, legal and liability issues can arise. Add to the mix potential phishing scams, fake online product listings and social media accounts, etc., and there are many risks for brands and consumers when illicit trade happens.

Anti-counterfeiting features that authenticate products are both overt and covert and can be applied in numerous ways including in product, on product in the form of labels and closure seals, on cartons where containers of products are stored, into plastic parts of individual packaging, and even onto metal and glass components of packaging. Each feature serves a unique purpose. Covert or invisible markings enable trained inspectors to quickly authenticate genuine products in the supply chain, identify the source of diversion or determine other illicit activities. There are also overt features that allow the end consumer to verify the authenticity of their purchased product. When combined with careful design and production quality controls in authentic product manufacturing, these features raise the bar of complexity for counterfeiters and make the product a less attractive target and far less vulnerable.

Overt Security: Visible security features are valuable in product authentication. Visible to the naked eye or felt via touch, this category includes holograms, color-shifting inks, and security threads that are difficult to reproduce or copy. Other examples include microtext, thermographic ink and even micro-optics (the blue lenticular strip found on the current U.S. $100 bill).

Although visible security features are a starting point, counterfeiters are creative. Even if a visible authentication feature is hard to recreate perfectly, a counterfeiter with the right tools and illegal intent only needs to copy it closely enough to confuse a consumer who just gives a package a quick glance. Additional measures create layers of security – making it more difficult, even impossible in some cases, to copy or duplicate security features.

Covert Security: High-security covert features can be embedded into labels, closure seals, or other features of product packaging. Although these covert markers are invisible to the naked eye, they can be found and measured with specialized handheld instruments using proprietary optics and detection algorithms for rapid, secure field authentication. Additional forensic layers of security can be embedded into materials and confirmed through more extensive laboratory analysis for evidence to further prosecute profiteers.

Semi-Covert Security: As the name suggests, these are features that might not be noticed until someone closely examines the product or package.

Forensic Security: Forensic analysis involves laboratory testing of products via an embedded component or molecule added to a substrate or solution to determine authenticity. Unique product elements are examined so brand owners can generate compelling evidence of counterfeiting for legal proceedings. However, the ability to trace a product back to its origin is not supported unless a unique hidden tracing element is added to the product.

Case Study: Pharmaceuticals

The Challenge
Counterfeit copies of a major pharmaceutical brand were turning up in the U.S. market, but the brand had no security measures in place to allow patients or inspectors to tell real products from the fake. Consequently, $1 billion worth of product, already in the distribution pipeline, could not be sold until a method of allowing patients and retailers to verify that the medicine is authentic could be implemented.

The Solution
The customer’s product was repackaged to include a variety of authentication features that could be identified by patients and inspectors, both in the field and in the laboratory. These included:

  • Overt, color-shifting inks readily distinguishable by patients
  • Covert, machine-readable inks detected in the field by inspection staff with appropriate readers
  • Forensic markers only detected under laboratory analysis

The Outcome
The Authentix solution to the customer’s counterfeiting problem provided a secure means of instantly differentiating authentic from counterfeit medicines. The benefits were immediate and significant:

  • $1 billion worth of product frozen within the supply chain was released for sale
  • The expense of a full product recall was averted
  • The customer was able to mitigate the risk of potential lawsuits
  • Most importantly, confidence in the brand was restored among physicians, pharmacists and patients

Learn more: https://authentix.com/pharmaceutical-case-study/

Chemical and Physical Markers: These can be hidden from consumers and counterfeiters and can only be seen with specific detectors that are calibrated to a specific wavelength to verify authenticity.

Tamper Evident Packaging: These are labels, stickers, or seals that, when opened or tampered with, provide immediate evidence that the product has been compromised.

Serialization: In the serialization process, a company applies individual unique codes and/or signatures at the point of manufacture (giving each product an identifiable attribute) and defines scanning locations where retrieval and association of the unit can be linked to the scanning transaction.

These transactions uniquely capture, track, and store data from those markings in a managed database that allows authorized personnel to monitor the product journey by unit or larger groups. Most are familiar with this process as it applies to shipping a package overnight where it is tracked online until it reaches its destination.

Digital QR Codes: Products can be scanned and authenticated without the need for an app, using a smartphone camera that can then further engage consumers by directing them to other webpages where they can register their warranty, learn more about the product, and even suggest other complementary products. As the product travels through the supply chain, the unique number or symbol can be collected in the database and added to its history.

This information is available to a credentialed user via a mobile app or localized database. In a track and trace system, for instance, the information flow can be bi-directional, so the collection of the symbol, the scanning event and the unique call to the database can be recorded and appended to the product record for verification purposes.

Online Brand Protection: The rise in online sales has been unfortunately accompanied by the rise in counterfeiting on online marketplaces, social media platforms, and websites. As mentioned earlier in this guide, online brand protection tools include keyword monitoring, logo detection, image matching, and the use of advanced brand protection technology like Artificial Intelligence (AI) and Machine Learning. Online brand protection allows your company to easily scan webpages and marketplaces, social media platforms, e-commerce apps, messaging apps like WeChat, payment sites, and the dark web for infringing content and listings and get them taken down.

For a more complete guide to brand protection- why it is necessary, how infringement harms brands and customers, how to develop and implement an effective program, and insights into the brand protection strategies of the future – download our Complete Brand Protection Guide.

Download the Guide

READ PART 1

About Authentix

As the authority in authentication solutions, Authentix can help brands create a customized plan to tackle counterfeit products from every angle, collect actionable data, and protect brands and consumers. Authentix works with each company to determine which brand protection solutions are right for their situation.

Authentix brings enhanced visibility and traceability to today’s complex global supply chains. For over 25 years, Authentix has provided clients with physical and software-enabled solutions to detect, mitigate, and prevent counterfeiting and other illicit trading activity for currency, excise taxable goods, and branded consumer products. Through a proven partnership model and sector expertise, clients experience custom solution design, rapid implementation, consumer engagement, and complete program management to ensure product safety, revenue protection, and consumer trust for the best known global brands on the market. Headquartered in Addison, Texas USA, Authentix, Inc. has offices in North America, Europe, Middle East, Asia, and Africa serving clients worldwide.

Steps for Developing and Implementing a Brand Protection Strategy

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Author: Kathryn Olivier

Part 1 of our series of topics from Your Complete Brand Protection Guide by Authentix. Our guide helps brands develop holistic and secure brand protection strategies and solutions that safeguard their company, products, customers, and revenue.

Counterfeiting, smuggling, diversion, and infringement- collectively known as illicit trade- continues to be a growing global problem for businesses and consumers. With the increasing volume of counterfeit goods trafficked across the globe seeping into multiple supply chains, a well-strategized brand protection program is more essential than ever to shield what matters most to businesses – customers, brand identity and reputation, and revenue.

Creating a brand protection plan for companies means working together across different parts of the company and locations around the world. It also means building relationships with outside groups like customs, police, and government agencies, as well as stores, websites, and suppliers.

The following are recommended steps to consider when developing an effective brand protection program.

#1 Early Evaluation: Before a company can take advantage of these benefits, it needs to fully understand how serious and widespread the problem of theft can be. Evaluation of the problem is the first step. Also, evaluating which anti-counterfeiting security methods work best for a company’s product and industry will allow the brand owner to get the necessary information on possible security features and packaging design that might be required as part of the final product launch.

#2 Risk Assessment: When identifying product risk, it is important to develop a risk inventory for the products. The level of risk associated with each product will differ depending upon a multitude of factors including supply chain complexity, geography in which the product is sold, price points, margins, complexity to copy, and total demand expected for the product.

The next step is to assess potential brand damage. With brands among the most valuable assets a company owns, the fragile bond of trust between consumers and their products is a corporate and strategic asset that cannot be risked. Any injuries or deaths caused by counterfeits can destroy this relationship, and top management should be aware of the risk and committed to demonstrating leadership on the issue. Brand protection managers and the marketing team also should be involved and participate in assessing the risk of counterfeit attacks and the value of all proposed strategic solutions.

#3 Strategy Development: At this point, responses to the most pressing threats can be translated into action by organizing a method for management, information, and technology tools to respond to threats. This is also the time to allocate resources appropriately based on risk areas and draft a communications plan that covers potential causes of risk, avoidance actions, transference and mitigation actions, and potential impacts and contingency actions.

#4 Detection and Monitoring: To effectively protect a brand against counterfeiting, businesses must employ comprehensive detection and monitoring strategies that showcase dedication to enforcing their intellectual property rights and prosecuting violators.

This includes implementing a variety of security features on product packaging, conducting educational campaigns for public awareness, enhancing legal penalties for counterfeiting, inserting strict anti-counterfeiting terms in vendor contracts, and performing unscheduled audits on distribution partners. Vigilance in monitoring online and physical marketplaces for unauthorized sales, fake profiles, and counterfeit listings, along with the deployment of anti-phishing software, is also crucial for the early detection of threats and swift action to mitigate brand infringement.

#5 Enforcement: Keeping a brand safe means making sure that rules and responsibilities related to intellectual property are properly observed, both online and in the physical world. This task often requires collaborating with the right authorities to handle issues like illicit manufacturing, copyright infringement, counterfeit products being sold, shut down fake websites, and take down counterfeit listings.

#6 Data Analysis, Reporting and KPI Tracking: To track and measure the effectiveness of a brand protection strategy and ensure the prevention of counterfeit activity as much as possible, businesses should prioritize thorough reporting and analysis, as well as track key performance indicators (KPIs).

This approach enables them to assess the extent of intellectual property violations and tailor strategies to enhance security measures, moving beyond mere takedown metrics to focus on substantial reduction of infringements. By shifting the perspective from brand protection as a cost to a strategic investment, companies can not only safeguard their assets but potentially unlock new revenue streams through focused and outcome-oriented actions.

For a more complete guide to brand protection- why it is necessary, how infringement harms brands and customers, what to look for in a brand protection partner, and insights into the brand protection strategies of the future – download our Complete Brand Protection Guide.

Download the Guide

About Authentix

As the authority in authentication solutions, Authentix can help brands create a customized plan to tackle counterfeit products from every angle, collect actionable data, and protect brands and consumers. Authentix works with each company to determine which brand protection solutions are right for their situation.

Authentix brings enhanced visibility and traceability to today’s complex global supply chains. For over 25 years, Authentix has provided clients with physical and software-enabled solutions to detect, mitigate, and prevent counterfeiting and other illicit trading activity for currency, excise taxable goods, and branded consumer products. Through a proven partnership model and sector expertise, clients experience custom solution design, rapid implementation, consumer engagement, and complete program management to ensure product safety, revenue protection, and consumer trust for the best known global brands on the market. Headquartered in Addison, Texas USA, Authentix, Inc. has offices in North America, Europe, Middle East, Asia, and Africa serving clients worldwide.

Your Complete Brand Protection Guide

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Author: OuterBox

Counterfeiting, smuggling, diversion, and infringement — collectively known as illicit trade, — continues to be a growing global problem for businesses and consumers. With the increasing volume of counterfeit goods trafficked across the globe and seeping into multiple supply chains, a well-strategized brand protection program is more essential than ever to shield what matters most to businesses – customers, brand identity, reputation, and revenue.

Navigating Brand Protection Strategies For Your Business

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Author: OuterBox

By the Authentix Brand Protection team

Back in the 1700’s Ben Franklin was an early innovator of printing techniques that made American paper currency harder to counterfeit. Some of his security features included watermarks, imprints of leaves, and other difficult-to-reproduce features that helped citizens distinguish real bills from illegal copies.

Anti-Counterfeit Security Features from 1700s

Since then, security feature graphics have of course evolved, but many of these early anti-counterfeit security features have stood the test of time. There are dozens of secure printing, digital authentication, and online protection technologies that can help your brand keep products secure and prevent counterfeiting. Here’s a breakdown of the top security and authentication technologies that might be right for your brand protection needs:

Physical Security Features

Having a multi-layered physical security authentication solution is important to protect your products. If a counterfeiter figures out how to print one security feature like UV, you still have more layered features to verify if the product is indeed yours. There are a wide range of physical security options available, from obvious and overt like holographic images and color shifting inks, to invisible covert and forensic security which are impossible to detect without the proper tools.

Brand Protection Physical Security Features

Some popular physical security examples include:

  • Tamper evident packaging – labels, stickers, or seals that when opened or tampered with, provide immediate evidence that the product has been compromised.
  • Chemical and physical markers – can be hidden from consumers and counterfeiters and can only be seen with specific detectors that are calibrated to a specific wavelength to verify authenticity.
  • QR Codes – can now be scanned without the need for an app, using a smartphone camera that directs consumers to a webpage to authenticate the product and then introduces the consumer to another webpage where they can register their warranty, learn more about the product and even suggest other complementing products.

Physical security features will continue to evolve and remain an important part of your brand protection strategy. Future trends in physical security include new nanoprint technologies, printed electronics, and revolutionary inventions in digital printing. It is anticipated that these and many more will become the standard for high security printing.

Digital Authentication

Digital product authentication is a brand protection strategy that works by adding a unique digital identifier to your product. This allows your company to track the lifecycle of products, identify where transactions are taking place, and provides data analytics and insight into your products and customers. Unique QR codes on each product can be scanned by inspectors along the supply chain to ensure authenticity, as well as by end customers at the point of sale. Consumers can instantly authenticate their products and your brand can engage customers by serving relevant offers and information.

For example, a well-known spirits company was facing counterfeits across China, resulting in loss of brand loyalty, consumer trust and revenue. Authentix helped them implement a multi-layered authentication solution using covert and overt features. One of the solutions implemented was a QR code featuring a digital consumer engagement experience as well as authentication verification. The result was 90 million bottles with unique identifiers that could be tracked through the supply chain, allowing the company to detect and shut down over 150 counterfeiting locations including warehouses, retail shops and print shops.

Online Brand Protection

The rise in online sales has been unfortunately accompanied by the rise in counterfeiting on online marketplaces, social media platforms, and websites. When looking for an online brand protection services provider, it is important to ensure their scanning software is proprietary and not provided by a third party.  This gives you more control and security and makes it easier to do takedowns on social media where counterfeiters can advertise for a few hours at a time to targeted audiences. You should also ensure that your protection partner has the ability and resources to scan webpages and marketplaces, social media platforms, e-commerce apps, messaging apps like WeChat, payment sites, and the dark web for infringing content and listings.

It is also important for your online brand protection partner to have global marketplace coverage to allow you to do test purchases and verify product authenticity around the world. AI and machine learning capabilities can also give you actionable insights that lead to in-person shut downs and allow local law enforcement to conduct raids.

Following is a good example of one of Authentix’s clients using online brand protection technology to secure their brand:

This case is very similar to most companies that sell their products online. The company was a highstreet fashion brand that had a problem with lookalike and copycat products, posing a threat to their brand reputation and a decrease in sales. After Authentix implemented various image recognition tools that analyze and compare images against known logos and patented designs, test purchases were made and it was detected that the products were indeed infringements. The success rate from online enforcement was 98% and over 300 raids were then conducted, resulting in 8 civil litigation cases.

Evaluating Your Brand Protection Needs

Security should be integrated into your brand protection solution design from day one, not just as an afterthought. Early evaluation helps your brand with packaging design and product launches further down the road. Conducting a brand risk assessment helps determine in which markets your company is having counterfeiting issues and can help you gauge which type of security solution or solutions are the best fit for your situation. Having security technologies that give customers peace of mind the product they are purchasing is authentic, can be a great strategic advantage as your competitors struggle to add security to their products once they suffer the effects of counterfeits. Security should be a priority for long-term success so that your weak points don’t become susceptible to counterfeiters.

Authentix Customized Brand Protection Solutions

Authentix’s team of brand protection experts is ready to help your company every step of the way to protect your products with the latest and greatest security technology capabilities. Here are just some of the things you can expect when you work with our brand protection specialists:

  • Assessment and advisory services
  • Defining the gaps between your current practices and industry leading practices
  • Specific recommendations for improvement
  • Assistance with process implementation
  • Forensic product analysis services
  • Risk and vulnerability assessment
  • Simulated detection by third parties
  • Identification of possible materials used for security feature replication
  • Prototype development services
  • Product and packaging prototypes that incorporate security features designed specifically for you
  • Implementation services
  • Help managing the deployment of Anti-Counterfeiting Program technology in your facility

Contact Authentix today to learn more about how our brand protection strategies can help maintain your brand’s integrity in the global marketplace.

About Authentix

As the authority in authentication solutions, Authentix brings enhanced visibility and traceability to today’s complex global supply chains. For over 25 years, Authentix has provided clients with physical and software-enabled solutions to detect, mitigate, and prevent counterfeiting and other illicit trading activity for currency, excise taxable goods, and branded consumer products. Through a proven partnership model and sector expertise, clients experience custom solution design, rapid implementation, consumer engagement, and complete program management to ensure product safety, revenue protection, and consumer trust for the best known global brands on the market. Headquartered in Addison, Texas USA, Authentix, Inc. has offices in North America, Europe, Middle East, Asia, and Africa serving clients worldwide.

Understanding the SHOP SAFE Act and How to Safeguard Your Brand

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Author: Kathryn Olivier

In the digital age, a brand’s reputation is a crucial asset and one of the greatest threats a brand faces is counterfeiting. Whether it’s a popular weight-loss drug like semaglutide or designer apparel, the counterfeit market is thriving and costing brands billions of dollars every year. The impact goes far beyond financial losses; it puts consumer health and safety at risk. Due to the rise in harmful counterfeit products across a variety of industries, the US Senate Judiciary Subcommittee on Intellectual Property introduced the Stopping Harmful Offers on Platforms by Screening Against Fakes in E-Commerce (SHOP SAFE) Act. The SHOP SAFE Act is legislation aimed at reducing the volume of counterfeit sales online. It includes provisions such as holding platforms accountable for counterfeits that endanger consumer health and safety, requiring them to verify and display sellers’ identity and contact information, and terminating the accounts of repeat infringers.

Criticisms to the SHOP SAFE Act have led to the realization among lawmakers and courts that striking a balance between safe harbor principles and responsibilities is necessary, given the health and safety risks associated with counterfeit products.

The Impact of Widespread Counterfeit Pharmaceuticals

The surge in counterfeit pharmaceuticals such as semaglutide, better known under the commercial brand name Ozempic, has resulted in consumers falling seriously ill after purchasing these fake products online. After a huge surge in demand for the drug in 2023, pharmacies have struggled to keep it in stock and counterfeiters have taken advantage of the lack of availability by flooding the internet with fake semaglutide. Healthcare agencies in the UK have reported multiple cases of consumers falling seriously ill after purchasing counterfeit semaglutide online. Recently, a BBC investigation similarly uncovered cases of consumers buying counterfeit semaglutide pens from sellers on Instagram, WhatsApp and TikTok, with some ending up being hospitalized. Another example comes from Austria where several patients injected with suspected counterfeit semaglutide were hospitalized after suffering from hypoglycemia and seizures. This reality underscores the importance of the SHOP SAFE Act and why brand protection is no longer a choice but a necessity for businesses and consumer protection.Successful Online Brand Protection Solutions by Authentix

To dig deeper into the extent of the counterfeit semaglutide market, Authentix Online Brand Protection (OBP) scanned multiple platforms and found several suspicious listings of semaglutide across social media and messaging apps and online marketplaces.

In the absence of a detailed investigation, it is difficult to establish which of these products are counterfeit and governments and the industry would benefit from investigating such listings in greater detail. For example, many suspicious listings found by Authentix OBP contained clickbait hashtags like #weightloss and #ozempic. These could serve as a starting point for an investigation. Further, selling even genuine semaglutide without a prescription is an offence in most jurisdictions. Listings of such a nature should automatically be taken down by platforms without insistence on documentation such as IP registration certificates. Similarly, parallel imports should also be treated by platforms as serious cases, not least because these products may be tampered with and may also contain literature in languages not native to the country of sale. The same goes for a significant reduction in retail price — a common tactic employed by rogue sellers to lure consumers. To truly bust the counterfeit semaglutide market, however, will require a sustained cross-border effort that targets known high-risk marketplaces and platforms, and eventually results in physical investigations and enforcement actions.

The Importance of Counterfeit Prevention

Authentix OBP recommends brands check a wide range of sites for infringing products as new listings and new marketplaces for counterfeit goods pop up every day. Between constant monitoring of online marketplaces and e-commerce sites, implementing cutting-edge technology to detect infringing listings, and expert-led takedowns of counterfeit listings, a full online brand protection solution helps brands protect their company and customers from counterfeiters.

The SHOP SAFE Act places an obligation on companies to protect their consumers, and Authentix OBP equips brands with the power and tools to do so – a perfect synergy for safeguarding your brand’s integrity and keeping consumers safe.

About Authentix Online Brand Protection

Authentix provides some of the world’s most recognizable brands with sophisticated online brand protection tools and services to address a broad range of online infringement and counterfeit risks. From global online surveillance and enforcement, online investigations and site takedowns, target verification, and even offline investigations, Authentix helps major brands proactively reduce the threat of counterfeit products being sold online. Our online brand protection solutions combine cutting-edge technological tools and expert analysis to reduce infringements for our clients on online marketplaces, social media platforms, and websites by up to 90%.

Want to see what Authentix OBP can do for your company? Our team is committed to working with you, understanding your unique challenges and requirements, and providing tailored solutions that best fit your industry and the unique challenges your brand faces that make a tangible difference to your brand. Schedule a consultation with one of our brand protection experts to learn more. 

Q&A on Intellectual Property Protection & Enforcement

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Author: Kathryn Olivier

By Bharat Kapoor, Vice President, Online Brand Protection, Authentix

The International Anti-Counterfeiting Coalition (IACC) recently asked our VP of Online Brand Protection, Bharat Kapoor, his thoughts on intellectual property protection and enforcement and here’s what he shared:

What are the top 2 challenges in IP enforcement you see affecting your industry over the next year?

On the one hand, as online sales occur in an omni-channel environment, brands need to focus on collecting and analyzing the right set of data to make connections and take down infringing distribution channels collectively. On the other hand, ecommerce marketplaces and social media are making it increasingly difficult for brands to access sellers on their platform, with search and enforcement tools becoming less effective at tackling the range of issues online. Brand protection teams need to address these challenges by having targeted strategies supported with data and insights to deliver results and to avoid being overly reliant with on-ground investigators.

Can you provide your top 2 best practices for protecting IP?

Intellectual property protection and enforcementFirst, it is important to have registered IP rights and the ability to authenticate products efficiently. Second, the ability to collect and analyze high-quality data and manage a range of enforcement activity efficiently across hundreds of marketplaces globally is the most important factor in protecting IP. Authentix’s online brand protection solution and service platform gives our clients the ability to find and connect activities on a range of issues across ecommerce channels and further enables our global services team to manage these brand protection activities at scale. We also have active channels of communication with marketplaces to continuously address online threats collaboratively, and actively call out their lack of cooperation publicly.

What hobbies or causes are you passionate about?

We are deeply committed towards sustainability and Authentix Inc. has funded numerous environmental and educational projects in Africa, South America, and many other communities we serve. We have also implemented best practices on sustainability within the global organization. We have been following industry discussions on upcycling of counterfeit goods, and we have supported our clients in building strategies in certain countries. We are passionate about using our skills to support causes that positively impact the environment and conducting investigations into issues such as the illegal trafficking of birds and wildlife. Delivering results on projects such as these reenergizes me and our team to continue to fight against illegal activities online.

Want to learn more about how Authentix can help protect against intellectual property infringement? Schedule a consultation with our brand protection experts today.

Bharat Kapoor, Vice President, Online Brand Protection, Authentix
Formerly the CEO of Strategic IP Information Pte, now a part of Authentix, Bharat has been focused on building effective global brand protection programs for over 250 brands across sectors such as fashion, FMCG, pharma, cosmetics, sporting goods wines, and spirits. He has led the development of the best-in-class machine learning-based online brand protection technology and developed effective global teams to investigate counterfeiting and piracy on the ground in China, Asia, and Latin America. Bharat Kapoor has a B.A. Honors from the University of Technology, Sydney. Prior to joining SIPI, he was an Associate Director at Ernst & Young India, where he led the business development and advisory services program for companies operating in the media, e-commerce, and advertising sectors.

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