TY - JOUR

T1 - Anti-counterfeiting strategy unfolded a closer look to the case of a large multinational manufacturer

AU - Rullani, Francesco

AU - Beukel, Karin

AU - De Angelis, Matteo

PY - 2021

Y1 - 2021

N2 - Research Summary We examine in detail how one large mobile phone manufacturer develops its anti-counterfeit strategy and seizes counterfeit products on the market. We couple qualitative data (observations from 150 counterfeit sales points worldwide, two focus groups, a survey with 151 respondents, interviews with 90 informants) with econometric analysis of 3,333 fights the focal firm undertook against more than 2,000 counterfeiters in 75 countries over 6 years (2006-2011). We focus on firm's seizure of counterfeit products when consumers' safety is at risk. As the firm is more sensitive to product safety than counterfeiters, we found that the firm generally performs larger seizures when unsafe products are involved, but this is less true in the firm's main market, likely because higher profitability offers higher incentives to counterfeiters.Managerial Summary In companies' fight against counterfeiters, product safety plays a pivotal role. We suggest that companies have a particularly high incentive to seize counterfeit products when the product carries potential safety risks, because the occurrence of safety issues seriously harms its reputation. This research explores the anti-counterfeit strategy undertaken by a large manufacturer operating in the market of mobile phones and in the market of ancillary products (e.g., batteries and chargers). Results show that larger seizures occur in the ancillary rather than in the mobile phone market because while authentic companies have high incentives to seize mobile phone and accessories, as both involve safety risks, counterfeiters have a greater incentive in the main market and thus put less effort in ancillary markets.

AB - Research Summary We examine in detail how one large mobile phone manufacturer develops its anti-counterfeit strategy and seizes counterfeit products on the market. We couple qualitative data (observations from 150 counterfeit sales points worldwide, two focus groups, a survey with 151 respondents, interviews with 90 informants) with econometric analysis of 3,333 fights the focal firm undertook against more than 2,000 counterfeiters in 75 countries over 6 years (2006-2011). We focus on firm's seizure of counterfeit products when consumers' safety is at risk. As the firm is more sensitive to product safety than counterfeiters, we found that the firm generally performs larger seizures when unsafe products are involved, but this is less true in the firm's main market, likely because higher profitability offers higher incentives to counterfeiters.Managerial Summary In companies' fight against counterfeiters, product safety plays a pivotal role. We suggest that companies have a particularly high incentive to seize counterfeit products when the product carries potential safety risks, because the occurrence of safety issues seriously harms its reputation. This research explores the anti-counterfeit strategy undertaken by a large manufacturer operating in the market of mobile phones and in the market of ancillary products (e.g., batteries and chargers). Results show that larger seizures occur in the ancillary rather than in the mobile phone market because while authentic companies have high incentives to seize mobile phone and accessories, as both involve safety risks, counterfeiters have a greater incentive in the main market and thus put less effort in ancillary markets.

KW - counterfeit

KW - intellectual property right

KW - IPR

KW - mobile phone

KW - product safety

KW - INTELLECTUAL PROPERTY

KW - RISK

KW - 1ST

U2 - 10.1002/smj.3294

DO - 10.1002/smj.3294

M3 - Journal article

VL - 42

SP - 2084

EP - 2103

JO - Strategic Management Journal

JF - Strategic Management Journal

SN - 0143-2095

IS - 11

ER -