Why is it so difficult to oppose counterfeit products? Explanation of the importance of countermeasures, key points, and what they should be.

Fake goods are products that use unauthorized brand logos, names, packaging, etc., and are sold under the guise of being authentic. Fake goods are subject to strict legal control because they are clearly intended to mislead consumers into believing that they are authentic and infringe intellectual property and trademark rights.

Fake goods are counterfeit goods that are difficult to identify.

The global pandemic of 2020 caused a rapid expansion of the e-commerce market and triggered the mass distribution of counterfeit products. The mass distribution of counterfeit products increases the risk of damaging consumers' brand image and trust in the company.

If consumers purchase counterfeit products and are dissatisfied with their quality, the company's brand image may be adversely affected. In addition, the distribution of counterfeit products may lead to a decrease in brand scarcity and sales.
Distributions of counterfeit products, if left unchecked, will affect the brand and sales, so action must be taken at an early stage.

In addition, the technology to produce counterfeit products is developing every year, and products with high Profits and market share are particularly vulnerable to being targeted.

According to a survey by the Japan Patent Office, global counterfeit products have caused $464 billion in damages (equivalent to 2.5% of the world's trade value^*1), and Japanese companies have suffered an estimated $29.4 billiondamages^*2 (approximately 3.2 trillion yen) in .
The amount of damage is increasing every year, and the damage is spreading to the Japanese market as well, making counterfeit products an increasingly serious problem.

*1Refer to: Japan Patent Office, "Research and Study Report on Counterfeit Products Using AI".

*2See: Japan Patent Office, "Survey on Estimated Damage Caused by Imitations of Japanese Corporations by Industry (FY2021)".

First, take measures to prevent the expansion of distribution of counterfeit products. There are three specific preventive measures

• Notices and Alerts
• Monitor Logistics on e-commerce sites, etc., and apply for removal.
• Customs injunction measures

Notification and Alert
If you discover the existence of counterfeit products, it is important to "notify" consumers of the fact that counterfeit products exist. Prevent consumers from being disadvantaged by the use of counterfeit products.
At the same time, by making companies aware of the existence of counterfeit products, it will help them to demonstrate that they will never tolerate counterfeit products.
Attaching a message directly to the product itself warning consumers against counterfeit products is also effective.

Monitoring of Logistics on E-commerce sites, etc., and Application for Removal
When counterfeit products are found circulating on e-commerce websites, "Monitoring and Removal Request" is an effective way to prevent the distribution of counterfeit products. By cutting off the sales channels of the creator of counterfeit products, the distribution of counterfeit products is prevented. The application for removal should be made in accordance with the terms and conditions of the e-commerce site or service provider, and by enforcing trademark rights and other rights.

Customs Injunction Measures
It is not uncommon for counterfeit products manufactured overseas to be brought into your country. In such cases, a "customs injunction" is effective. By applying for a customs injunction, the applicant company will be notified when a suspect product is discovered.

This is a method of providing products with an authentication mechanism utilizing holograms or product IDs, so-called "Genuine product markers". By putting in place a system that allows consumers to check that a product is a Genuine product before purchase, counterfeit products can be prevented from being purchased.
In addition, the presence or absence of an identifiable marker makes it possible to identify whether the product is a Genuine product or a counterfeit product.

By assigning each product a unique individual identification code, such as a serial number or 2D code, and recording detailed information such as manufacturer, date and time of manufacture, and shipping address in a database, it is possible to trace the product.
By comparing these data with the distribution channels in the database, the distribution channels can be verified and it is possible to tell if the product is a Genuine product or not.

Individual identification codes assigned to products to mark them as Genuine products and for traceability are effective means of distinguishing them from Genuine products. However, there are cases where individual identification codes themselves can be duplicated.
Duplication of individual identification codes distorts the certainty of the distribution channel, making it difficult to determine whether the product is a counterfeit product or not.

Counterfeit products are becoming more precise, making it difficult to visually distinguish between products and packages.
Even with special processing and printing, counterfeit products can still be imitated, making it difficult to determine that they are Genuine products without relying on individual identification codes.

The above factors make it difficult to oppose counterfeit products using individual identification codes and packaging.
It is difficult not only for consumers, but also for manufacturers to identify and oppose counterfeit products.

Counterfeit products can be imitated by counterfeiters only if they are guaranteed to be Genuine products by means of visible codes such as serial numbers or codes, or by special processing. Therefore, it is important to establish a "system to identify counterfeit products in a way that is not recognizable to counterfeit distributors.

If the product can be identified in a way that is not known to the counterfeit Logistics, the traceability of the product can be assured even if it is counterfeited.
A specific example is technology that identifies "digital fingerprints.

"Stealth individual identification technology" is a counterfeit protection technology that identifies slight unevenness in the natural printing surface of a package. Even if the same design is printed on a package, the package has slight unevenness in the natural printing surface at a level that is impossible for the human eye to distinguish.
Since each unevenness is different, like fingerprints, it is possible to identify the differences between individual products by imaging and identifying unevennesses in the printing.

Stealth individual identification technology allows product information to be managed in a way that does not use "visible codes" such as barcodes.

In addition to the 2D code conventionally used, Stealth individual identification technology manages "digital fingerprints" and makes it possible to manage products in a way that counterfeit products distributors will not be able to recognize.
Therefore, even if the code is duplicated, the management by stealth individual identification guarantees traceability, making it possible to distinguish Genuine products from counterfeit products.

Fuji Seal International offers "Deep IS" a traceability system that utilizes stealth individual identification technology.

"Deep IS" utilizes "stealth individual identification technology" that identifies slight unevenness in printing and traces the product, thus enabling to offer Counterfeit protection technology for each product without the use of 2D codes.

The individual identification information is stored in the system's Data. Consumers who purchase a product can use their smartphones to take a picture of the product package, which can then be checked against the identification information in the system's Data to make an authenticity determination.
In the event that counterfeit products are purchased by mistake, consumers can also identify Fake goods themselves through smartphone authentication.^*

*Smart phones are limited to certain models.

"Deep IS" can be introduced with a microscope to image the package and a PC to manage product information.
Since it is possible to supply labels already registered for individual identification, it is relatively easy to implement without significantly changing the flow of the current shipping and Logistics process.