Intellectual property violations may mean that another company steals your design and begins making similar products. This is very common with certain luxury goods, such as wristwatches or sunglasses. In some cases, fakes will be made with the same style and even a logo that is designed specifically to trick the buyer into thinking they are purchasing the luxury brand.
If this happens to your company, you are certainly going to be frustrated whenever you see that these sales are being made. They are sales that your company should have secured, but you’re losing that source of income. This is one of the first things that owners focus on when starting an intellectual property lawsuit. But the issue could actually be a bit more problematic than that.
Consumer perceptions of your products
One of the big problems with fake products is that they can change the way consumers perceive your brand. First and foremost, they may know that there are a lot of fakes in circulation. This makes them question even authentic products. As such, someone who wants to buy a luxury good may be less likely to choose your brand. They know that it could be a fake, and so they will buy something that feels more exclusive.
The second problem is that some of the consumers will not even know that they have purchased fake products, to begin with. When these products have a low level of quality, the consumers will still associate them with your brand. This can cause them to have a negative opinion of your brand, leave negative reviews and spread inaccurate information. All of this makes your brand worth less than it should be because of that IP violation.
Protecting your business and your intellectual property is important. Take the time to look into the necessary legal steps that you can take to do so.