MIP LUXURY BRANDS & RETAIL LONDON, SEPTEMBER 2015

DANIEL BENNETTCEO, YELLOW BRAND PROTECTION

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ABOUT YELLOW BRAND PROTECTION

• A global online anti-counterfeiting specialist, working discreetly for many of the world’s most recognized brands.

• Broadest search capability in the industry: Websites & Domains, Social Media, Mobile Apps, and 700 Online Market Places.

• Dedicated “Team China” with strong local relationships and takedowns on Taobao within 24 hours on average.

• Very successful enforcement rates, regularly exceeding 95%. Over 3m listings enforced. “We Stop at Zero”.

• Online investigation: identifying ‘key offenders’ and gathering evidence. Strong ties to ‘real-world’ enforcement stakeholders.

• Actively lobbying Alibaba Group and Facebook/Instagram to improve IPR protection for our clients.

OVER 3 MILLION INFRINGEMENTS

REMOVED

700+ Online

Markets

20+ Social Media

Platforms

World-Wide

Websites

10+ Mobile

App Platforms

ON AVERAGE YELLOW BRAND PROTECTION REDUCES ONLINE INFRINGEMENT LEVELS BY 80% IN YEAR 1 AND HAS REMOVED 3 MILLION INFRINGEMENTS TO DATE

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COUNTERFEITING

• Deliberate attempt to deceive consumers by copying and marketing goods bearing well-known trade marks

• 31% of UK consumers that bought counterfeits, believed they were buying genuine

• $1.77 Trillion - Projected Value of Global Trade in Counterfeit and Pirated Goods in 2015

• The counterfeiting industry accounts for 8% of China’s GDP.. and is not changing anytime soon.

• Trademark, design, patent and copyright: IP being abused in order to mislead buyers

And other Intellectual Property crimes

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• Most knockoffs are of luxury goods carrying a well known trademark. Today nearly every consumer and industrial product is subject to counterfeiting

• Imitation is a form of flattery. Counterfeiting deceives the consumer and tarnishes the reputation of the genuine manufacturer and brand value can be destroyed

• Fakes are recognised by low price and poor quality. Counterfeiters are getting better and better at copying the quality. Prices are often just under retail price in order to mislead the buyer

MYTHS AND FACTSFacts about counterfeiting needs to be updated

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• During a meningitis epidemic in Niger in 1995, more than 50,000 people were inoculated with fake vaccines resulting in 2,500 deaths

• A man from Wallasey, UK was killed when a charging e-cigarette exploded in his home

• A boy of seven was electrocuted by a counterfeit Gameboy charger while on holiday in Thailand.

• Mechanical parts, food & drink, tobacco…

FATAL FAKECounterfeits can be extremely dangerous

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COUNTERFEIT ONLINE

• Easy to fool consumers into thinking they are buying genuine goods at discounted prices

• Sellers can be anonymous and as easily as they appeared, they disappear

• The volume of pirated and counterfeit goods sold online will soon surpass counterfeit sales on the physical markets

A global and complex issue

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ONLINE SALES CHANNELS

• Webstores/Domains – where most infringing and counterfeit activity originated

• Marketplaces - have become a key battle-ground for many brands. Vast quantities are being sold through these sites

• Social Media – the new frontier. Most brands are unaware of the trend in selling fakes through social media profiles

• Apps – an upcoming channel: Some brands are more affected than others

The internet is endless – where does the action take place?

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• The No. 1 online sales channel among counterfeiters

• 150+ Chinese online marketplaces

• More than 50% are B2B sites offering vast quantities

• More than 50% have global buyers

• The Alibaba Group sites are the most famous (Taobao, Alibaba, Aliexpress, 1688 and Tmall)

CHINESE MARKETPLACESAn ever-growing problem

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• Ad captured from Alibaba – one of the biggest online marketplaces

• MOQ – 500 pieces

• Supply ability 100 000 pieces per month

• Place of origin: Guangdong

• 50 pieces in a carton

A Rolex watchTHE CLASSIC COUNTERFEIT/REPLICA

STRATEGIES/SOLUTIONS

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• Counterfeits are dangerous and can significantly impact sales

• Counterfeiters don’t care about the environment or the welfare of workers and they are often linked to large criminal networks

• It is easy to feel lost and loose faith – but it is absolutely possible to get back in control of your brand

AIM HIGH. STOP AT ZERO.

TAKECONTRO

L

Why you should be taking action

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SUCCESS METHODOLOGY – ONLINE MARKETS

ON AVERAGE YELLOW BRAND PROTECTION REDUCES WORLD-WIDE INFRINGEMENT LEVELS BY 80% IN YEAR 1 AND HAS REMOVED 3M ONLINE INFRINGEMENTS TO DATE

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THE RISE AND FALLNo issue is too big - it's about technology, structure and resources

• In most cases it takes 9 -12 months to stabilise the volume. Most of the sellers will drop the brand and pick on someone else

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700+ Online Markets,150 in China

20+ Social media

10+ Mobile apps

Web Shops & Domains world-wide

Expert counterfeit detection and tagging

Automated filtering

“Alias tracking”

Identify key targets for prosecution

80%+ Infringements removed in year 1

95-100% Success

24hr Taobao actions

3 Million infringements removed to date

SUCCESS METHODOLOGY

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• A total of 22 fake Apple stores have been uncovered in one Chinese city

• Wanda Square in Shenyang has a cornucopia of shops bearing familiar names - all with incredible knock-off prices

• In Kunming – the furniture shop “11 Furniture” has copied the whole interior of an IKEA store

WHY COPY ONLY THE PRODUCTS?The extent of how far they can take it

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• Synthetic eggs are cheaper and quicker to make - with the proper equipment and materials, one person could produce 1,500 fake eggs per day

• Full of chemicals; glucolactone, benzoic asic, alum and calcium chloride to mention a few

• Side effects; metabolism disorder, harmful to brain and nerve cell. May cause liver diesease and affect the ability to produce blood

CRAZY FAKESFake chicken eggs

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• Purely Natural Royal Viagra Enlargement Pills

• Minimum order: 10 boxes

• Price: 1.5 -3.8 USD

• Supply Ability: 100 000 pieces per week

• 9 bottles per box

• Location: Guangdong

Even though it is supposed to be against site policies to offer drugs, it’s still thereCHEAP MEDICINE