What Are the Risks to Your Brand When Vendors Use Counterfeit Products?

15 July 2021

It is an unfortunate reality that many counterfeit anti-mold products and desiccants exist on the market, and these pose a direct legal and safety risk to brands and their customers. Counterfeits often contain banned or hazardous chemicals that violate international regulations, can cause harm to workers and consumers, as well as cause damage to the finished products. Brands are often unware of the potential liabilities they face whenever their vendors use counterfeits. The risks are simply not worth the fraction of a cent in savings that vendors gain from using fake products.

The best way to avoid counterfeits is to ensure that vendors only purchase Micro-Pak® products from Micro-Pak Hong Kong or our authorized distributors. We do not sell our products through any other channels. Brands should also impose penalties on vendors found using counterfeits. This is a highly effective method to combat the problem and even a small monetary fine of US$500 per incident is an effective deterrent.

Micro-Pak takes extensive action to fight against counterfeits including the use of advanced covert anti-counterfeit technologies in all of our products, a robust sample inspection program to verify Micro-Pak® products obtained from factories and retail stores, and legal action against counterfeit suppliers. We are pleased to report a recent successful settlement against a well-known Chinese counterfeiter:

Micro-Pak Wins RMB 1,000,000 Settlement In Trademark Infringement Case Against Romeway Industrial Co., Ltd.

The Dongguan No. 2 People’s Court has awarded Micro-Pak RMB 1,000,000 (USD 155,000) in a trademark infringement case regarding the mark “Micro-Pak®”. The defendant Romeway Industrial Co., Ltd. 東莞市隆威實業有限公司 must also give up claims to various trademarks as well as cease any counter actions against Micro-Pak. Micro-Pak initiated action against Romeway in 2018, starting with undercover investigations and progressing through enforcement actions with local authorities and finally court cases.

“This was a long process but in the end the trademark system works well in China” says Micro-Pak Managing Director Martin Berman. “Our legal teams in both Hong Kong (TannerDeWitt) and Beijing (King & Wood Mallesons) worked tirelessly on this case and the Court was informative and helpful in moving the case forward.

“This was not a simple case and our opponents took every opportunity to change the narrative and delay the settlement. We learned quite a bit in this matter including the rules of evidence and the need to not only register your trademarks but to also keep copies readily available for presentation to the authorities”.

“We will continue to aggressively protect our trademarks and encourage every company to do so. This is especially important with the growing size and importance of the China domestic market”.

Summary

Counterfeits are a serious problem that pose a direct legal and safety risk to brands. Take the following actions to protect yourselves, your workers, and your customers:

  1. Ensure suppliers only purchase genuine Micro-Pak® products from Micro-Pak Hong Kong and our authorized distributors.
  2. Impose financial penalties on any vendors that use counterfeits.
  3. Check if your vendors are using counterfeits by regularly sending us Micro-Pak product samples to authenticate.

Contact Us for More Information

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