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Tag: counterfeiting

  • Fed Govt seeks HP’s partnership on counterfeiting

    The Federal Government may have jettisoned its local contenet policy in the information communication technology (ICT) sector as it has promised to embark on general survey on HP computers and toners, partner the foreign original equipment manufacturer  (OEM)  to procure its genuine products for maximum output.

    The Permanent Secretary, Federal Ministry of Communications, Mr. Musa Istifanus, made the promise during a meeting between officials of the Ministry and a delegation of HP Computer Manufacturers Company in Abuja at the weekend.

    Analysts say this contradicts government’s position on local content policy as contained in ‘Executive Order 5 for Planning and Execution of Projects, Promotion of Nigerian Content in Contracts and Science, Engineering and Technology’ (the Order) signed into law last year by by President Muhammadu Buhari.

    Represented by Director, Information Communication Technology (ICT), Mrs. Monilola Udoh, the permanent secretary described the rate of counterfeit products in the country as a problem and worrisome, assuring that the Federal Ministry of Communications would take a lead to survey all HP computers in the Federal Government ministries, departments and agencies (MDAs).

    “We will encourage registration with HP to supply genuine computer systems and parts, service the bad ones through their certified engineers and distributors to put an end to the ugly trend of illegal distributors who make consumers to pay more for bad products that end up not serving their purposes,” Istifanus said.

    He regretted that there are so many fake products in the market hence and urged the company to intensify enlightenment campaigns and workshops to educate consumers on how to identify fake products and their implications on their (consumers) economy.

    He also urged the firm to organise a workshop for all procurement directors in the MDAs to sensitise them on the negative effects of counterfeit products, how they affect manpower and how to avoid falling victims so that public funds would not be wasted on buying products that would not serve their purposes.

    He said product counterfeiting is a general problem, thus, Federal Ministry of communications would partner the company to avoid patronising fake products and secure toners service programme from it (HP) to safe the Federal government from avoidable costs

    In a remark at the meeting, Manager, HP Company, Emmanuel Eze said the firm is determined to provide consumers satisfaction having put in place certain control measures such as buying the products through authorised distributors and retailers, monitoring their activities while enlightening the beneficiaries on how to avoid counterfeit products.

    In a presentation at the meeting, the Business Manager (HP), Olamide Ojo said there are so many counterfeit products in the market which according to him, is a global phenomenon not peculiar to Nigeria alone, where illegal manufacturers fake their products to look like the originals which at the end failed to serve the consumers.

    According to him, the ugly trend of counterfeit products has not only cost the company millions of dollars but has also cost unsuspecting consumers their hard earned money and rid them from consumer satisfaction.

    The meeting which was meant to address the increasing rate of counterfeiting HP products in the market with the view to address the menace so that the Federal government and unsuspecting consumers would not lose their hard earned money to buy fake products that would not stand the test of time after they were purchased.

  • SON, JETRO, others to strengthen fight against counterfeiting

    The Standards Organisation of Nigeria (SON) and the Japan External Trade Organisation (JETRO) are leading other critical stakeholders in a renewed collaboration to put more verve in the fight against product counterfeiting.

    Others involved in the push to rein in product counterfeiters, who have been denying the government the much-needed revenue and hurting genuine manufacturers, include Nigeria Customs Service (NCS) and Nigerian Copyright Commission, among others.

    To kick-start the new fight against counterfeiting, JETRO Nigeria, in collaboration with SON and with the support of the Embassy of Japan in Nigeria, organised the “Nigeria-Japan Anti-Counterfeiting Seminar.”

    At the opening of the seminar in Lagos on Wednesday, the Trade Commissioner/Managing Director of JETRO, Mr. Shigeyo Nishizawa, said the seminar was aimed at promoting mutual understanding of intellectual property protection and strengthening anti-counterfeiting between Nigeria and Japan.

    He said seven Japanese companies in Nigeria and other countries were on hand to showcase and differentiate their original products from the fake ones so as to create awareness to the Federal Government’s standard enforcement agencies and the general public.

    Some of the Japanese companies that made presentations included Brother Int’l  (Gulf FZE), makers of   consumable parts of laser printers, Multi-Function Centres (MFCs), fax machines and label printers; Canon Europe Limited in the EMEA region, manufacturers of inkjet printers and professional printers for business and home users.

    Others were Japan Tobacco International (JTI), producers of tobacco/cigarette; NGK Spark Plug Middle East FZE, makers of genuine engine spark plugs; air-condition giant Panasonic Marketing Services Nigeria Ltd.

    Also on hand to help Nigerian consumers spot the original products were Sharp Middle East FZE, makers of consumable/spare parts for digital Multifunction Peripheral (MFPs)/Printers; TOSHIBA Gulf FZE, specialising in hard disk drives, USB flash drive, SD card, printer, home appliances, etc.

    Nishizawa said the number of Japanese companies in Nigeria has continued to increase, noting that with 40 such firms are operating in the country, and that there was the need to educate and enlighten consumers on how to identify genuine products from counterfeits.

    SON Director General Osita Aboloma expressed the agency’s commitment to promoting quality in all its ramifications through diligent implementation of policies and initiatives on standardisation and quality assurance.

    “The need to protect genuine investors, manufacturers, importers and dealers in quality products in Nigeria from the damaging effects of purveyors of substandard and life endangering products cannot be over-emphasised,” he said.

    Aboloma, represented by SON Director, Inspectorate and Compliance, Engr. Bede Obayi, said counterfeiting was one of the known sources of substandard products across the world.

    Describing counterfeiting as illicit trade, he said it has been a major source of worry to governments, businesses and regulatory institutions in developed and developing economies.

    The SON boss, however, said Nigeria’s population and market in the West Africa and on the continent, presents a worrying scenario for the negative effects of counterfeiting and the illicit trade associated with it.

    Aboloma said aside depriving industry of sales and eroding long-term sustainability of business, counterfeiting promotes unemployment, drains national income through tax evasion and threatens national security as the proceeds are not easily traceable.

    He also added that because counterfeited products usually do not meet quality and safety requirements, they are, therefore, life-endangering. Besides, purveyors of such products, he added, do not give value for money, as the quality is usually far below those of the genuine products and brands.

     

     

  • Firm to know fate on product counterfeiting

    Firm to know fate on product counterfeiting

    A Federal High Court sitting in Awka, Anambra will tomorrow deliver its ruling on an application filed by a manufacturer, Benjamin Nwizu , seeking to quash the charge preferred against him by the Federal Government for alleged product counterfeiting.

    Nwizu, who is the managing director of Bendusco Nigeria Limited, Onitsha, is being prosecuted before Justice I.B. Gafai on a four-count charge of manufacturing, storing and distribution of substandard tooth brush; breaking of seal order and non-compliance to regulatory standard of the Standards Organisation of Nigeria (SON).

    Nwizu was alleged to have committed the offence in October 2014.

    His counsel, Mr. Chuka Onyali, in the application filed on May 16, asked the court to quash the charge because it was an abuse of court processes.

    Onyali argued that the amended charge filed by the prosecution should be discountenanced as it is the same with the one already in process.

    But the prosecutor, Mr. Joseph Olofindare, argued that the charge was valid and that the application to quash it should be dismissed by the court.

    Following their submissions, the judge adjourned the matter till May 23, 2017 for ruling.

    Justice Gafai had granted him bail following his earlier remand in prison custody after his arraignment.

    The judge ordered Nwizu to produce a surety, who must not be lower than a Grade Level 8 Officer in the Anambra State Civil Service.

  • Cosmetic Counterfeiting : Beauty and the beast

    Cosmetic Counterfeiting : Beauty and the beast

    Kyle Parker writes on the scourge of counterfeiting which according to her has reached epidemic proportions

    Companies that operate within the cosmetics industry are painfully aware of the cost of counterfeiting. It seems that the bigger the brand awareness, the greater the chances are that the brand will be counterfeited. Security organisations and governments dealing in policing counterfeited products have subsequently turned their focus away from consumer education and now are focusing on the laws that govern anti-counterfeiting measures. Consumers, particularly in Africa, are not informed adequately, when faced with counterfeited products. With organised crime rings scattered throughout the continent, policing consumers is all but become impossible.

    “The counterfeiters tend to target big-selling brands, with Perry Ellis, Dolce & Gabbana, Calvin Klein, and Davidoff among the manufacturers affected by the criminal activity. Counterfeiting of premium brands is expected to strengthen over the coming years.” – Technavio analyst Brijesh Kumar Choubey

    So how do existing laws help stop cosmetic counterfeiting in Africa? According to Spoor & Fisher, the Counterfeit Goods Acts of most African countries set out to streamline and create effective enforcement measures to enable owners of trademarks, copyrights and marks protected to take action against the counterfeiting of their products.

    In an essence, the majority of African countries have strengthened laws and empowered enforcement agencies to search, seize and prosecute with little interference red tape. However, a simple glance over to the atlas, the sheer size of Africa and the numbers of enforcement agents, leaves a glaring hole of opportunity for criminal organisations.

    “Beauty products are meant to enhance your features. However, the fakes can, in fact, do quite the opposite. Our general rule is: if it seems too good to be true then it probably is.” – Det Supt Maria Woodall, Police Intellectual Property Crime Unit (PIPCU)

    Like a bad rash, the problem persists and is showing growth. If companies are stuck between a mass of ill-informed consumers and under-resourced enforcement agencies, who or what solution can we look next, to bring this scourge under control?

     Security packaging – our knight in shining armour?

    Adding security measures through print, labelling and tracking solutions have been around for many years. The underlying problem with these solutions is exactly that, they exist.  Organised crime is watching and duplicating with impeccable skill.

    A dermatologist recently told the Fox broadcasting network. “Fakes cosmetics could cause acne on your face, dermatitis or eczema or scaling. Theoretically, you can absorb (them) through your skin too. There could be bacteria because there is no quality control. Anything could be in there.”

    Syndicates are no longer those 4 burly guys sitting in a sedan skowering the streets for unsuspecting victims. Crime syndicates are corporations, sophisticated networks of hackers, informants and undercover agents, infiltrating pharmaceutical markets worldwide. Like spy-vs-spy, companies are consistently embraced in this battled of who to trust and who to fight.

    What if there was a solution that eliminated human interference, with technology that cannot be replicated, a kind of unhackable security packaging 2.0?

    The PeltaTM technology is based on the standard 2D code but extends the capability of the 2D code by adding a second layer of information. The second layer is hidden and invisible to the standard 2D code reader. The covert layer can only be decrypted by using a custom key, thus can be used as a basis of an authentication or track and trace solution. The licensee of PeltaTM can use the custom software for internal use and consumers may make use of a scanner application on their smartphone to authenticate the document or product.

    The overt layer of information is read identically to standard 2D codes (i.e. QR, Data Matrix, Aztec, Maxicode, DotCode and others). This first layer of information is easily accessible and includes logistical or marketing information, easily read by scanner applications on a smartphone.

    Pelta™ coding has proven successful in eliminating fraud in Countries worldwide. The results are promising and more can be done to turn the tide of counterfeiting.

    Kyles quote

    At some point, the cost of the solution is nothing compared to the loss a brand can incur when damage is done or lives are lost. Brands have to act or they show that they actually don’t care about fakes unless it impacts them financially enough to act.

    False profiting

    According to Interpol, profits made from counterfeit cosmetics are used to fund drugs smuggling and terrorism. For this is the shocking flipside to the shadowy world of counterfeit cosmetics.

    The cheaper imitations that are flooding the market may look legitimate — as well as please the purse — but they have been found to contain ingredients that in the worst cases, cause permanent damage to both the body and the brain.

    There is no immediate solution to the scourge of counterfeiting. The positive spin is the overall commitment by pharmaceutical companies is to enlist support and measures to reduce the impact. From revenue to life loss, counterfeiting is now at epidemic proportions.

    Pagemark Africa is the African based supplier of software technologies. With a patent approved authentication technology called Pelta™, Pagemark Africa provides governments and international companies with secure printing solutions, product and document authentication, serialisation solutions, and track and trace software.
    Many recent innovations are based on the core technology Pelta™ which is a software authentication product based on 2D bar codes. Pelta™ provides government and brand owners a covert layer of data to utilise as required to support their authentication or serialisation requirements. Pagemark Africa works with many governments and companies across the globe and guides them toward a common goal: secure document authentication.

    Research Sources:

    http://www.pagemarkafrica.com/products/pelta/

     

    https://www.theguardian.com/fashion/2015/may/18/police-campaign-dangers-counterfeit-cosmetics

     

    http://www.interpol.int/

     

    http://www.worldtrademarkreview.com/Intelligence/Anti-counterfeiting/2015/Country-chapters/South-Africa

     

     

     

     

  • Countering counterfeiting

    Countering counterfeiting

    •The war against fake drugs must be reinvigorated

    In 2011, the World Health Organization (WHO) claimed that about 64 per cent of all anti-malarial drugs consumed in Nigeria were fake. It is truly tragic that some five years later, this lamentable situation is substantially unchanged.

    The use of drugs that are substandard, spurious, falsely labelled, falsified and counterfeit (SSFFC) is one of the country’s major challenges. It hampers progress in healthcare delivery, increases mortality rates and the prevalence of drug-resistant infections, cripples legitimate pharmaceutical enterprises, and strengthens organised crime.

    In the specific case of malaria, counterfeiting is a particularly problematic issue. Malaria is by far the nation’s biggest killer, accounting for some 300,000 fatalities annually, in addition to resulting in the loss of millions of man-hours lost to ill-health. Fake anti-malarial drugs simply worsen an already-bad situation.

    During the late Professor Dora Akunyili’s leadership of the National Agency for Food Drug Administration and Control (NAFDAC), a sustained campaign against the fake drug menace resulted in impressive victories. Counterfeit drugs were reduced from 40 per cent of the market in 2001 to 16.7 per cent in 2005.

    Much of her success came from a strategy which combined a relentless information campaign on the dangers of fake drugs, a preparedness to identify, confiscate and destroy them regardless of where they were found, and increased cooperation with the authorities of countries like India and China, which are the biggest sources of fake drugs.

    It appears that Akunyili’s successors at NAFDAC have not been able to apply the same tactics with a similar measure of success. Fake drugs are still being imported into the country, despite the agency’s deployment of Truscan scanning technology at the nation’s ports. Markets that were hitherto notorious for selling fake drugs are allegedly witnessing a resurgence in sales. Increased access to sophisticated printing technology has made it easier for counterfeiters to produce drugs that look no different from their authentic counterparts.

    If Nigeria is to regain the initiative in the anti-fake drugs war, one of the things it must do is to intensify Professor Akunyili’s tactic of taking the battle to producing nations. It is widely believed that Nigerian businessmen instruct manufacturers in these countries to produce drugs with reduced active ingredients, which they then import into the country.

    If this is true, it speaks to weak regulation in producing countries, since the deliberate manufacture and export of substandard products is patently unlawful. NAFDAC must liaise with its opposite numbers in countries where the worst offenders are found, and jointly develop strategies that make it much harder for unscrupulous businessmen and unethical manufacturers to produce and export fake drugs.

    Then there is the need to resuscitate the agency’s information and education campaign. Nigerians must be reminded again of the danger of fake drugs, educated on how to discover them, and instructed on what to do when they find them. When the general populace understands that the war against fake drugs is theirs, rather than the agency’s, it will become easier to prosecute.

    NAFDAC must also strengthen its ties to relevant stakeholders, especially the medical and pharmaceutical associations, drug importers and retailers, and the law enforcement agencies. Regular raids of markets and shops must be carried out; offenders should be promptly prosecuted and organisations implicated should be publicly blacklisted.

    The agency should also be looking in the direction of those marketing miracle cures via radio, television and online. Far too many drugs are being pushed as panaceas capable of curing dozens of ailments, and often enjoy prime-time slots on air.

    Nigeria’s war against fake drugs is as vital as any other campaign it has fought. Winning it will guarantee millions of citizens healthy, happy and productive lives.

  • Counterfeiting: Still a hard nut to crack

    Counterfeiting: Still a hard nut to crack

    Counterfeiting of products has been identified as the major issue confronting the National Agency for Food, Drug, Administration and Control (NAFDAC) even as the regulator appeals to the federal government to hasten in its approval of life jail terms and confiscation of offenders assets.

    “Stiffer penalty is what will help in curbing the ugly incidence as the existing lenient law and regulations does not serve as deterrent. We have sent a bill to the Federal Executive Council and we are still waiting for the approval,” said NAFDAC’s Director General, Dr. Paul Orhii.

    Speaking on the topic ‘Counterfeiting, Legislation and Enforcement’ at the opening ceremony of the first NAFDAC Summit at the Muson Centre, Onikan, Lagos, last week, Dr. Orhii said that the battle line has been drawn between “NAFDAC, a competent and responsible regulatory agency determined to ensure access to safe, efficacious drugs, and wholesome and nutritious food, and a small but powerful minority bent on manufacturing and distributing adulterated and substandard regulated products to the public.”

    He said the agency will never compromise on its decision to bring to justice any manufacturer involved in the production of fake and counterfeit drugs and food at the detriment of the Nigerian people.

    Stating that counterfeiting was a global issue, not restricted to Nigeria alone, he happily added that the agency managed to get the Chinese and Indian governments to introduce death and life term jail sentences for offenders.

    Getting the Chinese and Indian governments involved in the war against counterfeiting was necessary as most of the counterfeit, unwholesome and substandard products are originating from those countries and finding their ways into Nigeria.

    Speaking, he said, while those countries have succeeded in imposing stiffer penalties for the offenders, Nigeria which is at the receiving end has the most lenient law which imposes 5-15years jail term or an option of N500,000 fine as punishment for those convicted of the crime.

    “We are advocating life jail term without an option of fine, confiscation of assets, and reward for individuals who expose those involved in the crime,” said Orhii.

    Giving reasons why manufacturers and importers of those fake products seem to target Nigeria, he said that only 30per cent of the drugs used in Nigeria are manufactured locally, creating a 70per cent vacuum which the importers and manufacturers take advantage of.

    He also mentioned Nigeria’s huge population, porous land borders as part of the reasons why counterfeiters target Nigeria.

    Unfortunately, he said that “overwhelming majority of people, especially in Africa may have been subjected in one way or the other to the traumatic experiences occasioned by the use of spurious medicines and unwholesome processed foods.”

    Quoting the World Customs Service, Dr. Orhii said that pharmaceutical crime has become a $200 billion business annually while noting that there has been a gradual shift from lifestyle medicines to life-saving drugs due to the higher prices that life-saving drugs generally command.

    However, commending the agency, Dr. Orhii said that NAFDAC has achieved some milestones in the fight against counterfeiting, unwholesome and substandard drug and food products, while appealing to the general public to join hands with the agency in the fight “as only the government agency cannot win the battle.”

    According to him, the agency has deployed new technologies towards improving surveillance at the ports of entry, and engaging the use of e-clearance to access the customs portal while also adhering to strict enforcement of the mobile authentication service in order to empower the patient at the point of purchase of antimalarial and antibiotics.

    Giving the agency’s achievements, the DG noted that “According to the World Health Organisation (2011), the quality of antimalarials in Sub-Saharan Africa, including Nigeria, was 20per cent, a drastic reduction from 64per cent reported in an earlier study conducted in 2008. A similar correlation was observed in a nationwide study conducted by NAFDAC on the incidence of counterfeit medicines in circulation which showed a prevalence rate of 19.6per cent in 2012.”

    He, however, said that a recent survey conducted by the agency in conjunction with USAID and other partners noted a remarkable drop in the level of counterfeits and malarial to 3.6per cent.

    Nevertheless, he said that a lot can still be done to achieve higher results in the fight. “We can improve coordination both globally and locally between regulators, manufacturers and distributors, identify threats to brand identity, monitor global trends in counterfeiting, declared the DG.

    “We can also increase consumer awareness about buying from unauthorised sources, support the enhancement of laws and regulations to discourage counterfeiting and partner with law enforcement agencies to investigate counterfeits,” said Orhii.

    Speaking on behalf of Adesoga Badejo (SAN), Barrister Laolu Owolabi, Deputy Managing Partner, Banjo Badejo & Co, stressed that counterfeit will never go away no matter the enforcement from government except the general public joins forces with government to fight it.

    Speaking further, he said that combating counterfeit drugs and food products requires the coordinated efforts of all the different affected stakeholders that are competent for addressing the various aspects of the problems.

    “Counterfeit medicine is widespread and has escalated to such an extent that effective coordination and cooperation at the international level are necessary for regional and national strategies to be more effective,” said Owolabi.

    Meanwhile, Mr. Okoli, Head, Department of Food Science, Yaba  College of Education, while making remarks, expressed concern that the stringent regulations of product registration may be part of the reason why counterfeiting of products is thriving.

    Mr. Okoli also expressed some worry about the food safety, quality and the standardisation of already produced food though calling on NAFDAC to increase their efforts in making sure that standards are sustained well after the manufacturer or importer must have been issued with NAFDAC registration numbers.

    Reacting to Mr. Okoli’s remarks, the DG of NAFDAC explained that the agency has ‘Small Business Support Desk’ to assist upcoming entrepreneurs, adding that one does not need to have a big outfit in order to meet NAFDAC’s specifications depending on what one is manufacturing.

     

    “You can have one room that meets NAFDAC’S requirements. We give discounts and sometimes give full discounts for registration and inspection if we see that the product is good but that the producer is incapacitated,” he explained.

     

  • Pharmacists tackle drugs counterfeiting

    Stakeholders are searching for ways to end anti-counterfeiting of drugs in Nigeria.

    They met at the Bi-monthly meeting of the Association of Industrial  Pharmacists of Nigeria (NAIP) in Lagos, with the theme: Pharmaceutical anti-counterfeiting Restrategising the war, to plan.

    A retired Assistant Inspector-General of Police (AIG), Mr Alex Okeke, who was guest speaker, said anti-counterfeiting war was still raging, but that time would tell if it would ever be won because “regulatory and enforcement are inadequate”.

    Pharmaceutical counterfeiting, he said, has reached a new level, which makes it necessary for a new war to be waged.

    Besides, efforts should be made to bring the menace to a manageable level as it presently impacts on other facets of life.

    He said a serious attempt was made 30 years ago to put the problem in check but it failed.

    The retired AIG said there was another futile pursuit during the Babangida administration when a case of poisoning was reported.

    The exercise, he said, was hampered as the then Minister of Health, Prof Olikoye Ransome-Kuti, could not come up with the fund required to fight the problem as the health budget was too low and the ministry under-funded.

    “We also discovered there was a lot of undercurrent. It was shortly after that the decree, which established the National Agency for Food and Drug Administration and Control (NAFDAC) was promulgated and Prof Osuide was appointed the Director-General,” he said.

    He said lack of capacity development and encouragement as painted by a serving official of the agency, was also responsible for the lackluster performance of NAFDAC.

    “The agencies in-charge of enforcement and regulation should be encouraged, motivated and well-supervised to do more,” he recommended.

    Okeke said the critical message on counterfeiting fight should be hinged on safety, adding that this would make people handle the issue with more seriousness.

    “Counterfeiting, which is less than one percent of the actual market value in Nigeria, has become a scourge to the business and practice of pharmacy. It is 10 percent in emerging economy and 30 percent in developing world,” he said.

    Drug barons, he said, have abandoned their narcotic and hard drug business to join the faking business because it is lucrative with very little danger involved, adding: “The business is estimated at $200 billion.”

    He identified poor funding of the health system, poorly regulatory system and ineffective distribution channel as factors aiding drug counterfeiting.

    Counterfeiting, he said, has serious implications on public health because patients are denied quality medications.

    “Also, most people who take fake medicines may experience treatment failure, increased hospital admission, prolonged hospital admission and development of resistance,” he said.

    He enjoined stakeholders to collaborate with NAFDAC, adding that there have been too much of division among key players in the fight to rid the country of fake drugs.

    Managing Director, Neimeth Pharmaceuticals, Mr Emma Ekunu urged more collaboration.

    He said: “We can get information with cleverness from sources to uncover who imported what. We should have a plan. By strategising, we would find a new way to combat the problem. If we collaborate the menace would be brought to a manageable level. Counterfeiters only fake products that are doing well. But they can be deterred.”

    He identified infidelity as another thing killing the industry, adding that sales representatives are making money at the expense of the drug manufacturers.

    He said the entry barriers to gaining access into the pharmaceutical industry must be raised to maintain standards. This will whittle down small players if the bar is raised, he added.

    He said the big question, which must be answered by key players is: “Are they winning the war?”

  • Firm unveils hologram to curb counterfeiting

    Firm unveils hologram to curb counterfeiting

    Worried over the soaring loss of fortune to product counterfeiters, Kasapreko Company, makers of Alomo Bitters, have designed a new hologram to stem the menace.

    Speaking at the unveiling in Lagos, the Managing Director, Kasapreko Company Nigeria Limited, Mr. Kojo Nunoo, said the introduction of hologram seal on the caps is one of the initiatives by the company to checkmate criminal faking of Alomo Bitters by unscrupulous profiteers and to protect consumers against the consumption of substandard bitters products which endanger human life.

    “This initiative is a security standard for global brands, and essentially it is meant to ensure clear brand differentiation and to highlight the unique features that distinguish Alomo Bitters from the imitated version and other substandard bitters products in the market,” Nunoo said.

    He added, “Criminal faking of the original Alomo Bitters has been a major challenge we face in Nigeria. As a company that places priority on the wellbeing of our consumers, this bothers us a lot. Hence the launch of the new hologram is aimed at helping the consumers identify the authentic Alomo Bitters when making purchase.”

    The hologram seal is a silver-like shining seal which is similar to that found on the non-polymer Nigerian naira notes, and it has been strategically positioned on the cap of every bottle of Alomo Bitters for easy identification of the authentic bitters brand as against the imitation.

    Buttressing the process involved in having the hologram security features on the caps of Alomo Bitters bottles, Nunoo said the company went as far as Germany and the United States to get reputable hologram seal companies to create the unique hologram for the brand. “This is how much we value the wellbeing of our consumers,” he stressed.

    The Head, Consumer Prospection Council (CPC), Lagos office, Mr. Tam Tamunokombia, commended Kasapreko Company Nigeria Limited for rising up to the challenge of protecting consumers of their product, Alomo Bitters. “CPC is charged by the federal government with the responsibility of attending to consumers’ complaints and also protecting consumers from activities of importers and manufacturing of substandard products and counterfeiters of existing ones.”

    Justifying the rationale for the new hologram seal, the Marketing Manager, Kasapreko Company Nigeria Limited, Mr. Peter Adegor, said the need to protect Alomo Bitters brand equity and to continue to guarantee consumer safety were paramount to the management of the company.

    “We need to exterminate this fear and reassure consumers that they can still enjoy their favourite Alomo Bitters. The launch of the hologram seal, therefore, speaks to our determination to make our consumers continue to live healthy and active lives by having access to genuine and authentic herbal drink they have always stayed with, which is Alomo Bitters,” Adegor said.

    Counterfeit is growing in value and reach, harming businesses and brand owners across all continents and industries.

    By 2015, the International Chamber of Commerce (ICC) expects the value of counterfeit products globally to exceed $1.2 – $1.7 trillion.

    The estimated economic costs of counterfeiting in the food and personal care industry are about $50 billion each per year. Also, the Director-General of Standards Organisation of Nigeria (SON) stated that Nigeria loses N15billion annually to product counterfeiting adding that 40 per cent of product in Nigeria is counterfeits.

  • Roundtable on counterfeiting, piracy

    Roundtable on counterfeiting, piracy

    The Anti-Counterfeiting Collaboration Nigeria (ACC) and the International Trademark Association (INTA) will hold a roundtable on counterfeiting and piracy on November 4 at Four Points by Sheraton, Victoria Island, Lagos.

    With the theme: “Practical Solutions to Counterfeiting and Piracy Issues In Nigeria’’, the Roundtable focuses on policy and enforcement issues and features representatives from stakeholders, including brand owners, regulatory authorities and international organisations.

    ACC, a not-for-profit coalition, was formed in October 2006 to assist in reforming intellectual property laws and sensitise brand owners, regulatory agencies and the public on counterfeiting, infringement and piracy.

    The INTA, founded in 1878 by 17 merchants and manufacturers, is a global association of trademark owners and professionals supporting trademarks and related intellectual property to protect consumers and promote fair and effective commerce.

    INTA members are drawn from more than 6,400 organisations in 190 countries and represent some 30,000 trademark professionals.

  • Brands to tackle counterfeiting

    With the wreck activities of counterfeiters has done to the market share and value of many brands, there is a wave of anti-counterfeiting movement against brand counterfeiters in other to protect brands, ADEDEJI ADEMIGBUJI reports.

    Brand counterfeiting has been described as ‘the crime of the 21st century’ and it affects almost every brand-owning company at some point in time. The subject of intellectual property, into which this fits, has attracted a great deal of attention in the legal world too but very little in the marketing literature. Counterfeiting can be a problem for the brand, but even more so, it’s a problem for the profits of the brand owner.

    The real HP LaserJet printer may cost N100,000 and the fake one costs N40,000, but many customers don’t believe the real one is ten times better than the fake… anyone who can’t afford the former will be happy to settle for a cheapo substitute yet the cost implication for both brand owners, the customers who patronise cheap brand and the economy which tolerates counterfeiters to thrive is huge and could be devastating.

    With the cartel of counterfeiters growing day by the day in sophistication and funding, luxury brand owners are becoming more vulnerable after spending millions to effectively attract the affluent people towards their brands. The threat pose by counterfeiters to their priced brands has been described as momentous. As a result, the growth rate of counterfeiting has been epochal during the last two decades, posing challenges for the governments, genuine-item manufacturers and consumers as well.

    At a cross-industry Anti-Counterfeiting Abuja Conference, hosted by Hewitt Package (HP), it was gathered that the global trade in counterfeit goods is growing in Africa, and particularly, Nigeria is increasingly being targeted as a market for counterfeit merchandise as result of its growing middle class and position as new economic frontier for global brands.

    This, perhaps, had led Multinational and national companies, government officials, representatives of ministries responsible for Anti-Counterfeiting in education, trade, economy, health, etc, procurement officials, press, top tier partners of tech companies, law enforcement organizations responsible for Anti-Counterfeiting, around the country to gather at the HP anti-counterfeiting summit to discuss consumer, brand protection and lobbying as ways to raise awareness, challenge the legal framework on counterfeiting in other to stem the tide of sales and purchase of counterfeiting brands.

    The Director-General of Standards Organisation of Nigeria (SON), Joseph Jamodu during the summit lamented that brand counterfeiting has been a long standing global problem which poses a great concern to Nigerian government and legitimate businesses. Because of its huge negative impact on the economic growth of the nation, he said SON has made seizures estimated in excess of five hundred million naira in Nigeria. Putting the globally loss at $400 billion as estimated by the International Chamber of Commerce (ICC) put the value of these losses, he said music software and video market in Nigeria is languishing in over N100 billion loss.

    “In the past, counterfeit products were distributed largely through informal markets but in recent times, these products are increasingly infiltrating legitimate supply chains and now appearing in the shelves of established retail shops and trade fairs. The internet which is a virtual market place has provided counterfeiters and pirates a new powerful means to sell their products via auction sites, stand-alone e-commerce sites and email solicitation. The online environment is attractive to counterfeiters and pirates for a number of reasons, including the relative ease of deceiving consumers and the market reach,” he observed.

    Worried about how counterfeiting is affecting its brand value in its market category, the Brand Protection Programme Manager for HP, Jeff Kwasny, complained that HP cartridges are refilled or remanufactured print cartridges packed in unauthorised or fake reproductions of HP packaging, which are meant to mislead the consumer into believing that they are buying genuine HP products. He said as growing markets, many African countries are a major target for counterfeiting networks.  “HP’s ACF Programme is supporting African authorities in order to tackle counterfeiting before it gains a larger foothold in Africa. HP is active in protecting African economies from illicit trade of HP branded products. Customers are mostly unwitting victims of counterfeiting. Only six per cent of corporate customers who purchased counterfeit print cartridges did so intentionally,” he said.

    The District Manager, Printing and Personal System Western, Southern and Eastern Africa, Jean-Paul Pinto said with rate at which brand protection is becoming difficult as a result of growth in technology, there is need to protect consumers, customers, investment from the impact of counterfeiting. “It destroys economy and business investment and trade partners. The fight against counterfeiting is beyond HP but it’s everybody’s fight,” he said.

    Also, the President of Intellectual Property Law Association of Nigeria, Professor Bankole Sodipo said any brands that refuse to innovate on new ways to protect its brand identity will go into extinction. He, however, advised that a reform should be canvassed by joint-industry stakeholders in other to change certain aspect of the Nigerian anti-counterfeiting laws which adjudicate weak punitive measure for offenders, hence, encouraging them to commit the crime. “For brands, if you don’t do what is right you will go into extinction? Counterfeiting is one of the greatest things that can kill an industry. We need a reform to fight counterfeiting. We need lobbying to effect changes in the law in other to fight the current legal framework so that the fight against counterfeiting will be easy for brands,” he said. Sodipo, however, warned brand owners against the activities of their authorized distributors who are easy prey for counterfeiting rings. “I am aware of a brand that has gone into extinction as a result of the activities of its distributors who allowed counterfeiters to use their channels for distribution of its principal’s counterfeit,” he said.

    Currently, a lot of brands are waking up to the challenge posed by counterfeiting. The Senior Brand Protection Manager, Unilever Africa, Mr. Desmond Adeola disclosed that Unilever has internal solutions to check counterfeiting of its brands. “At Unilever, we employed internal solutions. We look at our supply chains. We do lots of tiding of company policies to stamp out opportunities for counterfeiters. We know that they clone our packages and that is why we look at the issue of editable artworks, engagement of law enforcement agents and give them needed information to protect our brands,” he said.

    The Partner & Head Intellectual Property Department, Aluko & Oyebode, Uche Nwokocha urged that collaboration among industry players will change the game against counterfeiters. He, however, urged to enhance a successful collaboration, industry players should seek for legal assistance. “Whatever kind of partnership that is embarked upon, Brand Owners require the services of legal practitioners to ensure that such actions are carried out within the limits of the law. Relevant regulatory agencies carry out raids upon successful investigation into the complaint lodged by the owner of brand. Legal assistance is often required to ensure that such actions are carried out within the limits of the law,” he noted.

    To stop the menace, Kwasny said HP has adopted five strategies in fighting counterfeiting. The steps include investigation and Enforcement; Prevention and Education; Channel Management (that management of suppliers activities) and Product and Packaging.

    Meanwhile, the Comptroller General of Customs, Abdullahi Dikko Inde said it is most important that every nation fights Counterfeiting and Piracy to protect their economy. He advised that there is need for all relevant border agencies to collaborate to ensure success in this endeavour. “Protection of Intellectual Property (IP) Rights is an obligation upon each country that accedes to the WTO TRIPS (Trade Related Intellectual Property Rights) Agreement. The TRIPS, which Nigeria has ratified, provides certain minimum standards for protection which should be accorded by governments to IP Right owners including border enforcement,” he said.