HARMAN told how she battled counterfeiting in 2019
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HARMAN told how she battled counterfeiting in 2019


HARMAN, a Samsung Electronics subsidiary specializing in automotive, consumer and corporate technology development, with its partners in 2019
found more than 2500 facts of sale of counterfeit products, filed more than 750 lawsuits, and also managed to remove 126,000 illegal trade offers on the Internet. In addition, HARMAN notes
the beginning of the fight against a new type of infringement – CPA-networks that sell counterfeit products.

During the year, the company’s partners inspected outlets in major cities of Russia with a population of more than 500,000 people. Their purpose was to record the sale of counterfeit JBL-branded products
– both wholesale and retail. To find violators, raids were conducted on radio markets and in shopping malls, wholesale orders were placed, control purchases were made. manufacturer’s partners
actively cooperated with the customs service and management of the wholesale-real markets. As a result, in 2019, 2587 violations were identified: Moscow,
St. Petersburg, Krasnoyarsk, Chelyabinsk and Perm. The company has initiated 758 lawsuits, 544 of which were granted in favor of the rightful owner, others are pending.

Wholesale and retail trade

Counterfeit JBL products are still manufactured in the People’s Republic of China. In Russia, it gets into small parties on the order of domestic entrepreneurs who apply for
numerous sites. Importation is usually through intermediaries.

In order to avoid persecution for the distribution of counterfeit goods, suppliers are increasingly using branded products. Now fake JBL speakers and headphones are coming to Russia without
logo and other badges. Wholesalers offer JBL signage only to trusted buyers or sell no-name merchandise. In doing so, it can completely replicate the design
original products. Approximately 10% of violations identified in 2019 are unrelated to the use of the JBL trademark or similar to the degree of confusion. In this case, the seller received a claim for
infringement of exclusive rights to the industrial design.

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In 2019, with the support of law enforcement agencies, HARMAN conducted 22 raids to identify the illegal sale of counterfeit goods, which resulted in the removal of 3,782 counterfeit JBL devices –
mobile speakers and headphones. 19 lawsuits were filed against the wholesalers and 30 administrative cases were initiated at the retailers.

The case of the chain of stores “Allo-Mama” in Novosibirsk became significant. In early 2019, during the retail segment inspection, it was discovered that the network was trading counterfeit mobile
JBL columns. The point of sale management and the supplier were held accountable: the court ordered the offender to pay compensation in the amount of 1 700 000 rubles.

Online trading

Active work was also carried out in the online segment. In 2019, HARMAN partners, together with law enforcement, identified 710 online stores selling counterfeit branded products
JBL or use the trademark in the domain name illegally. After the claims were made by the right holder, 90% of them either remedied the violations on their own or were compelled
blocked by court order.

Efforts have also been made on social networks and ad aggregators. During the same period, 45,236 illegal trade offers were deleted in the social networks (almost 100% of all detected) and 41
014 advertisements of used aggregators. They all concerned the sale of counterfeit goods labeled JBL.

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In 2019, continued the high profile case against the owner of the jbl.one domain. Earlier, the Arbitration Court of the city of St. Petersburg and the Leningrad region brought the domain name administrator to the
responsibility for wholesale counterfeit JBL columns. The court ordered to recover from the offender 1 000 000 rubles, but he disappeared and was put on federal wanted list. This year thanks
by the efforts of the Moscow and St. Petersburg bailiffs the location of the offender was established and the enforcement proceedings resumed.

The pursuit of cyber squatters – people and organizations that illegally occupy domain names that contain the trademark name – are also avoided. In the past year, the company was sued
Datahost, which has taken over the domain jbl.ru. The Moscow Arbitration Court ruled in favor of the right holder.

For the first time, HARMAN has made efforts to combat the illegal sale of its products through CPA networks (Cost Per Action). They mediate between the advertiser and the administrators
web resources that would like to monetize traffic by placing banner ads on their sites. CPA platforms are ready to handle any product without verifying that the seller has the right to sell
products – accordingly, through such a scheme is sold a lot of counterfeit. HARMAN partners monitored and found hundreds of identical sites offering to buy counterfeit product
JBL. Cessation of the sale was ignored, so three largest lawsuits were filed against the largest CPA networks, with a total claim amount of 7,500,000 rubles. To date
the moment the intellectual property court recognized that CPA platforms were responsible for the distribution of goods sold through their services and could not be exempted
responsibility given the significant involvement in the sale of counterfeit products.

Why all this?

Data from law firm BrandMonitor show that 70% of sellers of counterfeit goods are confident in the quality of such products, and as many as 10% believe that it is even better than the original.
Buyers believe that the price difference between the original and the fake is caused only by unnecessary additional features. But the fact is that counterfeit products are not certified and cannot
ensure compliance with technical specifications. As a result, buyers get negative impressions and associate them with the brand itself.

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HARMAN has been fighting counterfeit sales since 2017. During this time, the wholesale trade in counterfeit JBL devices in Moscow and St. Petersburg disappeared. volume of proposals
of counterfeit goods in the wholesale-real markets in these cities (by the number of outlets) decreased by 78%. The vast majority of illegal shopping sites have disappeared on the Internet
HARMAN characters in the domain.

law, illegal business

Harman

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