Product piracy causes considerable economic damage in the plastics industry:
Loss of sales & competitive disadvantages: Counterfeit products drive originals out of the market and lead to a loss of sales. In addition, original manufacturers have higher production and development costs, while counterfeiters sell more cheaply without these investments.
Image and brand damage: Inferior counterfeits can lead to quality problems that are wrongly attributed to the original manufacturer. Trust in the brand dwindles if customers have negative experiences with counterfeits.
Innovation brake: Companies invest less in research and development if new technologies are easily copied. A lack of investment protection ultimately weakens the innovative strength of the industry.
High costs for legal disputes & protective measures: Companies have to invest in patents, brand protection and legal disputes. Additional security measures (e.g. RFID chips, digital watermarks) increase production costs.
Threats to supply chains & jobs: Product piracy can lead to market distortions and cause economic difficulties for reputable companies. Job losses in affected companies are possible if market shares are lost to counterfeiters.
The economic damage caused by counterfeiting is therefore far-reaching and affects not only individual companies, but the entire plastics industry.