The Fake and the Fatal: The Consequences of Counterfeits

Intellectual property is every bit as important as physical property. For many corporations, intangible assets like brands and trademarks are even more valuable than tangible assets (Hopkins, 2003). For example, the Coca-Cola brand name is far more valuable than the ingredients that go into a can of Coca-Cola (Hopkins, 2003). Businesses expend a great deal of time, energy, and resources to protect their ideas, brands, and identities from counterfeiters and intellectual property infringers. Firms do this not only to preserve their reputations and profitability, but also to prevent the consumer from unknowingly purchasing unsafe, low-quality goods from unscrupulous dealers. A substantial number of governments have enacted laws and treaties that protect legitimate holders of intellectual property and punish infringers in order to protect their citizens and local industries from those who would attempt to usurp the brand names of successful companies.