Patent Japan

Tuesday, July 25, 2006

Counterfeit Survey Report

On July 19, 2006, “Survey Results on Counterfeit Damages in FY 2005” was published from JPO. This annual survey started in 1996, to grasp damages caused by overseas counterfeits against Japanese companies.

Surveyed were top 8,000 entities with the total number of patent, design, and trademark filings in Japan last five years, from which 2,452 (30.7%) of them responded.

Summaries of the survey are;
- 22.8% companies answered that they suffer from counterfeits in FY 2004, among which more than 50% and 40% claim trademark and patent/design infringement, respectively;
- trademark infringement is more serious;
- in every phase of manufacture, distribution, and sale, overwhelming damages are happening in Asia, especially, in China, Taiwan and Korea;
- regarding the quality of counterfeit products, 15.9% of the respondents evaluate that there is “no significant difference” against the originals, and 40%+ answered they are “improving”;
- regarding their price, about 30% respondents estimate “50%-75%” against the originals, while about 10% say “about the same” or “more expensive”;
- 55.6% and 37.3% of the companies that suffer from counterfeits have already filed or are now filing trademark and patent applications in some of Asian countries, respectively, which ratio has been gradually increasing;
- 65.6% of counterfeits are detected by the employees of their companies or their affiliates;
- 50% of respondents are taking some measures against counterfeit. Among the companies that suffer from counterfeits, 90% say so;
- the major reason to take anti-counterfeiting measures is “to keep the profit”, while major reasons not to take them are “cost performance” or “damages are small”;
- 60% of the companies prepared with anti-counterfeiting measures have the special staff for them, a majority of which have them in specialized IP sections.
- “the pursuit of manufacturers” and “warning to them” are typical measures, and they typically end up in “settlements”, “injunctions” or “seizure of property.” 40% of them consider it effective;
- the expenses for the measures are provided mostly from “IP-related budget”.
- a majority of respondents don’t collaborate with other companies though, 40% of suffered companies

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