Ludovica Cesareo

This book aims to identify, analyze, and systematize the available research on counterfeiting and piracy published over a thirty-five year time span (1980–2015) in order to highlight the main trends in the illicit trade literature, propose suggestions for managers battling against illicit trade, and provide a starting point for future research. Counterfeiting and piracy, i.e., the violation of intellectual property rights (IPRs), including trademarks, copyright, and patents, have been investigated across a multitude of fields, from ethics to marketing, from law to business, from criminology to psychology. While the number of contributions has been substantial, research on both demand and supply has been fragmented and has at times yielded contradictory results. In addition, the lack of an extensive, interdisciplinary, and up-to-date literature review has made it hard to fully understand what aspects of the phenomenon need further clarification in order to stem consumer demand and provide meaningful suggestions to companies combatting illicit trade daily. A systematization of the existing literature is absolutely paramount and this need is fully met by this book.

Counterfeiting is one of the oldest crimes in history. In ancient Rome, wine traders counterfeited wine trademarks on amphorae, selling inexpensive local wine as fine Roman wine. By the 13th century, counterfeiting had become so common that, in some European countries, copying a trademark was punished with torture and death. Today, counterfeiting hits almost every sector, from pharmaceuticals to toys, from auto-parts to content goods (movies, music, software, video games, etc.), but luxury and fashion goods are often the preferred targets of counterfeiters. These products are the most illegally reproduced worldwide for a multitude of reasons, linked to both demand and supply. On the demand side, counterfeiters exploit the heritage of meanings associated with the original goods, enticing status-seeking consumers who cannot afford the authentic goods into buying false versions in order to project the same prestige, high brand image and social status as the authentic goods. Some consumers of counterfeits may think they are “smart shoppers†, getting a great deal on a product that resembles an original. Still others may hold “anti-big-business†sentiments towards luxury brands, perceiving them as distant corporations charging unreasonably high prices for their products. On the supply side, counterfeiters are very interested in reproducing luxury goods since they are part of a very lucrative market with significant margins yet require relatively simple, mass-production technologies. Thus, counterfeiting may imply large profits with small investments and limited risks, given that the probability of being caught is rather small, and even if caught, the conviction rates are low and penalty rates often light. For these reasons, counterfeiting is especially flourishing in emerging economies, where Intellectual Property Rights (IPRs) enforcement is still in its infancy and local governments are oftentimes permissive with local “entrepreneurs†, particularly when these countries may be more focused on more immediate needs, such as hunger, employment, safety, and transportation. As a result, complying with international policy and enforcing the IPRs of global, luxury companies is certainly not a priority. The consequences of these instances are dramatic for legitimate brands, as “loxury†products, meaning counterfeit luxury goods, not only reduce revenues and profits, but also tarnish the brand’s image, equity, and reputation, which are the essence of what a luxury brand really is.

Purpose The purpose of this paper is to demonstrate the efficacy of messages in anti-counterfeiting campaigns that use a fear of legal prosecution, role models, peer pressure, linkages to organized crime and education. Design/methodology/approach A web survey of consumer perceptions regarding the effectiveness of different anti-counterfeiting campaigns on complicity was administered to 1,786 consumers in Brazil, China, India, Russia and the USA. Findings The effectiveness of the different anti-counterfeiting campaigns varies by country. Some can be used more successfully than others to limit complicity with the goal to transform consumers from accomplices of infringers to advocates of authenticity. Research limitations/implications An unexpected finding of this study was that several of the anti-counterfeiting campaigns were perceived as effective by consumers who reside in countries, such as China, that are well known for flourishing domestic counterfeit markets. Thus, these explor...

The counterfeiting phenomenon, i.e., all those instances when a violation of intellectual property rights (IPRs), either trademarks, copyrights or patents occurs, has reached truly remarkable dimensions. The 2011 BASCAP report (ICC, 2011)1 indicated that by 2015 the value of counterfeiting would reach $1.7 trillion dollars globally, inclusive of internationally traded, internally produced and consumed counterfeits as well as digitally pirated products. As Loredana Gulino, General Director for the fight against Counterfeiting of the Italian Patent and Trademark Office argues: “There is no way to fully contrast the counterfeiting phenomenon if it isn’t deeply understood, both quantitatively and qualitatively.” Europe is very much affected by the phenomenon, since it is a privileged destination market for counterfeits. As a European Commission Report (2014)2 highlights, the United Kingdom, Germany, Italy, Spain, Belgium, and France are the European countries most hit by the phenomenon in terms of numbers of cases and number of articles intercepted. The fake products crossing Europe are coming mainly from China (that alone accounts for 66.12 percent of the total), Hong Kong, Greece, Turkey, and the United Arab Emirates. In addition, in 2013 the EU customs agencies opened almost 87,000 cases for a total of almost 36 million illicit goods whose domestic retail value (i.e., the price at which they would have been sold on the national market if they had been genuine) was worth almost 768 million euros. The most affected industries (in terms of lost equivalent domestic retail value) were the fashion and luxury goods industries that between accessories (watches, sunglasses, bags, wallet, purses) and clothing comprised 53.05 percent of the total (Figure 5.1).

Purpose – This paper analyzes consumers’ attitudes and behaviors towards online piracy and their willingness to try subscription-based music services. The objective is to develop and test an attitude-intention model which includes ethical considerations in consumers’ decision making process regarding music consumption. Design/methodology/approach – The study analyzes 505 consumer questionnaires using a structural equations model. Findings – Attitude toward online piracy is positively determined by economic and hedonic benefits and negatively by moral judgment. A favorable attitude toward online piracy, in turn, negatively influences consumers’ willingness to try subscription-based music services, which is also directly determined by their interest and involvement with the services themselves. Research limitations/implications – The limitations of the paper are linked mainly to the adapted scales, to the analysis of just two subscription-based music services (Napster and Spotify) and...

Counterfeit goods are rampant in today's global business world. Original brand manufacturers usually appeal to governments, international organizations, distribution partners, and their own employees to fight counterfeits. This overlooks one important stakeholder: the consumer. However, eradicating counterfeiting cannot be accomplished without eliminating consumer demand. In this article, we describe how consumers have changed in the way they relate to and engage with brands and counterfeits. At the same time, the advent of new media and the Internet have not only opened new distribution channels—particularly for counterfeits—but also new ways to address and reach consumers. These changes in basic parameters call for a fresh look at consumer-directed anti-counterfeiting measures (CAMs). Based on a summary of extant literature and current managerial insights derived from 15 interviews with high- to low-end luxury brand protection experts in Italy and Hong Kong, we suggest a portfolio of CAMs that (1) takes into account different consumers’ relationship with the brand and the counterfeit (weak to strong) and (2) differs in how actively the CAMs engage the consumers as partners against crime (low to high). At the end of the contribution, we offer practical suggestions and recommendations for action.

Purpose
– This paper analyzes consumers’ attitudes and behaviors towards online piracy and their willingness to try subscription-based music services. The objective is to develop and test an attitude-intention model which includes ethical considerations in consumers’ decision making process regarding music consumption.

Design/methodology/approach
– The study analyzes 505 consumer questionnaires using a structural equations model.

Findings
– Attitude toward online piracy is positively determined by economic and hedonic benefits and negatively by moral judgment. A favorable attitude toward online piracy, in turn, negatively influences consumers’ willingness to try subscription-based music services, which is also directly determined by their interest and involvement with the services themselves.

Research limitations/implications
– The limitations of the paper are linked mainly to the adapted scales, to the analysis of just two subscription-based music services (Napster and Spotify) and to the fact that all respondents came from one country.

Practical implications
– The results call for a greater commitment by music industry actors to educate consumers about the consequences and implications of online music piracy, while also stressing the value added and hedonic benefits offered by subscription-based music services.

Originality/value
– This paper is the first to focus on consumers’ propensity toward online piracy and their willingness to try subscription-based music services as a possible alternative to the phenomenon, through the development and test of an attitude-intention model that includes ethical considerations.

The purpose of this study is to explore the potential role of destination image in service promotion and consumer choice in the context of film-induced tourism. In detail, the empirical objective is to measure the immediate impacts of a promotional movie trailer on viewers’ perceptions onf a destination image. Consumers can be very sensitive to images, and promotional videos or movies can have a very influential impact. In fact, consumers may make purchase choices in a range of areas as a result of what they have seen in a movie. An expanding body of literature suggests that film can influence people’s travel decisions and entice them to visit particular destinations they have seen on the screen. This paper empirically examines the potential effects of a trailer on the image change of the city of Rome as a travel destination. The analysis is based on an empirical study conducted among international respondents. The practical and theoretical implications resulting from the research a...