consumer attitudes on counterfeiting & piracy...consumer attitudes on counterfeiting &...

Consumer Attitudes onCounterfeiting & PiracyNational Workshop on IPREnforcement - Indonesia Jakarta

September 15-16, 2011

Xavier VermandeleLegal Officer, Building Respect for IP Division

2

1. Why?

Combating Counterfeiting & Piracy:Supply SideDemand Side

Learning what happens at the demand side:To enlighten communication tactics helping changingthe behaviors of the consumers by making themunderstand the implications of buying C&P goods

3

2. Consumer Attitudes

CIPR Consumer Study (Moscow and Samara) - 2003

ICC/BASCAP Research Report on Consumer Attitudesand Perceptions on Counterfeiting and Piracy – 2010

See:http://www.iccwbo.org/bascap/index.html?id=33865http://www.wipo.int/edocs/mdocs/enforcement/en/wipo_ace_6/wipo_ace_6_6.pdf

4

Haveencountered

93%

Have never comeacross

7%

Base: 1200

* purchased/seen/heard

Counterfeits Encounteredthe previous year*

2.1. Consumer Attitudes (CIPR, 2003)

5

Base: 1200

�Have you purchased any counterfeit products during the last 2 years?

Yes

73%

No

27%


6

I was aware ofpurchasing acounterfeit

24%

I was not aware ofpurchasing acounterfeit

76%

Base: 1200


7


0,1

0,1

0,1

0,3

0,8

0,8

1,6

1,9

2,8

3,4

3,7

6,4

10,1

22,3

45,4

0 5 10 15 20 25 30 35 40 45 50

Restaurants, bars

Duty-free shops

Auto service

Boutique

Gas stations

Other

Specialized company shop

A private seller

Department store

Street vendor

Supermarket / Hypermarket

Drugstore

Kiosk / pavilion

Traditional/small shop

Open market

Percent

� Place where the counterfeit was purchased

Base: 1200

8

N=1200

30,8

33,9

36,4

42,4

46,2

49,2

56,7

61,2

74,6

76,7

80,8

84,1

11,2

13,5

10,4

13,1

17,7

15

11,3

15,6

7,8

6,8

4,7

1,8

22,6

26,5

12,6

11,9

19,1

11,8

9,5

8,4

5,5

3,3

3,3

1,3

17,2

14,6

9,3

5,8

6,7

5,8

3,2

4,2

3

1,5

1,8

1,3

9,3

7,6

7,8

5,8

6,3

5

6,6

7,3

8

8,1

8,5

7,7

9,1

3,9

23,6

21

4,1

13,2

12,8

3,4

1,2

3,7

0,9

3,9

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

CD/ DVD/ Audio-video cassettes

Clothing/ Footwear/ Sportswear

Computer Software

Tools, auto parts

Household cleaning detergent products

Household appliances/ Consumer electronics

Tobacco

Personal care products

Soft drinks

Alcohol beverages

Food

Medicines

1 - "absolutely unacceptable" 2 3 45 - absolutely acceptable"

Don't know

“Acceptable”and“Unacceptable”Counterfeits


9

2,0

2,2

3,3

4,1

4,3

1 2 3 4 5

There should be penalties for consumerswho knowingly buy counterfeits.

There should be penalties for consumerswho knowingly buy/copy/download pirated

products.

There should be strong penalties forbusiness owners who use

pirated/counterfeit software.

Penalties for distributors/sellers ofcounterfeit products should be made much

tougher.

Penalties for producers of counterfeitproducts should be made much tougher.

Mean

Tougher Penalties for Counterfeiting

Base: 1200

1 –”completely

disagree”

5 –”completely

agree”

Mean scores


10

� In your opinion, is it a good idea or a bad idea to require retailers to certify to consumersthey sell no counterfeits?

87,3

7,25,6

0

20

40

60

80

100

A good idea torequire retailers to

certify

A bad idea to requireretailers to certify

Don't know

Perc

ent

Retailers and Counterfeiting

Base: 1200


11

2.2. Consumer Attitudes (BASCAP, 2010)

Study made in 5 countries with various socio-development levels:

IndiaMexicoRussiaSouth KoreaUnited Kingdom

12

CF purchaser profiling (Qualitative)

« Happy Purchasers »Feel CF is a « smart purchase ». Playful relationship to CF and claiming to be

experts in finding the right copies. Usually purchase sophisticated products

(fashion, electronics, software…) in small quantities. Most commonly found in

U.K. and Korea, but in emerging markets among highest income levels too.

« Innocent Purchasers »Feel they have a « moral right » to purchase CF

products since they are in what they regard a difficult

personal situation. Commonly found in emerging

markets (India, Mexico, Russia) but in more developed

markets among lowest income levels too.

« Genuinely frustrated »Would like to be able to access genuine products but

can’t afford it. Buying CF out frustration but are not

really happy about it. Would feel embarrassed to admit

not having the means to access what they want.

Sometimes « explaining» their purchase behavior by a

« justification speech » on exaggerated margins, good

fake quality and grey market distribution system.

Commonly found in the U.K. and Korea.

« Struggling Consumers »Belong to the lowest income level categories. Don’t see the issue in counterfeit

and are sometimes unable to tell the difference between a genuine product

and a fake. Focus on basic needs and don’t have the « mental space » or

education to question the product origin. They can be found mostly in India and

in Russia

« Robin Hoods »Refuse to accept the system the way it is, considering branded products

overpriced. Feel big corporations are often unethical and see no point inprotecting their interest. Can be found mainly in Mexico but also in Russia or

Korea.

© ICC/BASCAP

13

PURCHASE FREQUENCY / Product CategoryAverage 5 COUNTRIES

0 10 20 30 40 50 60

Medicines

Cigarettes

Alcoholic beverages

Small electronic gadgets e.g.mobile phone, camera

Hygiene products e.g. soap,shampoo, toothpaste

Food products or Non-alcoholicbeverages

Auto Parts

Cosmetics e.g. make-up, lotion

Toys

Perfume

Luxury items e.g. purses, watches,jewelry, leather goods

Software for computers

Clothes

DVDs or CDs

I only ever buy thisproduct as acounterfeit

I purchase this kindof counterfeitproduct quiteregularly

I purchase this kindof counterfeitproduct from time totime

I seldom purchasethis kind ofcounterfeit product

Q4: For each type of products listed below please tell me if you have ever purchased counterfeit or illegal copies and how often you do so?

CF POTENTIALON THIS CATEGORY55%

50%

42%

38%

36%

29%

28%

27%

27%

26%

23%

20%

19%

64%

© ICC/BASCAP

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TOP REASON

According to you why would a person like yourself buy certain CF products? Select THE reason you find most relevant

Average 5 COUNTRIES

35%

21%

21%

6%

5%

5%3% 2% 1%1%

Cannot afford the genuine product

They think genuine products are overpriced

They don't know it's not genuine

It would be ridiculous or stupid to pay the full price ofgenuine products

Because the don't have access to the genuine products

CF product "do the job" just as well as genuine ones

They are constantly offered those products by sellers

CF products are more easily accessible than genuine

They want to help CF products sellers

CF sellers are more willing to serve their customers thanregular retailers

© ICC/BASCAP

15

34%

15%

11%

10%

9%

5%

5%

4%

4%3%

They can damage your health or safety

If you buy genuine you'll have betterservice and warranty

You waste your money

Your money goes to criminals

Poor quality can damage the equipmentyou own

You set a bad example to children aroundyou

You can get into trouble with the police

You steal from the original companies

You contribute to damaging the economy

You support a business based on stealingothers' idea or art

TOP DETERRENTAverage 5 COUNTRIES

© ICC/BASCAP

16

DETERRENT REVIEW © ICC/BASCAP Average 5 COUNTRIES

15

25

23

28

28

26

52

46

46

60

18

35

51

57

42

52

59

74

60

10

16

21

20

30

26

62

59

67

85

41

43

38

43

43

54

55

63

62

68

43

41

35

23

32

36

44

30

58

65

74

You can get into trouble with thepolice

You steal from the originalcompanies

You contribute to damaging theeconomy

You set a bad example tochildren around you

You support a business basedon stealing others' idea or art

Your money goes to criminals

You waste your money

If you buy genuine you'll havebetter service and warranty

Poor quality can damage theequipment you own

They can damage your healthor safety

INDIAUK

RUMEXKO

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Variable influence of different factorson purchases

DRIVERS

1.Low price and increasinglybetter quality createtemptation

2. Low risk of penalty equatesto a license to buy

3. Availability, quality, priceand low risk generate anoverall sense of socialacceptability

DRIVERS

1.Low price and increasinglybetter quality createtemptation

2. Low risk of penalty equatesto a license to buy

3. Availability, quality, priceand low risk generate anoverall sense of socialacceptability

DETERRENTS

1. Health risks and safetyconsequences2. Waste of money3. Genuine offer betterservices and warranty4. Threat of legal action orprosecution delivers a wakeup call5. Links to organized crimehave more traction thatmight be thought6. People don’t want to harm« someone like me »

DETERRENTS

1. Health risks and safetyconsequences2. Waste of money3. Genuine offer betterservices and warranty4. Threat of legal action orprosecution delivers a wakeup call5. Links to organized crimehave more traction thatmight be thought6. People don’t want to harm« someone like me »

© ICC/BASCAP

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Key findings (1)

Majority of consumers: « C&P is unethical but itharms nobody » => seldom feel guilty.Feeling of being smart, “controlling” C&P => noperception of being victims of C&P (unless CF notdetected).Main reasons for C&P purchase: lower price +availability. More sophisticated motives exist, though.Emerging markets: more than half the CF purchasesare from regular stores.

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Key findings (2)

Lack of clear vision/understanding of the benefits of“going genuine” (quality, customer service).Perception of C&P being harmless because of lack ofobvious sanctions against purchasers (mitig.: piracyof digital content).Main deterrents: risk to health/safety first, risk forother possessed goods, risk of prosecution if credible.

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3. Conclusion

Appropriate communication actions: « Tailor-made »awareness raising campaignAppropriate policy initiatives?

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THANK YOU FOR YOUR ATTENTION!

www.wipo.int/enforcement/en/

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