Counterfeit items are a billions of euros problem that brands are trying to desperately solve. Currently the way to do this is tedious and takes a lot of manpower. Customs do not have the capacity to deal with all items and check each parcel.
Phil Hamilton, Co-founder of Countercheck, a company that provides software to combat counterfeit items, spoke to The Logistics Point about what the role of logistics companies is when combating counterfeit products and how technology can be installed in distribution centres to help. Watch the full interview below.
Legally logistics firms are not required to do anything to fight counterfeit items in their supply chains. For Phil Hamilton, however, the question is more about what clients expect. Logistics companies cannot just close their eyes and pretend the problem does not exist in their organisation. ‘The challenge is that if they knowingly transport counterfeit goods, they can be held liable and there’s lots of cases recently on that,’ Hamilton explains. In addition, brands are looking to partner with firms who are ready to protect their intellectual property.
New rules coming
The laws are also expected to change soon and logistics companies might be added to the list of intermediates – or organisations which are responsible for checking the authenticity of goods. Currently marketplaces like Ebay, Alibaba, etc, are at the forefront but this could change very quickly.
The method used by customs at the moment is to select a sample of goods and do the checks. The probability of catching a counterfeit item is low. On the other hand, brands have to do manual research. They can rely on their partners but often companies in a different country are not obliged to work with the brand on the topic. According to Hamilton the solution could be technology.
With the help of technology logistics firms can become an indispensable partner for brands. Scanners can be installed at distribution centres and track parcels. In case a parcel is believed to be counterfeit a manual check is performed. The technology could also connect businesses and customs to alert authorities about the problem.
You can watch the full interview with Phil Hamilton from Countercheck now and learn why logistics companies should take on counterfeit goods and how they can use technology to do it now. ✷