Whilst the low cost of a counterfeit vehicle part might be attractive to customers, the stakes could not be higher due to the potential safety issues presented by low quality or faulty fake parts. UKIPO research found that 58% of respondents knowingly purchased counterfeit car parts and of those, 31% cited cost savings as a reason and 34% felt that there was no real difference in appearance compared to a genuine part.
Some strategies to consider for automotive brands should include:
- A standard customs recordal (listing your authorised manufacturers, distributors etc) may not always be appropriate, particularly if a brand has a dynamic supply chain in which manufacturers, distributors and/or licensees change frequently, as there is a risk of causing disruption if a customs recordal is not actively maintained to reflect these changes. It is possible to manage such dynamic changes with frequent updates to the customs recordal but the price of the constant management of a recordal that covers a large number of rights can make it prohibitive for some businesses. Brands in this sector could therefore consider a targeted customs recordal against known infringers (which can be updated with new information as this is received) to minimise the risk of genuine parts being held up at customs due to out-of-date information.
- As mentioned above, there are several advanced anti-counterfeiting technologies available for packaging and supply chain tracking that brands could implement to add an additional layer of verification.
- Supply chain transparency is important to help detect and prevent infiltrations (where counterfeit components are introduced into the manufacturing process) or unauthorised diversions between the manufacturer and the end consumer. Monitoring and due diligence in respect of manufacturers is vital, as “third shift” counterfeiting can also be a problem in the automotive industry where companies possess technical product specifications or moulds, for example, that can be used to make excess product for unauthorised distribution (discussed further in our Fashion sector spotlight).
- Given the serious customer safety considerations associated with counterfeit vehicle parts, brands may want to take stronger action than simply an online takedown request or customs seizure against the more serious infringers and the more dangerous categories of goods (brakes, airbags, tyres, batteries etc).
- In messaging to customers, brands could actively encourage use of approved repair outlets only to avoid the risk of unknowingly purchasing a counterfeit part from unauthorised retailers in the repair/spare parts market. Customer education on how to spot counterfeit parts is also vital, as is communicating with any third party authorised repair or spare parts businesses to ensure that they are also aware of the risks associated with counterfeit goods and that they can identify suspected fakes. Other enforcement bodies in the UK such as Trading Standards can also assist with identifying and dealing with suspected counterfeits in physical repair/spare parts retailers.
