BASCAP-Consumer Research Report - Final

Research Report on Consumer Attitudes and Perceptions on
Counterfeiting and Piracy
November 2009 www.iccwbo.org/bascap
Foreword
Wearepleasedtosharetheresultsofacomprehensiveglobalresearcheffortonconsumerattitudes towardscounterfeitingandpiracy,combininganextensiveinvestigationofawiderangeofexisting perceptionsstudieswithoriginalresearchinfivekeycountries.Thefollowingreportsummarisesthe most important insights and conclusions yielded by the 18month investigation of consumer attitudes around the world, sponsored by ICC BASCAP (Business Action to Stop Counterfeiting and Piracy)andcarriedoutbyStrategyOne. Whenwesetouttoaddressthedemandsideoftheproblemofcounterfeitingandpiracy,itbecame clear that a lot of valuable work aimed at understanding consumers attitudes toward counterfeit and pirated products had already been conducted. But, this disparate collection of research had never been brought together and examined analytically. This became our starting point. Once we gathered insights from the existing collection of materials, we were able to build upon them by conductingnewstudiesonfivecontinentsacrossdemographicandeconomicgroups. In total, we analysed 176 existing consumer perceptions studies and 202 consumer awareness campaigns from some 40 countries, and worked on the ground with consumers in Mexico, Russia, the U.K., India and South Korea. We conducted focus groups and then tested the resulting hypothesesandinsightswithasetofbroaderquantitativesurveys. This research is distinctive because it reveals common patterns in consumer decisions to buy counterfeits and pirated goods not limited to any sector or type of goods. We also were able to identify and test some of the most common arguments and messages used to try to deter the purchase of fakes, which are often invoked in public awareness campaigns but rarely tested for effectiveness. YouwillfindthatthisreportclearlyshowsthatfromMumbaitoMoscow,fromCentralLondontothe suburbsofMexicoCity,counterfeitingandpiracyrepresentawidelytoleratedandunspokensocial plague. The consequences of participating in this illicit trade are poorly understood by consumers, andtheassociatedrisksareinsufficientlydemonstratedbytraditionalauthorities. Inshort,itseems that,hearnoevil,seenoevil,speaknoevilhasbecomethenormwhenitcomestocounterfeiting andpiracy. Our aim in sharing this primary research is to widen the circle of voices helping to craft more effectiveanticounterfeiting/antipiracypolicies,andtoprovidetoallinterestedpartiesandindustry sectors an empirical toolset that we hope will foster educational campaigns that can truly impact counterfeiting and piracy. It is our hope that you will join us in this mission as the alternative is unacceptableforusasindividuals,forthecompaniesandindustriesweworkinandforsocietyasa whole.
Thefollowingreport,weexploretheroleoflackofresource,lackofrecourseandlackofremorsein thecontinuumofcounterfeitingandpiracy. Arecounterfeitingandpiracysociallyacceptable?Howdidthishappenandwhy? Arecounterfeitingandpiracyvictimlesscrimes? Whyhaventlegalpenaltiesplayedtheirroleinstoppingcounterfeitingandpiracy? Howcanweimpactthedemandsideofcounterfeitingandpiracy?
Workingtogetherandsharingourknowledgeistheonlystrategyforchangingattitudesand behaviour,soweencourageyoutoreviewtheinsightsandconsiderwaysinwhichtheycanfortify yourownorganisationseffortssothatyoucanjoinusasweworktogethertoincreaseawareness andeducatedecisionmakersandconsumersaboutthedangeroustideofcounterfeitingandpiracy. Sincerely,
DavidBenjamin,CoChairBASCAPSteering Committee UniversalMusic
RichardHeath,Co-ChairBASCAPSteering Committee Unilever
FormoreinformationonBASCAPinitiative,pleasevisit:http://www.iccwbo.org/bascap ForPressenquiriespleasecontact:dawn.chardonnal@iccwbo.org
CONTENTS
1EXECUTIVESUMMARY
1.1OverallConclusions 1.2.DeskResearchKeyFindings 1.3.QualitativeKeyFindingsFocusGroups 1.4.QuantitativeKeyFindingsConsumerSurveys 1.5.Conclusion
5 7 8 9 12 16 19 20 28 31 33 33 35 37 39 41
2METHODOLOGY
2.1.DeskResearch 2.2.QualitativeFocusGroups 2.3.QuantitativeConsumerSurvey
3DESKRESEARCHDETAILEDFINDINGS
3.1.Introduction 3.2.DriversofCounterfeitandPiratePurchase 3.3.TopDeterrentstoAcquiringCounterfeitandPirateProducts 3.4.Conclusion
4QUALITATIVEFOCUSGROUPS/QUANTITATIVECONSUMERRESEARCH DETAILEDFINDINGS
4.1.CountryProfiles(QualitativeDiagnosis) 4.2.TheStateofCounterfeiting 4.3.LearningAboutMessengers
43 48 82 87 93 99
5CONCLUSIONS
APPENDIX1:CountryFactSheets APPENDIX2:ListoftheResearchReviewed
Editors note: Throughout the document, C/P = Counterfeit and/or pirated
ExecutiveSummary:ConsumerSurvey(Quantitative)KeyFindings
EXECUTIVE SUMMARY
Efforts by governments, enforcement agents and intellectual property (IP) rightsholders to stop counterfeiting and piracy have largely focused on strengthening IP enforcement regimes to more effectivelydeterthe productionandtradeoffakeproducts.However,in thefaceofanescalating globalgrowthincounterfeitingandpiracy,ithasbecomeclearthatthefocusonthesupplysideof theequationisnotenoughandmustbecomplementedbyanequallyaggressiveattempttocontrol thedemandsideofthisnebulousmarket. Getting a handle on what drives a consumer to choose a fake, illegal product is a complex undertaking.Motivesvarywidely,frompriceandeasyaccesstosocialacceptabilityandaperception that a counterfeit purchase is a game which falls outside the law and to which there are no consequences.And,consumersincludeweakgovernmentcommitmenttofightingandprosecuting counterfeitingamongtheirmotivesorexcusestolooktheotherway. Only when consumers appreciate the full repercussions of their counterfeit purchase can they be expectedtostopthepractice.Onlywhengovernmentsfullyunderstandthefactorsthatdrivetheir constituencies toward illegal activity can they institute programmes to educate and protect consumersandsocietyfromthedangersofcounterfeitingandpiracy. ThisReportsummarisesanextensivebodyofresearchconductedoveran18monthperiodtobetter understandconsumerattitudesandbehaviourstowardscounterfeitingandpiracy.Itsobjectiveisto enlightencommunicationstacticsthatcanhelpchangethoseattitudesandbehavioursinwaysthat will help consumers more fully understand the repercussions of buying fake products and ultimatelydetertheseillegalandunsafepurchases. The research was conducted in three phases, and when analysed in total, a number of interesting andconsistenthypothesesandfindingsemerged.ThisExecutiveSummaryprovidesanoverviewof those key learnings. The Desk Research findings of this report are based on a review of approximately176consumerperceptionsurveysconductedacross42countriessince2000.Italso includes a review of 202 awareness campaigns utilising a broad array of media outlets targeting consumersacross40countries,andinterviewswith15expertsfromanticounterfeitingorganisations.
ResearchReportonConsumerAttitudes&PerceptionsofCounterfeitingandPiracy,BASCAP.November2009
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Then, armed with insights from these global activities to date, researchers worked on the ground withconsumersinMexico,Russia,theU.K.,IndiaandSouthKorea,firstinfocusgroupsandthenin broaderquantitativesurveys,totesthypothesesandinsightsgatheredfromthedeskresearchand focusgroups.TheQualitative(FocusGroup)findingsarebasedontheresultsoffourconsumerfocus groupsineachoffivekeycountriesrepresentingagoodcrosssectionofconsumersfromhighand low incomes in both developed and developing markets. The Quantitative (Survey) findings are basedonsurveysofapproximately1000consumersineachofthefivecountries.
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1.1: Overall Conclusions

In the broadest sense, consumer attitudes can be summed up as:
AlackofresourcesThere'snowayonearthI'dbeabletoaffordtherealthing,soI'mnot harminganyone.WhyshouldIbedeniedalookalikebecauseofmysocioeconomicstanding? AlackofrecourseThereisnoriskI'mgoingtogotojailforthis,andifitwasabigdeal,the governmentwouldbedoingsomethingaboutit? AlackofremorseWhat'sunethicalisthatIcannotaffordtheitemIwant?
Consumer purchase behaviour is a complex mix of factors, influenced by a number of drivers and deterrents:
Driverscannotaffordgenuine;genuineisoverpriced;didn'tknowit'sfake. Deterrentshealthrisks;wasteofmoney;genuineproductsofferservicesandwarranty.
There is a strong personal connection with fake purchases:

Theclosertheriskistothepurchaser,thegreatertheirconcern...personalandfamilywell beingaretheprimaryconcern.
Purchasers listen to victims and experts, not authority figures:

Effectivemessengersinclude:apersonharmedbyC/Pproduct;motherswhosechildrenhave beenharmed,amedicalexpert(48%). Lesssignificantmessengersinclude:police,corporateexecutives,judges.
Three primary issues will impact purchasing habits of counterfeit/pirated products that are influenced by a combination of awareness and enforcement:
Potentialphysicalharmtobuyerortheirfamily(awareness). Reducedsupplyofcounterfeit/piratedproducts(enforcement). Threatofprosecutionorincarceration(awareness/enforcement).
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1.2: Desk Research Key Findings

Consumer survey review:
Predominantdriversbehindcounterfeitpurchases Lowpriceandincreasinglybetterqualitycreatetemptation. Lowriskofpenaltyequatestoalicensetobuy. Availability,quality,priceandlowriskgenerateanoverallsenseofsocialacceptability. Topdeterrentstoacquiringcounterfeitandpirateproducts Health&safetyconsequencestopthelist. Threatoflegalactionorprosecutiondeliversawakeupcall. Linkstoorganisedcrimehavemoretractionthanmightbethought. Peopledontwanttoharmsomeonelikeme.
Campaign review:
Audience the research revealed a lack of audience and message targeting prior to the formationanddisseminationofcampaigns. Demographics and geography additionally, the majority of the research and campaigns focusedmoreonaffluentmarketsandlessonthedevelopingworld. Measurementveryfewcampaignsattemptedtomeasureeffectivenessofmessagestodeter consumerpurchasesofcounterfeitandpiratedproducts.
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1.3: Focus Groups (Qualitative) Key Findings

Overthe50hoursofopendiscussionsanddebatewithconsumers in the five countries selected for the primary research stage, the researchers tried to understand what could lead everyday consumers, from various socioeconomic backgrounds, to engage incounterfeitpurchaseorpiracy. Thefirstvaluableinsightemerged,infact,duringtherecruitment process. We had anticipated having difficulty finding consumers from mediumlevel and upperlevel income groups willing to discuss their purchases of counterfeit products or illegal downloadsofdigitalmaterials. Infact,weweresurprisedtoseethiswasnotthecase!Generally lawabiding women and men from a wide variety of professional backgrounds were quite comfortable sharing their views and habitswithunknownpeers.Withinashorttimeafterthestartof the focus group sessions, consumers were happily discussing products, distribution channels, good and bad experiences, even sharing tips on their favourite counterfeit dealer or illegal downloading platform. This was the first striking evidence of the social acceptance of counterfeiting and piracy across the various countriesvisited. Amongtheparticipantsinthese20focusgroups,weencountered an amazing diversity of profiles, buying power and lifestyles: we talked with struggling consumers and uppermiddleclass executives, we met single moms and business owners. All had regular or casual experience of buying counterfeit or pirated products. For each, we tried to identify the nature and dimensions of their relationship to such products: what and how they bought, the drivers behind the practice and the deterrents thatmightstopthem. Based on our discussions with this diverse population, we have been able to identify the following attitudinal profiles cutting acrosscultural,demographicandsocialcategories:
200participantsinthe qualitativestage 3policeofficers,36 housewives,18business owners,23executives consumersthatagreedto participateinourfocusgroups inMexicoCity,London, Mumbai,Delhi,Seouland Moscowwerefromallstripes! Allhadincommonaquite naturalandspontaneous relationshiptocounterfeiting andpiracy. However,themorewetalked, themoreweasked participantsabouttheirhabits, analysedthereasonsbehind them,testeddeterrentsand rankedmessagesthemore faceswentseriousandvoices lowered. Despiteourbesteffortto remainunbiased,many consumerswereopening theireyes,realisingtheir purchaseswerenotas harmlessastheywantedat firsttobelieve.
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Counterfeit and/or pirated product purchaser profiles
HappyPurchasers
TheseconsumersfeelC/Pisa smartpurchase .Theyhaveaplayful relationshiptoC/Pandclaimtobeexpertsinfindingtherightcopies. Theyusuallypurchasesophisticatedproducts(fashion,electronics, software)insmallquantities.Theyaremostcommonlyfoundinthe U.K.andKorea,butaswellinemergingmarketsamonghighincome levels.
StrugglingConsumers
Theseconsumersbelongtothelowestincomelevelcategories.Theyare veryoftenworkinghardtoprovidefortheirfamily.Theydontseethe problemsposedbycounterfeitingandpiracyandaresometimesunableto tellthedifferencebetweenagenuineproductandafake.Theyconcentrate ontheirbasicneedsanddonthavethe mentalspace oreducationto questiontheproductorigin.TheycanbefoundmostlyinIndiaandinRussia.
InnocentPurchasers
Theseconsumersfeeltheyhavea moralright topurchaseC/Pproducts sincetheyareinwhattheyregardadifficultpersonalsituation.Theyare commonlyfoundinemergingmarkets(India,Mexico,Russia)butalsoin moredevelopedmarketsamonglowestincomelevels.
RobinHoods
Theseconsumersrefusetoacceptthesystemthewayitis;theyconsider brandedproductsoverpricedandcontestthemargins,distributionsystem andtaxes.Theyfeelbigcorporationsareoftenunethicalandseenopointin protectingtheirinterest.TheycanbefoundmainlyinMexico(often expressingstrongcriticismoftheState)butalsoinRussiaorKorea.
GenuinelyFrustrated
Theseconsumerswouldliketobeabletoaccessgenuineproductsbutcant affordwhattheywanttopossess. TheybuyC/Poutfrustrationbutarenot reallyhappyaboutit.Theywouldfeelembarrassedtoadmittheydonthave themeanstoaccesswhattheywant.Theysometimes explaintheir purchasebehaviorbya justificationspeech onexaggeratedmargins,good fakequalityandgreymarketdistributionsystem.Theyarecommonlyfoundin theU.K.andinKorea.
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A closer look at digital piracy discussed in the focus groups

Ispiracymoreofacrimethanpurchasingacounterfeit? Most consumers report perceiving a greater risk of prosecutionwhenengaginginpiracythanwhenpurchasing a counterfeit, as sanctions and public actions against pirate consumershaveresultedingreaterconsumerawarenessand leftstrikingmemories.
Consumersrealisesoftwareandentertainmentcompaniesfight back. Noconsumer,however,reportedsuchaperceptionregarding companiesfromothersectors.
IntheWIPODatabaseusedas aresourceforreviewinganti counterfeitingandantipiracy campaigns,weidentifieda largepredominanceofanti piracycampaigns. 26%ofthecampaigns targetedfilmpiracy,19% focusedonmusicpiracy,and 14%ofthempromotedanti softwarepiracymessages. Ifconsumersseemtobemore awarebothoftheillegal natureandassociated prosecutionrisksofdigital piracy,creditprobablygoesto thisunmatched,regularand intensecampaigningeffort.
Digital piracy is perceived to benefit from greater support from authorities Consumers from various countries readily cited examples of law enforcement initiatives or legal actions against digital pirates. Apartfromcustomsandairports,consumersfeltlittleriskof beingchargedforowningcounterfeitgoods.Theydidreport, however,feelingtheycouldhavetroubleifsomeonechecked theirPCandfoundillegallydownloadedmaterials.
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1.4: Consumer Survey (Quantitative) Key Findings

1.4.1: The State of Counterfeiting and Piracy
EightypercentofconsumerssurveyedreportedhavingboughtsomekindofC/Pproductatleast once.Thisrangesfrom96%ofRussianconsumersto46%ofU.K.consumers. Generally speaking, the percent of consumers reporting having bought C/P products tends to decreaseasincomeincreases.However,theU.K.isanexceptiontothisrule,asthepercentof C/P purchasers rises from 41% of lowerincome to 47% of mediumlevel to 50% of higher incomepurchasers. C/Ppurchaserscanbefoundamongallagegroups,thoughgenerallyspeakingthereisaslight decreasewithageinmostcountries.OnceagaintheU.K.isanexception,withamuchsteeper decreaseofC/Psharewithage(56%ofthoseaged1824comparedto36%ofthoseaged50+). DVDs&CDs,clothesandcomputersoftwarearethemostcommonC/Ppurchases(morethan1 in2consumerssurveyedreportedbuyingC/Pversionsoftheseproducts). Cigarettes and medicines are the least often purchased C/P products. Only 20% of the consumers surveyed reported buying some of these. However, the situation is very different dependingonthecountry:39%ofRussianconsumersreportedbuyingcounterfeitmedicinesvs. just6%ofU.K.consumers. Availabilityandpurchasefrequencyarestronglyconnected.ThemostcommonlypurchasedC/P productsarethosethataretheeasiesttofind. Significant differences among countries still exist. For example, 61% of Russian consumers reporthavingeasyaccesstoCFmedicinesvs.19%ofU.K.consumers. Basedonthe5countriessurveyed,morethan50%ofC/Pproductpurchasesarecarriedoutin regularstores.Thisisparticularlytrueformedicinesandalcohol(morethanthreepurchases outoffourarecarriedoutinregularstoresfortheseproductcategories).Onthecontrary,the mostcopiedproductsCDs&DVDsaresoldprimarilyinthestreets.
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1.4.2: The Purchase Decision

Seven in ten consumers (71%) surveyed believe people buy counterfeit or pirated products, Becausetheycannotaffordtheoriginalandoverhalfsaiditwas,Becausetheydontknow its C/P (57%) (a result significantly higher in Russia: 79%) and, Because they think genuine productsareoverpriced(57%)(aresultsignificantlyhigherinKorea:66%). Onthewhole,C/Ppurchasersandnonbuyersgivequitesimilaranswerstothedriverquestions. Howevernonbuyerstendtobemorelikelytochoose,TheydontknowitsC/P. Health risks are the most powerful deterrent (70% of consumers chose this argument if they weretoconvinceafriendtostopbuyingC/P).Therisktobelongingscamesecondamong59%of consumers.Thethirdargumentisapositiveone,Youllgetbetterserviceandwarrantywitha genuineproduct(54%overall).Thefourthis,Youwasteyourmoneywithpoorqualitygoods (54%). Some deterrents were particularly strong in specific countries: Youll get better service and warrantywasmentionedby74%ofthetimebyMexicanconsumers(20%morethanthefive country average) and Your money goes to criminals was chosen by 52% of Mexican respondents(13ptsmorethanthefivecountryaverage). IntheU.K.thestatement,Yousetabadexampletoachildwaschosenby43%ofconsumers (vs.34%overall).InIndia,43%ofconsumerschose,Youcanhavetroublewiththepolice(vs. 25%overall). When testing the Availability and Price impact on C/P purchases, results tended to vary widely depending on the product category. For software and clothes, more than half of consumers would be ready to switch to C/P. This decreases to 20% for food and 10% for medicines. Onthewhole,availabilityseemstohaveaslightlygreaterimpactthanamoderatepricerise.On all products tested, availability difficulties generate more to switchto C/P than a moderate priceaugmentationofagenuineproduct.
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1.4.3: Building a Campaign against Counterfeiting and Piracy

WhenitcomestoargumentsagainstC/P,somestatementsareverycredibletoconsumers.For instance,C/Pproductsdontbenefitfromthesameinspectionsandcontrolandarethusless safe (69% of consumers agree); C/P business harms the economy of the country (57% of consumersagree,eveniftheyoftenclaimnottoreallycare);andlastly,56%ofconsumersagree thatClothesandtoyscancontaindangerousmaterialthatcanharmthehealthofthosewho usethem. Allotherargumentsarebelowthe50%credibilitypoint.Only32%ofconsumersbelievetheidea thatyoucanprotectyourselffromC/Pbyavoidingdodgydistributionchannels(fleamarkets, street vendors, unofficial websites). Only 1 in 3 consumers believe their governments are genuinely trying to fight counterfeiting. Finally, only 27% of consumers believe that many peoplediefromingestingcounterfeitmedicinesintheircountry. Onceagain,countryspecificsareimportant.RussiaandtheU.K.aregoodexamplesofopposite perceptions.InRussia52%ofconsumersbelieve,ItsnotreallyunethicaltobuyC/Pproducts vs. 21% in the U.K. Half (51%) of U.K. consumers believe their government is really working againstC/Pvs.16%ofRussians.Only15%ofU.K.(andSouthKorean)consumersbelievepeople dieintheircountrybecauseofcounterfeitmedicines,whileincomparisonthissoundscredible tomorethanoneintwoRussianconsumers(56%). In terms of spokespersons, those that seem most credible to consumers are victims of C/P products. This is followed by, A mother who hurt her kid by rubbing him with counterfeit lotions, which was chosen by 28% as the most effective and, A doctor explaining how a counterfeit product can harm health was chosen by 15% of consumers as the most credible. Overall,71%ofconsumerssurveyedpreferredspokespersonsthatwouldexplain/embodyrisks ofC/Pfortheirhealth. Apartfromhealthrelatedspokespeople,localemployeesandlocalbusinessmenexplainingthey were forced to shut their company because of counterfeiting and piracy would also be quite effective. The least effective spokespersons would be traditional authority figures such as a judge,apoliceman,acorporateexecutive. In Mexico, a father asking for support when teaching his kids not to buy C/P is considered credibleby37%ofconsumers(vs.forinstance16%ofRussians).InIndia,amemberofanNGO explainingthatC/Pbusinessmenarealsoperformingmanyothercrimeswouldseemcredible to52%ofconsumers(vs.15%ofU.K.consumers). Inthe U.K., 29%ofconsumersreportedapolicemansayingC/Pdealersarecriminalswould becredible.InRussia,only13%consumerswouldbelieveapoliceman.
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Campaign Execution: Conclusions from advertisement testing carried out in the focus groups
Consumersdidntreactpositivelytoanyadadoptingapreachingapproach. Consumers rejected quite strongly ads using disgusting or shocking images, though they weretheonesconsumersrecalledmostvividlyafterwards. Even when they were interested in the developed messages, consumers very commonly expressedaneedforproofpointsandevidence:forexample,ifanadmentionedtheimpacton theeconomyofacountry,consumersoftenaskedforproofandanexplanation. Mostconsumersreportedcaringabouttheirsocietyandcommunity,butthisrarelyprevented themfromengagingincounterfeitingorpiracy.Theonlyconsequencestheyalldreadedwere thosethatmighthaveverydirectpersonalramifications. Beyond messages and wording, the importance of cultural variations was apparent. In many cases,adswerequitepositivelyreceived,butbecausetheywerenot100%adaptedtothelocal environmentdidnotresonate.Themorelocalandculturallyadaptedthecampaignis,themore empathyiscreatedamongviewersandthemoreeffectiveitislikelytobe.Localactors,reallife examples,localstorieswerealwaysthemostpowerful.
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ExecutiveSummary:Conclusions
1.5: Conclusions
Theaiminconductingandsharingthisresearchistowidenthecircleofvoiceshelpingtocraftmore effectiveanticounterfeiting/antipiracypolicies,andtoprovideallinterestedpartieswithtoolsthey can use to develop communications and educational programs that can that can begin to change consumer awareness, attitudes and purchase habits so that the demand for the illegal, dangerous productsstops.
Consumers - Simplytellingpeopletostopengaginginbehaviourtheyperceiveaspersonally
beneficialisnoteffective.Consumersneedtounderstandhowtheywillbenefitfromforegoing purchasesofcounterfeitorpiratedproductstobeinspiredtochange,andalsounderstandand appreciatethefullrepercussionsoftheircounterfeitpurchases.ThisReporthighlightshowtheright messagesarecriticalinconvincingconsumerstostopthepractice.
Governments - Effortsbygovernmentsandenforcementagentstostopcounterfeitingandpiracy
havelargelyfocusedonstrengtheningIPenforcementregimestomoreeffectivelydeterthe productionandtradeoffakeproducts.Activitiesaimedattacklingtheconsumerdemandsideofthe equationhavenotreceivedthesamelevelofattentionorresources.Ourhopeinsharingthe findingsofthisreport,isthatgovernmentswillmoreclearlyrecognisetheneedtocommunicate moreaggressivelywiththeirconstituentsthatcounterfeitingandpiracyarenotvictimlesscrimes butinsteadinflictseriousharmonpeople,theeconomy,jobs,andtheircommunities.Wealsohope governmentswillseetheneedtomakecounterfeitingandpiracyahigherpublicpolicypriorityso thatlocalconsumerswillseetheirgovernmenttakingtheissueseriouslyandactingonit.As governmentsfullyunderstandthefactorsthatdrivetheirconstituenciestopurchasetheseillegal goods,theycanundertakeappropriatecommunicationsandpolicyinitiativestostopthedemandfor fakes.
Cooperation - There is no universal way to fight this epidemic: regional and cultural differences
mustbeconsideredinsendingtherightmessageattherighttimeandtherightplace.Wehopethat the information in this report will be useful to national and local governments, businesses and organisationsindesigningcommunicationsthatwillresonatewithlocalconsumers.BASCAPandits membercompanieswillbeundertakingnewinitiativestobuildawarenessandeducateconsumers, but we cannot succeed in this effort alone and need support, goodwill and assistance from all stakeholdersinthefightagainstcounterfeitingandpiracy. Thefollowing15pointscanbeconsideredtobethekeyfindingsbothcategorisingtheresultsofthe researchandessentialforeffortstodevelopananticounterfeitorantipiracycampaign.
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General
1. ThereisnotatypicalC/Ppurchasersociotype.However,thekindofC/Pproductspeople purchasevariesdependingonnationality,incomelevelandage.Almosteveryonecanbea counterfeitbuyer/adigitalpirate! TherearemanywordsforC/Pproducts:Copies,Copycat,Fakes,PirategoodsorevenCrap Allthesenotionscoversubtledifferences.Chineseproducts(cheapandexpendable)andgrey marketgoods(offthetruck,customseizure,harddiscountproducts)allcontributetoblurring thepicture. ConsumersidentifyrealdifferencesamongC/Pproducts;someofthemtalkaboutClassAor FirstclassC/Pproducts,astheultimatefakesthateverysmartconsumerwouldseek. Generallyspeaking,theyreportariseinthequalityofC/Pproducts.
2.
3.
The Purchase Momentum

4. 5. A large majority of consumers do recognise that buying counterfeit or engaging in piracy is unethicalbutfeelitsessentiallyavictimlesscrime,soseldomfeelguiltyaboutit. Consumers perceive the C/P (illicit) business harmless in the absence of obvious sanctions againstpurchasersandsometimessellers(prosecutionthreatisperceivedtobemorecredible forpiracyofdigitalcontentthanforpurchaseofcounterfeitgoods). Inemergingmarkets,morethanhalfofC/Ppurchasesarefromregularstores.Consumersoften feel its impossible to protect themselves from C/P goods. Online C/P purchase was reported onlybyrespondentsinKoreaandU.K. C/Ppurchaseisanimpulse:consumersneedtheproductsfast,usethemfast,throwthemout fast.Theydontthinkoftheproductoriginordistributionsystematall. ConsumersrefusetocallthemselvesvictimsofC/P,evenwhentheyhaveabadexperiencewith aC/Pproduct.Theyhavethefeelingtheycontrolthesituation,andinsomecases,evenfeel empoweredbytheirpurchase.
6.
7. 8.
Effective Drivers & Deterrents

9. ThemainreasonsforC/Ppurchasearewellknownandconfirmed:lowerpriceandavailability. But more sophisticated motives coexist: a rejection of the established order and distribution system (Mexico), a teenage spirit (U.K.), or even a paradoxical soft rebellion against a consumptionsociety.
10. Not all consumers have a clear vision and understanding of the benefits of going genuine. Qualityandcustomerserviceoftenfailtoconvinceconsumersthatpayingmoreforthegenuine productisworthwhile. 11. Risktohealth,risktopersonalpossessionsandriskofprosecution(whencredible)arethethree mostpowerfuldeterrentsagainstC/Ppurchases. 12. Consumersfromallcountriesactalongproximityrules!Theycarefirstforthemselvesandtheir families,thenfortheircommunities,thenfortheircountries.
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Messaging
13. Consumersnolongerlistentotraditionalauthorityfigures(judges,governmentofficials,police) butexpectthemtoleadthefightagainstcounterfeitingandpiracy.Consumersadmittheyneed boundariestoactethically. 14. Themostcrediblespokespersonswouldbevictims(firstly,peoplewhosehealthhassuffered, followedbyeconomicvictims).Thesevictimshavetobeultralocaltogenerateempathy.Thisis achallengeforcombatingpiracy,whichhasfewifanyconsequencesforhealth. 15. ConsumersadmittheydontthinkabouttheimplicationsoftheirC/Ppurchases.Theygenuinely reportnotunderstandingwhycounterfeitingandpiracyisaplaguebeyondthemereethical principle.Theywantevidencethatcounterfeitingandpiracyisharmingthem/theircommunity/ societyaswholeandnotonlybigcompanies.Theyalsowanttoseewhatsinitforthemif theystopbuyingcounterfeitsordownloadingillegally.
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2
METHODOLOGY
ThisReportsummarisesanextensivebodyofresearchconductedoveran18monthperiodtobetter understandconsumerattitudesandbehaviourstowardscounterfeitingandpiracy.Theresearchwas conductedinthreephases: 1. TheDeskResearchfindingsofthisreportarebasedonareviewofapproximately176consumer perceptionsurveysconductedacross42countriessince2000.Italsoincludesareviewof202 awareness campaigns utilising a broad array of media outlets targeting consumers across 40 countries,andinterviewswith15expertsfromanticounterfeitingorganisations. Then, armed with insights from these global activities to date, researchers worked on the groundwithconsumersinfocusgroupsinMexicoCity,Moscow,Mumbai,LondonandSeoul. The Quantitative Surveys were then conducted on over 1000 consumers in each of the five countries:Mexico,Russia,India,U.K.,andSouthKorea.
2. 3.
Detailsonthismethodologyarepresentedbelow.
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Methodology:DeskResearch
2.1: Desk Research

Insettingouttoinvestigatethedemandsideoftheproblemofcounterfeitingandpiracy,itbecame clear that a lot of valuable work aimed at understanding consumers attitudes toward counterfeit and pirated products had already been conducted. But, this disparate collection of research had neverbeenbroughttogetherandexaminedanalytically.Thisbecametheprojectstartingpoint. Inordertodiscoverandaggregatewhatisalreadyknownaboutconsumersviewsoncounterfeitand piratedproductssoastobuildoncurrentintelligenceandidentifywherefurtherinvestigationmust beconducted,theresearchanalysed176surveysconductedworldwidebetween2000and2008. Thesurveysweregatheredacross42countriesaswellasfromthosewithaninternationalscope. MostofthesourcesretrievedfromtheBASCAPandtheWorldIntellectualPropertyOrganization (WIPO)databases,whichserveasrepositoriesofresearchconductedbyvariouspublicandprivate sectororganisations,andadditionalsurveysweregatheredfromprimaryresearch.Thedesk researchalsocomprisedafirsteverglobalreviewofconsumerawarenesscampaignsthathavebeen implementedfrom2000to2008,soastolearnfromtheiraimsandtocapturecreativeapproaches alreadyincirculation.Again,campaignmaterialsweremadeavailablefromBASCAPandWIPO.In total,202campaignmaterialswerereviewed. Togainfurtherinsightintocurrentandrecentcampaigns,theprojectalsoconductedinterviewswith expertsintheanticounterfeitingfieldtocollectbestpracticesandlearnimplementationlessonsfor shapingananticounterfeitingprogram. Notably,anumberofseniorpublicaffairsandpublicrelationscounsellorsfromwithinEdelmanwere interviewedtogaintheirinsightsintoaspectsofcampaignsaimedatchangingsocialbehaviour,from recyclingtosmokingcessation.
2.1.1: Audit of Consumer Surveys

The desk audit and analysis comprised an investigation of 176 consumer surveys. The surveys spanned 42 countries, with many international in focus. All surveys and reports analysed were conductedbetween2000and2008(Figure1). Themajorityoftheresearchandcampaignsfocusedmoreonaffluentmarketsandlessonthe developingworld. Surveysamplesweredominatedbyconsumerandstudentaudiencesandsoftwarepiracywas themostpopularareaoffocus. Theresearchrevealedalackofaudiencetargetingbycampaigns.
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Figure1:ConsumerSurveys(GeographicDistribution)

S urvey s
N u m b er o f i n te r n a tio n a l an d c o u n t r y su rv e y s b a s e d o n sa m p le r ev i e w e d
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Table1:TargetAudienceofConsumerSurveys
Consumer and student audiences dominate survey samples:

TargetedAudience %ofSurveysreviewed (176surveys,conducted20002008) GeneralConsumers Students Mixture/Niche/Unknown B2B Youths 38% 33% 13% 11% 5%
Software piracy most popular area of focus:

Of the surveys recorded in the WIPO database, most common survey focus was software, closely followedbymusicpiracy.Arangeofindustryareaswerecovered,however,withsurveyscovering23 intotal.
Consumer experience and purchase drivers were the focus, rather than message testing:
Onlyabout1in10ofthesurveysfocusedonpotentialdeterrentsandmessages.
Fairly consistent questioning:

As focus topics tended to be similar across surveys (experience with counterfeiting, reasons for buyingcounterfeitedproducts),sowerethetypeofquestionsasked.However,afewsurveysused interesting lines of questioning by putting respondents into context (what if) or looking at the tippingpointsofacceptability.
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Eachsurveywasevaluatedandtheinformationbrokenoutintoananalysisgrid.Datacollectedwas categorisedasfollows: Title Surveyconductedby Sector Country Date Surveytype(qualitative/quantitative) SampleSize Toptwodriversofcounterfeitpurchase(ifapplicable) Toptwodeterrentsofcounterfeitpurchase(ifapplicable) KeyFindings KeyLearnings FulldatasetavailableYes/No QuestionnaireavailableYes/No
The level of detailed information found in each survey source varied significantly. Although basic informationwascommonlyprovided,suchasthesamplesizeandstructure,thecountryandtheyear thesurveywasconducted,onmanyoccasionsthestudysfindingsrevealedonlykeydatapoints.Any datapointsreferencedinthisdocumentwereextractedonlyfromsurveyswithasamplesizegreater than 200 respondents (some smaller samples are referenced for niche markets), which is large enoughtobeconsideredasreliablebyaresearchexpert. Filterswereappliedtotheanalysisgridandprovidedaquantitativeoutputforthefiguresquotedin thisreport. AlistofsourcesisprovidedatAppendix2.
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2.1.2: Campaign Material Audit

Anauditof202campaignmaterialswasconductedamongconsumerawarenesscampaignsthathad been implemented in the 2000s. Campaign material was collected from BASCAP and the WIPO databases.
Figure2:ConsumerCampaigns(GeographicDistribution)
Campaigns
Number of international and country campaigns based on sample reviewed
Country Argentina Australia Austria Belgium Brazil Canada Chile China Colombia Czech Republic Ecuador
Volume 6 10 3 1 9 6 1 4 3 1 1
Country Finland France Germany Greece Hong Kong Hungary India International Ireland Italy
Volume 3 10 5 1 8 2 5 19 1 9
Country Japan Kazakhstan Mexico Netherlands New Zealand Norway Peru Philippines Poland Portugal
Volume 3 1 9 3 5 1 2 2 1 2
Country Russia Singapore South Africa Spain Switzerland Taiwan Thailand United Arab Emirates UK US
Volume 1 2 1 6 2 4 1 2 20 36
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Affluent markets were the target of campaigns

Out of the 202 campaigns analysed, only 2% of the campaigns featured in lowincome countries, whiletherestfeaturedinmediumtohighincomelevelcountries
Table2:TargetAudienceofConsumerCampaigns
Campaigns Target Audience

TargetAudience Nb.ofCampaignsreviewed (WIPOdatabase,conductedin2000s) GeneralPublic/Consumers Kid/Teenagers Teachers SMEs Students Retailers LawEnforcement Parents PolicyMakers RightHolders Journalists Tourists Farmers 95 52 35 29 25 24 18 13 8 6 4 4 1
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Table3:IndustryFocusofConsumerCampaigns
Campaigns Industry Focus

IndustryFocus %ofCampaignsreviewed (WIPOdatabase,conductedin2000s) GeneralCounterfeitingorPiracy FilmPiracy MusicPiracy SoftwarePiracy CounterfeitMedicines CounterfeitApparel PlantPiracy Agrochemicals Trademarks 36% 26% 19% 14% 2% 2% <1% <1% <1%
Each campaignwasevaluatedandtheinformation brokenoutintoananalysisgrid.Datacollected wascategorisedasfollows: Country CampaignOrganiser Sector TargetAudience Toolsusedtoimplementcampaign Message
Information on the budget, design and effectiveness of campaigns was not available through the reviewofthesematerials.Filterswereappliedtotheanalysisgridandprovidedaquantitativeoutput forthefiguresquotedinthisreport.
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2.1.3: Expert Interviews

A series of indepth telephone interviews was conducted to gain further insight into current and recentcampaigns. Each interview lasted between 3040 minutes, following a discussion guide that focussed on the followingtopics: Typeofinitiativesandcampaignsifanyrecentlyorganised Campaignexecution(channels,tools,etc.) Campaigntopicsandmessaging Processbehindmessagedesign Useofresearchandmeasurementfordesignandeffectiveness Geographyandmarketapproach Campaignpartners Campaignbudgetandsourcesoffunding Keysuccessesofthecampaign Pitfallsidentified
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Methodology:FocusGroups(Qualitative)
2.2. Focus Groups: Qualitative

Twenty (20) focus groups were conducted in major cities: London, Mexico City, Moscow, Delhi, Mumbai and Seoul.
Thesamplecomprisedof: 180participantsfrommajorcities(about36percountry) Arangeofparticipantsfrommediumlowtohighincomelevels Groupswerebalancedongenderandage ParticipantswereregularoroccasionalC/Ppurchasers.Atleasttwopeopleineachgrouphad purchasedC/Pgoodsunwillingly.
Eachfocusgrouplastedapproximately1hr30minutesandfollowedadiscussionguidethatcovered thefollowingmaintopics: Consumerspastexperienceswithcounterfeitandpiratedproducts o o o o Purchasehistory Satisfactionwithcounterfeitandpiratedproducts Driversofcounterfeit/piratepurchase Riskassociation
Messagedeterrentsmapping o o o Messageranking Messagetoproductlinkage Productionline(wheredocounterfeitscomefrom)
Communicationsmessengermapping Advertisingtesting
Fieldwork Dates:
4groupsinLondon:Wednesday18thMarch2009andThursday19thMarch2009 4groupsinMexicoCity:Monday30thMarch2009andTuesday31stMarch2009 4groupsinMoscow:Tuesday19thMay2009andWednesday20thMay2009
2groupsinMumbai:Saturday13thJune2009andSunday14thJune2009 2groupsinDelhi:Monday15thJune2009andTuesday16thJune2009
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4groupsonSeoul:Thursday28thMay2009andFriday29thMay2009
Table4:RecruitmentCriteria(FocusGroups)
Recruitment was based on the following criteria:

GENDER INCOMELEVEL AGE Medium Medium Medium Medium High High High High BUYCOUNTERFEIT/PIRATEDGOODS GROUP1 Male GENDER INCOMELEVEL AGE Medium Medium Medium Medium High High High High BUYCOUNTERFEIT/PIRATEDGOODS Male Female Female Male Male Female Female 4150yo Regular 5160yo Sometimesbutnotonpurpose 4150yo Regular 5160yo Regular 4150yo Regular 5160yo Regular 4150yo Sometimesbutnotonpurpose 5160yo Regular
GROUP2 Male Male Female Female Male Male Female Female
2030yo Occasional 3140yo Occasional 2030yo Sometimesbutnotonpurpose 3140yo Occasional 2030yo Occasional 3140yo Occasional 2030yo Sometimesbutnotonpurpose 3140yo Occasional
GENDER INCOMELEVEL AGE Low Low Low Low Medium Medium Medium Medium
BUYCOUNTERFEIT/PIRATEDGOODS
2030yo Regular 3140yo Regular 2030yo Sometimesbutnotonpurpose 3140yo Regular 2030yo Regular 3140yo Regular 2030yo Sometimesbutnotonpurpose 3140yo Regular
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GENDER INCOMELEVEL AGE Low Low Low Low Medium Medium Medium Medium
BUYCOUNTERFEIT/PIRATEDGOODS
4150yo Occasional 5160yo Occasional 4150yo Sometimesbutnotonpurpose 5160yo Occasional 4150yo Occasional 5160yo Sometimesbutnotonpurpose 4150yo Occasional 5160yo Occasional
Participants qualified as regular buyers must have personally purchased at least 2 different kindsofproductsregularly. Participantsqualifiedasoccasionalbuyersmusthavepersonallypurchasedatleast2different kindsofproductsoccasionally. In each group, there were buyers of at least seven different types of counterfeit/pirated products.
InSouthKoreaitisnotrecommendedtomixageandgender,duetoculturalsensitivities.Thetarget sampleforSouthKoreawasthereforereshapedasbelow: G1.Young(2034)Female.Mixoffrequencyandincomelevel G2.Young(2034)Male.Mixoffrequencyandincomelevel G3.Older(3549)Female.Mixoffrequencyandincomelevel G4.Older(3549)Male.Mixoffrequencyandincomelevel
In India it is not recommended to mix gender among focus group participants, due to cultural sensitivities. The target sample for India was therefore reshaped as below, with groups 1&4 in Mumbaiand2&3inDelhi: G1.Male.MediumHighincome.Mixofage(2060)andregularpurchasefrequency G2.Male.MediumHighincome.Mixofage(2060)andoccasionalpurchasefrequency G3.Female.MediumLowincome.Mixofage(2060)andregularpurchasefrequency G4.Female.MediumLowincome.Mixofage(2060)andoccasionalpurchasefrequency
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Methodology:ConsumerSurveys(Quantitative)
2.3: Consumer Surveys: Quantitative Research

AquantitativeconsumersurveywasconductedacrossdemographicsineachofMexico,U.K.,South Korea,RussiaandIndia,whichbuiltonthecombinedinsightsfromtheglobaldeskresearchandthe focusgroups. Each sample was a nationally representative sample, comprising 1,000 consumers per market.InterviewswereconductedonlineinRussia,SouthKorea,U.K.andMexico.Faceto FaceinterviewswereconductedinIndia. Themarginoferroronasampleof1000is+/3.1%andonthetotalsampleof5000is+/ 1.37%(atthe95%confidenceinterval).
Fieldwork Dates:
U.K.:24thApril0929thApril09 Mexico:24thApril0929thApril09 Russia:26thJune093rdJuly09 SouthKorea:26thJune093rdJuly09 India:29thJune09Monday13thJuly09
Country demographics to which the data was weighted are as follows: Table5:CountryDemographicWeighting(ByGenderandAge)
GENDER AGE GENDER Male Female 1824yrs 2534yrs 3549yrs 50+yrs INCOMELEVEL 52% 48% 24% 17% 26% 34%
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Methodology:ConsumerSurveys(Quantitative)
Table6:CountryDemographicWeighting(ByMonthlyHouseholdIncomeUS$)
LOWESTINCOME CATEGORY UNITEDKINGDOM <24K$ 24% MEXICO <11K$ 26% RUSSIA <4K$ 15% INDIA <4.8K$ 40% SOUTHKOREA <14K$ 15% HIGHESTINCOME CATEGORY >82K$ 13% >45K$ 14% >20K$ 13% >20K$ 24% >73K$ 5.3%
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3
DESK RESEARCH
Detailed Findings
3.1 Introduction
The information used for the desk research was drawn from the review of consumer surveys that havebeenconductedworldwidesince2000andthereviewofconsumerawarenesscampaignsthat have been implemented in the 2000s. This body of knowledge has been complemented by interviewswithexpertsintheanticounterfeitingfield. Thissectionprovidesthereaderwithdetailedfindingsfromthedeskresearch.However,anumber ofwiderobservationsmadethroughoutthisstageoftheresearchshouldalsobenoted. In order for anticounterfeiting messages to gain traction amongst so many issues in todays society,themediamustbeengaged,promptedtoactionandsuppliedwithinformation.A2007 BASCAPsurveyindicatedthatcountrieswithstrongIPenforcementregimesusuallyfeaturean active mediathatplayanimportantroleinincreasing publicawarenessaboutthe needforIP protection. It may be important to play to the emotional and rational sides of the consumer. The desk researches demonstrates that consumers might very well recognise purchasing a counterfeit good is illegal, but yet still do so. However, if the facts are combined with an emotional argument (i.e. doing so supports organised crime) the argument might serve as a greater deterrent.
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DeskResearchDetailedFindings:Introduction
Multiplechannelscouldbeusedtoincreasemessageresonance.Consumersnolongerturnto onemediumfortheirinformation.InfactarecentstudybyPewResearchdemonstratedthe averageinformedconsumerreadsorwatchessevensourcesofmediaeachdayandthatdoes not include text messages, emails, advertisements and other forms of communications. The 2009EdelmanTrustBarometerofopinionelitesin20countriesrevealednearly70%ofthose polledneedtohearorreadsomething35timestobelieveitwhichsupportsthepositionthat oneformofcommunicationalonewillnotwintheday. Makeitsimplefortheconsumer.Consumersneedtobeprovidedwitharealisticcalltoaction to engage on an issue of this nature that requires changes in social behaviour. Recommendationssuchasturndownyourthermostattocombatglobalwarmingorwashyour handstoavoidapandemicaresimple,practicalandmeasurable.
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DeskResearchDetailedFindings:DriversofCounterfeitandPiratePurchase
3.2 Drivers of Counterfeit/Pirate Purchases

Expandingavailabilitypositionsfakesaslowhangingfruit Lowpriceandincreasinglybetterqualitycreatetemptation Lowriskofpenaltyequatestoalicensetobuy Availability,quality,priceandlowriskgenerateanoverallsenseofsocialacceptability
Thegrowingtrendinconsumerpurchasingofcounterfeitgoodscannotbeexplainedbyonesingle factor.Infacttherearemyriaddrivers,startingwithproductrelatedfactorssuchaspriceofgoods, availabilityandqualityoffakes.Socialandcontextualfactorsalsoplayapart,particularlytheplace wherethepurchaseismade,thepurchasesituationandthelegislationandenforcementmechanism in place. Finally, the research demonstrated that the impact of demographic and psychographic factorsonthepurchasedecisionofbuyingfakegoods(i.e.attitudestowardpiracy,thewillingnessto takeriskandtheabilitytoratethequalityofaproductbeforebuyingit)cannotbeunderestimated. Among these factors, the following emerged as key drivers for acquiring counterfeit and pirate products.
Expanding availability positions fakes as low-hanging fruit

Because fakes have become so readily available, more and more consumers are exposed to opportunities to acquire nongenuine goods outside of traditional, legal marketplaces. The simple presenceofcounterfeitandpirateproductsestablishesthefirstorderoftemptation,asconversely,a number of the report findings show that if the fake item had not been available, the acquisition would not have taken place. Easy access, therefore, positions counterfeits as lowhanging fruit, readyforthetaking.
Price and increasingly better quality create temptation

Consumerswhoknowinglybuyoracquirecounterfeitgoodsaremostoftendrivenbytherelatively lowerpriceofcounterfeits:eithertheybelievethemarketpriceoftheproductisoverpriced;orif the market price is perceived to be fair, they may still be unable to afford the genuine item. Moreover, surveys show that when the fake product is of an acceptable quality, the combination createsatemptingalternativetoacquiringtheproductthroughlegalconsumermarketpractices.
Low risk of penalty equates to a license to buy

Researchshowsthatmanyconsumersbelievethatcounterfeitingandpiracylawsshouldbestricter. And while some countries have introduced consumer penalties, others have not or do not actively policeandprosecutethecrime.Whereastronglegalenvironmentdoesnotexist,thestudiesshow therateofcounterfeitingandpiracyislikelytobehigher.Asaresult,theabsenceofrules,limited government efforts to educate consumers on legal regimes and low level of penalties strengthens
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DeskResearchDetailedFindings:DriversofCounterfeitandPiratePurchase
the complicit nature of choosing fake products over genuine goods. Conversely, surveys show numerousexampleswhereconsumersconveythatifbuyingcounterfeitswereillegalandthethreat of criminal proceedings were real, they would be significantly less likely to pursue counterfeit or pirateproducts.Atroublingobservationfromseveralstudiessuggeststhattheconsumersattitude and inclination towards counterfeit and pirated goods is influenced by a noticeable irregularity of effortsthegovernmentmayormaynottaketoenforceIPlaws.
Availability, quality, price and low risk generate an overall sense of social acceptability
Researchshowsthatconsumersincreasinglyhavetheattitudethatthereisnothingwrongwith,nor embarrassing, about buying or acquiring fakes. In fact, the views of many consumers are that counterfeiting is a victimless crime and it doesnt hurt anybody. As a result, an aura of social acceptability has emerged, where consumers freely and readily admit to their peers that theyve boughtafake.
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DeskResearchDetailedFindings:DeterrentstoAcquiringCounterfeitandPirateProducts
3.3 Top Deterrents to Acquiring Counterfeit and Pirate Products

Health&safetyconsequencestopthelist Threatoflegalactionorprosecutiondeliversawakeup call Linkstoorganisedcrimehavemoretractionthanmightbe thought Peopledontwanttoharmsomeonelikeme Thefollowingmessagesemergedasthetopdeterrentmessages.
Campaignexamples: PfizerU.K.Campaignis meanttoshockviewersby showingamanpullinga deadratoutofhismouth afterconsumingmedicine boughtfromanillicit Website. CACNCanadianposter campaignWouldyourisk herlife? Software&Information IndustryAssociation(SIIA) deliveredamongUS consumers,MyDaddyWent toJailBecauseofContent PiracyandallIgotwasthis stupidtshirt,CopySoftware IllegallyandYouCouldGet ThisHardwareAbsolutely Free. ComitColbert,French Customsuseposterstargeted attouristsandthegeneral publictocommunicatethat buyingorcarryinga counterfeitproductinFranceis acriminaloffence.
Health & safety consequences top the list

Consumers dont want to be damaged by a counterfeit product. This is true for their physical health and wellbeing, but also for their belongings, such as computers, DVD players or mobile phones.Consumersexpressedacleardesiretoavoidcounterfeits with health and safety implications, such as beverages and cosmetics, and also were wary of bad experiences where electronic possessions had been damaged by use with fake softwareorDVDs.Thisexpansionofthestandardhealth&safety argument could serve as a powerful deterrent, cutting across industrysectorstypicallydifficulttolinkintellectually.
Threat of legal action or prosecution delivers a wake-up call

Thethreatofbeingsubjecttocriminalsanctionsappearstohavea demotivatingeffectonpotentialconsumersoffakes.Information from consumers revealed that an aggressive campaign penalising purchasersmakespeopleafraidtodiscusstheiracquisitionoffake goods. In short, consumers admit that if they were actively targeted for prosecution, they would likely be deterred from buyingfakes.
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DeskResearchDetailedFindings:DeterrentstoAcquiringCounterfeitandPirateProducts
Links to organised crime have more traction than might be thought

Whiletheeffectivenessoflinkstoorganisedcriminalactivityasa deterrentto purchasesoffakes maybequiteregionspecific, the Campaignexample: risks posed by the links between counterfeiting and piracy and support for organised crime seem to have broad resonance, UNIFABpublicopinion particularlyindevelopedcountries.Thismaybeespeciallytrueif campaignrunningin audiences are prompted to think about the production and/or France;includingmessage distributionchainsofacounterfeitorpiratedgood,andinwhose onthelinkbetween pockets the profits of the illicit enterprise end up. Experts counterfeitingand organisedcrime. interviewed suggested, however, that the organised crime argument must be tailored to the context of the audience. For example, connecting other concerns related to a particular counterfeitingmarketplaceprovidesadditionalreasonstobelievetheconnectiontoorganisedcrime. When prompted to consider the sources of fake products they purchase, consumers reported that theydidnotliketothinkthattheiractionscontributedtoorganisedcriminalactivitiessuchasdrug smugglingandprostitution.
People dont want to harm someone like me

The most immediate deterrents are those relating to consumers themselves, but the idea that counterfeit business could harm a person like them resonates powerfully. Consumers may be indifferent to broader economic or social factors, but they dont want to be associated with job lossesthatcouldaffectpeopletheyidentifywithorfeelcloseto. However,thereisnoblanketmessagethatcanbeusedtodeterconsumersfrombuyingcounterfeit orpiratedgoods.Oftencampaignerswilluseasetofmessagesthatcanbecombinedandadapted to a specific market. Further research should be conducted to identify messages that may work depending on the audience and country being targeted, the type of product counterfeited or pirated,theprofileoftheconsumerandthecontextoffakepurchasing.
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DeskResearchDetailedFindings:ConclusionsfromtheDeskResearch
3.4 Conclusions from the desk research

Campaignmessageshavenotmatchedobservedconsumerdeterrents Consumersmaylistentoavictimofcounterfeitingrelatedharm Thereisnosilverbulletapproachfordeliveringyourmessage Acampaignwithoutmeasurementisimmeasurable
Campaign messages have not matched observed consumer deterrents

Researchrevealedatroublinggapinstrategiesusedbyconsumerawarenesscampaignsdesignedto stemconsumerdemandforcounterfeits:intheuniverseofmaterialsreviewed,themessageschosen mostoftenforuseincampaignsdidntconsistentlytrackthemessagesthatconsumersmostoften cited in surveys as being convincing. Whereas the threat of legal action, health & safety consequences and links to organised crime emerged as key consumer deterrents, the majority of campaignswereinformationalinnatureorwereaimedatlessgermanedeterrents,suchaseconomic and ethical motives. For example, while health and safety arguments were among the top three deterrentsregularlycitedbyconsumersurveys,thismessagewasusedinonly11%ofthecampaigns reviewed. There are a number of palpable reasons for this disconnection, not the least of which being the diversityoforganisationalobjectivesbehindthevariouscampaigns,i.e.acampaignsponsoredbythe luxurygoodsindustrymightnotincludeafocusonhealth&safetyrisks.Giventhelimitedresources formanyofthecampaigneffortsandheretoforelimitedknowledgeofconsumerattitudestowards counterfeit products, it can also be deduced that a majority of campaigns were not overly sophisticatedintheirconstruction,norbasedonevidenceofconsumerbehaviour. Asaresult,aneffectiveconsumerawarenesscampaignmustconcentrateonasetofkeymessages that create a core resonance relevant to a majority of consumers. Once this set of messages is seeded, they can be complemented with ancillary messages that communicate specific product or demographiccharacteristics.
Consumers may listen to a victim of counterfeiting-related harm

Consumersdontliketothinkthattheyhavebeenfooledbybuyingafake,astheywanttoprotect theirselfimageandselfrespect.Whilepurchasersdontwanttothinkofthemselvesasvictims,but ratherassmartshopperswhentheypurchasecounterfeitorpiratedgoods,theymaybereceptiveto antifakemessagesdeliveredbyavictim.Tobeaneffectivemessenger,avictimwouldhavetobe perceived as real and exempt from identification with big companies. A victim that has experiencedaphysicalproblemasaresultofbuyingorusingafake,oraparenttalkingabouthow hisorherchildwashurtbecauseofacounterfeitgoodtheparenthadpurchasedcouldbeapowerful messenger.
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DeskResearchDetailedFindings:ConclusionsfromtheDeskResearch
There is no silver bullet approach for delivering your message

While the majority of campaigns might have been based on limited input, taken together they utilised26differenttoolstodelivertheirmessages.Thebreakdownofthemostpopulartoolsused was as follows: websites (59%), brochures (36%), leaflets and posters (28%), radio / TV ads (26%), films/videos(22%).
Table7:ConsumerSurveyOutreachTools
OutreachTool Websites Brochures/Guides Posters Print/Radio/TVA/PSAs Campaign Films/Videos Scholarship/Grants/Awards Training Competition Events MediaCoverage Spokespersons/Spokescharacters CurriculumMaterial Newsletters Web2.0.Tools CartoonAnimation/Comics Studies/Research Helpline/Hotline SchoolVisits MultimediaProducts Exhibitions InteractiveGames TVPrograms Museum No.ofCampaignreviewed (WIPOdatabase,conductedin2000s) 120 72 57 53 47 44 38 31 31 28 25 21 21 15 13 11 10 10 8 5 5 5 3 2
A campaign without measurement is immeasurable

Surprisingly, noneofthe surveysorcampaignsreviewed indicated thatcreatorsofanticounterfeit campaignshadtakenthecriticalstepofmeasuringtheeffectivenessoftheircampaigns.Likewise, interviewswiththeanticounterfeitingexpertsrevealedthatmosthadnotundertakenmeasurement of their efforts, and those that had, used smallscale, relatively ad hoc approaches. Of the measurement conducted, most used included counts of website visits, small questionnaires distributed directly to the target audience to assess opinion on the campaign and sporadic ad hoc surveystoassessshiftsinattitudes.
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4
CONSUMER RESEARCH
Detailed Findings
Upon completion of the desk research phase of the project, a tremendous amount of data on consumerperceptionstowardcounterfeitingandpiracyhadbeengathered.Thisdisparatecollectionof researchwasthenexaminedcollectivelyandanalyticallytoyieldthefindingspresentedinChapter3. Fromthesefindings,anumberofinterestingandconsistenthypothesesemergedtoformthebasisof the second and third stages of the project the qualitative testing of hypotheses through focus groups,followedbyavalidationofthefindingsthroughquantitativesurveyresearch. The information presented here in Chapter 4 is derived from the focus groups1 and survey work conductedwithconsumersinfivecountries:Mexico,Russia,theU.K.,IndiaandSouthKorea.These countriesandthefocusgrouplocationsinMexicoCity,Moscow,London,Mumbai,DelhiandSeoul were selected on the basis of their representational diversity of geographic location, economic developmentandcounterfeitingproblems.
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Editorsnote:Theoutputofdiscussions,debatesandconversationspresentedheresummarizethesubjectiveandfreely expressedconsumeropinionscollectedinthefocusgroupsessionsanddonotreflectinanycaseBASCAPpositionsorbeliefs. Theuseofquotationmarks()isintendedtoconveydirectconsumercommentsorsentimentsexpressedduringthefocus groupprocess.
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ConsumerResearchDetailedFindings
Section 4.1 Country Profiles introducesthereadertothecountrieswhere theindepth research wasconducted,byprofilingavarietyofthemoresalientresponsescollectedduringthefocusgroup sessions. Section 4.2: The State of Counterfeiting provides an aggregated summation of the detailed findingsconcerningconsumerprofile,counterfeitmarketshareinthevarioussectorsandcountries, andfinallyananalysisofthedriversanddeterrentsbehindthepurchase. Section 4.3 Learnings about Messengers investigates the credibility of potential ambassadors or spokespersonsinaneffectiveanticounterfeitingandpiracycampaign.
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ConsumerResearchDetailedFindings:CountryProfiles(QualitativeDiagnosis)
4.1. Country Profiles (Qualitative Diagnosis)

4.1.1 United Kingdom
Generallyspeaking,buyersofcounterfeit or pirated goods in the U.K. dont feel guilty about their actions; they tend to see it as a game or alternatively a smart shopping move. They feel they can talk about their purchase quite easily with most friends, sometimes providing them counterfeit shopping tips. They sometimes want to keep the origin of their purchase secret but usuallyonlyforahighqualitycounterfeitsotheycanpassitoff asthegenuineitem. Counterfeit purchasing appears to be an instant process for people in the U.K. Consumers interviewed tended to think about thehereandnowinquiteahedonisticandselfishway.Theydont seemtopayattentiontothepast(i.e.,theproductlifecycle,how the productreachedthem)andthey dontthinkaboutthefuture (i.e.,thequalityoftheproduct,theriskassociatedwithit). In the U.K., where buying a counterfeit is most often not a need but a game/pleasure, this kind of purchase can look like adultery.Iflegitimatebrandscanbeequatedtobelovedspouses, counterfeits or pirated goods are the quick/consequence free/frustrationrelieving affairs that consumers indulge themselves with. They might regret it, they might not want their marriagetoberuined,buttheirfrustrationandwantforpleasure drivethemtovoluntarilyignorethecontextoftheiractionsandto ignoretheirconscience. AneffectivecampaignintheU.K.mightthereforedirectlylinkthe purchase of counterfeit or pirated goods to consequences and aftermaths. This might be done by emphasising what is really at stakeforthemandtheirrelatives(safety/risktotheirequipment) and what consumers associate themselves with when doing it (organisedcrime/economydamagingprocess).
Ilovecounterfeithandbags andthingsyoucanbuyin Spain.Ibuyalotfromthere. ButIdontreallybuy counterfeitsfromEnglandat all. TheonlythingsIeverbuyare clothesandDVDsandIdont thinktheycoulddomuchto youapartfromshrinkor something. Ithinktheyhavesortoftried tosaycounterfeitingislinked toorganisedcrime,butIthink becauseIdontreallyhear aboutorseetheconnection itssortofabitdistant. Whatcouldstopmefrom buying?Ithinkthewordthat jumpsoutatmeis'againstthe law'becauseitsalwaysinthe backofyourmind. Forpeoplewhocan'tafford it,there'snoshameinit (owningafake)atallforme.I wouldneverbeabletoafford GucciorChaneloranything likethat.
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4.1.2: Mexico
Buying counterfeit or pirated goods seems to be a more generally or naturallyacceptablepartoftheMexican way of life. Consumers dont feel bad about C/P since its simply a part of an overallsystemwhereillegalityiscommonplace. Legalandethicalcompromisesarereportedassociallyacceptable as Mexicans consider themselves to be victims of an already unfairsituation.Theyliveinwhattheycallthe2ndworld:nota third world country (cultural aspiration/proximity with the States/middleclassdoesexist)butnonethelessexcludedfromthe 1st world (as a large part of the country is at very low income levels, especially in the countryside). Their government system is sometimes described as corrupt and law enforcement is sometimesseenasafailure. Buying counterfeit or pirated goods is thus perceived as an opportunity to find their way through an unfair life acquiring products they need while avoiding unfair taxes from a poorly trusted system. Many middle class Mexicans experience this unfairness when travelling to the U.S., where they can buy productsatmuchcheaperpricesthaninMexico. In a variety of ways, counterfeit and pirate (illicit) business is perceivedasareasonablewaytoeasesocialtension.Government isseenastoleratingitto allowconsumerstoaccesstheproducts they need/crave. This is true for pleasureoriented products (clothes,jewellery,DVDs,CDs)butalsoformedicines.
Iwaslookingforanold mobilephoneloader,Iwentto officialstores,theydidnot haveit,refusedtolookforit, saiditwascomplicated.Iwent totheguyinthemarketand hejusttoldmetocomeback tomorrow.Ifounditinjustone day! Mydaughterwantstobe fashionablebutIdonthave moneytospendbuyingfancy clothessoIbuythefakesones, Iknowtheywontlastbut thatsok. Ithinkitismoreriskywhenit issomethingweintake,eator putonourbodies. Peoplecannotgetintrouble whenbuyingCF,policemenare wearingCF!Wouldyouputall Mexicansinjail! OfcourseIdonotfeel unethicalwhenIbuya counterfeitproduct.Iforget aboutthatbecausethepriceis soappealing.
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4.1.3: Russia
Counterfeitandpiratedproductsarerife intheRussianmarketplace.Theyintrude onallindustrysectorsfromluxurygoods and clothing to medicines and alcoholic beverages. As a result there is a distrust among Russian consumers who feel they have no protection against counterfeit and pirated products. They cannot guarantee theyarebuyingreal,evenwhentheyaremakingapurchasefroma legitimatestore. They report that they are able to justify their fake purchasing or illegal downloading because they need that item, but they just cantafforditthroughnofaultoftheirown.Ifpricesofgenuine productswerelowerortheirwageswerehigher,thentherewould benoneedtobuycounterfeits. Counterfeit and pirate purchasing does not necessarily make Russians feel good. Counterfeit alcoholic beverages for example shouldnotbesharedatadinnerparty,fakeperfumewouldnotbe givenasagiftandnoonewantstoknowinglylettheirchildrenplay withcounterfeittoys.However,otheritemssuchasluxurygoods, clothesandDVDscanbeconsideredcleverbuysasthequalityis acceptable for their purchase (disposable) and the price is much lower. The Russian tradition of owning a summer house, or dacha, may contributetotheregularpurchaseofthesetypesofitemsasgood qualitygoodsareacceptablefortheirsummergetaways. Counterfeititemswhicharenormallyassociatedwithmuchhigher consumerriskoddlyappeartobeboughtandusedquiteregularly inRussia.Autoparts,medicines,alcoholandperfumesallfallinto this category, and although Russians seem to be aware of the dangers,theyreporttheyoftendonotknowtheyarebuyingfake or that they simply cannot get the original in the Russian marketplace.
Webuyafakeproduct, whichisfivefoldcheaper.Its aconsciouspurchaseaimedat savingmoney. Sometimesitisverydifficult tofindlicensedproducts. Healthriskscouldstopme! Everythingconcerninghealth isveryimportant.Itstrueas wellforautomotivespare parts. BeforeIstartedusinglicensed software,Iinstalled counterfeitsoftwaretwice.I shouldnthavedoneit!Ithink itsmuchbettertopaymore moneyandfeelOK. Thestateisquitesatisfied withfakeproduction.Ifitis wasnotsatisfied,nofake productswouldbeonsale. Governmentshouldstart speakingofCF,everything startsfromthem.
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4.1.4: South Korea

Koreans tend to place great importance on their appearance. They want to look goodinfrontoftheirpeersaswellasto the wider developed world which they feeltheyhavenowsuccessfullybecomea partof.Asaresult,theirmindsetisfocusedonhavingandshowing offthelatestgadget,technology,fashiondesign,etc. Inanattempttojustifytheirillicitactions,Koreansliketokeepthe processofbuyingcounterfeitsandpiratedgoodsfunandvictimless. One way they do this is by referring to counterfeit or pirated products using a less formal/serious descriptor, such as Bling Younger consumers seem more likely than older ones to have guiltyfeelingswhenbuyingcounterfeitorpiratedgoods. Expectations on counterfeit and pirated product quality are fairly low. As a result consumer satisfaction with counterfeit or pirated goodsisgenerallyquitehigh.Qualityoftechnologyisreportedas being poor, but compensation is taken through the low price. Where high quality counterfeits do exist, they are referred to as ClassAandarekepthushhush. Counterfeits and pirated product in general though are discussed openlyamongclosefriendsandfamily.Thereisthewishtoshow off their counterfeit or pirated items and pass them off as the genuineproductiftheyareofgoodenoughquality.Thisdoesnot mean that counterfeits and pirated goods are entirely acceptable within society. In more formal environments (for example a business meeting), men in particular would not want to be found to be wearing fake as this would lead to embarrassment among thosetheyaretryingtoimpress. Wearingorusingacounterfeitorpiratedproductisnotaseasyto passoff as the genuine item as one might think. Koreans look at the product itself, but they also take into consideration the personsplaceinsocietybeforetheyformaconclusionaboutthe itemsorigin(counterfeitorgenuine).
Itsmoreaboutshowingoff thatswhypeoplebuy counterfeits.Onthequality sidepeopledontreallythink aboutthiswhenbuyingfake.It isabouthowpeopleseeyou. MyjobmeansIhavetolook presentablesoIwouldrather havetherealitemespecially inthosethingswhichshowto otherpeople. Ifitisaforeignpremium brandthenwepayroyaltiesto overseas.Idthereforeprefer togivemymoneytoaKorean copymaker. Therewasoncesomelaw enforcementoncopymovies andvideosandatthattime manypeoplerefrained. Iwouldworryaboutsmall businessesclosingbecauseof CFbutIworryaboutmy financesmore.
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4.1.5: India
Indiaisthecountrywhereconsumers reportedthemostcommonand extensiveuseofcounterfeitandpirated products.ForconsumersinIndiaitisa naturalwayoflifeandasaresultmany foundtheconceptofcounterfeit/pirateirrelevant,orhadtrouble understandingit. Asaresult,counterfeitsandpiratedgoodsaresaidtoformahuge partoftheIndianeconomy.Inmanyproductareastheyaremore prevalentthantheirgenuinecounterparts.Reused,repaired andrefilledproductsarealsoprolificintheIndianmarketplace. Manyexamplesweregivenofemptyoriginalsoftdrinksor cosmeticbottlesbeingrefilledwithdilutedordifferentliquids. Thiscontributestotheblurringoftheimagebetween counterfeitsandlegitimateproducts. Theissueofcounterfeitingandpiracyisthereforeunlikelytorank highamongconsumerconcerns.Foralargepartofthem,their dailylifeiscomparedtoastruggle.Longdailycommutes (specificallymentionedinMumbai),lowwagesandthecontinual efforttocontinuetodevelopmakeslifehard.Largerconcernssuch asprovidingfortheirfamilythereforetakeprominence. AvailabilityishighinIndia.Therearemanydedicated counterfeit/pirateshoppingareaswhereconsumerscangoto purchasefakeluxurybrandedclothing(leathergoods,accessories etc),andanenormousrangeofothercounterfeitandpirated goodsaresoldbyinthestreet,fromsmallvendorsaswellas legitimatestores. Indianconsumersappearwillingtobuymanycounterfeitand pirateditems.Clothingseemstobethemostpopular,allowing consumerstokeepupwitheverchangingfashionsandmeet societalpressuretowearbrandedclothes.CounterfeitDVDsand luxurygoodsarealsoverypopular,butmoresurprising,soare smallelectronicgoodsandautoparts. Consumersreportedtheyarelesslikelytobuycounterfeit toiletries,cigarettesandmedicineandsaytheyoftendonotrealize theyhaveboughtafakeuntiltheygettheproducthomeor,for example,themedicineisnoteffective.
Webuycounterfeitstoshow off.Wetakeknowinglythe counterfeitornaments Ifyouleaveyourcarwiththe mechanic,hewilltellheonly usesgenuineparts,butin realitytheyareduplicates. Thebottleisoriginalbutthe productisduplicate.Weknow itonlyafterpurchasingand breakingtheseal. Thecounterfeitingisdonein frontofthepolice.Theyknow ithappens. Youneedtoeducatethe consumertomakethe differencebetweenfakeand genuine. Lawshouldbeimplemented strongly,ifpeopleknowthey cangetintotroublethiswould work. [Peoplelikeus,wearenot famousandpeoplewillnot takeusseriously[]Avictim ofcounterfeitingwillbe acceptedasaspokesperson. UltimatelyGovernmenthas toberesponsibleforreducing counterfeitproducts.Theycan catchthenetwork.Theyare proclaimingaboutreductionof counterfeitproductsbutthere isnopropermovefromthem. Iwouldworryaboutsmall businessesclosingbecauseof CFbutIworryaboutmy financesmore.
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ConsumerResearchDetailedFindings:TheStateofCounterfeiting
4.2. The State of Counterfeiting: Detailed Results

In this Section we give an overview of the detailed findings from the consumer research conducted in 5 countries over the first semesterof2009(U.K.,Mexico,Russia,Korea,India). Results and insights are derived collectively from the Qualitative phase (20 focus Groups with consumers experienced with Counterfeit Purchase and Digital Piracy) and the Quantitative phase (Questionnaire on Nationally Representative Samples of 1,000 consumers in each country; total sample is thus 5,000 consumers).
200participantsinthe qualitativestage 3policeofficers,36 housewives,18business owners,23executives consumersthatagreedto participateinourfocusgroups inMexicoCity,London, Mumbai,Delhi,Seouland Moscowwerefromallstripes! Allhadincommonaquite naturalandspontaneous relationshiptocounterfeiting andpiracy. However,themorewetalked, themoreweasked participantsabouttheirhabits, analysedthereasonsbehind them,testeddeterrentsand rankedmessagesthemore faceswentseriousandvoices lowered. Despiteourbesteffortto remainunbiased,many consumerswereopening theireyes,realisingtheir purchaseswerenotas harmlessastheywantedat firsttobelieve.
4.2.1: Consumer Profiling

Beyondtheincrediblediversityofconsumerswetriedtoidentify patterns and demographic dimensions to qualify and document both consumer profiles and their relationship to counterfeit and pirateproducts.
4.2.1.1: Consumer Qualitative Typology

Amongtheparticipantsinthese20focusgroups,weencountered an amazing diversity of profiles, buying power and lifestyles: we talked with struggling consumers and uppermiddleclass executives; we met single moms and business owners. All had regular or casual experience of buying counterfeit or pirated products. For each, we tried to identify the nature and dimensions of their relationship to such products: what and how they bought, the drivers behind the practice and the deterrents thatmightstopthem. Based on our discussions with this diverse population, we have been able to identify the following attitudinal profiles cutting acrosscultural,demographicandsocialcategories:
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HappyPurchasers
TheseconsumersfeelC/Pisa smartpurchase .Theyhaveaplayful relationshiptoC/Pandclaimtobeexpertsinfindingtherightcopies. Theyusuallypurchasesophisticatedproducts(fashion,electronics, software)insmallquantities.Theyaremostcommonlyfoundinthe U.K.andKorea,butaswellinemergingmarketsamonghighincome levels.
StrugglingConsumers
Theseconsumersbelongtothelowestincomelevelcategories.Theyare veryoftenworkinghardtoprovidefortheirfamily.Theydontseethe problemsposedbycounterfeitingandpiracyandaresometimesunableto tellthedifferencebetweenagenuineproductandafake.Theyconcentrate ontheirbasicneedsanddonthavethe mentalspace oreducationto questiontheproductorigin.TheycanbefoundmostlyinIndiaandinRussia.
RobinHoods
Theseconsumersrefusetoacceptthesystemthewayitis;theyconsider brandedproductsoverpricedandcontestthemargins,distributionsystem andtaxes.Theyfeelbigcorporationsareoftenunethicalandseenopointin protectingtheirinterest.TheycanbefoundmainlyinMexico(often expressingstrongcriticismoftheState)butalsoinRussiaorKorea.
InnocentPurchasers
Theseconsumersfeeltheyhavea moralright topurchaseC/Pproducts sincetheyareinwhattheyregardadifficultpersonalsituation.Theyare commonlyfoundinemergingmarkets(India,Mexico,Russia)butalsoin moredevelopedmarketsamonglowestincomelevels.
GenuinelyFrustrated
Theseconsumerswouldliketobeabletoaccessgenuineproductsbutcant affordwhattheywanttopossess. TheybuyC/Poutfrustrationbutarenot reallyhappyaboutit.Theywouldfeelembarrassedtoadmittheydonthave themeanstoaccesswhattheywant.Theysometimes explaintheir fakequalityandgreymarketdistributionsystem.Theyarecommonlyfoundin theU.K.andinKorea. purchasebehaviorbya justificationspeech onexaggeratedmargins,good
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4.2.1.2: Consumer Quantitative Typology

This Typology has been built using respondents answers on the type of product ever bought as counterfeitorpiratedproductandthefrequencywithwhichtheypurchasethem. Virginsareconsumersthatreportedtheyneverboughtacounterfeitorpiratedproductin anyofthe14productcategoriestested. Casuals are consumers that reported they bought some counterfeit or pirated products fromtimetotimeorseldomforatleastoneoftheproductcategories. Regulars are consumers that reported they bought some counterfeit or pirated products regularlyforatleastoneoftheproductcategories.
"Regulars"aremostprevalentinIndia,RussiaandMexico,whilethe"Virgins"are mostcommoninthemostdevelopedmarket,theU.K.86%oftheconsumerssurveyed reportedtohaveboughtacounterfeitorpiratedproductatleastonce Table8:CounterfeitConsumerTypology
Av. 5 Countries
20%
66%
14%
India
11%
49%
40%
Russia 4%
65%
31%
Mexico
13%
74%
13%
Korea
19%
70%
11%
U.K.
54%
VIRGINS CASUALS
40%
REGULARS
6%
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4.2.2: Counterfeiting Penetration

On the following charts, we present an analysis based on subgroups Counterfeiting Penetration Ratio:theshareofconsumersthatreporttheyalreadypurchasedcounterfeitorillegalcopiesofat leastoneoftheproductcategories.
Generally speaking, the percent of consumers reporting to buy counterfeits tends to decreasewhenincomeincreases.However,theU.K.isanexceptiontotherule. Table9:IncomeLevelAnalysis(5Countriescomparison)
97% 97% 92% 87% 88% 83% 79% 74% 88% 93%
65% 63% Low Income
50% 47% 41%
Medium Income High income
Korea
Mexico
Russia
U.K.
India
C/P penetration ratio tends to lower with income level, U.K. seems to be an exception in the 5countriescomparisonwithHighIncomeconsumersslightlymoreengagedinCouterfeitandPiracy thanlowerincomelevelgroups.
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Counterfeit purchasers can be found among all age groups. However, generally speaking,thereisaslightdecreasewithageinmostcountries.Thisdecreaseismuch strongerintheU.K. Table10:AgeGroupAnalysis(5Countriescomparison)
96%95%96%96% 90%90% 88% 87%
93% 88% 84% 79%79% 79% 84%84%
18-24 58% 56% 25-34 35-49 44% 36% 50+
KO
MEX
RU
UK
INDIA
CPpenetrationratiotendstolowerwithage,thisdecreaseisparticularlyobviousintheUKwhere Counterfeitpenetrationratiois20ptslowerfor50+consumersthanfor1824consumers.
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4.2.3: Counterfeit Purchase Patterns

Inthissectionaregatheredresultsonpurchasefrequency,easeofaccesstocounterfeitandpirate productsinvariouscategories,andameasurementofeachcategoryscounterfeitpotential.
4.2.3.1: Overview of counterfeit purchase pattern

Thissectionprovidesanoverviewofthemostcommoncounterfeitandpirateproductpurchasesin eachcountryasdiscussedintheFocusGroupsheldincapitalcitiesofthe5countries:
United Kingdom
Most common products purchased are DVDs, luxury goods (such as handbags/purses, sunglasses, watchesandjewellery)andclothing;veryfewconsumersmentionedautoparts(butagreedthiswas possible);medicineswerementionedaswellbutmostpeoplesaidtheydidntpurchasethem. Asforfood,beveragesandtoiletries,peoplearenotreallyawareofthemandclaimtheywouldbe reluctanttobuythem(healthissuesandthefeelingitwouldbeasignofsocialfailure).Similarly,a few were aware of counterfeit toys, but said they would not risk their children by buying them. Consumersreportedbeingawareoffakecigarettesbutwouldrathergoforsmuggledonesthanfor copies,whichtheyfeelhaveabadtaste. Illegaldownloadingofsoftwarewasmentionedbyonlyafew,andthosewhosaidtheydoit,knewit wasillegalbutwerepreparedtotaketherisk. InU.K.,onlinedistributionchannelswerethemostassociatedtotheriskofpurchasingCounterfeit products (willingly or unwillingly). This was specifically true for online auctioning websites (all productscategories)andspamemailstheydailyreceive(e.g.,medicines).
Mexico
On many occasions during the focus groups, Mexican consumers said they were living in a counterfeitcountry,whereeverythingisfake,fromMP3players,toclothes,sneakers,watches andevenpetfood.Manyconsumersreportedagreatlevelofcorruptionwhereonecaneasilybuy an authentic/fake diploma or driving license. Generally speaking, it was reported that Mexicans simply cannot trust what they see, and therefore even legitimate branding is less effective in conveyingpurchasecomfortorsecuritythaninothercountries. Acquainting Mexican consumers with information that genuine product is manufactured in China further confuses the ability to understand differences between real and fake products and further undermineslegitimatebrandconfidence.Inmanyoccasionsconsumersdescribedmadeinchinaas incompatiblewithauthenticity.
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Russia
Russians appear to buy counterfeit and pirated goods in most product sectors. Lowrisk and disposable counterfeit and pirated items are sought out and bought in order to save money. Such productsincludeDVDs,software,luxurygoodsandclothing. Counterfeititemswhicharenormallyassociatedwithmuchhigherconsumerrisk,oddlyappeartobe boughtandusedquiteregularlyinRussia.Autoparts,medicines,alcoholandperfumesallfallinto thiscategory,andalthoughRussiansseemtobeawareofthedangers,theyreporttheyoftendonot knowtheyarebuyingfakeorthattheysimplycannotgettheoriginalintheRussianmarketplace.
South Korea
Koreanstendedtobeshamelessaboutillegallydownloadingsoftwareandmusic.Itisawayoflife forthem.Asaresult,consumersareconstantlydevelopingmeasurestocounteractvirusesandto avoidpoliceprosecution. DisposableitemsarealsopopularcounterfeitsinSouthKorea.Clothesandluxurygoodsarereported as commonly bought in order to impress peers and DVDs/CDs are also popular due to their wide availabilityandgoodquality. Koreans do seem to be more wary of counterfeit products that they think carry a high health and safetyrisk,andasaresultsuchitemsasmedicines,toys,smallelectronicgoodsandautopartstend tobepurchasedonlywhenthereispressureforanadultortheirchildtoownaparticularitem,or whentheconsumerisdupedintobuying.
India
Availability is high in India. There are many dedicated counterfeit/pirate shopping areas where consumerscangotopurchasefakeluxurybrandedclothing,leathergoods,accessoriesetc,andan enormous range of other counterfeit and pirated goods are sold by street, vendors as well as legitimatestores. Indianconsumersappearwillingtobuymanycounterfeitandpirateditems.Clothingseemstobe the most popular, allowing consumers to keep up with everchanging fashions and meet societal pressure to wear branded clothes. Counterfeit DVDs and luxury goods are also very popular, but moresurprising,soaresmallelectronicgoodsandautoparts. Consumersreportedtheyarelesslikelytobuycounterfeittoiletries,cigarettesandmedicineandsay theyoftendonotrealizetheyhaveboughtafakeuntiltheygettheproducthomeor,forexample, themedicineisnoteffective.
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4.2.3.2 Frequency of purchases

Thissectioninvestigatesthefrequencytowhichconsumersreportedpurchasingcounterfeitin14 productscategories.These14productscategoriesarethebasicproductbreakdownusedinmostof thequestions.
Morethan1in2consumerssurveyedreportedbuyingcounterfeitDVDs&CDs,clothing andcomputersoftwarethehighestforallproductsectors.Cigarettesandmedicines aretheleastcommonlypurchased. Table11:14ProductCategoriesUsedintheResearch

DVDsorCDs Clothes SoftwareforComputers Luxuryitemse;g;Purses,Watches,Jewelry, LeatherGoods Perfume Toys Cosmeticse.g.Makeup,Lotion AutoParts Foodproducts&NonalcoholicBeverages HygieneProductse.g.Shampoo,Soap, Toothpaste Smallelectronicgadgetse.g.MobilePhone, Cameras AlcoholicBeverages Cigarettes Medicines
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Table12:PurchaseFrequencyforeachproductcategory(GlobalSample)
DVDs or CDs Clothes Software for computers Luxury items e.g. purses, watches, jewelry, leather goods Perfume Toys Cosmetics e.g. make-up, lotion Auto Parts Food products or Non-alcoholic beverages Hygiene products e.g. soap, shampoo, toothpaste Small electronic gadgets e.g. mobile phone, camera Alcoholic beverages Cigarettes Medicines I purchase this kind of counterfeit product quite regularly
I only ever buy this product as a counterfeit
I purchase this kind of counterfeit product from time to time
I seldom purchase this kind of counterfeit product
10
20
30
40
50
60
Q4:Foreachtypeofproductlistedbelow,pleasetellmeifyouhaveeverpurchasedcounterfeitorillegalcopiesandhow oftenyoudoso?[Allsample,n=5000]
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4.2.3.3 Counterfeit potential

In each product category we considered the counterfeit potential was the % of consumers of a countryadmittingtheypurchasedafakeorcounterfeitinthisproductcategoryatleastonce.This isthusthecurrentmaximummarketpotentialforCounterfeitineachcategory. CounterfeitPotentialvariesgreatlydependingoncountryandcategoryofproducts.Russiaisa thrivingmarketforC/P,andthecounterfeitpotentialthereisthehighestformostofthe categoriestested.Indiaissecondwithaverymuchdiversifiedcounterfeitpotential.IntheUK, thepotentialformostofthecategoriestendstobethelowestmeasured.MexicoandKorea areaveragemarketsforC/Ppotential,withKoreabeingcomparativelystrongeronclothes, medicines,electronicdevicesandfoodandbeverages. Tables6&7conveytheCounterfeitPotentialperproductcategoryina5countrycomparison.
Table13:CategorieswhereCounterfeitPotentialisthehighestoverall:
63 61 23 46 37 55 52 41 42 49 35 36 8 26 39 38 14 52 33 57 59 80 60 62 82 64 71 89
DVDs or CDs
36
Clothes
Software for computers
21
Luxury items e.g. purses, watches, jewelry, leather goods 13
17
Perfume
56 53 INDIA U.K. RUSSIA MEXICO KOREA
Toys
Cosmetics e.g. make-up, lotion
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Table14:CategorieswhereCounterfeitPotentialisthelowestoverall:
Auto Parts 6 19 35 40 53 29 39 10 47 31 37 12 26 50 28 13 4 15 10 39 25 22 6 25 37 INDIA U.K. RUSSIA MEXICO KOREA 40 35 37 42
Food products or Nonalcoholic beverages Hygiene products e.g. soap, shampoo, toothpaste Small electronic gadgets e.g. mobile phone, camera
8 8
Alcoholic beverages
9 4
Cigarettes
Medicines
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4.2.3.4 Access to counterfeits

InthissectionavailabilityisinvestigatedasakeyelementinC/Ppurchasedrivers.Counterfeit availabilityisreportedtobeveryhigh,sometimeshigherthantheoneofgenuineequivalents.The resultsconveyassessavailabilityfromtheperspectiveofaconsumerseverydayenvironment:
Availability and purchase frequency are strongly connected. The most common counterfeitedandpiratedproductsarealsothemosteasilyfound. Table15:AccesstoCounterfeitinConsumerseverydayenvironment(GlobalSample)
DVDs or CDs Clothes Software for computers Luxury items e.g. purses, watches, jewelry, leather goods Perfume Toys Cosmetics e.g. make-up, lotion Small electronic gadgets e.g. mobile phone, camera Auto Parts Hygiene products e.g. soap, shampoo, toothpaste Alcoholic beverages Food products or Non-alcoholic beverages Medicines Cigarettes Very easy access Quite easy access
TOTAL EasyAccess
10
20
30
40
50
60
70
80
90
Q3: For each type of products listed below please tell me if you can find counterfeit or illegal copies in your day to day environment?[Allsample,n=5000]
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To further investigate availability, the Tables 9 and 10, present the percentage of consumers reportingtohaveanEasyAccess(VeryeasyorQuiteeasy)toC/Pproductsin14productcategories.
Table16:Mosteasilyaccessiblecategoriesoverall
DVDs or CDs 60 65 66 43 67 72 44 48 59 38 41 Luxury items e.g. purses, watches, jewelry, leather goods 24 43 Cosmetics e.g. make-up, lotion 24 38 59 64 75 39 58 65 62 69 75 75 INDIA U.K. RUSSIA MEXICO KOREA 83 64 79 88 85 88 90 87 94 96
Clothes
Software for computers
Perfume
Toys

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Table17:Leasteasilyaccessiblecategoriesoverall
Small electronic gadgets e.g. mobile phone, camera 15 32 18 24 Hygiene products e.g. soap, shampoo, toothpaste Food products or Nonalcoholic beverages e.g. soda / mineral wa 14 28 19 22 31 19 34 38 55 32 32 48 61 INDIA U.K. RUSSIA MEXICO KOREA 17 30 45 38 55 55 54 76 55 32 47 48 58 57 62
26
Auto Parts
Alcoholic beverages
59 63
Medicines
Cigarettes
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4.2.4: Counterfeit Distribution Channels

Thissectionisdescribeswhereconsumersmostfindandpurchasecounterfeitandpirateproducts. ForeachproductcategoryC/Ppurchaserswereaskedtosaywheretheyboughtthem2.InTable11, C/Ppurchasesareindicatedperdistributionchannel.
Inthefivecountriessurveyed,morethanhalfofallcounterfeitspurchasesseemtobe carriedoutin"regular"stores;withmedicinesandalcoholpurchasedthere3outof4 times,whilemostCDsandDVDsarepurchased,notsurprisingly,onthestreets. Table18:GlobalCounterfeitDistributionIndex(AllCountriesandCategoriesMerged)

Q5:Thinkingabouteachtypeofcounterfeitproductyousaidyouhavepurchased,wheredoyouusuallybuythem? [Respondentsforeachcategoryreportedtohavepurchasedthiskindofproductatleastonce]
Online 11% Abroad or when on holiday 10% In the street 25%
In a regular store 54%
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definitionofwhatisaregularstoreforrespondents.ThesequestionswerecenteredonCounterfeitmorethanonPiracy,the OnlineanswerreflectsonlineorderingofactualgoodsmorethanPiracy.
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2 The prompted answers, such as in a regular store were not detailed or explained further, this is thus a subjective
Below,Tables19and20,presenttheresultsofaCounterfeitDistributionIndex.Thiscompositeindex isdesignedtoallowanoverallcomparisonofCounterfeitDistributionchannelsreflectingtherelative penetrationofC/Pbycategory.Itisbaseduponresponsesfromonthefollowingtwovariables: CounterfeitPotentialofeachcategory(the%ofconsumersreportingtheyalreadybought thiskindofproductascounterfeit); DominantDistributionchannelforeachcategory(answerstothequestionwheredidyou buyCounterfeitinthisproductcategorymostofthetimes?).
Table19:GlobalCounterfeitDistributionIndex(AllCountriesBreakdownperCategory)
Q5:Thinkingabouteachtypeofcounterfeitproductyousaidyouhavepurchased,wheredoyouusuallybuythem? [Respondentsforeachcategoryreportedtohavepurchasedthiskindofproductatleastonce]
Russiaisthecountrywherecounterfeitseemtobethemostlikelytobefoundinregular stores,manyRussianconsumersmentionednotbeingabletohaveacertaintythatwhat theyboughtwasgenuine,evenwhenshoppinginDepartmentStoresorDutyFreearea. MexicoseemstobethecountrywherestreetvendorsarethemostimportantCounterfeit DistributionChannel.KoreanconsumersreportthegreatestactivitylevelinOnlineCounterfeit Purchase.TheHolidaymoodfactorseemstobeconfirmedmostlywithU.K.Consumers.
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Table20:NationalCounterfeitDistributionIndex(AllCategoriesMerged)
RUSSIA
75%
17%
4% 4%
INDIA
65%
22%
11% 1%
KOREA
43%
15%
8%
34%
UK
37%
23%
27%
13%
MEXICO
36%
42%
17%
5%
in a regular store
in the street
abroad or when on holiday
online
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4.2.5: The Purchase Decision

This section investigates Drivers of a Counterfeit purchase. Hypotheses tests emerged through the DeskResearchandQualitativeFocusGroups.IntheQuantitativephasethechallengewastoselect andtestgenericdriversindependentlyfromtheproductcategory.
4.2.5.1: Overview of Drivers

United Kingdom
ThedriversofcounterfeitpurchasearequitewellknownfortheU.K.:price,availability,acceptance thatdesireoutweighshavingthemeansandwillingnesstobreakaweakmorallaw.Inaminormode thereistheideathattheyareaccessingaprivilegetheyaredeniedthroughtheeconomicdownturn orbecausetheirincomecantsupporttheirdesiredlifestyle.TheHolidaymoodeffectisconfirmed aswellwiththeideathatitsbothpartofanexperimentandthattheygetafreepassonmoral boundarieswhileonvacation.Afewconsumersmentionedthelegalfinestheycouldhaveifcaught transporting fake products through French borders or airports but never mentioned such risk with theirowncountrycustoms.
Mexico
The main drivers of counterfeit and pirate purchase appear to be price and availability. When Mexicansbuyacounterfeitorpiratedproductatpricelessthanthelegitimateversion,theyfeelthey arepayingtherealpriceoftheitem. From this type of perspective, buying counterfeit and pirated goods could be interpreted as an intelligent purchase since they end up being cheaper, readily available, sellers provide better customer service than legitimate retailers and there is a wide choice of product, virtually any product,anytime.Theitemsboughtareoftendisposableorproductswithshortlifespansbut arehighusage.Mexicanswanttokeepuptodatewiththelatestfashionsandtrends,tolook richandnotbedeniedwhattheythinktheyhavetherighttoown. ManyMexicoCityconsumerssurveyedreportedaswellagreaterrisktoberobbedorattackedinthe streets. They quite generally considered there was no point of wearing a pricy genuine watch or purseifanybodycouldsteelitinthestreets.
Russia
Availabilityiswidespread andinsomecases,too muchsofor thelikingof Russians.Counterfeit medicinesinparticulararesoldinlicensedpharmaciesmakingithardforconsumerstoknowwhen they are purchasing a genuine item or a counterfeit. Many items are also considered to be only availableasacounterfeit,soevenifRussianswantedto,theycouldnotforexamplebuyabottleof genuineChristianDiorperfumeintheircountry.
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As well as being duped into buying counterfeit or pirated goods, Russians also appear to make a consciousdecisiontogooutandbuythem.TheyfeelthesysteminRussiaoflowwagesandhigh taxes,coupledwiththehighpricetagonmanygenuineitems,combinetodrivethemintomaking counterfeitorpiratepurchases.
South Korea
The will to present the best image / face to peers is a very powerful driver in Korea. If Koreans cannotaffordthegenuineitem,whichtheybelieveareoftenoverpriced,thentheyarehappytobuy acounterfeitorpiratedproductinplaceofit.Evenpeoplewithquitealotofmoneyarereportedto mixandmatchcounterfeit/genuineanddesigneritemswithoutfeelinganysenseofacontradiction. Younger Koreans seem especially likely to feel the need to buy counterfeit or pirated goods, especiallythoseareuniversityand/orcannotaffordgenuineitems.Butastheygetolderandtheir earnings increase, it is reported that they try to buy more genuine products than fake ones. At university,studentsareaspiringtobelikethosepeoplewhocanaffordthegenuineitems.
India
InIndia,thecounterfeitmarketisdrivenbydemandfromthepublicwhowantbrandedproductsto keepupwithtrendsortoelevatetheirstatus.Priceisalsoakeydriver,alongwithhighavailability. Largenumbersofconsumersare also frequentlyduped intobuyingcounterfeits andpirated goods, notrealisingtheirmistakeuntiltheycometousetheproduct. Thelackofgoodpracticeofaskingfor receiptswhenpurchasinglegitimategoodsalsomeansthat consumershavea distrustinsellersastheyareunabletogetanydecentlevelofaftersalesservice andwarrantiesareneverprovidedinfull.Wheresellersarelookingtomakethehighestmarginand sellcounterfeitorpiratedgoodsasthegenuineitem,theconsumerthen hasnorecourse andthis willoftenturnthemtobelievingtheymayaswellknowinglybuythecounterfeitinthefirstplace,but atthelowerprice. The relationship to brands is reported to be primary among Indian consumers from the lowest incomelevels.Amongtheseconsumercategory,consumersarereportedtopayforusagefirstand beforeall.Theproductmaybeacounterfeit,arepairedoneorgenuine,whatmattersisthatit cheapandfunctional.Acounterfeitbagcangenuinelybefoundbeautifulandbepurchasedasan ornament more than a class marker: the woman that could buy it is not really trying to let others believeitsagenuineone,butjustusetheaestheticfunctionalityofit.
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4.2.5.2: Reasons for Counterfeit Purchase

Inresponsetoquestioningonwhywouldapersonlikeyourselfbuycertaincounterfeitproducts?, consumersgavethefollowingresponses: Mostconsumerssurveyedbelievepeoplebuycounterfeit"becausetheycannotaffordthe original",withamajorityalsociting"theydon'tknowit'scounterfeit"or"theythinkgenuine productsareoverpriced". Sevenintenconsumers(71%)surveyedbelievepeoplebuycounterfeitorpiratedproducts, Becausetheycannotaffordtheoriginalandoverhalfsaiditwas,Becausetheydontknowits C/P(57%)(aresultsignificantlyhigherinRussia:79%)and,Becausetheythinkgenuine productsareoverpriced(57%)(aresultsignificantlyhigherinKorea:66%). Onthewhole,C/Ppurchasersandnonbuyersgivequitesimilaranswerstothedriverquestions. Howevernonbuyerstendtobemorelikelytochoose,TheydontknowitsC/P.
Table21:ReasonsforBuyingCounterfeit,Multipleanswers(GlobalSample)
Cannot afford the genuine product They don't know it's not genuine They think genuine products are overpriced Because the don't have access to the genuine products It would be ridiculous or stupid to pay the full price of 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 CF sellers are more willing to serve their customers than regular retailers They want to help CF products sellers 8 13 22 21 29 33 32 58 57 71
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Table22:ReasonsforBuyingCounterfeit,MultipleAnswers(5CountriesComparison)
55
Cannot afford the genuine product They don't know it's not genuine
40 50
68
75 77
80
61 60
79
They think genuine products are overpriced Because the don't have access to the genuine products It would be ridiculous or stupid to pay the full price of 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 CF sellers are more willing to serve their customers than regular retailers They want to help CF products sellers
2 1 1 4 4 9 6 15 18 20 3 11 14 26 10 22 30 33 37 32
39
55 62 61 66
47 48
39 33 43 44 43
20 20 45 20
32 17
32 5
INDIA UK RU MEX KO
ConcentratingonTopofMindanswers,Table16conveysthatpriceandaffordabilitycombine asasignificantmodality.Thisstrenghtenthehypothesisthatmostconsumersareawareof theCounterfeitednatureoftheirpurchase.
Table23:ReasonsforBuyingCounterfeit,TopofMindanswer(GlobalSample)
5% 1% 3% 2% 1%
Cannot afford the genuine product They think genuine products are overpriced

6%
5% 35%
They don't know it's not genuine It would be ridiculous or stupid to pay the full price of genuine 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

21% 21%
CF products are more easily accessible than genuine They want to help CF products sellers CF sellers are more willing to serve their customers than regular retailers
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Table24:ReasonsforBuyingCounterfeit,TopofMindanswer(5CountriesComparison)
15 31
Cannot afford the genuine product They don't know it's not genuine
6 10 10
38 44 48
24
31
36
They think genuine products are overpriced It would be ridiculous or stupid to pay the full price of genuine products CF product "do the job" just as well as genuine ones Because the don't have access to the genuine products They are constantly offered those products by sellers CF products are more easily accessible than genuine CF sellers are more willing to serve their customers than regular retailers They want to help CF products sellers
2 3 5 5 6 8 8 7 8 7 5 7 8 2 5 2
22 17 22 32
3 1 1 1 1
1 1 1
INDIA
4
UK RU MEX KO
1 1 1 5
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4.2.6: Review of Deterrents

4.2.6.1: Overview of efficient messages against counterfeiting and iracy as discussed in the focus groups
United Kingdom
The U.K. participants report that the message that has the most impact on them is the health and safety message, far above all the others. However its use may face limitations in less obviously connectedsectors.Organisedcrimeandtheriskofconsumersharmingtheircurrentequipmentare alsoquiteeffectiveifwellpresented.Ifnot,theymayjustbeseenasscaretactics.Theharmdoneto bigcompaniesorplayingtheethicscarddonotappeartoworksincepeoplearepromptedtosaybig companieslackethicsthemselves(childlabour)andthathighpricesofgenuineitemsareunjustified.
Mexico
Themostpowerfulmessagesseemtobethosethatbringattentiontothedangerscounterfeitand piratedproductscanposetoMexicanshealthandsafety,aswellastotheircomputerand/orother electronicequipment.Anymessagesthattalkaboutdamagetobusinessneedtobeconveyedona local level and show the direct association between counterfeiting and piracys harm to local business. Similarly, as Mexicans operate outside of the law on many levels in their daily lives, messages portraying links to crime and counterfeiting and piracy need to demonstrate and make peopleunderstandthatbuyingcounterfeitandpiratedgoodsequatestostealingmaybetheone thingMexicanswouldnotwanttoassociatethemselveswith. AslongastheharmcreatedbyaCounterfeitpurchaseremainsabstractandnotdirectlyassociated toavictim,Mexicansseemtofeelnoguilt;onthecontrarytheyreportagreatsenseofsolidarity.Its oktohurtthesystem,butnottotakesomeonesjoborpropertyassomeofthemmentioned.
Russia
Russians are aware of the dangers counterfeit goods can pose to their health and safety. Most notablearealcoholicbeverages,medicineandtoaslightlylesserextentfoodandautoparts.Raising awareness of where genuine goods in these sectors can be purchased from could therefore be essential. The dangers to health also seem to transfer over to most other product sectors for Russians. Examplesofperfumesandlaundrytabletscausingrashes,clothingdyingtheskinandphonechargers burningoutarecommonamongcounterfeitexperiences. Protecting Russia and its people is also reported as very important to its consumers. They are less concerned about causing harm to genuine brands which are imported from abroad but more concerned with looking afterthemselvesandtheircountry. Russiamayneed togettoughwith counterfeitandpiratesellersbeforemakingprogresswithdeterringbuyers.Russianconsumerssay they are not able to change their traditions/habits overnight, but tough penalties for illicit manufacturersfollowedbygenuinepenaltiesforconsumersmayhelpconvincethemtodoso.
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South Korea
The key deterrent for Koreans is also the risk to their health and safety. Buying counterfeit food, drink,medicineandcosmeticsisthereforenotacommonoccurrence. They are also very concerned with Korean business and any impact on the domestic economy/prospects. It may often be the case, therefore, that consumers would rather buy a high quality Korean copy over an international brand in order to stimulate the Korean economy or counteranylocaleconomicdownturns.Butofcourse,aboveallthistheirownpersonaleconomic interestsareconsideredfirst. Messages may need to be forceful to have an impact, since Koreans are already quite aware that buyingcounterfeitsandpiratedgoodsiswrong;yettheyseemunwillingtochangetheirbehaviour. Theyreportthattheonlyrealreasonforthemtoimplementachangewouldbethroughincreased lawsandprosecution.
India
Concern over health and safety seems to be the main reason why consumers would refrain from buyingacounterfeitorpiratedproduct.Goodswhichtheyingestoruseontheirbodythereforegive themcausetoreconsiderbeforeknowinglybuyingacounterfeititem. However, it seems when consumers feel they can trust a counterfeit or pirated product, they will consume/useitwithverylittlethoughtforthesafety.Forexample,fakecolaissoldacrossIndiaat railwaystations,onstreetcornersandsoon.Becausethisis acommonpractice,healthandsafety risksareconsideredtobelow.Badexperienceswithothercounterfeitorpiratedproductsthough are common. Women in particular however appear quite unwilling to talk about these negative experienceswiththeirpeers(especiallytheirhusbands)andaremoreinclinedtosimplystopusing theproductandbuyanotherfromadifferentstore/area. AstrongelementofprotectingtheirnationaleconomyappearstoexistinIndiaandtoalesserextent, the motive of protecting peoples creativity. Therefore using these messages and showing direct negativeimpactstheycanhaveonconsumersmayhelpbuildtheirknowledgeofthedamagecaused bythecounterfeitandpiratebusiness.Womeninparticularwerelessawareofthedamagedoneto theeconomyandbrands.
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4.2.6.2: Detailed findings

Respondentswereaskedtochoosefromalistofstatements,suchastheonestheywoulduseifthey weretoconvinceafriendtostopbuyingC/Pproducts.Similarlytothedriversreview,respondents could first select as many statements as they liked, then were asked to select the one they found mostrelevant(TopofMind): Healthrisksarethemostpowerfulreasonnottobuycounterfeits(70%)but"risktobelongings" isalsoastrongfactor(59%).Otherdeterrentfactorsvariedfromcountrytocountry,suggesting theneedtotailormessagesbymarket. Thethirdargumentisapositiveone,Youllgetbetterserviceandwarrantywithagenuine product(54%overall).Thefourthis,Youwasteyourmoneywithpoorqualitygoods(54%). Somedeterrentswereparticularlystronginspecificcountries:Youllgetbetterserviceand warrantywasmentionedby74%ofthetimebyMexicanconsumers(20%morethanthefive countryaverage)andYourmoneygoestocriminalswaschosenby52%ofMexican respondents(13ptsmorethanthefivecountryaverage). IntheU.K.thestatement,Yousetabadexampletoachildwaschosenby43%ofconsumers (vs.34%overall).InIndia,43%ofconsumerschose,Youcanhavetroublewiththepolice(vs. 25%overall).
Table25:DeterrentstoaCounterfeitPurchase,MultipleAnswers(GlobalSample)
They can damage your health or safety Poor quality can damage the equipment you own If you buy genuine you'll have better service and warranty You waste your money Your money goes to criminals You support a business based on stealing others' idea or art You set a bad example to children around you You contribute to damaging the economy You steal from the original companies You can get into trouble with the police
70 59 54 54 39 35 34 34 32 25
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Table26:DeterrentstoaCounterfeitPurchase,MultipleAnswers(5CountriesComparison)
They can damage your health or safety Poor quality can damage the equipment you own If you buy genuine you'll have better service and warranty
30 59 46 44 55 52 36 54 52 32 30 28 23 20 28 35 21 23 41 16 25 35 43 43 38 51 59 58 60 65 68 74
85
60 62
67
46
63 74
You waste your money
62
Your money goes to criminals
26 26
You support a business based on stealing others' idea or art You set a bad example to children around you You contribute to damaging the economy You steal from the original companies You can get into trouble with the police
43 42
43 57
10 15
41 18
INDIA UK RU MEX KO
LookingatTopofMindanswersreinforcestheHealth&SafetyArgument,asindicatedbymore than 1 consumer out of 3. The better service and warranty offered by genuine is however ranked 2nd in Top of Mind answers, showing than educating consumers on the benefits of goinggenuineisrecognisedasusefulandconvincing.
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Table27:DeterrentstoaCounterfeitPurchase,TopofMindAnswer(GlobalSample)
4% 4% 5% 34% 5%
Your money goes to criminals Poor quality can damage the equipment you own
3%
They can damage your health or safety If you buy genuine you'll have better service and warranty You waste your money
9%
You set a bad example to children around you 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 stealing others' idea or art
10% 15% 11%
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Table28:DeterrentstoaCounterfeitPurchase,TopofMindAnswer(5Countries Comparison)
They can damage your health or safety If you buy genuine you'll have better service and warranty
9 10 11 13 19 10 11 17 18 16 19 24 19 29 27 28 64
You waste your money

8
Your money goes to criminals
3 6
Poor quality can damage the equipment you own You set a bad example to children around you 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 stealing others' idea or art
3 2
4 4
7 9
4 5 7 4 5 7 10 12
1 1
5 4 3 3 5 5 8
INDIA UK RU MEX KO
2 2
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4.2.7: Message Testing
Inthissectionoftheresearch,theprojectinvestigatedrespondentsreactiontoalistofstatements about Counterfeit and Piracy. Some of them were quite generic; others were applied to specific industries. The credibility of certain spokesperson profiles if they were to be used in an anti counterfeitingandpiracycampaignwasalsoinvestigated.
4.2.7.1: Credible Messages and Inefficient Statements

Overall, message credibility varied greatly, but a majority of consumers found messages declaringthatcounterfeits"arenotsafebecausetheyarenotsubjecttothesamecontrolsand inspectionsasgenuine","harmtheeconomy",or"cancontaindangerousmaterials(inclothes andtoys)thatcanharmyourhealth"asthemostcredible. In Table 22, below, for each suggested statement respondents could say if they found it True, DoubtfulorUntrue.ThepercentageresponsesofconsumersbelievingastatementisTrueis presentedbelow.
Table29:GenericStatementCredibility,MostCredibleStatements(5Countries Comparison)
CF products are not submitted to the sam e control and inspections as genuine items, they can damage health or your belongings W hen one buys CF products it not only harms the brand that has been copied but also the economy of the country
37 77 86 86 61 36 59 63 72 55 37
CF clothes or toys can contain m aterials that harm the health of those who use them
58 83 48 54 38 35 59 54 36
IND IA UK RU MEX KO
In my country you can find all kinds of bottled products that are fake Sellers re-use genuine bottles and put fake products in it
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U.K.Consumersaretheonesthatreacttothemostfavourablytothestatementassociating C/Pbusinesstootherillicitactivitiessuchasdrugsandprostitution.Theyarealsotheonly countrytestedwherehalfconsumersbelieveintherealityoftheirgovernmentisattempting tofightagainstillicitC/Poperators. RussianConsumersarefarfrombeinginthesamedispositiontowardtheirgovernment: o Only16%ofthembelievegovernmentisreallyfightingC/P.AtthesametimeRussiais theonlycountrywheremorethanhalfconsumersadheredtotheStatementBuying Counterfeitisnotreallyunethical. TheideathatRussianconsumerscannotprotectthemselvesfromC/Pisbackedbytheir answerstothestatementIfyoudontmakepurchasethroughstreetvendorsorinFlea marketsyouhavealmostnochancetobuyafake:only16%ofRussianconsumers foundthisstatementTrue. AtlastRussianConsumersaretheonemostlikelytoadheretothestatementInmy Country,manypeoplediefromusingcounterfeitmedicines.
MexicanConsumerswherethosedefendingthemostthe[possible]socialbenefitsofC/P: o 41%ofthemadheredtothestatementIftherewasnoC&Pbusinessinmycountry, manypeoplewouldnotbeabletoaccesscultureorentertainthemselves. 35%adheredtoIftherewasnoC/Pbusinessinmycountrymanypeoplecouldntafford tobuymedicinesoreventoiletries. Atlast,morethanhalfMexicanconsumersadheredtothestatementIftherewasno C&PbusinessinmyCountry,manypeoplewouldnotbeabletosupporttheirfamilies.
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Table30:GenericStatementCredibility,StatementswithaMediumlevelCredibility (5CountriesComparison)
In m y country, the CF business is run by the same people that smu ggle drug or organize prostitution In my co untry people get very h eavy fines or even go to jail when they are caught selling CF products Buying CF products is not really uneth ical It's not like people are stealing when the buy CF products In my country Government is really struggling against CF business If there was no CF busin ess in my country many people would not be able to support their families 36 48 26 44 26 34 46 21 36 33 37 21 52 29 27 36 51 16 34 28 41 15 39 51 14
INDIA UK RU MEX KO
Table31:GenericStatementCredibility,StatementswithalowCredibility(5Countries Comparison)
If you dont make purchases through street vendors, flea markets or through a website you have almost no chance to buy CF products 36 35 16 38 34 40 If there was no CF business in my country, many people would not be able to access culture or entertain themselves 13 41 41 14 39 In my country people get fines or are prosecuted for buying CF products 36 15 25 27 28 In my country many people die because of using CF medicines 12 38 If there was no CF business in my country, many people couldnt afford to buy medicines or even toiletries 11 32 35 11
INDIA UK RU MEX KO
15 56 22
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4.2.7.2: Specific Industry Focus

In the previous section we tested generic statements; in the following we tested some applied statementsrelatingtospecificproductscategories: Overall,30%ofconsumersfromthe5countriesbelieveCounterfeitMedicinescomposition integrates dangerous or toxic ingredients. This varies from 40% of Korean consumers to 19%ofIndianConsumers.ThisisinterestingsinceCounterfeitMedicinesseemtobequite popularinKorea. Respondentswereaskedtoanswerasimplequestion:ThinkingaboutCounterfeitMedicinesinyour Country,doyouthinkthatmostofthetimetheirformulaincludes[Choosetheansweryoufind theclosesttowhatyouthink]: Dangerousortoxicingredients Otheringredientsthanthegenuineonesbutnontoxic Thesameingredientsbutonalowerdosage Exactlythesameingredientsatthesamedosage
Table32:CounterfeitMedicinesFormula(5CountriesComparison)
Average 5 Countries INDIA 30% 45% 9% 16%
Dangerous or toxic ingredients
19%
17%
40%
24%
Other ingredients than the genuine ones (non toxic)
U.K.
37%
52%
11%
RUSSIA
30%
59%
11%
Same composition but lower dosage
MEXICO
25%
43%
32%
Same composition
KOREA
40%
55%
6%
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Thefactthatelectronicdevicessuchasbatteriesorloaderscouldharmexistinggoodsseems plausible to most consumers, however, most of them consider this would be an unlucky experimentmorethanarule. Do you think Counterfeit Electronic devices such as loaders, wires and batteries can harm the equipmentyouwouldusethemwith[Choosetheansweryoufindtheclosesttowhatyouthink] YesDefinitely Yes,itcanhappenifsomeoneisunlucky No,notreally,theworstthingwouldbetheydontworkproperly No,theydothejobjustaswellasthegenuineones
Table33:RisksassociatedtoCounterfeitElectronicDevices(5CountriesComparison)
Yes definitely
31%
41%
18%
10%
Yes sometimes if one is unlucky
U.K.
23%
56%
19%
3%
RUSSIA
14%
56%
27%
2%
No not really the worst thing would be they don't work very well
MEXICO
32%
36%
24%
7%
No they do the job just as well as the genuine one
KOREA
33%
54%
12% 1%
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Thisisquitethesamesituationwithpiratesoftwaremostconsumersareawarethattheycan createproblemswithcomputersbutconsideritamatterofchancemorethanasystematic threat.U.K.consumersaretheonesreportingthemostanxietytoharmtheircomputerwhen usingpiratesoftware. Do you think CF software can harm the computers they are used with by giving them virus or by damagingothersoftwareorhardware?[Choosetheansweryoufindtheclosesttowhatyouthink] YesDefinitely,theycandamageonescomputer Yes,theysometimescreateminorproblems No,notreally,theworstthingwouldbetheydontworkproperly No,theydothejobjustaswellasthegenuineones
Table34:RisksassociatedtoPirateandCounterfeitSoftware(5CountriesComparison)
Yes they can definitely seriously damage one's computer
35%
40%
16%
9%
Yes they sometimes create minor problems
U.K.
48%
37%
12% 3%
RUSSIA
25%
34%
26%
15%
No not really the worst thing would be they don't work well
MEXICO
32%
30%
27%
11%
No they do the job just as well as the genuine one
KOREA
31%
48%
17%
4%
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ConsumerResearchDetailedFindings:LearningaboutMessengers
4.3: Learning about Messengers

4.3.1: Overview of efficient Messengers for a Campaign as discussed in the Focus Groups
United Kingdom
Awakeupcalloncounterfeitingandpiracymighteffectivelybecarriedoutbyvictimsusingan empathictone.Peopleneedtoreallyprojectthemselvesintothescenariotostopthinkingofitasa game or a way to beat the system. A law enforcement officer may also be a quite powerful messengerintheU.K,thoughthismessengerisdocumentedashavinglessresonanceamongother focusgroupdemographics.
Mexico
Mexicansneedtobeabletotrustthepersonwhoistellingthemaboutthedangersandwiderissues associatedwithcounterfeitandpiratedproducts.Avictimofacounterfeitorpiratedproductwould bethemostbelievable,aslongastheydontexaggeratetheextentoftheirinjuries. Quite uniquely to Mexico, small companies also appear to be a good vehicle to transmit anti counterfeiting messages. Mexicans report they are able to empathise and find a connection with smallbusinessownersandemployees.Theyalsowanttolookaftertheirown,andthiscanstretch furtherthanjustfriendsandfamily,totheirwidercommunity.Lawenforcementandgovernmentare likelynoteffectivespokespeople,aspeopleinMexicoseemtohaveadistrustoftheseinstitutions and,infact,oftenseethemaspartoftheproblem.
Russia
Anticounterfeiting leadership needs to first come from government as citizens are familiar with poweranddirectivesinRussiacomingfromthecenter.Currentlyconsumersperceivethoseleading their country are doing nothing to fight counterfeiting and piracy. They believe the fight against counterfeitsandpiratedgoodsneedstostartatthetopandthatconsumersarepowerlesstoaffect any meaningful change by themselves. Consumers therefore see no reason to change their purchasinghabitsuntiltheyaretoldtodosobygovernmentorlawenforcementandareabletosee agenuinestimulus(punishment)fordoingso.
South Korea
Koreans expressed a need to hear about the dangers of counterfeit and pirate products through victims. Anyone can be a victim, from people like themselves, to owners of small companies, but Koreansmostvaluepersonalrelationships.ThemessengerhastobetrustedbyKoreans.Thisisthe key reason they say they their government would not be a suitable vehicle for anticounterfeit messages.
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India
EffectivecommunicatorsoncounterfeitingandpiracyinIndiaarethosewhoareeitherinapowerful position in society, or have been empowered on the subject of counterfeiting and piracy through theirpastexperiences.Consumersseemtowanttheirgovernmenttospeakupastheyhaveplaced theirtrustinthisbodythroughthedemocraticvotingprocess.Thiscredibilityofgovernmentofficial, lawenforcementrepresentativeandcelebritiesisquiteuniquetotheIndianmarketamongthe5we researched.Celebritiescanbeeffectivemessengers,astheyarehugelypopularinIndiaaswelland consumerslovetoseethemonTV/postersetc. Upon further reflection, however, most participants said the more effective messengers would be CEOs of big companies (e.g., TATA) as they have made a positive contribution to Indias economic opportunities. Notably, this profile of an effective messenger differs significantly from other countries.Victimsofcounterfeitproducts,exhibitingfirsthandexperiences,alsoemergeaseffective messengersinIndia. ItiscommonpracticeinIndiaforpeopletobreaklaws.Forexample,smokinginMumbaiisbanned inpublicplaces,yetmaleparticipantsintheMumbaifocusgroupssaidthisisoftennotadheredto. The lack of law enforcement is a primary driver in India. This was reflected throughout the discussionsoncounterfeits;withconsumerswantingtheirgovernmenttotaketheleadandforthe sellersofthesefakegoodstobetargetedabovetheconsumer.
4.3.2: Most Credible Spokesperson

In this section, the research asked consumers to list the most potential spokesperson for an anti counterfeitingandPiracycampaign.Thequestionwasformulatedasbelow: Ifyouwerelookingatacommercialorcampaignthatsayscounterfeitproductsareaserious probleminyourcountry,whodoyouthinkwouldhavethemostimpactonyou/bethemostcredible persontotellyouaboutthis? Onceagain,thefirstpartofthesectionallowedmultipleanswers,thenrespondentshadtochoose thesinglemostimpactfulmessenger.Tonote,insteadoftestingeachmessengerintheabsolute we preferred associate messengers with a message. Some messengers were associated to several messagestopretestobviousornaturalcombinations. Victimsofcounterfeitsorsomeonewhoembodiestherisksofcounterfeitstohealthandsafety arethe mostcrediblespokespersonsonthisissue. Traditionalauthorityfiguresarethe least credibleinthiscase.
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Table35:MostCredibleSpokespersons,TopofMind(GlobalSample)
A person who used CF product and was seriously harmed 3% 4% 4% 4% 4% 28% A member of an NGO you respect saying CF dealers are criminals A governement official saying CF is harming the econonmy A celebrity saying CF can damage your health or your belongins An employee of a local company saying he lost his job because of CF business A father asking for support in teaching his children not to buy CF A local businessman saying he shut his company because of CF A judge saying CF business breaks many laws of the country 15% A policeman saying CF business is controlled by criminals 28% A CEO saying CF business leads to job losses 2% 2% 1% A mother who used CF lotion and hurt her kids' skin A doctor talking about the risks of CF for one's health
5%
Table36:MostCredibleSpokespersons,TopofMind(5CountriesComparison)
22 29 28 21 18 31 32 20 10 38
A mother who used CF lotion and hurt her kids' skin A person who used CF product and was seriously harmed
37
A doctor talking about the risks of CF for one's health
12 12 18
23
A member of an NGO you respect saying CF dealers are criminals A father asking for support in teaching his children not to buy CF An employee of a local company saying he lost his job because of CF business
2 2 2 3 1 2
12 5
6 6 4 2 3 3 9
INDIA UK RU MEX KO
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Table37:LeastCredibleSpokespersons,TopofMind(5CountriesComparison)
A celebrity saying CF can damage your health or your belongins A governement official saying CF is harming the econonmy 3 3 4 4 9 2 2 1 4 4 4 4 3 1 1 1 4 1 1 1 1 1 1 1 3 INDIA UK RU MEX KO 6 6 8
A local businessman saying he shut his company because of CF
A policeman saying CF business is controlled by criminals A judge saying CF business breaks many laws of the country A CEO saying CF business leads to job losses
Table38:MostCredibleSpokespersons,MultipleAnswers(5CountriesComparison)
62 A person who used CF product and was seriously harm ed 72 76 64 68 55 A m other who used CF lotion and hurt her kids' skin 56 40 A doctor talking about the risks of CF for one's health 48 55 A n em ployee of a local com pany s aying he lost his job because of CF business 35 16 49 19 24 A local businessman saying he shut his c om pany becaus e of CF 30 16 36 23 52 A m ember of an NGO you respec t saying C F dealers are criminals 15 17 24 15 54 70 64 71 71 63
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IND IA UK RU M EX KO
Table39:LeastCredibleSpokespersons,MultipleAnswers(5CountriesComparison)
18 A father asking for support in teaching his children not to buy CF 20 17 37 28 35 A celebrity saying CF can damage your health or your belongins 17 29 18 19 40 A governement official saying CF is harming the econonmy 10 13 13 19 35 A CEO saying CF business leads to job losses 7 22 A policeman saying CF business is controlled by criminals 29 13 12 13 23 A judge saying CF business breaks many laws of the country 8 13 15 14 10 13 27
INDIA UK RU MEX KO
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5
CONCLUSIONS
Understanding what drives a consumer to choose a fake, illegal product is a complex undertaking. Motives vary widely, from price and easy access to social acceptability and a perception that a counterfeit/pirate purchase is a game which falls outside the law and for which there are no consequences.Equallytroubling,consumersincludeweakgovernmentcommitmenttofightingand prosecutingcounterfeitingamongtheirmotivesorexcusestolooktheotherway. Theaiminconductingandsharingthisresearchistowidenthecircleofvoiceshelpingtocraftmore effectiveanticounterfeiting/antipiracypolicies,andtoprovideallinterestedpartieswithtoolsthey can use to develop communications and educational programs that can that can begin to change consumer awareness, attitudes and purchase habits so that the demand for the illegal, dangerous productsstops.
Consumers - Simplytellingpeopletostopengaginginbehaviourtheyperceiveaspersonally
beneficialisnoteffective.Consumersneedtounderstandhowtheywillbenefitfromforegoing purchasesofcounterfeitorpiratedproductstobeinspiredtochange,andalsounderstandand appreciatethefullrepercussionsoftheircounterfeitpurchases.ThisReporthighlightshowtheright messagesarecriticalinconvincingconsumerstostopthepractice.
Governments - Effortsbygovernmentsandenforcementagentstostopcounterfeitingandpiracy
havelargelyfocusedonstrengtheningIPenforcementregimestomoreeffectivelydeterthe productionandtradeoffakeproducts.Activitiesaimedattacklingtheconsumerdemandsideofthe equationhavenotreceivedthesamelevelofattentionorresources.Ourhopeinsharingthe findingsofthisreport,isthatgovernmentswillmoreclearlyrecognisetheneedtocommunicate moreaggressivelywiththeirconstituentsthatcounterfeitingandpiracyarenotvictimlesscrimes
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Conclusions
butinsteadinflictseriousharmonpeople,theeconomy,jobs,andtheircommunities.Wealsohope governmentswillseetheneedtomakecounterfeitingandpiracyahigherpublicpolicypriorityso thatlocalconsumerswillseetheirgovernmenttakingtheissueseriouslyandactingonit.As governmentsfullyunderstandthefactorsthatdrivetheirconstituenciestopurchasetheseillegal goods,theycanundertakeappropriatecommunicationsandpolicyinitiativestostopthedemandfor fakes.
Cooperation - Inconclusion,thereisnouniversalwaytofightthisepidemic:regionalandcultural
differences must be considered in sending the right message at the right time and the right place. We hope that the information in this report will be useful to national and local governments, businessesandorganisationsindesigningcommunicationsthatwillresonatewithlocalconsumers. BASCAP and its member companies will be undertaking new initiatives to build awareness and educate consumers, but we cannot succeed in this effort alone and need support, goodwill and assistancefromallstakeholdersinthefightagainstcounterfeitingandpiracy.
Summary of overall conclusions

In the broadest sense, consumer attitudes can be summed up as:
AlackofresourcesThere'snowayonearthI'dbeabletoaffordtherealthing,soI'mnot harminganyone.WhyshouldIbedeniedalookalikebecauseofmysocioeconomicstanding? AlackofrecourseThereisnoriskI'mgoingtogotojailforthis,andifitwasabigdeal,the governmentwouldbedoingsomethingaboutit? AlackofremorseWhat'sunethicalisthatIcannotaffordtheitemIwant?
Consumer purchase behaviour is a complex mix of factors, influenced by a number of drivers and deterrents:
Driverscannotaffordgenuine;genuineisoverpriced;didn'tknowit'sfake. Deterrentshealthrisks;wasteofmoney;genuineproductsofferservicesandwarranty.
There is a strong personal connection with fake purchases:

Theclosertheriskistothepurchaser,thegreatertheirconcern...personalandfamilywell beingaretheprimaryconcern.
Purchasers listen to victims and experts, not authority figures:

Effectivemessengersinclude:apersonharmedbyC/Pproduct;motherswhosechildrenhave beenharmed,amedicalexpert(48%). Lesssignificantmessengersinclude:police,corporateexecutives,judges.
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Conclusions
Three primary issues will impact purchasing habits of counterfeit/pirated products that are influenced by a combination of awareness and enforcement:
Potentialphysicalharmtobuyerortheirfamily(awareness). Reducedsupplyofcounterfeit/piratedproducts(enforcement). Threatofprosecutionorincarceration(awareness/enforcement).
Predominant drivers behind counterfeit purchases

Lowpriceandincreasinglybetterqualitycreatetemptation. Lowriskofpenaltyequatestoalicensetobuy. Availability,quality,priceandlowriskgenerateanoverallsenseofsocialacceptability.
Top deterrents to acquiring counterfeit and pirate products

Health&safetyconsequencestopthelist. Threatoflegalactionorprosecutiondeliversawakeupcall. Linkstoorganisedcrimehavemoretractionthanmightbethought. Peopledontwanttoharmsomeonelikeme.
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Conclusions
The top 15 learnings from the consumer research

Thefollowing15pointscanbeconsideredtobethekeyfindingsbothcategorisingtheresultsofthe researchandessentialforeffortstodevelopananticounterfeitorantipiracycampaign.
General
1. ThereisnotatypicalC/Ppurchasersociotype.However,thekindofC/Pproductspeople purchasevariesdependingonnationality,incomelevelandage.Almosteveryonecanbea counterfeitbuyer/adigitalpirate! TherearemanywordsforC/Pproducts:Copies,Copycat,Fakes,PirategoodsorevenCrap Allthesenotionscoversubtledifferences.Chineseproducts(cheapandexpendable)andgrey marketgoods(offthetruck,customseizure,harddiscountproducts)allcontributetoblurring thepicture. ConsumersidentifyrealdifferencesamongC/Pproducts;someofthemtalkaboutClassAor FirstclassC/Pproducts,astheultimatefakesthateverysmartconsumerwouldseek. Generallyspeaking,theyreportariseinthequalityofC/Pproducts.
2.
3.
The Purchase Momentum

4. 5. A large majority of consumers do recognise that buying counterfeit or engaging in piracy is unethicalbutfeelitsessentiallyavictimlesscrime,soseldomfeelguiltyaboutit. Consumers perceive the C/P (illicit) business harmless in the absence of obvious sanctions againstpurchasersandsometimessellers(prosecutionthreatisperceivedtobemorecredible forpiracyofdigitalcontentthanforpurchaseofcounterfeitgoods). Inemergingmarkets,morethanhalfofC/Ppurchasesarefromregularstores.Consumersoften feel its impossible to protect themselves from C/P goods. Online C/P purchase was reported onlybyrespondentsinKoreaandU.K. C/Ppurchaseisanimpulse:consumersneedtheproductsfast,usethemfast,throwthemout fast.Theydontthinkoftheproductoriginordistributionsystematall. ConsumersrefusetocallthemselvesvictimsofC/P,evenwhentheyhaveabadexperiencewith aC/Pproduct.Theyhavethefeelingtheycontrolthesituation,andinsomecases,evenfeel empoweredbytheirpurchase.
6.
7. 8.
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Conclusions
Effective Drivers & Deterrents

9. ThemainreasonsforC/Ppurchasearewellknownandconfirmed:lowerpriceandavailability. But more sophisticated motives coexist: a rejection of the established order and distribution system (Mexico), a teenage spirit (U.K.), or even a paradoxical soft rebellion against a consumptionsociety.
10. Not all consumers have a clear vision and understanding of the benefits of going genuine. Qualityandcustomerserviceoftenfailtoconvinceconsumersthatpayingmoreforthegenuine productisworthwhile. 11. Risktohealth,risktopersonalpossessionsandriskofprosecution(whencredible)arethethree mostpowerfuldeterrentsagainstC/Ppurchases. 12. Consumersfromallcountriesactalongproximityrules!Theycarefirstforthemselvesandtheir families,thenfortheircommunities,thenfortheircountries.
Messaging
16. Consumersnolongerlistentotraditionalauthorityfigures(judges,governmentofficials,police) butexpectthemtoleadthefightagainstcounterfeitingandpiracy.Consumersadmittheyneed boundariestoactethically. 17. Themostcrediblespokespersonswouldbevictims(firstly,peoplewhosehealthhassuffered, followedbyeconomicvictims).Thesevictimshavetobeultralocaltogenerateempathy.Thisis achallengeforcombatingpiracy,whichhasfewifanyconsequencesforhealth. 18. ConsumersadmittheydontthinkabouttheimplicationsoftheirC/Ppurchases.Theygenuinely reportnotunderstandingwhycounterfeitingandpiracyisaplaguebeyondthemereethical principle.Theywantevidencethatcounterfeitingandpiracyisharmingthem/theircommunity/ societyaswholeandnotonlybigcompanies.Theyalsowanttoseewhatsinitforthemif theystopbuyingcounterfeitsordownloadingillegally.
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APPENDIX 1:
Country Fact Sheets

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Appendix
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Appendix
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Appendix
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Appendix
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Appendix
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APPENDIX 2:
Sources
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Appendix
Thefollowingsurveyswereusedtodeveloparounderviewofthecurrentstateofcounterfeiting: GlobalConsumerAwareness,AttitudesandOpiniononCounterfeitingandPiracy,TheGallupOrganization, 2007 FifthannualBSAandIDCGlobalSofwarePiracyStudy,BusinessSoftwareAlliance,2007 WhitePaper:TheImpactofSoftwarePiracyandLicenceMisuseontheChannel,Microsoft,2008 WhitePaper:TheRiskofObtainingandUsingPiratedSoftware,Microsoft,2006 TheRecordingIndustry2006PiracyReport,IFPI,2006 Piratesofthe21stCentury,Ernst&Young,2008 MusicPurchaseBehaviour:TheEffectofEmotionalLoyaltyonIntentiontoPurchase,ANZMACConference Proceedings,2006 BrandDeceptiveCounterfeits,2008 AssessingMajorDemandDriversforCounterfeits,Psychology&Marketing,2008 TheConsumerGoodsIndustryunderAttack,Ernst&Young,2008 EffectsofCounterfeitingonEUSMEs,EuropeanCommission,2007 2007PiracyReport,BusinessSoftwareAlliance,2007 ExplanatoryModelfortheVolitionalPurchaseofCounterfeitProducts,ViennaUniversity,2005 ConsumerAttitudestowardCounterfeits,FederalUniversityofRioGrandedoSulandMinasGerais,2007 SoftwarePiracyamongComputingStudents:Computers&Education,1999 FinancialImpactoftheCanadianMusicIndustry,OntarioMediaDevelopmentCorporation,2008 ExamingtheBuyingBehaviour,MaterialismandConformityMotivationsofConsumersinHongKongand Shanghai,CityUniversityofHongKong,2006 TheEffectsofAttitudinalandDemographicFactorsonIntentiontoBuyPiratedCDs,JournalofBusiness Ethics,2003 FifthNationalReadingSurvey,ChineseInstituteofPublishingScience,2008 UnauthorizedCopyingofSoftwareAnEmpiricalStudyofReasonsForandAgainst,MikkoTSiponen [UniversityofOulu]andTeroVartiainen[TurkuSchoolofEconomics],2007 LesFranaisfaceautlchargementillgaldemusiquesurInternet,Ipsos,2008 LesPMEetlalutteAntiContrefaon,ConfdrationGnraledesPetitesetMoyennesEntreprises,2007 LesFranais,lacontrefaonetlepiratage,Ifop/UniondesFabricants,2005 ProduktundMarkenpiraterieinderInvestitionsgterindustrie,VerbandDeutscherMaschinenund Anlagenbau,2008 ConsumerFileSharingofMotionPictures,JournalofMarketing,2007 ExplainingCounterfeitPurchases,AcademyofMarketingScienceReview,2006 FakeBrandsRecognisingaRealTrend,Euromonitor,2007 InteractionEffectsinSoftwarePiracy,BusinessEthics,2007 AnnualSurveyonPublicAwarenessofProtectionofIntellectualPropertyRights,IntellectualProperty Department(GovernmentofHongKongSAR),2005 DigitalPiratesinPractice:AnalysisofMarketTransactionsinHongKong'sPirateSoftwareArcades, InternationalJournalofManagement,2006
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Appendix
ExploringtheMaterialismandConformityMotivationsofChinesePiratedProductBuyers,HongKong BaptistUniversity,2006 UnderstandingConsumerDemandforNondeceptivePiratedBrands,MarketingIntelligence&Planning, 2002 ProfilingBrandpiracyproneconsumers:AnExploratoryStudyinHongKong'sClothingIndustry,Journalof FashionMarketingandManagement,2001 SoftliftingandPiracy:BehaviourAcrossCulturesTechnologyinSociety,2001 IndiaFraudSurveyReport2008,KPMG,2008 TheInfluenceofLawfulnessAttitudesonConsumers'WillingnesstoPurchaseCounterfeitGoods,Cowan University EconomicImpactStudyofCounterfeiting,IndonesiaandDialogueonRegulatoryRemediescofinancedby theEU,2005 EconomicPerspectiveofCounterfeitMedicines,2003 PreventingApplicationSoftwarePiracy:AnEmpiricalInvestigationofTechnicalCopyProtections,University ofCologne,2007 UnethicalConsumerBehaviour:RobinHoodsorPlainhoods?,UniversityofHaifa,2008 SurveyReportonDamageCausedbyCounterfeiting,MinistryofEconomy,TradeandIndustry,2008 ConsumerPurchaseofPiratedVCD,UniversitiUtaraMalaysia,2006 CounterfeitMusicCDs:SocialandPersonalityInfluences,Demographics,AttitudesandPurchaseIntention, TheProceedingsofthe2ndEuropeanConferenceonResearchMethodsinBusinessandManagement,2003 PurchasePreferenceandView:TheCaseofCounterfeitGoods,UBMConferenceProceedings,2002 HbitosdeConsumodePelculas,ProcuraduraFederaldelConsumidor,2007 EncuestaSobrePiratera,ProcuraduraFederaldelConsumidor,2006 ProductCategoryandOriginEffectsonConsumerResponsestoCounterfeits,JournalofInternational ConsumerMarketing,2006 HowwelldoStudentsreallyUnderstandPlagiarism?,VictoriaUniversityofWellington,2005 Lapiratera,problemaosolucin?,UniversidadESAN,2006 CounterfeitandlookalikeProductsSocialAwareness,GdanskInstituteforMarketEconomics,2007 Consumer'sAttitudestowardFashionCounterfeitsandCounterfeitPurchaseIntentions: AcademyofMarketingScienceSpringInternationalConferenceRepublicofKorea,2006 2006,Korean
TheEffectofFileSharingonConsumer'sPurchasingPattern:ASurveyApproach,UniversityofFlorida,2006 ChangingScaleandPatternofAntiCounterfeitMeasuresinRussia'sConsumerMarket,Rusbrand,2008 TheQuantificationofConsumerAttitudesandBehaviourtowardCounterfeiting,TheGallupOrganization, 2006 IntellectualPropertyRightsinRussiaASurveyofRussianandInternationalBrandHolders,TheCoalition forIntellectualPropertyRights,2006 ConsumerAttitudesandBehaviours:Counterfeits,TheCoalitionforIntellectualPropertyRights,2003 SoftwareCopyrightInfringements:AnExploratoryStudyoftheEffectsofIndividualandPeerBeliefs,Omega, InternationalJournalofManagement,1997 AnEmpiricalStudyofSoftwarePiracyamongTertiaryInstitutions,Information&Management,2006 AReversedContextAnalysisofSoftwarePiracyIssuesinSingapore,TrevorTMoores[UniversityofNevada LasVegas],JasbirDhaliwal[NorthernKentuckyUniversity],2004
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Appendix
SpottheDifference:ConsumerResponsestowardsCounterfeits,NationalUniversityofSingapore,2001 DeterminantsofConsumerWillingnesstoPurchaseNonDeceptiveCounterfeitProducts,Universityof Ljubljana,2007 DeterminantsofDigitalPiracyamongYouthinSouthAfrica,UniversityofCapeTown,2007 NationalConsumerSurvey,DepartmentofTradeandIndustry,2003 BarmetrodeMarzo,CentrodeInvestigacionesSociolgicas,2007 68CentsperSong:ASocioEconomicSurveyontheInternet,UniversidadComplutensedeMadrid,2007 EstudioSituacinMusical,Popes80.com,2006 Consumers'WillingnesstoPayforNonpiratedSoftware,NationalChungHsingUniversity,2008 FactorsthatInfluencethePiracyofDVD/VCDMotionPictures,NationalTaipeiUniversity,2005 TheAntecedentsofMusicPiracyAttitudesandIntentions,NationalChengchiUniversity,2005 TheEffectofInterpersonalInfluenceonSoftliftingIntentionandBehaviour,NationalDongHwaUniversity/ TaiwanNationalCentralUniversity,2005 ConsumerAttitudetowardGrayMarketGoods,NationalChiaoTungUniversity,2004 ShapingofMoralIntensityRegardingSoftwarePiracy,UniversityofRedlands/IndianaUniversityNorthwest, 2004 AnExploratoryStudyofMoralIntensityregardingSoftwarePiracyofStudentsinThailand,Indiana UniversityNorthwest/PennStateGreatValley/UniversityofAkron,2003 OrganizationalSoftwarePiracy:AnEmpiricalAssessment,AtilimUniversity/TOBBUniversityofEconomics andTechnology,2007 ConsumerHomePiracyResearchFindings,FuturesourceConsulting,2008 2008DigitalEntertainmentSurvey,EntertainmentMediaResearch,2008 2008SurveyintotheMusicExperienceandBehaviourinYoungPeople,UniversityofHertfordshire,2008 ConsumerSurveyClothing&FootwearSector,LedburyResearch,2007 ConsumerSurveyFragranceSector,LedburyResearchforAntiCounterfeitingGroup,2007 ConsumerSurveyWatchSector,LedburyResearchforAntiCounterfeitingGroup,2007 CounterfeitingLuxury:ExposingtheMyths,LedburyResearchforAntiCounterfeitingGroup,2007 Digital&PhysicalPiracyinGB,U.K.FilmCouncil,2007 Downloading&HomeCopyingConsumerResearch,FuturesourceConsulting,2007 FileSharers:Criminals,CivilWrongdoersortheSavioursoftheEntertainmentIndustry?,Universityof Hertfordshire,2007 TheEffectofLifeValuesandMaterialismonBuyingCounterfeitProducts,UniversityCollegeLondon,2007 The2007DigitalMusicSurvey,EntertainmentMediaResearch,2007 FakeNation:AstudyintoanEverydayCrime,NorthernIrelandOffice,2006 HowdoFakesaffecttheBusinessWorld?,AntiCounterfeitingGroup,2003 WhatdoConsumersReallythinkaboutFakes?,AntiCounterfeitingGroup,2003 CulturalAttitudestowardsPlagiarism,PlagiarismAdvisoryService,2003 Fakin'it:CounterfeitingandConsumerContradictions,GlasgowCaledonianUniversity/Universityof Strathclyde,2003 CybercrimeagainstBusinesses,BureauofJusticeStatistics,2008
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Appendix
DigitalPiracyofMP3s:ConsumerandEthicalPredispositions,MarquetteUniversity,2008 MusicPiracyamongStudentsontheUniversityCampus:DoMalesandFemalesreactDifferently?,Florida AtlanticUniversity/UniversityofNevada,2008 NationaliStockphotoSurvey,KRCResearch,2008 PreservingIntellectualPropertyRights,VillanovaUniversity/CityUniversityofNewYork/CordellAssociates, 2008 PreventingDigitalMusicPiracy:TheCarrotortheStick?,ArizonaStateUniversity,2008 TheEconomicBenefitsofLoweringPCSoftwarePiracy,BusinessSoftwareAlliance,2008 CostBenefitModelsofStakeholdersintheGlobalCounterfeitingIndustryandMarketingResponse Strategies,SaintLouisUniversity/NorthernIllinoisUniversity,2007 CounterfeitingintheUnitedStates:ConsumerBehavioursandAttitudes,U.S.ChamberofCommerce,2007 DeterminantsofMusicCopyrightViolationsontheUniversityCampus,FloridaAtlanticUniversity,2007 CounterfeitingintheUnitedStates:ConsumerBehavioursandAttitudes,USChamberofCommerce,2007 DigitalMusicPiratingByCollegeStudents:AnExploratoryEmpiricalStudy,TroyUniversity,2007 EquityPerceptionsasaDeterrenttoSoftwarePiracyBehaviour,UniversityofArkansas,2007 LowSelfControlandSocialLearninginUnderstandingStudents'IntentionstoPirateMoviesintheUnited States,UniversityofLouisville/UniversityofCalifornia,Irvine,2007 PiracyontheSilverScreen,UniversityofPennsylvania,2007 Share,Steal,orBuy?ASocialCognitivePerspectiveofMusicDownloading,MichiganStateUniversity/Kent StateUniversity,2007 YouthandDownloadingBehaviour,BusinessSoftwareAlliance,2007 2007StudentandAcademicSurvey,BusinessSoftwareAlliance,2007 ConsumerSearchandRetailerStrategiesinthePresenceofOnlineMusicSharing,UniversityofConnecticut /CaliforniaPolytechnicStateUniversity,2006 DigitalPiracy:FactorsthatInfluenceAttitudeTowardBehaviour,UniversityofArkansas,2006 DigitalRightsManagement:WhattheConsumerWants,RollinsCollege,2006 GenderDifferencesinSoftwarePiracy:TheMediatingRolesofSelfControlTheoryandSocialLearning Theory,UniversityofLouisville,2006 ImpactofLegalThreatsonOnlineMusicSharingActivity:AnAnalysisofMusicIndustryLegalActions, UniversityofConnecticut/CaliforniaPolytechnicStateUniversity,2006 PiracyontheHighC's:MusicDownloading,SalesDisplacement,andSocialWelfare,Universityof Pennsylvania,2006 PurchaseIntentforFashionCounterfeitProducts,OhioStateUniversity&UniversityofDelaware,2006 SoftwarePiracyamongAccountingStudents,UniversityofColorado/UniversityofUtah,2006 TeachingEthicalCopyrightBehaviour,UniversityofDayton/UniversityofArkansas,2006 Whateverhappenedtopayola?Anempiricalanalysisofonlinemusicsharing,UniversityofConnecticut/ CaliforniaPolytechnicStateUniversity,2006 AnApplicationofDeterrenceTheorytoSoftwarePiracy,UniversityofLouisville,2005 Attitudetowardethicalbehaviourincomputeruse:ashiftingmodel,UniversityofTulsa/Universityof Arkansas,2005
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2006ToplineReport,BusinessSoftwareAlliance,2006
Appendix
BrandPiracy:AVictimlessCrime?,TheGallupOrganization,2005 Onlineholidayshoppingandconsumerconfidence,BusinessSoftwareAlliance,2005 CounterfeitGoodsasaGenuineProblemintheUS?,TheGallupOrganization,2005 HigherEducationUnlicensedSoftwareExperience,BusinessSoftwareAlliance,2005 IFPIEuropeanDigitalMusicSurvey,Jupiter/Ipsos,2005 MusicandVideoDownloadingMovesbeyondP2P,PewInternet&AmericanLifeProject,2005 KidsandTeens:OnlineBehaviouratHomeandatSchool,BusinessSoftwareAlliance,2005 TeenContentCreatorsandConsumers,PewInternet&AmericanLifeProject,2005 ABehaviouralModelofDigitalMusicPiracy,UniversityofConnecticut/StateUniversityofNewYork/ NiagaraUniversity,2004 DoesSocialLearningTheoryConditiontheEffectsofLowSelfControlonCollegeStudents'SoftwarePiracy?, UniversityofLouisville,2004 MoneyforNothingandHitsforFree:TheEthicsofDownloadingMusicfromPeerToPeerWebSites, NorthernKentuckyUniversity,2004 MusicPiracyDifferencesintheEthicalPerceptionsofBusinessMajorsandMusicBusinessMajors, BelmontUniversity,2004 OnlineSoftwarePiracyPoll,IPSOS,2004 SoftwarePiracy:AnEmpiricalStudyofInfluencingFactors,NovaSoutheasternUniversity,2004 AmericansThinkDownloadingMusicforPersonalUseIsanInnocentAct,HarrisInteractive,2004 TheImpactofRecordingIndustrySuitsagainstMusicFileSwappers,PewInternet&AmericanLifeProject, 2004 ToPirateorNottoPirate:AComparativeStudyoftheEthicalVersusOtherInfluencesontheConsumer's SoftwareAcquisitionModeDecision,WrightStateUniversity/BaruchCollege/KeeslerMedicineCenter, 2004 Tweens'andTeens'InternetBehaviourandAttitudesaboutCopyrightedMaterials,HarrisInteractive/ BusinessSoftwareAlliance,2004 WhyArePeopleSoPronetoStealSoftware?TheEffectofCostStructureonConsumerPurchaseand PaymentIntentions,UniversityofSouthernCalifornia/UniversityofChicago/ColumbiaUniversity,2004 DigitalMusicandOnlineSharing:SoftwarePiracy2.0?,UniversityofConnecticut/StateUniversityofNew YorkatBuffalo,2004 DownloadsAreMusictoTeenEars,TheGallupOrganization,2003 MusicDownloadingandFileSharingamongTeens,HarrisInteractive,2003 MusicDownloading,FilesharingandCopyright,PewIntenet&AmericanLifeProject,2003 SoftwarePiracyintheWorkplace:AModelandEmpiricalTest,WestVirginiaUniversity/Universityof Pittsburgh/HongKongUniversityofScienceandTechnology,2003 TrendsandPatternsamongOnlineSoftwarePirates,MichiganStateUniversity,2003 ANewSpinonMusicDistribution,TheGallupOrganization,2002 DigitalPiracy:EthicalDecisionmaking,UniversityofArkansas,2002 SoftwareCopyrightInfringementamongCollegeStudents,UniversityofFlorida/UniversityofNevadaLas Vegas,2002 OrganizationalCommitmentandEthicalBehaviour:AnEmpiricalStudyofInformationSystemProfessionals, PennStateUniversity,2001
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Appendix
ShapingofMoralIntensityRegardingSoftwarePiracyinUniversityStudents:Immediatecommunityeffects, PennStateGreenValley/IndianaUniversityNorthwest/TheUniversityofAkron,2001 AnEmpiricalStudyofSoftwarePiracyandMoralIntensityamongUniversityStudents,IndianaUniversity Northwest/TheUniversityofAkron,2000 DownloadingFreeMusic:InternetMusicLoversDon'tThinkit'sStealing,PewInternet&AmericanLife Project,2000 ConsumerMisbehaviour:WhyPeopleBuyIllicitGoods,UniversityofNorthTexas,1999 ConsumerDemandforCounterfeitGoods,CaliforniaStateUniversity,1998 It'sNotReallyTheft!:PersonalandWorkplaceEthicsthatEnableSoftwarePiracy,UniversityofAlabamain Huntsville/UniversityofArizona/UniversityofNewSouthWales,1998 PreventiveandDeterrentControlsforSoftwarePiracy,JournalofManagementInformationSystems,1997 ToPurchaseortoPirateSoftware:AnEmpiricalStudy,CollegeofWilliamandMary/GeorgeWashington University,1997 EconomicImpactStudy:AnalyzingCounterfeitProductsintheUAE,Brandownerprotectiongroup,2008
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THE IMPACTS OF COUNTERFEIT AND PIRACY:

Counterfeitingandpiracyimpactvirtuallyeveryproductcategory.Thedayswhenonlyluxurygoodswerecounterfeited,or whenunauthorisedmusicCDsandmoviesDVDsweresoldonlyonstreetcornersarelongpast.Today,counterfeitersare producingfakefoodsandbeverages,pharmaceuticals,electronicsandelectricalsupplies,autopartsandeveryday householdproducts.And,copyrightpirateshavecreatedmultimillionnetworkstoproduce,transportandselltheir unauthorisedcopiesofmusic,videoandsoftware. Millionsoffakeproductsarebeingproducedandshippedaroundtheworldtodevelopinganddevelopedmarketsat increasinglyalarmingrates.Millionsofconsumersarenowatriskfromunsafeandineffectiveproducts,andgovernments, businessesandsocietyarebeingrobbedofhundredsofbillionsintaxrevenues,businessincomeandjobs. Thedrainontheglobaleconomyissignificantandthelongertermimplicationsofthecontinuinggrowthinthisillicittrade areenormous.TheOrganizationforEconomicCoOperationandDevelopment(OECD)estimatesthatmorethanUS$200 billionincounterfeitandpiratedgoodsflowacrossborderseachyearaccountingforonlyoneofmanytradechannels.In addition,lawenforcementgroupsandotherssuchasICChavepointedoutthattheoverallcostofcounterfeitingandpiracy maybeatleastUS$750billionayearwhenotherlossestotheeconomyareincludedsuchasdomesticallyproducedand consumedcounterfeits,thesignificantvolumeofdigitalandfakeproductsdistributedthroughtheInternet,reduced foreigninvestmentandtechnologytransfers,andlossestobroadersocietyincludingincreasedgovernmentspendingfor healthcareandlawenforcement.
ABOUT BASCAP:
Counterfeitingandpiracyhavebecomeaglobalepidemic,leadingtoasignificantdrainonbusinessesandtheglobal economy,jeopardisinginvestmentsincreativityandinnovation,underminingrecognisedbrandsandcreatingconsumer healthandsafetyrisks.Adisorderofthismagnitudeundermineseconomicdevelopment,asoundmarketeconomysystem andopeninternationaltradeandinvestment.Nolegitimatebusinessandnocountryareimmunefromtheimpactof counterfeitersandpirates.Nosinglebusiness,businesssectororcountrycanfightthisbattlealone. Inresponse,theInternationalChamberofCommercelaunchedBusinessActiontoStopCounterfeitingandPiracy(BASCAP), to:
Connectandmobilisebusinessesacrossindustries,sectorsandnationalbordersinthefightagainstcounterfeiting andpiracy. Poolresourcesandexpertisecreatinggreatercriticalmassthananysinglecompanyorsectorcoulddoalone. Amplifythevoiceandviewsofbusinesstogovernments,publicandmediaincreasingbothawarenessand understandingofcounterfeitingandpiracyactivitiesandtheassociatedeconomicandsocialharm. Compelgovernmentactionandtheallocationofresourcestowardsstrengthenedintellectualpropertyrights enforcement. Createaculturechangetoensureintellectualpropertyisrespectedandprotected.
Moreinformation:
VisitBASCAPonthewebat:www.iccwbo.org/bascap Contact: JeffreyP.Hardy BASCAPCoordinator BusinessActiontoStopCounterfeiting&Piracy InternationalChamberofCommerce 38,coursAlbert1er,75008,ParisFrance jeffrey.hardy@iccwbo.org

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Research Report on Consumer Attitudes and Perceptions on

Counterfeiting and Piracy

November 2009 www.iccwbo.org/bascap

DavidBenjamin,CoChairBASCAPSteering Committee UniversalMusic

RichardHeath,Co-ChairBASCAPSteering Committee Unilever

1.1: Overall Conclusions

There is a strong personal connection with fake purchases:

Purchasers listen to victims and experts, not authority figures:

1.2: Desk Research Key Findings

1.3: Focus Groups (Qualitative) Key Findings

Counterfeit and/or pirated product purchaser profiles

A closer look at digital piracy discussed in the focus groups

Consumersrealisesoftwareandentertainmentcompaniesfight back. Noconsumer,however,reportedsuchaperceptionregarding companiesfromothersectors.

1.4: Consumer Survey (Quantitative) Key Findings

1.4.2: The Purchase Decision

1.4.3: Building a Campaign against Counterfeiting and Piracy

The Purchase Momentum

Effective Drivers & Deterrents

2.1: Desk Research

2.1.1: Audit of Consumer Surveys

Consumer and student audiences dominate survey samples:

Software piracy most popular area of focus:

Fairly consistent questioning:

2.1.2: Campaign Material Audit

Affluent markets were the target of campaigns

Campaigns Target Audience

Campaigns Industry Focus

2.1.3: Expert Interviews

2.2. Focus Groups: Qualitative

Eachfocusgrouplastedapproximately1hr30minutesandfollowedadiscussionguidethatcovered thefollowingmaintopics: Consumerspastexperienceswithcounterfeitandpiratedproducts o o o o Purchasehistory Satisfactionwithcounterfeitandpiratedproducts Driversofcounterfeit/piratepurchase Riskassociation

Messagedeterrentsmapping o o o Messageranking Messagetoproductlinkage Productionline(wheredocounterfeitscomefrom)

Recruitment was based on the following criteria:

GROUP2 Male Male Female Female Male Male Female Female

GROUP3 Male Male Female Female Male Male Female Female

GROUP4 Male Male Female Female Male Male Female Female

2.3: Consumer Surveys: Quantitative Research

3.2 Drivers of Counterfeit/Pirate Purchases

Expanding availability positions fakes as low-hanging fruit

Price and increasingly better quality create temptation

Low risk of penalty equates to a license to buy

3.3 Top Deterrents to Acquiring Counterfeit and Pirate Products

Health & safety consequences top the list

Threat of legal action or prosecution delivers a wake-up call

Links to organised crime have more traction than might be thought

People dont want to harm someone like me

3.4 Conclusions from the desk research

Campaign messages have not matched observed consumer deterrents

Consumers may listen to a victim of counterfeiting-related harm

There is no silver bullet approach for delivering your message

A campaign without measurement is immeasurable

4.1. Country Profiles (Qualitative Diagnosis)

4.1.4: South Korea

4.2. The State of Counterfeiting: Detailed Results

4.2.1: Consumer Profiling

4.2.1.1: Consumer Qualitative Typology

4.2.1.2: Consumer Quantitative Typology

"Regulars"aremostprevalentinIndia,RussiaandMexico,whilethe"Virgins"are mostcommoninthemostdevelopedmarket,theU.K.86%oftheconsumerssurveyed reportedtohaveboughtacounterfeitorpiratedproductatleastonce Table8:CounterfeitConsumerTypology

4.2.2: Counterfeiting Penetration

65% 63% Low Income

50% 47% 41%

Medium Income High income

93% 88% 84% 79%79% 79% 84%84%