Article 1515(1) of the Civil Code of the Russian FederationDespite this very specific definition, a number of myths about counterfeit goods still exist. Wewould like to dispel them.

Myth 1

Counterfeit goods are often understood to mean crude, inexpensive fakes. By contrast, the words

"copy" and "replica" may lead buyers to believe that a product can be of good quality and

therefore cannot be considered counterfeit.

This is incorrect.

All such products are counterfeit, even where they appear to be of relatively high quality.

Some sellers mistakenly believe that, by describing a product as a "replica", they are entitled to

display a trade mark or brand on their website or products and sell goods that closely resemble

the original.

It is important to remember that concepts such as "replica", "copy" and "imitation" have no

separate legal status. Such products are counterfeit goods.

Myth 2

There is a common misconception that inexpensive products are not counterfeited.

On the one hand, this may appear logical. The difference between the cost of manufacturing the

product and its retail price may be small, meaning that the potential profit is also limited.

On the other hand, buyers usually pay less attention to inexpensive products than to costly ones.

As a result, counterfeit goods may be more difficult to notice and easier to purchase

unintentionally.

Myth 3

A product is supposedly not counterfeit and costs less than the market price because it was

manufactured at the same factory as the original, but during an unofficial third shift, or because

the label was simply not attached.

This is a common story told by sellers of illegal products.

It can safely be said that a factory producing genuine trade-marked goods would not risk losses

and liability by manufacturing illegal products.

Selling non-genuine goods under another party’s brand or using the design of another brand is

illegal activity.

Myth 4

Confectionery products, such as children's cakes, biscuits and gingerbread decorated with

cartoon characters, are supposedly not counterfeit because they are merely part of a celebration.

This is incorrect.

Designs, characters and trade marks are intellectual property protected by law. Such protected

assets may be used only with the permission of the rights holder.

Unauthorised use of a trade mark may result in serious liability.

Myth 5

Combating counterfeit goods online is supposedly pointless because the number of websites

selling illegal products increases every day, and ten new websites will appear for every one that

is blocked.

Our experience shows that the absence of a systematic anti-counterfeiting strategy inevitably

leads to declining sales of genuine products, loss of consumer trust and damage to the rights

holder’s reputation.

It is therefore essential to combat counterfeit goods and the stores selling them continuously,

combining online and offline enforcement measures.

GIPSECURITY helps identify online infringements and take prompt action against them through

its proprietary monitoring platform based on machine learning and artificial intelligence.

The platform continuously monitors online resources, including websites, social media,

marketplaces and classified advertising platforms. An experienced team of analysts and lawyers

then takes the necessary action to address large numbers of infringements effectively.

Our brand protection software supports various enforcement measures, including:

• removal of product listings from marketplaces

• blocking of listings on online trading platforms

• blocking of clone websites

Myth 6

The terms "counterfeit" and "falsified" are often confused or used interchangeably in the media

and regulatory documents. From a legal perspective, however, these concepts have distinct

meanings and are not equivalent.

Article 1515 of the Civil Code of the Russian Federation provides that goods or their packaging

bearing an unlawfully applied trade mark or a designation confusingly similar to a trade mark are

counterfeit. In other words, counterfeit goods involve an infringement of intellectual property

rights.

The definition of falsified products is contained in Federal Law No. 29-FZ of 2 January 2000,

"On the Quality and Safety of Food Products". It covers food products, materials and articles that

violate applicable technical regulation requirements.

When comparing counterfeit and falsified products, it should be noted that counterfeit products

may also be falsified, while falsified products are not necessarily counterfeit.

16 February 2023