Around 35% of Motor Oils Sold Online Show Signs of Being Counterfeit
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Gorodissky IP Security specialists conducted a comparative analysis of the online motor oilmarket and found that around 35% of motor oils offered online show signs of being counterfeit.
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Gorodissky IP Security specialists conducted a comparative analysis of the online motor oil
market and found that around 35% of motor oils offered online show signs of being counterfeit.
At the same time, the proportion of such oils varies significantly by region, ranging from 20% in
some regions to as much as 50% in others.
The study covered leading motor oil manufacturers, including LIQUI MOLY, Motul, Castrol,
TOTAL, G-Energy and others, and assessed a number of parameters. The principal criterion in
this case was a price deviation of 40% or more from the retail prices offered by authorised
dealers.
For example, one litre of LIQUI MOLY 5W-40 Diesel Synthoil costs RUB 1,359 on the
authorised dealer’s website, lm-shop.ru. The same product can be purchased on avito.ru for as
little as RUB 700, while some online stores offer it for RUB 600 Such a significant price
difference is, at the very least, a reason to question the origin of the product.
Of all online offers identified as having a significant deviation from authorised dealer prices, the
largest proportions were found in Moscow, at 15%, and St Petersburg, at 10%.
Gorodissky IP Security analyses online offers using machine learning and artificial intelligence.
The software scans offers across the Internet, including online stores, marketplaces, classified
advertising platforms and social media, in real time. It identifies offers that deviate from genuine
products according to various configurable parameters, including price, design, keywords and
trade marks.
The automated search results are reviewed by a team of experienced analysts, which helps ensure
the highest possible level of accuracy. On average, the initial collection and processing of data
takes approximately two weeks. Where regular monitoring is conducted, data is automatically
uploaded to the Gorodissky IP Security platform every day. For most resources, the information
is updated within several hours.
Continuous monitoring combined with pre-litigation enforcement measures reduces the
proportion of counterfeit goods online by at least 30% to 50%.
The Gorodissky IP Security platform was developed by the IT specialists of Gorodissky &
Partners, a leading Russian intellectual property law firm.
The Problem of Counterfeit Motor Oils
Offers include both commonly purchased containers of one, four and five litres and drums
containing between 100 and 300 litres, which are generally supplied only to vehicle inspection
stations and repair workshops and are not intended for general retail sale.
Motor oils, like any other products, are copied and sold as counterfeits. However, unlike other
product categories, where imported counterfeit goods prevail over locally manufactured
products, the counterfeit motor oil market is characterised by the local development of both
production and distribution.
Counterfeit oil production facilities are generally located in different regions of Russia. For
example, counterfeit containers may be manufactured at one location, labels printed in another
region or city, the oil itself produced at a third location, and the final product packaged and
dispatched to various warehouses from a fourth location.
This approach makes it possible to establish warehouses for the production or bottling of
counterfeit goods quickly in different regions and cities. All the equipment and materials
required to organise a counterfeit production site can be delivered rapidly. At the same time,
problems at one location do not disrupt the entire operation.
Counterfeit products are often difficult to identify not only for consumers, but also for
professional market participants such as vehicle repair centres and sellers. In pursuit of lower
prices, they may also purchase counterfeit products.
The problem of counterfeit motor oils affects both the end customer and the manufacturer. For
consumers, the use of counterfeit motor oil may damage engine components and result in costly
vehicle repairs. For rights holders, it causes reputational harm and financial losses.
About the Firm
Gorodissky & Partners is Russia’s largest intellectual property and TMT law firm, with offices in
Russia, Ukraine and Kazakhstan.
Approximately 140 patent attorneys and lawyers at Gorodissky & Partners represent clients
before patent offices in matters concerning the registration of intellectual property rights, and
before courts and administrative authorities in infringement and unfair competition cases.
The firm’s specialists participate in judicial and alternative dispute resolution proceedings, advise