In a recession, consumers are less likely to feel pangs of conscience about buying fake goods, whether knock-off Gucci handbags or prescription drugs. For companies that spend heavily to nurture a brand or protect intellectual property, the trade in counterfeit goods puts added pressure on revenues and threatens the exclusivity of their marques. But the downturn also limits the resources that executives can allocate to the problem. Should they simply accept a higher level of counterfeiting during the recession and wait for better times to renew the assault? Or should action be taken now to protect dwindling revenues?

THE ACADEMIC
Tim Ambler
Brands are companies’ most valuable assets: budgets will be cut but failing to protect them is not an option. The marketing and legal teams, normally far apart, should be brought together for this exercise. Spending X on marketing to reap shareholder value of Y is exactly the same as spending X on anti-counterfeiting to prevent an erosion of shareholder value of Y.