Picture this: It’s the holiday season. The hottest toy on the market is based on a character from a tremendously successful movie… and every online and brick and mortar store you search is plum sold out of it. But, you just happen to know a, shall we say, less-than-reputable website (or perhaps a part of town full of disreputable street vendors) where you can get a knockoff of this hot toy at a low, low price. Everyone has a merry holiday… until you realize that the knockoff toy you just bought is as dangerous as a bag of glass.
This is certainly a scary situation for you, but think of it from the perspective of the owner of the intellectual property on which that toy is based. Not only has the brand owner lost revenue because you purchased a counterfeit toy, but it faces potential reputational damage, as its IP is now associated with a dangerous product.