Counterfeiting refers to the practice of creating an imitation good (or currency) with the intent to deceive a recipient into thinking the good or currency is legitimate. While the term is most frequently used with respect to people who create fake currency and pass it off as real, counterfeiting occurs often with trademarked goods in the creation of “knock-offs.”
What is the impact of counterfeiting?
Counterfeiting harms consumers and businesses in a variety of ways. First, the value of the counterfeited good is reduced as consumers realize that they can’t rely on the original’s trademarks or appearance to reliably indicate the provenance of the good. Second, consumers pay an increased cost for the original good as the company is forced to spend money to take action against the counterfeited items and passes that cost on to consumers.
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