Counterfeiting

Outsourcing – A Contributor to Counterfeiting

12 August, 2018


With the technological advancement and the internet bubble in the early days of 21st century has also brought a drastic shift in the working process of various nations. As with the dot com bubble there was huge business of outsourcing was seen growing in the developing countries. As the basics of outsourcing were based on comparative advantage and division of labour. With the increasing areas of business, outsourcing offshore has been grown more evidently and become a popular part of corporate strategy. As it helped the business in developed nations to grow higher profits without sabotaging the quality of their produce while the work was outsourced to the developing nations.


As the total value of outsourcing contract has reached to more than 25 billion in 2017 where its growth rate has increased at 10% as compared with the previous years. The essence of outsourcing is seen long back in history, where it was used to reduce the cost without hampering its quality. With the changing time the evolution is also seen in manufacturing outsourcing as well. In the sectors like automobile, clothing and electronic have multiple contribution and they also experience fast style changes. Thus, to manage the complexities and the growth in these sectors manufacturing outsourcing have been benefiting them a lot. 


The main contributors that work and help various industries are Manufacturing, IT Services, Research & Development, Distribution and Call & Help Centre. Among all these contributors the major role is played by the Manufacturing, IT services and Research & Development that contributes from 30% – 60% per sector. The outsourcing at various level helps the company to grow but it also increases the risks related tom it at each and every level of the work that has been shared while outsourcing. 


As the nature and importance of intellectual property rights differs widely from sector to sector an industry to industry. As it includes different types of IP assets that also includes trademark and trade secrets that are shared at various levels of outsourcing. The risk related to by sharing IP rights is so high that it includes the impediments related to different types of breaches, theft or misappropriation of trade secrets, poor quality of goods, counterfeiting, parallel imports, and misuse or loss of other IP rights.  


As the complexities and the risk involved while sharing the IP rights it becomes highly important to safeguard every Intellectual Property Rights with high priority. The legal framework should also maintain and should work in the constructing the corrective measures needs to be taken if any of these rights gets infringed or misused. 

As the work of outsourcing works across the various nations the legal recluse needs to be available the various nations that will not only help to safeguard the IP rights in ones’ own country but equally it can be safeguarded overseas as well. The countries that lack in dealing effectively with Intellectual Property Rights the companies that have outsourced their work in these countries have to face huge obstruction in protecting there IP rights. Due to this lack of legal assurance and understanding of IP rights, counterfeiting of trademark and goods become the major reason. Where the counterfeiter benefits and the organizations suffer tedious legal trails. 

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