Section One
Counterfeit products have become popular globally as unscrupulous businessmen seek to make higher profits by producing low quality products at low prices to attract consumers, who prefer going for cheaper products. Countries within UAE have experienced this problem in the recent years as counterfeit motor auto spares, cosmetics, medicine and electrical appliances enter the countries, posing a major threat to genuine traders in terms of competition.
The counterfeit trade accounts for up to 20% of trade in the UAE, despite efforts by the authorities to combat counterfeit commodities. This report focuses on the counterfeit cosmetic products with a special attention on PANTENE PRO-V, a product of Proctor and Gamble. PANTENE PRO-V products in UAE compete in equal measure with counterfeit PANTENE PRO-V products that share similarities that easily confuse customers to purchase them in addition to their low prices.
Analysis of the Original PANTENE PRO-V
PANTENE PRO-V is the original name for the hair product produced by Proctor and Gamble in Switzerland and distributed by Proctor and Gamble in UAE. The product is distributed and retailed by authorized dealers in the UAE, through their warehouses and retail shops, including websites monitored by the authorized dealers. I bought an original PANTENE PRO-V at an authorized supermarket in Dubai at $1180. The cap of the original product carries an engraved Pantene logo, and a description on the usage of the product with accompanying pictorial representation to boost the understanding of the buyer on the product usage and side effects.
Analysis of the Counterfeit PANTENE PRO-V
The counterfeit PANTENE PRO-V bears the same name as the original PANTENE PRO-V hair product. However, the manufacturing company of the product remains unknown, although most shipments of this product into the UAE originate from China. The product differs greatly from the original product in that the cap does not contain an engraved Pantene logo like the original product. Further, it gives usage details without accompanying pictorial representation unlike the original product.
However, customers rarely tell the difference due to similarities in packaging, color, and the product name, convincing them to buy the cheap commodity. I first saw counterfeit PANTENE PRO-V products in a local shop in Dubai, and they go for $350, which is very low compared to the original product, hence their high popularity among people of middle and lower economic backgrounds, who resort for cheaper products.
Section Two
Infringement of the Law
The counterfeit PANTENE PRO-V products infringes the law as the manufacturers of the product uses the trademark name of the original product without prior consent from Proctor and Gamble. This is against the requirements of Article 3section 7 which states that a company cannot be registered with another company’s name, unless with permission from the company (UAE Trademark law, 2002). Moreover, the product contains a name meant to mislead the public into purchasing the product, which is a different product from the original PANTENE PRO-V.
This is against the requirement of Article 3 Section 9, that states that manufacturers cannot be registered if they use misleading marks that contain false data (UAE Trademark law, 2002). Further, the product infringes the law in that it leads to the diminished value of the original product, as it is offered at very low prices, reducing the sales volume of the original product and leading to loss of market share for the original product. In addition, the manufacturer damages the interest of the original owner of the product, to offer high quality products by producing low quality products that offer low utility to the consumers, and present numerous side effects.
Section 3
Owners of original products suffer losses in cases where unscrupulous business people use their trademarks to sell counterfeit products to customers who rarely tell the difference between original and counterfeit products. First, they contribute to the loss of confidence of the quality of the original products among customers, who may face adverse side effects from the counterfeit products without realizing the difference between the two categories of products.
Moreover, they contribute to loss of market share of the original manufacturer’s product, hence the need for manufacturers of original products to protect themselves from people who abuse their rights as the true owners of the trademarks. Owners of original products should first ensure that their products are protected through designing trademarks that are easily distinguished by customers among other competitors’ products, yet not easily copied or imitated by unscrupulous business people.
In addition, if their rights are violated by production of counterfeit products, they can use the law to deal with such manufacturers. This is because the law provides articles that deal with infringement of trademark rights. Further, they can use the law to facilitate the closure of companies that produce counterfeit products, and the destruction of counterfeit products in markets. Furthermore, manufacturers of original products should engage the law in monitoring the production and distribution of commodities, and conducting regular inspections to establish the presence of counterfeit products. This would help them, eliminate such people who conduct such businesses with ease, and safeguard their customer interests.
References
Amendment of the UAE Trademarks law. (2002). Federal Law no. 8 for the year 2002 amending Articles of the federal law no. 37 for the year 1992.