Factors that influence the extent of counterfeiting of goods in East African Community

Abstract

This study aims at finding out key factors that influence counterfeiting of goods in East African Community. Chapter one gives the background of the study and some citations of the people who have done a similar or a related study. The objectives of the study are to establish factors that influence the increment of counterfeit products in EAC. Chapter one also includes statement of the problem. Chapter two entails the literature review which contains past studies and analyses of the principles and definitions of counterfeits, economic framework and integration. Chapter 3 involves the methodology of carrying out the research which details the population of the study, the method of collection of data and how data is analyzed. This paper assesses those factors that influence the increase of counterfeiting of goods in the EAC by collecting and analyzing views form various firms operating in the region For the purpose of this project, the term "counterfeiting" is used in its broadest sense and encompasses any manufacturing of a product which so closely imitates the appearance of the product of another to mislead a consumer that it is the product of another. Hence, it may include trademark infringing goods, as well as copyright infringements. The concept also includes copying of packaging, labeling and any other significant features of the product. It is very hard to obtain accurate statistics on counterfeiting, mainly because it is a clandestine activity. In East Africa, most goods that are counterfeited range from software, textile, electronics, spare parts etc. In the spare-parts industries, counterfeits are part of the overall problem of unapproved spare parts. They are traded on the grey market, together with over-runs, recycled items, copy parts and stolen goods, making it very difficult to control the market and separate the illegal items from the legal. Industry world-wide loses large amounts to counterfeiters. These losses not only affect the producers of genuine items, but they also involve social costs. The Partner States and the Community must put in place adequate capacity both financial and human for timely implementation of preventive measure to curb this menace and protect industries and consumers of these goods as some of the counterfeit goods can be dangerous since they could be substandard