Intellectual Property Protection and Enforcement Manual - Ipr-policy.eu

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Develop guidance for buyers on how to assess the legitimacy of the supplier.
Qualify vendors through periodic audits of facilities and documents. Consider
reducing your sourcing base to enhance auditing ability.
Control and audit the receipt of product ingredients and components to ensure that
they meet company specifications.
Employ the concept of “strict liability” for failure to deliver authentic components
and parts in contracts with suppliers to hold the suppliers responsible for fraudulent
goods.
Consider requiring vendors to meet standards published by outside organizations.
Establish an internal process for dealing with received counterfeit products from a
supplier. Destruction, which may impact any financial issues and products returned
to the supplier, could be released back into the stream of commerce.
Institute shipping policies to protect the integrity of raw materials and component
parts including (1) guidelines to ensure the physical security of overseas factories in
the supply chain (for example, like those for the Customs-Trade Partnership Against
Terrorism/C-TPAT); (2) using seals on all containers and noting seal numbers on
shipping manifests to protect containers from being opened and resealed; and
(3) developing partnerships with CBP to exchange information and target shipments
suspected of containing counterfeit products.
Legitimacy of Customers and Distributors
Counterfeiters often pose as legitimate business owners and seek to purchase products in bulk in
order to blend fake products and maximize returns and launder resources. To ensure that sales are
being made only to legitimate distributors or retailer outfits, brand owners should:
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Educate the sales force on how to assess the legitimacy of customers. Factors to
consider include (1) whether the customer has ordered an unusually large volume
for normal needs, (2) whether the customer is willing to pay cash for very expensive
orders, (3) whether the customer has an appropriate business background,
(4) whether the product capabilities fit the customer’s line of business, (5) whether
the company has good credit, and (6) whether the delivery dates are vague or
whether the deliveries are planned for out-of-the-way destinations.
Train and educate the sales force on guidelines. Include incentives and penalties for
adhering to or failing to adhere to guidelines.
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