A global consumer brands conglomerate faced massive counterfeiting problem across China with worldwide market impact, including brand erosion, undermining of domestic profits, quality and safety issues, overflow into regional markets, and wholesale market distribution. Nimble, hard-to-fight counterfeiters (including state-owned enterprises, prison-run labor camps and local/foreign/Taiwan-invested wildcatters) were thriving in the shadow of regional and local business/government cooperation made possible by the client’s weak strategies and limited administrative law-focused and civil liabilities responses.
The “first call” from the client’s China counsel resulted in interviews of internal stakeholders, revamping of strategies and implementation teams which included shutting down internal leakage, re-training all internal and external enforcers to focus less on counterfeit product seizures and more on criminal seizures, preservation of evidence, proof of damages, coordinated actions with media/public security officers and prosecutors with a focus on effecting judicial imprisonments using criminal penalties.
Pamir empowered the client by building a national approach to deliver criminal convictions, causing counterfeiter migration away from the client’s products. The first incarceration was delivered in three months. Widespread cooperation of well trained notaries, public security bureau officers, prosecutors and judges increased fear and changed counterfeiter behavior. This creative approach resulted in improved client targeting focus which allowed access to and alignment with state enforcement priorities and resources.