Intellectual property can be a manufacturer’s most valuable asset. Intellectual property rights (IPR) violations can come in many forms including:

• Counterfeiting
• Trademark infringement
• Gray market/diversion
• Country of origin
• Non-compliant parts

It is a serious issue and, in today’s global marketplace, a company may never know its rights are being violated.

Counterfeit products are at the forefront of these IPR issues. Any recognizable brand is at risk of being counterfeited – from clothing and handbags, music and movies, pharmaceuticals and parts of automobiles and heavy duty trucks and equipment. Numerous government agencies and industry sources estimate the global counterfeit problem at $600 billion per year. As a result, the FBI has labeled counterfeiting as the “Crime of the 21st Century.”

Counterfeiting is not a victimless crime. Consider that:

• Counterfeiting steals good manufacturing jobs.
• Counterfeiting destroys brand reputation of legitimate companies and poses product liability claims.
• The sale of counterfeit goods has been linked to organized crime and terrorist organizations.

The motor vehicle parts industry – those manufacturers who produce the parts and components used to repair everything from passenger cars to 18-wheelers – have been hit hard by counterfeiting. It is estimated that counterfeiting costs the global motor vehicle parts industry $12 billion a year. The problem grows larger every year.

In addition to the other considerations listed above, counterfeit motor vehicle parts pose serious safety risks to unsuspecting consumers. Counterfeit motor vehicle parts do not meet safety standards and the criminals who produce these parts frequently use dangerous, inferior materials in production.

As a result, these counterfeit parts – which may look identical to quality, brand name parts – can endanger the repair professional installing the part, the car or heavy duty truck driver operating the vehicle and all motorists traveling the same roads with these vehicles.

In order to address the serious threat of this “Crime of the 21st Century” to the motor vehicle parts industry, the Motor & Equipment Manufacturers Association (MEMA), in conjunction with its market segment associations, established the Brand Protection Committee. Membership in the Committee is open to any member of the Automotive Aftermarket Suppliers Association (AASA), Heavy Duty Manufacturers Association (HDMA) or the Original Equipment Suppliers Association (OESA).

To view a list of brand protection related publications, click here.

To visit the MEMA Brand Protection Committee site, click here.

For more information about the Brand Protection Committee, contact Catherine Boland at cboland@mema.org.