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Cyber Robbery
WELCOME TO OUTDOOR UNIVERSITY®
Cyber Robbery:Cyber Robbery:Tips to Protect Your Brand Against
Online CounterfeitingOnline Counterfeiting
Presented by
Cyber Robbery
Alina Halloran
VP, Global Online Brand Protection
OpSec Security, Inc.
Presentation Focus:Online Exposure for the Outdoor Industry & Best
Practices in Enforcement
Cyber Robbery
C G th & C t f itieCommerce Growth & Counterfeiting
• B2C ecommerce will reach $1 2 trillion worldwide in 2012*B2C ecommerce will reach $1.2 trillion worldwide in 2012
• B2B ecommerce will reach $12.4 trillion worldwide in 2012*
• 22% of consumer goods sold online are counterfeit!**
• 3 product categories (computers apparel and consumer• 3 product categories (computers, apparel, and consumer electronics) represented 44%+ of online sales ($67.6 billion) in 2009*
*F t R h*Forrester Research**World Intellectual Property Review
Cyber Robbery
• Online counterfeit sales are increasing
Common Challenges in the Outdoor Industry
• Consumers are looking for bargains & aren’t well educated about the issues of counterfeiting
• The Internet is global, dynamic, and vastg , y ,• It’s difficult to quantify the size and scope of the problem• Many don’t know where to begin • Combating counterfeiters online can feel like whack a mole• Combating counterfeiters online can feel like whack-a-mole• Budget constraints limit ability to take action• It’s a challenge to measure success
Cyber Robbery
K A Wh C OKey Areas Where eCommerce Occurs
B2CB2C Auctions
B2B Trading Platforms
Social MediaRetail Sites Sponsored Links
Retail Websites
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O td I d t E A l iOutdoor Industry Exposure Analysis
• Included 15 Outdoor Industry Companies• Analyzed exposure on:
– B2C Auction Sites– B2B Trade Boards– Retail Sites
• Blinded Examples
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B2C Trading Platform Exposure O C
Outdoor Industry Exposure (15 Companies)B2C Platforms
Outdoor Industry Companies358,930 listings
100,000
120,000109,022
83,761 B2C Platform Alexa* Rank
across 15 outdoor brands
60,000
80,000
,
73,000 68,040
ber o
f Llistin
gs
B2C Platform Alexa RankTaoBao 13
Amazon.com 15eBay US 21Craig’s List 34eBay UK 97
20,000
40,000
16,352
5,155 3,600
Num
b eBay UK 97eBay Canada 1,063
iOffer 1,688
A lower traffic rank indicates a
‐eBay.com eBay.ca TaoBao eBay.co.uk Amazon iOffer Craigslist
(top 50)Platform
higher volume of visitors
Cyber Robbery
B2C Trading Platform Exposure Example - XYZ
•eBay seller: golfmanx413 •eBay seller changed ID in September 2010•Selling multiple colors and sizes in ‘factory packaging’y p g g•Offered below retail price
Cyber Robbery
B2B Trade Board ExposureO COutdoor Industry Companies
17 383* li ti
8 242
Outdoor Industry Exposure (15 Companies)B2B Platforms
17,383* listings across 15 outdoor brands
6,000
8,000
10,000 8,242
4,765 4,376
r of Listin
gs
B2B Trade Board Alexa* RankAlibaba 90
Made‐In‐China 1,066DHGate 1,361EC21 2,383
‐
2,000
4,000
Alibaba DHGate ECPlaza EC21 Tradekey
189 136
Num
ber
A lower traffic rank indicates a higher volume of
ECPlaza 3,356TradeKey 11,259
Alibaba DHGate ECPlaza EC21 TradekeyPlatform
gvisitors
At an avg quantity of 500 units per listing, total volume is: 8.7M!g q y p g
Cyber Robbery
B2B Trade Board ExposurepOutdoor Industry Companies
FOB Price: US $13 - 15 / Pair Get Latest Price
2011 Hot Selling Vibram Outsole Waterproof Outdoor Hiking Shoes
Port: XIAMENMinimum Order Quantity: 1200 Pair/PairsSupply Ability: 5000 Pair/Pairs per DayPayment Terms: L/C,T/TSample or Mini-Order: Order now via
Supplier DetailsppJinjiang Boteng Shoes Co., Ltd. [ Fujian, China (Mainland) ]Business Type:Manufacturer, Trading Company
Cyber Robbery
Retail Website Exposure O td I d t C iOutdoor Industry Companies
www.perfectwinter.net
4 Brands
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Retail Website Exposure O td I d t C iOutdoor Industry Companies
www.northfacesaleoutlet.com
4 Brands
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What Can You Do?CB2C Auctions
B2C Auctions
• Monitor platforms consistently• Terminate infringing listings through IP Protection program• Obtain seller contact detailsObtain seller contact details• Conduct seller link analysis to detect high volume
sellers/networks & investigate• Pursue monetary damages, where applicable
R t t i• Request account suspension• Terminate payment processing accounts (PayPal, Western
Union, Visa, M/C, etc.)
Cyber Robbery
What Can You Do?fB2B Trading Platforms
B2B Trading Platforms
• Monitor sellers offering large quantities offered at deep discounts• Terminate infringing listings (on boards that operate IP
Protection programs)• Create seller target lists to support case building & investigative
efforts• Join the OIA Task Force & cooperate with other OIA membersJoin the OIA Task Force & cooperate with other OIA members
on investigations to save money and increase impact
1
Cyber Robbery
What Can You Do?Retail Websites
Social MediaRetail Sites Sponsored Links
Retail Websites
p
• Monitor independent retail sites • Identify hub/storefront networks• Analyze pricing, payment methods and other key attributes
P i iti f ti b d ti it• Prioritize for action based activity • Conduct seller link analysis to identify high volume players• Suspend payment vehicles- PayPal, Western Union, Visa/MC, etc.• Submit request to de-index counterfeit sites from Googleq g• Leverage social media IP protection policies to remove infringing
content• Pursue UDRPs for domains that are infringing on your trademarks
Cyber Robbery
In SummaryIn Summary…Approach Description
Monitor & Assess Exposure • B2C Auctions, B2B trade boards, domain names, retail websites, sponsored links social mediasponsored links, social media
Quantify & Measure • Establish a baseline of activity from which to measure; provide to senior management for support
Network Analysis • Analyze marketing affiliate networks to identify most harmful operatorsoperators
Case Building • Online investigations and intelligence gathering to build a case for litigation; collaborate with other OIA members to share costs
Test Purchases • Purchase goods to confirm counterfeit and use as evidence
Infringement Notifications • C&D letters to infringers• DMCA notices to ISPs• NOCI notices to platforms for takedowns
UDRP • ICANN dispute resolution process for recovery of rogue domains infringing on your trademarksg g o you t ade a s
Stop Payment Processing • Liaison with payment processors to suspend accounts of counterfeiters
Industry Trends • Latest developments of Internet platforms, recent legal precedence, new legislation, OIA Internet Task Force
16
g ,
Cyber Robbery
Randall S. Rabenold
Global Investigations Coordinator for the The North Face® brand
Owner, Vaudra Ltd.www vaudra comwww.vaudra.com
Cyber Robbery
I t t St t• 1st Quarter 2008
Internet Stats1 Quarter, 2008– Removed 240,000 fake items
• 1st Quarter, 2009f– Removed 15 million fake items
• 6,250% increase
Cyber Robbery
Internet EffectInternet Effect• Increase in
ecommerce sites with fake goodsIncrease in domain• Increase in domain registrations, particularly cyber & p y ytypo squatting on THE NORTH FACE trademarktrademark
North-face-outlet-sale.com
Cyber Robbery
ONLINE SALES OF FAKESONLINE SALES OF FAKESWERE BOOMING.
Cyber Robbery
CBP St tCBP Stats• Increase in air shipment seizuresIncrease in air shipment seizures• Slight decrease in cargo shipment
seizuresseizures
What does itmean?mean?
Cyber Robbery
Counterfeiting Economy
• Increase in online sales• Increase in small air shipmentsp
Wh ?Why?
Cyber Robbery
Means of Internet SalesO li ti & l ifi d d it• Online auction & classified ad sites
• Stock lot sales & trade boards • Retail website sales • Social networksSocial networks• Spam / Phishing
B2B il d ff / Ph t li k• B2B e-mailed offers / Photo links• Parked / Inactive Domains
Cyber Robbery
Making the Most of VeROMaking the Most of VeRO& Unhappy eBay Sellers
Cyber Robbery
Case Study: Unwitting eBay Informants
S• US eBay seller, eztrade• Complained about
removed listingsremoved listings• Said his jackets HAD to
be originalbe original• As proof, sends an
invoice identifying his domestic supplier
Cyber Robbery
From Online to On the Ground…
Cyber Robbery
B2B Internet Offers
Cyber Robbery
When Considering Enforcement against China-based Websites… g
…not anymore.
Cyber Robbery
Case Study: Rogue Websites, Fujian
• Recent civil action• Global reach• Global reach• How it started &
where it ledwhere it led• Fujian Sharing tactics
Cyber Robbery
Rogue websites (cont.)• Case is ongoing• Self-fundingg
- Over $1.7 million collected & paid- Over 1 400 websites deactivatedOver 1,400 websites deactivated
Cyber Robbery
Questions?Alina Halloran
VP, Global Online Brand ProtectionOpSec Security, Inc.
Randall S. RabenoldGlobal Investigations Coordinator for the The North Face® brand
Owner, Vaudra Ltd.,[email protected]
Cyber Robbery
Cyber Robbery
Th k YThank You