Justification of Counterfeits : A Microscopic View From a Trademark Perspective

As of 2016, 80% of the products sold in Nigeria were counterfeits and as of today, it is quite doubtful that the percentage of counterfeit and illegal goods in circulation has decreased below 50%. According to a report from Frontier Economics in 2017, which was based on an earlier report of 2016 prepared by OECD, it was estimated that the total international trade in counterfeit and pirated goods in 2022 will be worth 991 billion, which is almost double of the number reported in 2013 - 461 billion. It is however not surprising that the amount of total counterfeiting globally as of 2019 exceeded the amount which was estimated for the year 2022. In 2019, according to the Global Counterfeiting & Trademark Infringement Report, the amount of total counterfeiting globally had reached 1.2 trillion U.S dollars. In 2020, statistics revealed that the estimated losses due to counterfeiting of high-end consumer goods amounted to 98 billion USD including counterfeiting from offline and online mediums. This goes to show that registered brands have lost their market share of profits. In light of this, stakeholders are calling for stiffer punishment and regulation against counterfeiting. On the other hand, some economists and scholars present arguments why counterfeiting especially for under-developed and developing countries may be a matter of survival. This article will examine the rationale behind the protection of Intellectual property rights, particularly trademarks and whether there is indeed any justification for counterfeiting trademarks. This article will further examine the impact of counterfeiting on registered brands and on the Nigerian economy. Lastly, this article will propose measures that can be taken to curb the spread of counterfeit goods thereby helping registered brands regain their market stability and positively impact the Nigerian economy