The headline says it all... Retail and Fashion are experiencing a crisis around piracy, counterfeits and imposters, creating more than $49B in losses annually.

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Understanding the Current Issues in Fashion and Retail

We'll start be saying that varying sectors of this industry are experiencing issues differently.  And some are at odds with each other. Let's take a look at the different types of problems and who they impact:

The Impact of Digital Content Piracy on the Fashion Industry

This ones effects everyone. Brands, influencers, agencies, designers - all creating content. All of it getting reposted or stolen with attribution, appropriate linking, or outright ripping off credit for the work.

Digital content piracy happens across several places, including:

• Websites
• Blog posts
• Torrent sites
• Social media
• Video platforms
• Forums and commenting
• Texting and messaging apps

Piracy is happening on content including text, images, videos, and even audio files. The problem is astoundingly large and Blacklight spots an average of 153K pirated posts in fashion each month alone.

Digital content piracy took off across all industries during the COVID-19 pandemic, as more people were at home, in front of devices. This gave them the opportunity to consume more content and pirates a bigger incentive to up the ante.

The increasing number of social media channels, websites, video platforms, messaging services, and torrent sites make spotting piracy a challenge. Machine learning tools, like Blacklight, have started attacking this problem using artificial intelligence - a recent advancement in the anti-piracy industry. Traditionally, a manual task that spotted less than three percent of piracy instances, AI can detect millions per month across thousands of websites, dozens of social channels, and more.

The Rising Challenge of Counterfeits in Retail

Counterfeits happen in several ways in the fashion, apparel, and retail industries. We'll break these down since they impact their audiences in a variety of ways.

Addressing Imposters and Fake Accounts in Fashion and Retail

The most visible version of counterfeiting to consumers is likely the "knock-off" and "pirated fashion" problem that plagues designers. In "fast retail", the struggle to meet consumer demand as soon as new designs are shown often leads to near duplications of designs and often outright rip-offs.

Designers struggle to enforce their ownership, as well as justifying higher retail prices for items with similar looking alternatives. Some designers have taken a proactive approach, partnering with down-stream retailers like H&M and Target, to collaborate on designs at an affordable  price-point.

Of course, fast retail isn't the only game in town. Counterfeiters have long copied designer handbags, shoes, and accessories, something popularized in mainstream media, including fashion icon TV show Sex and the City.

The low cost of copying fashion and high impact it has on US retail makes it a major issue for policy makers, and the source of an on-going debate in the legal literature, with some calling for protection in the US that matches that given by the EU.

Spotting counterfeits can be tricky, and enforcement is often complicated. Spotting copycat fashion often requires sophisticated image recognition software and vigilance, especially during the release of new designs.

Counterfeit Branded Apparel - Sports, Action Heroes, and more

From not-so-genuine sports jerseys to duplicated Disney, the amount of merchandise that is counterfeited is staggering. Teams, athletes, and franchises struggle to keep their logos and players items from copyright infringement. Movies, series, and games also experience issues as characters and likenesses are regularly counterfeited and placed on everything from lunchboxes and t-shirts to videos and toys.

Poor quality reproductions and misuse of characters, logos, and other proprietary elements not only lead to revenue loss but also create problems with consumers, who may not realize that poor quality or service should not be associated with the original brand, but instead with a counterfeiter who is operating illegally.

Effective Solutions for Combating Piracy, Counterfeits, and Imposters in Retail and Fashion

One of the most frustrating forms of piracy is imposters. Imposters impersonate brands, spokespeople, athletes, influencers, and more, and they are everywhere, including:

• Social media profiles
• Images including photos and digital likeness
• Video sites
• Websites/domains
• Email
• Chat and message services

Influencers and celebrities are at high risk for fake accounts and impersonation, leaving them with less revenue from subscriptions and making it harder to quantify the impact they're having for their brands.

Brands also gather imposters, using their name, products, or other items to spread disinformation, steal revenue or subscriptions, and offer illegal services.

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Uncovering the Hidden Problems with Piracy, Counterfeits, and Imposters

As long as people are involved and are willing to steal, we cannot prevent all instances of piracy or counterfeits. However, there are several things we can do to cut down on the impact it has and to deter pirates, fakes, and others from using our brand inappropriately.

1. Detection. Spotting these instances and knowing where they're happening is the only way to know how big the problem is and where to focus your attention. Tools like Cyclops search the entire internet, including websites, video platforms, social channels, and more, to give you a full picture of the piracy and imposter problem for you and your brand.
2. Notification. Submitting formal takedown and desist notifications is the first step in removing illegal usage. When there are thousands of instances per month, this can be overwhelming. Finding a solution that will automate this process (like Blacklight) is both effective and usually more affordable.
3. Know repeat offenders. It's common for the same person to repeated steal brands or products, even from the same place. If a pirate, imposter, or counterfeiter is repeating the action despite takedown notifications or cease and desist warnings, or if they are showing measurable revenue loss for a brand or influencer - legal action is available and much easier to enact. Often repeat offenders are easier to spot for companies looking for piracy, because they can spot offenders across multiple brands and channels.

Hidden problems with piracy, counterfeits, and imposters

In addition to the revenue loss that these actions cause brands, influencers, and others, there are more things at stake, including:

• Causing unfair labor practices in factories and sweatshops that are operating outside of legal boundaries
• Contributing to the growing and unsafe child labor market
• Creating job loss at legitimate manufacturers, design firms, agencies, and more
• Causing consumer harm when using poor quality materials or ingredients that can be unsafe for use
• Removing a legitimate way for consumers to contact the brand or manufacturer of the product by pretending to be someone else

If you're interested in talking about detecting, preventing, and acting on piracy - get in touch with us. We work with individuals, agencies, large brands, and e-commerce platforms around the world on solving these issues every day.