Brands recover over USD $100 million by tackling counterfeiters

Major brands have reported a 50% reduction in counterfeit activity and recovered significant lost profits through the use of Corsearch's Revenue Recovery 360 solution.

Counterfeit products continue to present challenges worldwide, exposing consumers to risk and impacting brand revenues. Companies are responding by employing data-driven strategies to take direct action against persistent counterfeit sellers.

Corsearch's Revenue Recovery 360 has supported brands in taking legal and financial action against counterfeiting activities online. The firm reports that the solution has aided in the closure of over 115,000 counterfeit seller accounts on online marketplaces, enabling the recovery of more than USD $100 million in lost revenues.

The approach leverages enriched data from brand protection activities, enabling brands to identify and act against sellers violating intellectual property rights. According to Corsearch, cases using Revenue Recovery 360 can shut down and penalise hundreds of sellers in a single action, delivering a strong return on investment for companies of all sizes.

Corsearch states that revenues recovered on average exceed USD $350,000 per case. This sum allows brands to reinvest in protection initiatives. For smaller brands relying heavily on eCommerce, the recovered revenue can be crucial for ongoing viability, while for large international brands, it can convert legal teams from cost centres to revenue generators.

Quad Lock experience

One brand that has benefited from the solution is Quad Lock, a business known for its mobile mounting products. Having grown from a Kickstarter launch to a company generating USD $200 million in sales, Quad Lock faced a wave of counterfeiting that affected consumer confidence and revenue streams.

Willem du Preez, Head of IP at Quad Lock, described the impact of working with Corsearch on its protection efforts.

Corsearch offered multiple revenue recovery opportunities with almost no risk to us. The Revenue Recovery 360 team went through the process of identifying potential defendants, making purchases and compiling a definitive list of infringing sellers. This process of identifying multiple defendants with Corsearch was less than the cost of analysing one potential defendant through traditional channels.

He added that the primary benefit was beyond just financial restitution, particularly for brands operating on prominent e-marketplaces.

The impact has been massive. Quad Lock sells directly to customers through the Amazon portal as an e-marketplace. The value of having a clean marketplace, especially in the United States, is even greater for us than the monetary gain from revenue recovery.

Industry perspective

Karl Florida, Senior Vice President, Revenue Recovery 360 at Corsearch, highlighted that the approach both penalises counterfeiters and restores profits to legitimate businesses.

Our Revenue Recovery 360 solution has proven to be an extremely powerful tool for brands combating the counterfeit threat, because it imposes financial penalties on counterfeiters and restores lost profits to brand owners. By reducing and deterring counterfeit activity, and thereby cleaning up marketplaces on a lasting basis, our solution builds back a brand's market position and helps restore consumer trust.

Florida also addressed the wider adoption of revenue recovery as part of brand protection and enforcement strategies.

For brand owners aiming to more effectively fight the counterfeit threat with strategies that deliver high impact and high ROI, integrating revenue recovery into enforcement strategies isn't just a legal tactic, it's a business imperative that leading brands are increasingly adopting. All brands need to protect their IP and their revenue, and together combat the counterfeit threat to restore consumer trust and safeguard the integrity of commerce for all involved.

Revenue recovery solutions continue to gain traction among brand owners as counterfeiting remains a widespread issue, affecting both corporate revenues and consumer trust in digital marketplaces.