If not dealt with and eliminated, intellectual property infringement can affect brands in various ways, such as:
Lose Revenue – Sales of fakes and diverting traffic to an infringing listing or website result in fewer sales for the original brand.
Inhibit Growth – Unfair competition can inhibit growth, reduce market share or make it harder to win more.
Damage Brand Reputation – A company’s reputation is easily damaged by low-quality counterfeit goods. Yet, it’s about more than quality: Counterfeits and unauthorized gray marketing products may also pose health and safety risks to consumers, hurting both customers and brands.
Hurt Consumer Trust – When consumers buy a product just to find out it’s fake or a cheap knockoff, it affects their trust in the brand.
Business Relationships – Relationships with authorized distributors and other business partners are likely to suffer when the brand is unprotected, and the same goes for investments in the business.