China is a land of opportunity, particularly for counterfeiters.
So it was only a question of time before US software house New Momentum, which specialises in anti-counterfeiting software, opened an office in the Middle Kingdom.
The company recently presented at a meeting of the Quality Brands Protection Committee, a coalition of 80 multinationals formed to fight counterfeiting in China.
Stu Clifton, New Momentum's CEO, says that following the meeting, demand for the company's software solutions in the region was so significant that New Momentum responded by setting up a sales and management operations in China.
As we saw at the QBPC meeting, the Chinese government is focused on reducing the amount of counterfeit products originating in China. We applaud these efforts and expect that our brand protection solution will play a key role in helping reduce the impact of global counterfeit and grey market sales.”
New Momentum's Enterprise Brand Intelligence solution uses web-mining techniques to monitor potential counterfeit activity taking place via the internet. Custom dashboards, email alerts and management reporting keep a company's brand security group constantly informed of new potential counterfeit activity and, perhaps more importantly for obtaining redress, allow them to detect the worst offenders.
As is increasingly common in the software business these days, New Momentum has chosen to offer its solution as software-as-a-service (SaaS), meaning users pay a monthly fee to access the software via the internet rather than having to licence and install it on their own computers.
New Momentum says counterfeit and grey market activity is expected to reach $1.2 trillion this year, with the worst offenders being not just in China, but also South America and eastern Europe. The company's customers include hi-tech, pharmaceuticals and luxury goods manufacturers. Clifton said:
Our customers, who have lost billions of dollars to counterfeits and the grey market every year, are reporting that our product is helping them reduce the amount of non-genuine product on the market and recover lost revenues. In addition, use of New Momentum has enabled these same clients to increase staff productivity and reduce overall brand protection costs.”