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Counterfeiters rarely (if ever) pay taxes or the relevant duties and rates.2) Counterfeiters incur limited production costs, thus they can afford to sell their goods cheaply and thereby undercut genuine producers. This deprives business of deservedprofits.3) Counterfeit goods pose great risks to public health and safety.4) Where the counterfeits are of lower quality than the legit or genuine products, the legitentrepreneur’s reputation is tarnished and this leads to loss of future sales.5) Counterfeit trade may lead to strained trade relationships among Intellectual Property (IP)owners and counterfeiters.
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