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Intellectual property (IP) theft is on the rise, with counterfeit goods flooding online marketplaces at an unprecedented rate. The ease of purchasing knockoff products creates increased challenges for organizations trying to protect their brands, reputations and bottom lines. Today, consumers can unknowingly buy fake versions of nearly any product online, from high-end fashion to automotive parts. These bad actors operate in the shadows and continue to find new ways to profit from stolen designs, trademarks and patents.
The scale of this problem was highlighted recently when authorities seized over $1 billion worth of counterfeit luxury goods in New York City—one of the largest busts in U.S. history. This case illustrates the growing sophistication of counterfeit networks and the constant battle organizations face to protect their IP.
For businesses, the consequences of IP theft go far beyond lost revenue. Counterfeit products can pose serious safety risks, expose companies to liability issues and erode customer trust. Organizations must take proactive steps to combat this ever-evolving threat, leveraging expert investigative strategies to detect, track and eliminate counterfeit operations before they cause lasting harm.
A Covert Approach to Investigations
When organizations discover that their IP is being infringed upon—whether through unauthorized resellers, fraudulent branding or illicit product manufacturing—they must act quickly. However, tracking down and gathering evidence on these bad actors requires a level of expertise and discretion that many internal teams may not have.
This is where professional and well-trained investigators play a crucial role. These experts use covert operations to infiltrate counterfeit supply chains, discreetly purchasing suspect products and following legal protocols to collect evidence. This process is similar to how law enforcement typically investigates illicit drug operations — operatives work undercover, secure proof of wrongdoing, document the chain of custody and present findings to the legal team for enforcement actions.
For an example of the huge liability associated with IP theft, consider a global automotive parts manufacturer that holds patents and trademarks on its proprietary designs. Counterfeiters create unauthorized copies of these parts, selling them as authentic online. Customers unknowingly install these knockoff components and if a failure occurs, the exposure for the manufacturer is enormous.
The “Whack-a-Mole” Reality of IP Protection
IP theft is a relentless challenge. Shutting down one bad actor often leads to another emerging in its place. Counterfeit networks operate across borders, leveraging anonymous online platforms, encrypted transactions and complex supply chains to stay ahead of enforcement efforts. This constant game of “whack-a-mole” means that businesses must do more than just react; they need a proactive security program that deters counterfeiters before infringement even begins.
A strong proactive program includes:
- Advanced Packaging Protections – Features like holograms, micro-markings and encrypted QR codes help authenticate legitimate products and deter counterfeiters.
- Comprehensive Market Monitoring – Organizations should continuously scan online marketplaces, reseller channels and social media for unauthorized product listings.
- Strategic Law Enforcement Partnerships – Engaging with local and international authorities ensures swift action when counterfeiting operations are identified.
- Cross-Functional Risk Assessments – Regular audits of supply chain integrity and compliance among channel partners can prevent vulnerabilities from being exploited.
For many organizations, building such a program requires expert guidance. Establishing an effective deterrence strategy not only minimizes financial losses but also strengthens brand integrity and consumer confidence.
The Bottom Line: A Need for Vigilance
Intellectual property theft is not just a business challenge—it is a growing global security issue. As counterfeiters become more sophisticated, organizations must take a multi-layered approach to protecting their brands and assets. While covert investigations are a necessary reactive step, the foundation of any strong IP protection strategy is deterrence. By proactively identifying risks, securing supply chains and leveraging expert investigative resources, businesses can stay ahead nefarious activity and safeguard their most valuable assets.
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About Mick Pinneke
Mick Pinneke is the Vice President of Global Investigation and Threat Management at Allied Universal® Enhanced Protection Services. With 30 years of experience in loss prevention, investigations and asset protection, he specializes in theft and fraud resolution, workplace violence readiness, audit controls and regulatory compliance.
Before joining Allied Universal, Mr. Pinneke spent 12 years with a major retailer as an asset protection corporate executive, leading enterprise-wide programs to reduce loss and manage security operations. Prior to that, he spent 10 years with another big box retailer, where he served as director of loss prevention and risk control for Caribbean operations. Mr. Pinneke holds an MBA and a Bachelor of Business Administration degree.
