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Online Piracy - Libiti Reveals ItÂ’s Often The Little Guys That Suffer Most


(IT-NEWSWIRE.COM, May 29, 2015 ) Los Angeles, California -- It is usually the big multinationals that grab headlines when it comes to the fight against pirated goods, a battle intensely fought over the internet. The impression most people are left with is that only the well known brands struggle against this scourge, but in actual fact, it is often the little guys, the brands people might never have heard about, that fair the worst. The simple reason for this is that big companies tend to sell in a diversity of market places, are generally well capitalized, and are able to divert substantial resources to the cause.

Small on-line businesses on the other hand, once attacked, are often left feeling very exposed, particularly those vested in just one or two marketplaces. This was precisely the case with Libiti, a small cell phone case business specializing exclusively in premium quality wallet style cases.

Libiti's managing director, Volker Schafer, explains his surprise when, after just a few months in business, a member of his staff presented evidence of piracy against them. ‘I must confess, it was quite a shock', he says, ‘I had to look twice when the evidence was shown to me.'

Libiti sells exclusively on and have recently launched cases for Samsung's new Galaxy S6 and Galaxy S6 Edge phones. ‘These new cases became popular quite quickly and somehow this must have been noticed by a counterfeiter all the way over in China, because all of a sudden this new guy from China appeared claiming to sell genuine Libiti products. We don't know yet what he is really selling but we know it's not genuine,' says Mr Schafer.

What is remarkable is that on Amazon counterfeiters are able to advertise their pirated products on Libiti's own product pages. Since many products on Amazon have multiple legitimate sellers it is obviously very difficult for a customer to know whether a product is counterfeit. Mr Schafer explains: ‘Many Amazon sellers will buy popular products at a liquidation sale in their local area and then resell these items on Amazon for a small profit. This is perfectly legitimate, however Libiti is very boutique and only sell on Amazon and only one seller is currently authorized to sell our products, so it is obvious to us that any other persistent seller is a counterfeiter. Unfortunately what is obvious to us is not so obvious to customers'.

To complicate matters it is difficult for Libiti to prove to Amazon that the other seller is offering counterfeit items. ‘Amazon naturally wants a multitude of competing sellers as it drives prices down and brings more business', outlines Mr Schafer, ‘so proving a competing seller is illegitimate is not so easy. One option is to purchase the fake and show the difference to Amazon but so far this seller has not honored our order. In any case, even that may not be enough to drive them away.'

For a growing on-line business the biggest problem is not the immediate loss in sales but loss of reputation. ‘On-line businesses thrive or die on customer reviews. If a customer believes a cheap counterfeit is the genuine article they may post a negative review. A few of these and sales will really take a hit' explains Mr Schafer very seriously. ‘We do our best to help our customers understand this problem and to eliminate these sham sellers, but it's a constant battle. There are always more counterfeiters looking to fill a gap.'

Libiti's experience with product piracy is not uncommon among on-line businesses of any size. Major marketplaces such as Amazon could well do better at identifying counterfeiters but at the end of the day it is often customer awareness and customer choice that determines the fate of counterfeiters. Frequently, these same customer attitudes will unwittingly determine the fate of legitimate businesses as well.

About TS Earth

Associated with companies such as Libiti, TS Earth maintains engagement with issues surrounding cell phones and cell phone accessories. TS Earth media delivers the news and reveals the state of affairs in on-line cell phone markets.

TS Earth

Jane Ellington

(323) 537-9417

Source: EmailWire.Com


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