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KEY online Strategies:do you HAVE THE RIGHT FOCUS?MUNICH MARCH 2017DANIEL BENNETT CEODANIEL@YELLOWBP.COM

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ABOUT YELLOW BRAND PROTECTION3

A global online anti-counterfeiting specialist.

Broadest search capability and enforcement services in the industry

Covering world-wide issues from the UK, Sweden, China and the USA.

Actively lobbying key online platforms to improve IPR protection for rights owners.

Leading the industry through innovation and a passion to eradicate counterfeiting globally.

working discreetly for many of the worlds most recognized brands, across: luxury & retail, automotive, consumer products & healthcare, toys & childrens products, food & drink and media & entertainment.

Broadest search capability in the industry - covering all key online sales channels, including 25+ Social Media platforms, 850+ online marketplaces, 50+ Mobile App platforms and world-wide Websites & Domains

Strongest enforcement services including a 95% enforcement success rate across all platforms and over 3.5 million successful actions taken to date

Covering world-wide issues from the UK, Sweden, China and the USA. Significant analytical and enforcement competence in Chinese (Mandarin), Russian, Arabic and all major European languages.

Actively lobbying Alibaba Group and Facebook/Instagram to improve IPR protection for our clients.

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BACKGROUND TO COUNTERFEITING..4

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STATISTICS - COUNTERFEITINGThe global economic value of counterfeiting and piracy could reach $2.3 trillion by 2022

Leather goods, watches, jewelry, smart phones and sneakers/shoes are still the top 5 of list of ccounterfeits

Estimated employment losses by 2022: 4.2 5.4 million86% of all counterfeiting comes from China and Hong Kong97% of Counterfeit Drugs in US Shipped From Four Countries

Left to right

1. According to the ICC (international chamber of commerce).https://iccwbo.org/media-wall/news-speeches/global-impacts-counterfeiting-piracy-reach-us4-2-trillion-2022/

2. These countries are: China, Hong Kong, India, and Singapore, this is according to RAPS (regulatory affairs professionals society)http://www.raps.org/regulatoryDetail.aspx?id=24853

3. . According to the ICC (international chamber of commerce).https://iccwbo.org/media-wall/news-speeches/global-impacts-counterfeiting-piracy-reach-us4-2-trillion-2022/

4. As reported by Intellectual Propery Watchhttps://www.ip-watch.org/2016/06/21/nearly-all-global-physical-counterfeiting-is-from-china-hong-kong-us-report-shows/

5. According to Goliath.com http://www.goliath.com/random/the-10-most-counterfeited-products-in-the-world/

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Estimates as high as 700,000 deaths globally each year are caused by fake drugs.

Fakes of heparin, a blood-thinning drug, killed 149 Americans in 2007 and 2008.

More than 99% of fake Apple chargers have dangerous safety flaws, meaning that they had the potential to deliver fatal electric shocks when handled normally.

Deadly counterfeit lotion killed 58 in Russian city.

6FATAL FAKE

Counterfeits can be extremely dangerous

1 and 2.. According to the FDA commissioner http://edition.cnn.com/2012/07/17/health/living-well/falsified-medicine-bate/

3. Chartered Trading Standards Institute, a UK consumer protection organization tested thesehttp://www.businessinsider.com/apple-fake-chargers-study-2016-12?r=US&IR=T&IR=T

4. Russia lotion: http://www.ctvnews.ca/world/deadly-counterfeit-lotion-kills-58-in-russian-city-1.3211290

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7COUNTERFEITING AND LINKS TO TERRORISM- Charlie Hebdo ringleader was selling counterfeit goods to fund the Paris attacks including purchase of weapons, according to the investigation team.

- Cigarette smuggling fuels Africa's Islamist violence

Contraband tobacco is a 632 million trade in North Africa.

60bn cigarettes bought on the black market each year.

The key role cigarettes play in facilitating terrorism has been inexplicably ignored according to the ICIJ

North Koreahas diversified its business model for earning hard currency, shifting from a reliance on manufacturing drugs and counterfeiting foreign bank notes to fake pharmaceuticals and counterfeit cigarettes.

Source: https://www.theguardian.com/world/2013/jan/27/cigarette-smuggling-mokhtar-belmokhtar-terrorismSource: https://moneyjihad.wordpress.com/2015/01/20/police-probe-kouachis-counterfeit-connections

International Consortium of Investigative Journalists (ICIJ) has concluded that "cigarette smuggling has provided the bulk of financing for Al Qaeda

North Korea: http://www.telegraph.co.uk/news/worldnews/asia/northkorea/10766587/North-Korea-branches-out-into-ivory-fake-cigarette-and-pharmaceutical-trade.html7

KEY online Strategies:do you HAVE THE RIGHT FOCUS?

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Domain names and website content mid 1990sUDRP & website enforcement heavy legal focus

Marketplaces, social media, websites, domains, apps, paid search, dark webLargely whack a mole approach, focusing on largest platforms

Huge growth in volumes of counterfeits and infringements, clever criminals that hide effectively across channelsCombination of targeted online enforcement actions and use of data clustering to identify the key offenders

9THE PAST, THE PRESENT AND THE FUTUREThe evolution of online brand protection

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Marketplaces still the no 1 sales channel among counterfeiters. More than 900 active marketplaces

Counterfeits are also found on websites, app stores - and of course Social media platforms

Counterfeiters are also making use of messaging apps like WeChat and Whats App

Make sure you depoy a comprehensive monitoring technology that innovates as quickly as the infringers

101. KNOW YOUR ENVIRONMENT

MAKE SURE YOU LOOK IN ALL THE RIGHT PLACES

. According to World Trademark Review, WeChat has removed 7,000 accounts due to counterfeiting so far.

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Automatically detect repeat offenders and prioritise ads based on criteria such as volume of stock, and price point

Comprehensively enforce these prioritised ads on an on-going basis

Capture all useful data for evidence and for further automated data analysis.

112. IDENTIFY AND PRIORITISE ONLINE RISKSUSE AUTOMATED TOOLS AND EFFECTIVE ONLINE ENFORCEMENT

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Use data-clustering tools to un-mask aliases being used across different platforms

Identify the largest offenders, their footprint and risk to your brands

Match data against offline enforcement efforts such as local investigations and legal cases

Take offline action against major distributers and manufactures and ultimately make a real difference in your fight to eradicate counterfeiting

123. USE ONLINE DATA TO DRIVE OFFLINE RESULTSFOCUS ON THE KEY OFFENDERS AND CONTACT INFORMATION / LOCATION

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13SUMMARY THE YELLOW APPROACHDRIVE OFFLINE ENFORCEMENT EFFORTS AND BUDGETING

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10 Station RoadHenley-On-ThamesOxfordshire RG9 1AY+44 (0)20 8144 6440United Kingdomsales@yellowbp.comEUROPEASIAUSANorrgatan 10432 38 VarbergSweden+46 (0)340 69 56 02sweden@yellowbp.com

Fuxing comm. building, 139 RuijinHuangpu districtShanghaiChina +86 (0)21-6136 6030china@yellowbp.comOne Boston Place Suite 2600Boston, MA 02108USA+1.617.999.3247USA@yellowbp.comDANIEL BENNETT CEODANIEL@YELLOWBP.COM

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