Manufacturers want counterfeiters to face the music.
That’s the message from Fender Musical Instruments Corporation—one of the world’s leading manufacturers of guitars, basses and amplifiers and an iconic brand recognized by millions. The company is urging Congress to step up protections for manufacturers and increase oversight of third-party sellers that can unintentionally contribute to the sale of counterfeit merchandise.
The problem: Manufacturers like Fender routinely face threats to their brand from counterfeit products. In 2021 alone, the company identified almost 32,000 listings of Fender products online for potential trademark infringement. Nearly 70% of those flagged listings were suspected of being counterfeit products. Yet, because those products are often sold anonymously through third-party online marketplaces, it can be difficult to go after the groups and individuals who create and supply fake merchandise.
Consumer issues: Counterfeits don’t just rob consumers of an authentic Fender experience; they can also create safety concerns. Guitars and amps with electrical components have been tested and perfected to ensure a safe product, but counterfeit and fake products come with no such guarantee.
A global challenge: Fender isn’t the only manufacturer facing issues around counterfeits and copyright infringement. According to the NAM’s research, fake and counterfeit products cost the United States $131 billion and 325,000 jobs in 2019 alone, and the global trade in counterfeits may exceed $500 billion every single year. That puts an enormous burden on manufacturers and consumers alike.
Our move: The NAM is leading the fight against counterfeit products. Our report, “Countering Counterfeits,” includes a series of suggested solutions to help the federal government and the private sector work together against fake merchandise, including:
- Requiring e-commerce platforms to reduce the availability of counterfeits;
- Modernizing enforcement laws and tactics to keep pace with counterfeiting technology;
- Streamlining government coordination;
- Improving private-sector collaboration; and
- Empowering consumers to avoid counterfeit goods.
The word from Fender: “Protecting consumers starts with protecting the manufacturers who have built a name by putting out the best and safest products,” said Executive Vice President of Operations and Co-President of the Fender Play Foundation Ed Magee in his letter to Congress. “By working together with online marketplaces, manufacturers and trademark holders can proactively work toward preventing counterfeit goods from entering the stream of commerce, while also reactively working together to track down fraudulent sellers. When manufacturers and online marketplace vendors come together like this, the consumer is the ultimate winner.”
Washington, D.C. – Ahead of the midterm elections, the National Association of Manufacturers released its policy roadmap, “Competing to Win,” a comprehensive blueprint featuring immediate solutions for bolstering manufacturers’ competitiveness. It is also a roadmap for policymakers on the laws and regulations needed to strengthen the manufacturing industry in the months and years ahead.
With the country facing rising prices, snarled supply chains and geopolitical turmoil, manufacturers are outlining an actionable competitiveness agenda that Americans across the political spectrum can support. “Competing to Win” includes the policies manufacturers in America will need in place to continue driving the country forward.
“‘Competing to Win’ offers a path for bringing our country together around policies, shared values and a unified purpose,” said NAM President and CEO Jay Timmons. “The NAM is putting forward a plan filled with ideas that policymakers could pursue immediately, including solutions to urgent problems, such as energy security, immigration reform, supply chain disruptions, the ongoing workforce shortage and more. Manufacturers have shown incredible resilience through difficult times, employing more workers now than before the pandemic, but continued resilience is not guaranteed without the policies that are critical to the state of manufacturing in America.”
The NAM and its members will leverage “Competing to Win” to shape policy debates ahead of the midterm elections, in the remainder of the 117th Congress and at the start of the 118th Congress—including in direct engagement with lawmakers, for grassroots activity, across traditional and digital media and through events in key states and districts as we did following the initial rollout of the roadmap in 2016.
The document focuses on 12 areas of action, and all policies are rooted in the values that have made America exceptional and keep manufacturing strong: free enterprise, competitiveness, individual liberty and equal opportunity.
Learn more about how manufacturers are leading and about the industry’s competitiveness agenda at nam.org/competing-to-win.
The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs more than 12.8 million men and women, contributes $2.77 trillion to the U.S. economy annually and accounts for 58% of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the NAM or to follow us on Twitter and Facebook, please visit www.nam.org