STORES Magazine - September 2017 - 60

n

FRAUD

Calling in the Experts
To fight counterfeit, MVMT Watches
outsources brand protection
by LIZ PARKS

R

etailers whose brands are prized by
customers as trendy or luxurious are
almost inevitably targeted by fraudsters
infringing on their intellectual property
rights.
Growing numbers of imposters rack in
easy sales by counterfeiting popular brands
online and sometimes even replicating
legitimate websites, resulting in tarnished
brands and lost sales.
An estimate from a 2015 report
commissioned by the International
Chamber of Commerce placed the size
of the global counterfeit market at more
than $1.7 trillion in 2015, up from $600
billion in 2010. Those sales are estimated
to increase to $2.8 trillion by 2022.
Given the time and money that retailers
need to spend combating these threats,
many companies are turning to specialists
who use sophisticated algorithms to find
counterfeit listings and remove them.
Outsourcing saves "significant time and
money and is much more effective than
what we were able to do on our own,"
says Joe Spallone, customer service and
intellectual property rights manager for
Los Angeles-based MVMT Watches.
FIGHTING FAKES
MVMT, a fast-growing international
brand created to meet a need for high
quality, stylish watches at affordable
prices, launched its website in 2013. It also
has distribution in about 80 Nordstrom
stores throughout the United States.
Spallone says the company discovered
growing incidents of brand counterfeiting
about a year after its launch. After
trying to deal with the incidents and
becoming frustrated by the amount of
time it was taking - "about two days a
week," he says, "and these were 50 hour
weeks" - MVMT turned to Red Points,
a company dedicated to brand and
copyright protection.

60

STORES September 2017

Six months after MVMT's partnership
with Red Points began in November,
Spallone says Red Points' Magda software
program had found more than 25,000
listings of counterfeits of its watch brand
on 80 marketplace sites. The typical price
at which the counterfeits were being sold
was between $5 and $15, for items that
retail for $95 to $160.
Red Points also found 11 incidents
of counterfeit websites effectively
replicating the look and feel of the
MVMT website. When customers
would order a watch from one of these

websites, the owner of the site would
take the order, then order that item
from the legitimate MVMT website,
effectively using MVMT to "dropship
the order to the customer," Spallone
says. "The fraudsters were making
money because they were buying from us
using promotional discounts, plus they
were charging higher retail prices."
So far, Red Points has shut down all but
four of those sites, he says, with the threat
of lawsuits hanging over the rest.
"When we were doing the search for
counterfeits, we had only found about
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Table of Contents for the Digital Edition of STORES Magazine - September 2017

Editor’s Page
President’s Page
Retail Politics
NRF News
Trends
Retail People
The Favorite 50
RFID Is Ready to Revolutionize the Retail Industry
Playing Their Tune
C2W
Store Operations
Marketing
Payments
How Stonewall Kitchen Boosted Sales and Reengaged Customers
Finance
Store Operations
Inventory Management
Online
How Giant Eagle’s Technology Experiments Reduce Losses From Out-of-Stocks.
Startup Spotlight
Analytics
ORC
Fraud
Stores at 100
POV
Communities
End Cap
STORES Magazine - September 2017 - Intro
STORES Magazine - September 2017 - cover1
STORES Magazine - September 2017 - cover2
STORES Magazine - September 2017 - 3
STORES Magazine - September 2017 - 4
STORES Magazine - September 2017 - 5
STORES Magazine - September 2017 - Editor’s Page
STORES Magazine - September 2017 - 7
STORES Magazine - September 2017 - President’s Page
STORES Magazine - September 2017 - 9
STORES Magazine - September 2017 - Retail Politics
STORES Magazine - September 2017 - NRF News
STORES Magazine - September 2017 - Trends
STORES Magazine - September 2017 - 13
STORES Magazine - September 2017 - 14
STORES Magazine - September 2017 - 15
STORES Magazine - September 2017 - 16
STORES Magazine - September 2017 - Retail People
STORES Magazine - September 2017 - 18
STORES Magazine - September 2017 - The Favorite 50
STORES Magazine - September 2017 - 20
STORES Magazine - September 2017 - 21
STORES Magazine - September 2017 - 22
STORES Magazine - September 2017 - 23
STORES Magazine - September 2017 - 24
STORES Magazine - September 2017 - RFID Is Ready to Revolutionize the Retail Industry
STORES Magazine - September 2017 - 26
STORES Magazine - September 2017 - 27
STORES Magazine - September 2017 - Playing Their Tune
STORES Magazine - September 2017 - 29
STORES Magazine - September 2017 - 30
STORES Magazine - September 2017 - C2W
STORES Magazine - September 2017 - Store Operations
STORES Magazine - September 2017 - 33
STORES Magazine - September 2017 - 34
STORES Magazine - September 2017 - 35
STORES Magazine - September 2017 - Marketing
STORES Magazine - September 2017 - 37
STORES Magazine - September 2017 - Payments
STORES Magazine - September 2017 - 39
STORES Magazine - September 2017 - How Stonewall Kitchen Boosted Sales and Reengaged Customers
STORES Magazine - September 2017 - 41
STORES Magazine - September 2017 - Finance
STORES Magazine - September 2017 - 43
STORES Magazine - September 2017 - Store Operations
STORES Magazine - September 2017 - 45
STORES Magazine - September 2017 - Inventory Management
STORES Magazine - September 2017 - 47
STORES Magazine - September 2017 - Online
STORES Magazine - September 2017 - 49
STORES Magazine - September 2017 - How Giant Eagle’s Technology Experiments Reduce Losses From Out-of-Stocks.
STORES Magazine - September 2017 - 51
STORES Magazine - September 2017 - Startup Spotlight
STORES Magazine - September 2017 - 53
STORES Magazine - September 2017 - Analytics
STORES Magazine - September 2017 - 55
STORES Magazine - September 2017 - 56
STORES Magazine - September 2017 - ORC
STORES Magazine - September 2017 - 58
STORES Magazine - September 2017 - 59
STORES Magazine - September 2017 - Fraud
STORES Magazine - September 2017 - 61
STORES Magazine - September 2017 - Stores at 100
STORES Magazine - September 2017 - 63
STORES Magazine - September 2017 - POV
STORES Magazine - September 2017 - Communities
STORES Magazine - September 2017 - End Cap
STORES Magazine - September 2017 - cover3
STORES Magazine - September 2017 - cover4
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