SEMA News—August 2015

INTERNATIONAL
By Linda Spencer

Tips to Connect With International Buyers at the 2015 SEMA Show

More than 25% of all buyers expected at the 2015 SEMA Show will come from more than 132 nations outside the United States. Exhibitors should create an action plan to attract and service international buyers visiting their booths.

	Top automotive specialty-equipment buyers from Russia, the Middle East, Australia and China will speak about the opportunities and challenges U.S. manufacturers face in doing business in their home markets.

Make plans to:

• Arrange for your international sales and marketing staff to be on hand to greet overseas buyers.

• Request a “We Export” sign. Complimentary “We Export” signs are available to exhibitors for display in their booths. Let international buyers know that you are interested in doing business with them with this multilingual sign. Don’t know where to get one? Contact lindas@sema.org.

• Have sample of products with international applications in your booth.

• Attend the SEMA International Happy Hour and International Roundtables as an easy way to meet global buyers as well as U.S. companies doing business abroad.

• Don’t forget signage for any product applications that would fit vehicles that may not be found in the United States. For example, if you created product for the vehicles made available by a joint program between SEMA and the U.S. Department of Commerce, such as the Toyota HiLux, Ford Ranger T6, Mitsubishi L200 or UAZ Hunter—all of which are popularly customized around the world but not sold in the United States—be sure to let visitors to your booth know.

Forums on Top Emerging Markets

Top automotive specialty-equipment buyers from Russia, the Middle East, Australia and China will speak about the opportunities and challenges U.S. manufacturers face in doing business in their home markets at roundtable discussions on Monday, November 2, in Upper North Hall, Room N259.

Middle East

• Monday, November 2, 2015; 11:00 a.m.–12:00 p.m.; Upper North Hall, Room N259
  Learn how to cash in on this lucrative region. The United Arab Emirates and surrounding countries provide some of the best opportunities for U.S. specialty-parts manufacturers. Off-roading, classic-car collecting and motorsports are all growing in popularity. Attendees will also learn about the details of the fifth one-on-one matchmaking program to be held in Abu Dhabi on March 29–April 2, 2016.

Australia

• Monday, November 2, 2015; 12:00–1:00 p.m.; Upper North Hall, Room N259
  Meet for lunch and conversation with top buyers from Down Under. Hear about the opportunities in this country of pickup and SUV customizing fanatics and diehard hot-rod enthusiasts. In particular, excitement is building for the all-new Ford Mustang (in righthand drive) landing on Australia’s shores in December. Talk with distributors and retailers eager to carry product to meet the groundswell of enthusiasm, with more than 20,000 “letters of interest” submitted by consumers drawn to the all-new performance vehicle. Explore the challenges as well: All vehicles in the country are righthand drive, and many vehicles popularly customized in Australia are not sold in the United States.

• Monday, November 2, 2015; 1:00 p.m.–2:00 p.m.; Upper North Hall, Room N259
  Russia was on track to become the largest vehicle market in Europe before its vehicle market—and economy—were derailed by a devalued currency and sanctions. A gradual reduction in bank interest rates and a ruble gaining in value are expected to bring about some modest improvements in the vehicle market in the short term. Come learn how to take advantage of this opportunity to build brand recognition, product loyalty and work toward mid- and longer-term goals.
  
  While immediate business gains will make immediate sales more difficult, begin to develop your brand now by meeting with key Russian buyers and those from nearby countries and begin your entry or expansion into this market, which includes a large number of U.S.-made vehicles and is expected to become Europe’s largest passenger-vehicle market once this market recovers.
  
  Interesting facts about the Russian automotive market:
  
  About 48,000 U.S.-made vehicles were imported into Russia in 2013, according to a U.S. Department of Commerce report. In addition to U.S.-made vehicles exported to Russia, Ford’s 50/50 joint venture in 2013 produced the millionth Russian-built, Ford-badged vehicle. In addition, popularly customized vehicles, such as the Jeep Wrangler, are also now officially sold in Russia.

China

• Monday, November 2, 2015; 3:00 p.m.–4:00 p.m.; Upper North Hall, Room N259
  Chinese distributors and SEMA members already successful in the region provide insider tips. Learn the latest trends, applications and perceptions of U.S. brands in the Chinese market. This will be a great opportunity to meet with press and distributors of specialty products in this market of 1.3 billion people in an informal, practical session that will assist attendees in deciding if this market is a good fit for their products.

	The annual International Happy Hour is the largest annual international specialty-equipment trade gathering.

International Happy Hour

• Wednesday, November 4, 2015; 5:00 p.m.–6:30 p.m.; Upper North Hall, Room N255
  The 2015 International Happy Hour is the largest annual international specialty-equipment trade gathering. Network with international buyers, distributors and media right in the Las Vegas Convention Center at the close of the day’s SEMA Show. More than 1,000 companies are expected at the 12th edition of the event. Pre-registration required but complimentary. Visit www.sema.org/international to register.

Global Media Awards

Get your hottest new products in front of buyers and the media by participating in the New Products Showcase. The annual Global Media Awards will once again be selected by a group of 35 top automotive journalists from more than 20 countries. Each will name 10 products from the New Products Showcase that he or she thinks will most appeal to consumers in their home markets. Winning companies will be recognized at the International Happy Hour, receiving Global Media Awards that signify the global appeal of their products and their companies.

Center for International Commerce

The Center for International Commerce will be located in the Las Vegas Convention Center, Room N255. The CIC room offers complimentary private meeting space and interpreters to facilitate meetings between exhibitors and international buyers. On hand will be a team of interpreters to assist in bilingual communication in key languages, such as German, French, Spanish, Chinese, Japanese and Portuguese.

SEMA News—August 2015

LEGISLATIVE AND TECHNICAL AFFAIRS
By Ashley Ailsworth

Put the Brakes on Fakes!

Branding, Consumer Awareness and Packaging Solutions to Combat Counterfeiting

Putting the brakes on counterfeiting may be achieved through more creative, less conventional measures.

For SEMA-member companies putting out great products these days, the challenge of illegal unauthorized copies is almost unavoidable. While some companies turn to the courts, federal agencies and law enforcement to confront counterfeiters, these avenues are frequently too expensive, ineffective or both. With the pervasive culture of counterfeiting in today’s global marketplace, SEMA members may be best served by also pursuing creative solutions that focus on branding, consumer awareness and unique packaging.

Brand Everything

One of the most effective means of communicating to customers that a product was actually produced by a well-known source is by using the company name or logo on everything that goes out the door. Once this branding becomes common practice, consumers begin to recognize that products without the company’s name or logo are not genuine.

One SEMA member that takes branding very seriously is instrumentation manufacturer Auto Meter, whose high-quality gauges almost always bear the distinctive “Auto Meter” logo. The company works hard to make sure its logos are accurately represented in the marketplace because consumers recognize those logos and demand them when seeking out Auto Meter products.

	The distinctive Auto Meter logo helps consumers identify the company’s products.

When the company name or logo is not printed on a copy, a deceptive seller could play dumb and claim that their products are legal knock-offs rather than illegal counterfeits. A legal knock-off looks like a well-known product already in production, but does not copy any protectable aspect of an existing product. While unbranded copies may be construed as legal knock-offs, a seller making unauthorized use of another company’s registered trademarks, such as a company logo, is engaged in illegal counterfeiting. Recognizing consumer demand for the Auto Meter logo, counterfeiters have brazenly ripped off the company’s trademarks. Since the company’s registered trademarks are being copied, Auto Meter is able to easily prove to e-commerce sites and courts that an unauthorized user of the logo has committed a crime.

Some companies choose to forego printing their name or logo on products and claim trade dress rights on a unique feature of a product. Trade dress is a subset of trademark law that protects unique aspects of products or packaging when consumers use the unique feature to identify the source of the product. While relying on trade dress is a valid strategy, a company would be forced to prove in court that consumers use the unique feature as a source identifier in the marketplace. Instead of having to provide this proof every time a company goes to court, it is far easier to register a logo as a trademark, print that logo on the product and watch as the counterfeiters illegally start stamping that logo onto their copies. If victims whose products are being copied then choose to seek help from the courts, their case will be far easier to prove.

Make Consumers Aware of the Problem

Aeromotive’s online consumer awareness efforts warn customers that knock-offs of the company’s popular fuel pressure regulator kits often come packaged in cheap white styrofoam.

If consumers see a product that looks similar or identical to the products from a well-known source, they are likely to associate the goods with that company unless they are educated about the differences. It is important that consumers know what to look for when shopping for products. SEMA businesses can help educate their customers on how to identify their products and, more importantly, how to spot a knock-off.

Consumer awareness campaigns that help customers identify fakes may be more beneficial than taking action after the customer has already been duped. These campaigns can be rolled out on the company’s website, in the media or company-sponsored advertisements.

Kansas-based SEMA member Aeromotive communicates with its customers via its website (www.aeromotiveinc.com/buyer-beware-genuine-aeromotive) to inform them about the prevalence of counterfeiting in the automotive aftermarket and caution consumers against inadvertently spending their hard-earned money on knock-offs.

Consumer awareness campaigns should also involve cooperation throughout the supply chain. For example, SEMA member Weld Wheels recently strengthened its distributor program to certify dealers that sell genuine Weld wheels and provides consumers with a list of certified dealers on its website (www.weldwheels.com/dealer-locator).

Important features of any consumer awareness campaign may include the following components:

• Your company’s logo and specific aspects of that logo that you have seen misrepresented by counterfeiters.

• Features of your product that are difficult to reproduce or commonly reproduced inaccurately by counterfeiters and that consumers can check to identify a fake.

• Prices that are significantly lower than the average price for your company’s products are likely not produced by your company.

• A list of your products that are most frequently copied.

• A caution against purchasing from unauthorized web retailers.

• A list of authorized retailers where consumers can purchase genuine products.

• A help line, webpage or contact person for consumers to inquire about the authenticity of a product before buying.

Stay One Step Ahead

Counterfeiters thrive best when they attempt to sell a product that does not change from year-to-year. They can make one mold, focus on developing a single manufacturing process, and keep the copies coming. To make it more difficult on them, many companies rely on innovation and the introduction of new products. “Part of that entails evolving the product design where possible to maintain product differentiation that is visible to the consumer and distributor,” said Aeromotive President Steve Matusek. The problem is exacerbated when a particular product becomes so popular that private brands begin selling knock-offs sourced from offshore. “Once the offshore vendor is aware of unit volume and has production in place, it’s a simple step to start counterfeiting the branded product,” explained Matusek.

Another way to outsmart the bad guys is to sell very application-specific products rather than focusing on universal parts that can be used interchangeably on a wide range of vehicles. “We have a proliferation of part numbers with subtle differences to achieve different results on different makes, models and model years,” explained Borla Vice President of Sales and Marketing David Borla. Producers of counterfeit product tend to copy units they can sell in bulk, and Borla admits they have seen their universal mufflers copied over the years. Even where a manufacturer is selling a part in high volumes, skilled craftsmanship and high-quality materials can differentiate authentic product from the cheap knock-offs. “Our products are manufactured from aircraft-quality T-304 stainless steel with complex, patented internal technology,” said Borla. “An installer or other trained eye would certainly be able to tell the real thing from the knock-off,” he added.

Use Packaging Features That Can’t Be Copied

Products can be reproduced, even if the result is a poor-quality knock-off, but some packaging solutions involve features that cannot be copied. Holograms, specialized seals, labels, wraps and tracking and tracing tools can all be used to ensure product authenticity. Numerous vendors offer these solutions and can be researched online. Companies may also choose to develop unique packaging features in-house that are difficult for counterfeiters to copy. Cheap packaging materials can be a sign of cheap products, and consumers should be made aware of the packaging to expect when purchasing genuine products.

On the flip side, make consumers aware of the packaging commonly used by known counterfeiters, since it may be easier to identify fakes by inspecting the package rather than the product itself. For example, Aeromotive informs consumers on its website that genuine Aeromotive products do not come packaged or displayed in white Styrofoam.

Shut Down the Counterfeiters

Although branding, consumer awareness and packaging solutions are all valuable tools in a company’s intellectual property toolchest, shutting down the counterfeiters and keeping fakes from crossing the borders remains the ultimate goal.

SEMA members can utilize a variety of tools to help enforce their rights within the United States, ranging from issuing cease-and-desist letters to obtaining court rulings. It is also possible to stop illegal imports from entering the United States. For rights that have been registered with the U.S. Patent and Trademark Office (trademarks) or Library of Congress (copyrights), record those registrations with the U.S. Customs and Border Protection. Customs can then assist in seizing merchandise that is counterfeit or confusingly similar to a recorded trademark or copyright.

SEMA maintains a strict policy on intellectual property rights and works to resolve legitimate claims of intellectual property infringement at the SEMA Show and throughout the year. The SEMA intellectual property rights policy is available in the Exhibitor Services Manual section of the SEMA Show website at www.SEMAShow.com. Under the policy, no exhibitor may sell, advertise or display counterfeit or illegal knockoff products. If SEMA is unable to make a determination on a particular complaint, the complaining exhibitor is encouraged to submit its claims to a court of competent jurisdiction and obtain a court order against the wrongdoer.

A recent success story from the SEMA Show involves Aeromotive, which served court papers on an exhibitor showing counterfeit product online. “The defendant was served on the Show floor and a default judgment was recently awarded based on the complaint,” said Aeromotive Director of Business Development Kyle Fickler. “We feel that SEMA’s intellectual property rights policy and attorneys hired to enforce it are significant member benefits that are often underutilized,” added Fickler.

More detailed information on protecting your company’s intellectual property can be found on SEMA’s website at www.sema.org/ipr.

SEMA News—August 2015

LEGISLATIVE AND TECHNICAL AFFAIRS
By Ashley Ailsworth

Put the Brakes on Fakes!

Branding, Consumer Awareness and Packaging Solutions to Combat Counterfeiting

Putting the brakes on counterfeiting may be achieved through more creative, less conventional measures.

For SEMA-member companies putting out great products these days, the challenge of illegal unauthorized copies is almost unavoidable. While some companies turn to the courts, federal agencies and law enforcement to confront counterfeiters, these avenues are frequently too expensive, ineffective or both. With the pervasive culture of counterfeiting in today’s global marketplace, SEMA members may be best served by also pursuing creative solutions that focus on branding, consumer awareness and unique packaging.

Brand Everything

One of the most effective means of communicating to customers that a product was actually produced by a well-known source is by using the company name or logo on everything that goes out the door. Once this branding becomes common practice, consumers begin to recognize that products without the company’s name or logo are not genuine.

One SEMA member that takes branding very seriously is instrumentation manufacturer Auto Meter, whose high-quality gauges almost always bear the distinctive “Auto Meter” logo. The company works hard to make sure its logos are accurately represented in the marketplace because consumers recognize those logos and demand them when seeking out Auto Meter products.

	The distinctive Auto Meter logo helps consumers identify the company’s products.

When the company name or logo is not printed on a copy, a deceptive seller could play dumb and claim that their products are legal knock-offs rather than illegal counterfeits. A legal knock-off looks like a well-known product already in production, but does not copy any protectable aspect of an existing product. While unbranded copies may be construed as legal knock-offs, a seller making unauthorized use of another company’s registered trademarks, such as a company logo, is engaged in illegal counterfeiting. Recognizing consumer demand for the Auto Meter logo, counterfeiters have brazenly ripped off the company’s trademarks. Since the company’s registered trademarks are being copied, Auto Meter is able to easily prove to e-commerce sites and courts that an unauthorized user of the logo has committed a crime.

Some companies choose to forego printing their name or logo on products and claim trade dress rights on a unique feature of a product. Trade dress is a subset of trademark law that protects unique aspects of products or packaging when consumers use the unique feature to identify the source of the product. While relying on trade dress is a valid strategy, a company would be forced to prove in court that consumers use the unique feature as a source identifier in the marketplace. Instead of having to provide this proof every time a company goes to court, it is far easier to register a logo as a trademark, print that logo on the product and watch as the counterfeiters illegally start stamping that logo onto their copies. If victims whose products are being copied then choose to seek help from the courts, their case will be far easier to prove.

Make Consumers Aware of the Problem

Aeromotive’s online consumer awareness efforts warn customers that knock-offs of the company’s popular fuel pressure regulator kits often come packaged in cheap white styrofoam.

If consumers see a product that looks similar or identical to the products from a well-known source, they are likely to associate the goods with that company unless they are educated about the differences. It is important that consumers know what to look for when shopping for products. SEMA businesses can help educate their customers on how to identify their products and, more importantly, how to spot a knock-off.

Consumer awareness campaigns that help customers identify fakes may be more beneficial than taking action after the customer has already been duped. These campaigns can be rolled out on the company’s website, in the media or company-sponsored advertisements.

Kansas-based SEMA member Aeromotive communicates with its customers via its website (www.aeromotiveinc.com/buyer-beware-genuine-aeromotive) to inform them about the prevalence of counterfeiting in the automotive aftermarket and caution consumers against inadvertently spending their hard-earned money on knock-offs.

Consumer awareness campaigns should also involve cooperation throughout the supply chain. For example, SEMA member Weld Wheels recently strengthened its distributor program to certify dealers that sell genuine Weld wheels and provides consumers with a list of certified dealers on its website (www.weldwheels.com/dealer-locator).

Important features of any consumer awareness campaign may include the following components:

• Your company’s logo and specific aspects of that logo that you have seen misrepresented by counterfeiters.

• Features of your product that are difficult to reproduce or commonly reproduced inaccurately by counterfeiters and that consumers can check to identify a fake.

• Prices that are significantly lower than the average price for your company’s products are likely not produced by your company.

• A list of your products that are most frequently copied.

• A caution against purchasing from unauthorized web retailers.

• A list of authorized retailers where consumers can purchase genuine products.

• A help line, webpage or contact person for consumers to inquire about the authenticity of a product before buying.

Stay One Step Ahead

Counterfeiters thrive best when they attempt to sell a product that does not change from year-to-year. They can make one mold, focus on developing a single manufacturing process, and keep the copies coming. To make it more difficult on them, many companies rely on innovation and the introduction of new products. “Part of that entails evolving the product design where possible to maintain product differentiation that is visible to the consumer and distributor,” said Aeromotive President Steve Matusek. The problem is exacerbated when a particular product becomes so popular that private brands begin selling knock-offs sourced from offshore. “Once the offshore vendor is aware of unit volume and has production in place, it’s a simple step to start counterfeiting the branded product,” explained Matusek.

Another way to outsmart the bad guys is to sell very application-specific products rather than focusing on universal parts that can be used interchangeably on a wide range of vehicles. “We have a proliferation of part numbers with subtle differences to achieve different results on different makes, models and model years,” explained Borla Vice President of Sales and Marketing David Borla. Producers of counterfeit product tend to copy units they can sell in bulk, and Borla admits they have seen their universal mufflers copied over the years. Even where a manufacturer is selling a part in high volumes, skilled craftsmanship and high-quality materials can differentiate authentic product from the cheap knock-offs. “Our products are manufactured from aircraft-quality T-304 stainless steel with complex, patented internal technology,” said Borla. “An installer or other trained eye would certainly be able to tell the real thing from the knock-off,” he added.

Use Packaging Features That Can’t Be Copied

Products can be reproduced, even if the result is a poor-quality knock-off, but some packaging solutions involve features that cannot be copied. Holograms, specialized seals, labels, wraps and tracking and tracing tools can all be used to ensure product authenticity. Numerous vendors offer these solutions and can be researched online. Companies may also choose to develop unique packaging features in-house that are difficult for counterfeiters to copy. Cheap packaging materials can be a sign of cheap products, and consumers should be made aware of the packaging to expect when purchasing genuine products.

On the flip side, make consumers aware of the packaging commonly used by known counterfeiters, since it may be easier to identify fakes by inspecting the package rather than the product itself. For example, Aeromotive informs consumers on its website that genuine Aeromotive products do not come packaged or displayed in white Styrofoam.

Shut Down the Counterfeiters

Although branding, consumer awareness and packaging solutions are all valuable tools in a company’s intellectual property toolchest, shutting down the counterfeiters and keeping fakes from crossing the borders remains the ultimate goal.

SEMA members can utilize a variety of tools to help enforce their rights within the United States, ranging from issuing cease-and-desist letters to obtaining court rulings. It is also possible to stop illegal imports from entering the United States. For rights that have been registered with the U.S. Patent and Trademark Office (trademarks) or Library of Congress (copyrights), record those registrations with the U.S. Customs and Border Protection. Customs can then assist in seizing merchandise that is counterfeit or confusingly similar to a recorded trademark or copyright.

SEMA maintains a strict policy on intellectual property rights and works to resolve legitimate claims of intellectual property infringement at the SEMA Show and throughout the year. The SEMA intellectual property rights policy is available in the Exhibitor Services Manual section of the SEMA Show website at www.SEMAShow.com. Under the policy, no exhibitor may sell, advertise or display counterfeit or illegal knockoff products. If SEMA is unable to make a determination on a particular complaint, the complaining exhibitor is encouraged to submit its claims to a court of competent jurisdiction and obtain a court order against the wrongdoer.

A recent success story from the SEMA Show involves Aeromotive, which served court papers on an exhibitor showing counterfeit product online. “The defendant was served on the Show floor and a default judgment was recently awarded based on the complaint,” said Aeromotive Director of Business Development Kyle Fickler. “We feel that SEMA’s intellectual property rights policy and attorneys hired to enforce it are significant member benefits that are often underutilized,” added Fickler.

More detailed information on protecting your company’s intellectual property can be found on SEMA’s website at www.sema.org/ipr.

SEMA News—August 2015

LEGISLATIVE AND TECHNICAL AFFAIRS
By Ashley Ailsworth

Put the Brakes on Fakes!

Branding, Consumer Awareness and Packaging Solutions to Combat Counterfeiting

Putting the brakes on counterfeiting may be achieved through more creative, less conventional measures.

For SEMA-member companies putting out great products these days, the challenge of illegal unauthorized copies is almost unavoidable. While some companies turn to the courts, federal agencies and law enforcement to confront counterfeiters, these avenues are frequently too expensive, ineffective or both. With the pervasive culture of counterfeiting in today’s global marketplace, SEMA members may be best served by also pursuing creative solutions that focus on branding, consumer awareness and unique packaging.

Brand Everything

One of the most effective means of communicating to customers that a product was actually produced by a well-known source is by using the company name or logo on everything that goes out the door. Once this branding becomes common practice, consumers begin to recognize that products without the company’s name or logo are not genuine.

One SEMA member that takes branding very seriously is instrumentation manufacturer Auto Meter, whose high-quality gauges almost always bear the distinctive “Auto Meter” logo. The company works hard to make sure its logos are accurately represented in the marketplace because consumers recognize those logos and demand them when seeking out Auto Meter products.

	The distinctive Auto Meter logo helps consumers identify the company’s products.

When the company name or logo is not printed on a copy, a deceptive seller could play dumb and claim that their products are legal knock-offs rather than illegal counterfeits. A legal knock-off looks like a well-known product already in production, but does not copy any protectable aspect of an existing product. While unbranded copies may be construed as legal knock-offs, a seller making unauthorized use of another company’s registered trademarks, such as a company logo, is engaged in illegal counterfeiting. Recognizing consumer demand for the Auto Meter logo, counterfeiters have brazenly ripped off the company’s trademarks. Since the company’s registered trademarks are being copied, Auto Meter is able to easily prove to e-commerce sites and courts that an unauthorized user of the logo has committed a crime.

Some companies choose to forego printing their name or logo on products and claim trade dress rights on a unique feature of a product. Trade dress is a subset of trademark law that protects unique aspects of products or packaging when consumers use the unique feature to identify the source of the product. While relying on trade dress is a valid strategy, a company would be forced to prove in court that consumers use the unique feature as a source identifier in the marketplace. Instead of having to provide this proof every time a company goes to court, it is far easier to register a logo as a trademark, print that logo on the product and watch as the counterfeiters illegally start stamping that logo onto their copies. If victims whose products are being copied then choose to seek help from the courts, their case will be far easier to prove.

Make Consumers Aware of the Problem

Aeromotive’s online consumer awareness efforts warn customers that knock-offs of the company’s popular fuel pressure regulator kits often come packaged in cheap white styrofoam.

If consumers see a product that looks similar or identical to the products from a well-known source, they are likely to associate the goods with that company unless they are educated about the differences. It is important that consumers know what to look for when shopping for products. SEMA businesses can help educate their customers on how to identify their products and, more importantly, how to spot a knock-off.

Consumer awareness campaigns that help customers identify fakes may be more beneficial than taking action after the customer has already been duped. These campaigns can be rolled out on the company’s website, in the media or company-sponsored advertisements.

Kansas-based SEMA member Aeromotive communicates with its customers via its website (www.aeromotiveinc.com/buyer-beware-genuine-aeromotive) to inform them about the prevalence of counterfeiting in the automotive aftermarket and caution consumers against inadvertently spending their hard-earned money on knock-offs.

Consumer awareness campaigns should also involve cooperation throughout the supply chain. For example, SEMA member Weld Wheels recently strengthened its distributor program to certify dealers that sell genuine Weld wheels and provides consumers with a list of certified dealers on its website (www.weldwheels.com/dealer-locator).

Important features of any consumer awareness campaign may include the following components:

• Your company’s logo and specific aspects of that logo that you have seen misrepresented by counterfeiters.

• Features of your product that are difficult to reproduce or commonly reproduced inaccurately by counterfeiters and that consumers can check to identify a fake.

• Prices that are significantly lower than the average price for your company’s products are likely not produced by your company.

• A list of your products that are most frequently copied.

• A caution against purchasing from unauthorized web retailers.

• A list of authorized retailers where consumers can purchase genuine products.

• A help line, webpage or contact person for consumers to inquire about the authenticity of a product before buying.

Stay One Step Ahead

Counterfeiters thrive best when they attempt to sell a product that does not change from year-to-year. They can make one mold, focus on developing a single manufacturing process, and keep the copies coming. To make it more difficult on them, many companies rely on innovation and the introduction of new products. “Part of that entails evolving the product design where possible to maintain product differentiation that is visible to the consumer and distributor,” said Aeromotive President Steve Matusek. The problem is exacerbated when a particular product becomes so popular that private brands begin selling knock-offs sourced from offshore. “Once the offshore vendor is aware of unit volume and has production in place, it’s a simple step to start counterfeiting the branded product,” explained Matusek.

Another way to outsmart the bad guys is to sell very application-specific products rather than focusing on universal parts that can be used interchangeably on a wide range of vehicles. “We have a proliferation of part numbers with subtle differences to achieve different results on different makes, models and model years,” explained Borla Vice President of Sales and Marketing David Borla. Producers of counterfeit product tend to copy units they can sell in bulk, and Borla admits they have seen their universal mufflers copied over the years. Even where a manufacturer is selling a part in high volumes, skilled craftsmanship and high-quality materials can differentiate authentic product from the cheap knock-offs. “Our products are manufactured from aircraft-quality T-304 stainless steel with complex, patented internal technology,” said Borla. “An installer or other trained eye would certainly be able to tell the real thing from the knock-off,” he added.

Use Packaging Features That Can’t Be Copied

Products can be reproduced, even if the result is a poor-quality knock-off, but some packaging solutions involve features that cannot be copied. Holograms, specialized seals, labels, wraps and tracking and tracing tools can all be used to ensure product authenticity. Numerous vendors offer these solutions and can be researched online. Companies may also choose to develop unique packaging features in-house that are difficult for counterfeiters to copy. Cheap packaging materials can be a sign of cheap products, and consumers should be made aware of the packaging to expect when purchasing genuine products.

On the flip side, make consumers aware of the packaging commonly used by known counterfeiters, since it may be easier to identify fakes by inspecting the package rather than the product itself. For example, Aeromotive informs consumers on its website that genuine Aeromotive products do not come packaged or displayed in white Styrofoam.

Shut Down the Counterfeiters

Although branding, consumer awareness and packaging solutions are all valuable tools in a company’s intellectual property toolchest, shutting down the counterfeiters and keeping fakes from crossing the borders remains the ultimate goal.

SEMA members can utilize a variety of tools to help enforce their rights within the United States, ranging from issuing cease-and-desist letters to obtaining court rulings. It is also possible to stop illegal imports from entering the United States. For rights that have been registered with the U.S. Patent and Trademark Office (trademarks) or Library of Congress (copyrights), record those registrations with the U.S. Customs and Border Protection. Customs can then assist in seizing merchandise that is counterfeit or confusingly similar to a recorded trademark or copyright.

SEMA maintains a strict policy on intellectual property rights and works to resolve legitimate claims of intellectual property infringement at the SEMA Show and throughout the year. The SEMA intellectual property rights policy is available in the Exhibitor Services Manual section of the SEMA Show website at www.SEMAShow.com. Under the policy, no exhibitor may sell, advertise or display counterfeit or illegal knockoff products. If SEMA is unable to make a determination on a particular complaint, the complaining exhibitor is encouraged to submit its claims to a court of competent jurisdiction and obtain a court order against the wrongdoer.

A recent success story from the SEMA Show involves Aeromotive, which served court papers on an exhibitor showing counterfeit product online. “The defendant was served on the Show floor and a default judgment was recently awarded based on the complaint,” said Aeromotive Director of Business Development Kyle Fickler. “We feel that SEMA’s intellectual property rights policy and attorneys hired to enforce it are significant member benefits that are often underutilized,” added Fickler.

More detailed information on protecting your company’s intellectual property can be found on SEMA’s website at www.sema.org/ipr.

SEMA News—August 2015

LEGISLATIVE AND TECHNICAL AFFAIRS
By Ashley Ailsworth

Put the Brakes on Fakes!

Branding, Consumer Awareness and Packaging Solutions to Combat Counterfeiting

Putting the brakes on counterfeiting may be achieved through more creative, less conventional measures.

For SEMA-member companies putting out great products these days, the challenge of illegal unauthorized copies is almost unavoidable. While some companies turn to the courts, federal agencies and law enforcement to confront counterfeiters, these avenues are frequently too expensive, ineffective or both. With the pervasive culture of counterfeiting in today’s global marketplace, SEMA members may be best served by also pursuing creative solutions that focus on branding, consumer awareness and unique packaging.

Brand Everything

One of the most effective means of communicating to customers that a product was actually produced by a well-known source is by using the company name or logo on everything that goes out the door. Once this branding becomes common practice, consumers begin to recognize that products without the company’s name or logo are not genuine.

One SEMA member that takes branding very seriously is instrumentation manufacturer Auto Meter, whose high-quality gauges almost always bear the distinctive “Auto Meter” logo. The company works hard to make sure its logos are accurately represented in the marketplace because consumers recognize those logos and demand them when seeking out Auto Meter products.

	The distinctive Auto Meter logo helps consumers identify the company’s products.

When the company name or logo is not printed on a copy, a deceptive seller could play dumb and claim that their products are legal knock-offs rather than illegal counterfeits. A legal knock-off looks like a well-known product already in production, but does not copy any protectable aspect of an existing product. While unbranded copies may be construed as legal knock-offs, a seller making unauthorized use of another company’s registered trademarks, such as a company logo, is engaged in illegal counterfeiting. Recognizing consumer demand for the Auto Meter logo, counterfeiters have brazenly ripped off the company’s trademarks. Since the company’s registered trademarks are being copied, Auto Meter is able to easily prove to e-commerce sites and courts that an unauthorized user of the logo has committed a crime.

Some companies choose to forego printing their name or logo on products and claim trade dress rights on a unique feature of a product. Trade dress is a subset of trademark law that protects unique aspects of products or packaging when consumers use the unique feature to identify the source of the product. While relying on trade dress is a valid strategy, a company would be forced to prove in court that consumers use the unique feature as a source identifier in the marketplace. Instead of having to provide this proof every time a company goes to court, it is far easier to register a logo as a trademark, print that logo on the product and watch as the counterfeiters illegally start stamping that logo onto their copies. If victims whose products are being copied then choose to seek help from the courts, their case will be far easier to prove.

Make Consumers Aware of the Problem

Aeromotive’s online consumer awareness efforts warn customers that knock-offs of the company’s popular fuel pressure regulator kits often come packaged in cheap white styrofoam.

If consumers see a product that looks similar or identical to the products from a well-known source, they are likely to associate the goods with that company unless they are educated about the differences. It is important that consumers know what to look for when shopping for products. SEMA businesses can help educate their customers on how to identify their products and, more importantly, how to spot a knock-off.

Consumer awareness campaigns that help customers identify fakes may be more beneficial than taking action after the customer has already been duped. These campaigns can be rolled out on the company’s website, in the media or company-sponsored advertisements.

Kansas-based SEMA member Aeromotive communicates with its customers via its website (www.aeromotiveinc.com/buyer-beware-genuine-aeromotive) to inform them about the prevalence of counterfeiting in the automotive aftermarket and caution consumers against inadvertently spending their hard-earned money on knock-offs.

Consumer awareness campaigns should also involve cooperation throughout the supply chain. For example, SEMA member Weld Wheels recently strengthened its distributor program to certify dealers that sell genuine Weld wheels and provides consumers with a list of certified dealers on its website (www.weldwheels.com/dealer-locator).

Important features of any consumer awareness campaign may include the following components:

• Your company’s logo and specific aspects of that logo that you have seen misrepresented by counterfeiters.

• Features of your product that are difficult to reproduce or commonly reproduced inaccurately by counterfeiters and that consumers can check to identify a fake.

• Prices that are significantly lower than the average price for your company’s products are likely not produced by your company.

• A list of your products that are most frequently copied.

• A caution against purchasing from unauthorized web retailers.

• A list of authorized retailers where consumers can purchase genuine products.

• A help line, webpage or contact person for consumers to inquire about the authenticity of a product before buying.

Stay One Step Ahead

Counterfeiters thrive best when they attempt to sell a product that does not change from year-to-year. They can make one mold, focus on developing a single manufacturing process, and keep the copies coming. To make it more difficult on them, many companies rely on innovation and the introduction of new products. “Part of that entails evolving the product design where possible to maintain product differentiation that is visible to the consumer and distributor,” said Aeromotive President Steve Matusek. The problem is exacerbated when a particular product becomes so popular that private brands begin selling knock-offs sourced from offshore. “Once the offshore vendor is aware of unit volume and has production in place, it’s a simple step to start counterfeiting the branded product,” explained Matusek.

Another way to outsmart the bad guys is to sell very application-specific products rather than focusing on universal parts that can be used interchangeably on a wide range of vehicles. “We have a proliferation of part numbers with subtle differences to achieve different results on different makes, models and model years,” explained Borla Vice President of Sales and Marketing David Borla. Producers of counterfeit product tend to copy units they can sell in bulk, and Borla admits they have seen their universal mufflers copied over the years. Even where a manufacturer is selling a part in high volumes, skilled craftsmanship and high-quality materials can differentiate authentic product from the cheap knock-offs. “Our products are manufactured from aircraft-quality T-304 stainless steel with complex, patented internal technology,” said Borla. “An installer or other trained eye would certainly be able to tell the real thing from the knock-off,” he added.

Use Packaging Features That Can’t Be Copied

Products can be reproduced, even if the result is a poor-quality knock-off, but some packaging solutions involve features that cannot be copied. Holograms, specialized seals, labels, wraps and tracking and tracing tools can all be used to ensure product authenticity. Numerous vendors offer these solutions and can be researched online. Companies may also choose to develop unique packaging features in-house that are difficult for counterfeiters to copy. Cheap packaging materials can be a sign of cheap products, and consumers should be made aware of the packaging to expect when purchasing genuine products.

On the flip side, make consumers aware of the packaging commonly used by known counterfeiters, since it may be easier to identify fakes by inspecting the package rather than the product itself. For example, Aeromotive informs consumers on its website that genuine Aeromotive products do not come packaged or displayed in white Styrofoam.

Shut Down the Counterfeiters

Although branding, consumer awareness and packaging solutions are all valuable tools in a company’s intellectual property toolchest, shutting down the counterfeiters and keeping fakes from crossing the borders remains the ultimate goal.

SEMA members can utilize a variety of tools to help enforce their rights within the United States, ranging from issuing cease-and-desist letters to obtaining court rulings. It is also possible to stop illegal imports from entering the United States. For rights that have been registered with the U.S. Patent and Trademark Office (trademarks) or Library of Congress (copyrights), record those registrations with the U.S. Customs and Border Protection. Customs can then assist in seizing merchandise that is counterfeit or confusingly similar to a recorded trademark or copyright.

SEMA maintains a strict policy on intellectual property rights and works to resolve legitimate claims of intellectual property infringement at the SEMA Show and throughout the year. The SEMA intellectual property rights policy is available in the Exhibitor Services Manual section of the SEMA Show website at www.SEMAShow.com. Under the policy, no exhibitor may sell, advertise or display counterfeit or illegal knockoff products. If SEMA is unable to make a determination on a particular complaint, the complaining exhibitor is encouraged to submit its claims to a court of competent jurisdiction and obtain a court order against the wrongdoer.

A recent success story from the SEMA Show involves Aeromotive, which served court papers on an exhibitor showing counterfeit product online. “The defendant was served on the Show floor and a default judgment was recently awarded based on the complaint,” said Aeromotive Director of Business Development Kyle Fickler. “We feel that SEMA’s intellectual property rights policy and attorneys hired to enforce it are significant member benefits that are often underutilized,” added Fickler.

More detailed information on protecting your company’s intellectual property can be found on SEMA’s website at www.sema.org/ipr.

SEMA News—August 2015

LEGISLATIVE AND TECHNICAL AFFAIRS
By Ashley Ailsworth

Put the Brakes on Fakes!

Branding, Consumer Awareness and Packaging Solutions to Combat Counterfeiting

Putting the brakes on counterfeiting may be achieved through more creative, less conventional measures.

For SEMA-member companies putting out great products these days, the challenge of illegal unauthorized copies is almost unavoidable. While some companies turn to the courts, federal agencies and law enforcement to confront counterfeiters, these avenues are frequently too expensive, ineffective or both. With the pervasive culture of counterfeiting in today’s global marketplace, SEMA members may be best served by also pursuing creative solutions that focus on branding, consumer awareness and unique packaging.

Brand Everything

One of the most effective means of communicating to customers that a product was actually produced by a well-known source is by using the company name or logo on everything that goes out the door. Once this branding becomes common practice, consumers begin to recognize that products without the company’s name or logo are not genuine.

One SEMA member that takes branding very seriously is instrumentation manufacturer Auto Meter, whose high-quality gauges almost always bear the distinctive “Auto Meter” logo. The company works hard to make sure its logos are accurately represented in the marketplace because consumers recognize those logos and demand them when seeking out Auto Meter products.

	The distinctive Auto Meter logo helps consumers identify the company’s products.

When the company name or logo is not printed on a copy, a deceptive seller could play dumb and claim that their products are legal knock-offs rather than illegal counterfeits. A legal knock-off looks like a well-known product already in production, but does not copy any protectable aspect of an existing product. While unbranded copies may be construed as legal knock-offs, a seller making unauthorized use of another company’s registered trademarks, such as a company logo, is engaged in illegal counterfeiting. Recognizing consumer demand for the Auto Meter logo, counterfeiters have brazenly ripped off the company’s trademarks. Since the company’s registered trademarks are being copied, Auto Meter is able to easily prove to e-commerce sites and courts that an unauthorized user of the logo has committed a crime.

Some companies choose to forego printing their name or logo on products and claim trade dress rights on a unique feature of a product. Trade dress is a subset of trademark law that protects unique aspects of products or packaging when consumers use the unique feature to identify the source of the product. While relying on trade dress is a valid strategy, a company would be forced to prove in court that consumers use the unique feature as a source identifier in the marketplace. Instead of having to provide this proof every time a company goes to court, it is far easier to register a logo as a trademark, print that logo on the product and watch as the counterfeiters illegally start stamping that logo onto their copies. If victims whose products are being copied then choose to seek help from the courts, their case will be far easier to prove.

Make Consumers Aware of the Problem

Aeromotive’s online consumer awareness efforts warn customers that knock-offs of the company’s popular fuel pressure regulator kits often come packaged in cheap white styrofoam.

If consumers see a product that looks similar or identical to the products from a well-known source, they are likely to associate the goods with that company unless they are educated about the differences. It is important that consumers know what to look for when shopping for products. SEMA businesses can help educate their customers on how to identify their products and, more importantly, how to spot a knock-off.

Consumer awareness campaigns that help customers identify fakes may be more beneficial than taking action after the customer has already been duped. These campaigns can be rolled out on the company’s website, in the media or company-sponsored advertisements.

Kansas-based SEMA member Aeromotive communicates with its customers via its website (www.aeromotiveinc.com/buyer-beware-genuine-aeromotive) to inform them about the prevalence of counterfeiting in the automotive aftermarket and caution consumers against inadvertently spending their hard-earned money on knock-offs.

Consumer awareness campaigns should also involve cooperation throughout the supply chain. For example, SEMA member Weld Wheels recently strengthened its distributor program to certify dealers that sell genuine Weld wheels and provides consumers with a list of certified dealers on its website (www.weldwheels.com/dealer-locator).

Important features of any consumer awareness campaign may include the following components:

• Your company’s logo and specific aspects of that logo that you have seen misrepresented by counterfeiters.

• Features of your product that are difficult to reproduce or commonly reproduced inaccurately by counterfeiters and that consumers can check to identify a fake.

• Prices that are significantly lower than the average price for your company’s products are likely not produced by your company.

• A list of your products that are most frequently copied.

• A caution against purchasing from unauthorized web retailers.

• A list of authorized retailers where consumers can purchase genuine products.

• A help line, webpage or contact person for consumers to inquire about the authenticity of a product before buying.

Stay One Step Ahead

Counterfeiters thrive best when they attempt to sell a product that does not change from year-to-year. They can make one mold, focus on developing a single manufacturing process, and keep the copies coming. To make it more difficult on them, many companies rely on innovation and the introduction of new products. “Part of that entails evolving the product design where possible to maintain product differentiation that is visible to the consumer and distributor,” said Aeromotive President Steve Matusek. The problem is exacerbated when a particular product becomes so popular that private brands begin selling knock-offs sourced from offshore. “Once the offshore vendor is aware of unit volume and has production in place, it’s a simple step to start counterfeiting the branded product,” explained Matusek.

Another way to outsmart the bad guys is to sell very application-specific products rather than focusing on universal parts that can be used interchangeably on a wide range of vehicles. “We have a proliferation of part numbers with subtle differences to achieve different results on different makes, models and model years,” explained Borla Vice President of Sales and Marketing David Borla. Producers of counterfeit product tend to copy units they can sell in bulk, and Borla admits they have seen their universal mufflers copied over the years. Even where a manufacturer is selling a part in high volumes, skilled craftsmanship and high-quality materials can differentiate authentic product from the cheap knock-offs. “Our products are manufactured from aircraft-quality T-304 stainless steel with complex, patented internal technology,” said Borla. “An installer or other trained eye would certainly be able to tell the real thing from the knock-off,” he added.

Use Packaging Features That Can’t Be Copied

Products can be reproduced, even if the result is a poor-quality knock-off, but some packaging solutions involve features that cannot be copied. Holograms, specialized seals, labels, wraps and tracking and tracing tools can all be used to ensure product authenticity. Numerous vendors offer these solutions and can be researched online. Companies may also choose to develop unique packaging features in-house that are difficult for counterfeiters to copy. Cheap packaging materials can be a sign of cheap products, and consumers should be made aware of the packaging to expect when purchasing genuine products.

On the flip side, make consumers aware of the packaging commonly used by known counterfeiters, since it may be easier to identify fakes by inspecting the package rather than the product itself. For example, Aeromotive informs consumers on its website that genuine Aeromotive products do not come packaged or displayed in white Styrofoam.

Shut Down the Counterfeiters

Although branding, consumer awareness and packaging solutions are all valuable tools in a company’s intellectual property toolchest, shutting down the counterfeiters and keeping fakes from crossing the borders remains the ultimate goal.

SEMA members can utilize a variety of tools to help enforce their rights within the United States, ranging from issuing cease-and-desist letters to obtaining court rulings. It is also possible to stop illegal imports from entering the United States. For rights that have been registered with the U.S. Patent and Trademark Office (trademarks) or Library of Congress (copyrights), record those registrations with the U.S. Customs and Border Protection. Customs can then assist in seizing merchandise that is counterfeit or confusingly similar to a recorded trademark or copyright.

SEMA maintains a strict policy on intellectual property rights and works to resolve legitimate claims of intellectual property infringement at the SEMA Show and throughout the year. The SEMA intellectual property rights policy is available in the Exhibitor Services Manual section of the SEMA Show website at www.SEMAShow.com. Under the policy, no exhibitor may sell, advertise or display counterfeit or illegal knockoff products. If SEMA is unable to make a determination on a particular complaint, the complaining exhibitor is encouraged to submit its claims to a court of competent jurisdiction and obtain a court order against the wrongdoer.

A recent success story from the SEMA Show involves Aeromotive, which served court papers on an exhibitor showing counterfeit product online. “The defendant was served on the Show floor and a default judgment was recently awarded based on the complaint,” said Aeromotive Director of Business Development Kyle Fickler. “We feel that SEMA’s intellectual property rights policy and attorneys hired to enforce it are significant member benefits that are often underutilized,” added Fickler.

More detailed information on protecting your company’s intellectual property can be found on SEMA’s website at www.sema.org/ipr.

SEMA News—August 2015

LEGISLATIVE AND TECHNICAL AFFAIRS
By Ashley Ailsworth

Put the Brakes on Fakes!

Branding, Consumer Awareness and Packaging Solutions to Combat Counterfeiting

Putting the brakes on counterfeiting may be achieved through more creative, less conventional measures.

For SEMA-member companies putting out great products these days, the challenge of illegal unauthorized copies is almost unavoidable. While some companies turn to the courts, federal agencies and law enforcement to confront counterfeiters, these avenues are frequently too expensive, ineffective or both. With the pervasive culture of counterfeiting in today’s global marketplace, SEMA members may be best served by also pursuing creative solutions that focus on branding, consumer awareness and unique packaging.

Brand Everything

One of the most effective means of communicating to customers that a product was actually produced by a well-known source is by using the company name or logo on everything that goes out the door. Once this branding becomes common practice, consumers begin to recognize that products without the company’s name or logo are not genuine.

One SEMA member that takes branding very seriously is instrumentation manufacturer Auto Meter, whose high-quality gauges almost always bear the distinctive “Auto Meter” logo. The company works hard to make sure its logos are accurately represented in the marketplace because consumers recognize those logos and demand them when seeking out Auto Meter products.

	The distinctive Auto Meter logo helps consumers identify the company’s products.

When the company name or logo is not printed on a copy, a deceptive seller could play dumb and claim that their products are legal knock-offs rather than illegal counterfeits. A legal knock-off looks like a well-known product already in production, but does not copy any protectable aspect of an existing product. While unbranded copies may be construed as legal knock-offs, a seller making unauthorized use of another company’s registered trademarks, such as a company logo, is engaged in illegal counterfeiting. Recognizing consumer demand for the Auto Meter logo, counterfeiters have brazenly ripped off the company’s trademarks. Since the company’s registered trademarks are being copied, Auto Meter is able to easily prove to e-commerce sites and courts that an unauthorized user of the logo has committed a crime.

Some companies choose to forego printing their name or logo on products and claim trade dress rights on a unique feature of a product. Trade dress is a subset of trademark law that protects unique aspects of products or packaging when consumers use the unique feature to identify the source of the product. While relying on trade dress is a valid strategy, a company would be forced to prove in court that consumers use the unique feature as a source identifier in the marketplace. Instead of having to provide this proof every time a company goes to court, it is far easier to register a logo as a trademark, print that logo on the product and watch as the counterfeiters illegally start stamping that logo onto their copies. If victims whose products are being copied then choose to seek help from the courts, their case will be far easier to prove.

Make Consumers Aware of the Problem

Aeromotive’s online consumer awareness efforts warn customers that knock-offs of the company’s popular fuel pressure regulator kits often come packaged in cheap white styrofoam.

If consumers see a product that looks similar or identical to the products from a well-known source, they are likely to associate the goods with that company unless they are educated about the differences. It is important that consumers know what to look for when shopping for products. SEMA businesses can help educate their customers on how to identify their products and, more importantly, how to spot a knock-off.

Consumer awareness campaigns that help customers identify fakes may be more beneficial than taking action after the customer has already been duped. These campaigns can be rolled out on the company’s website, in the media or company-sponsored advertisements.

Kansas-based SEMA member Aeromotive communicates with its customers via its website (www.aeromotiveinc.com/buyer-beware-genuine-aeromotive) to inform them about the prevalence of counterfeiting in the automotive aftermarket and caution consumers against inadvertently spending their hard-earned money on knock-offs.

Consumer awareness campaigns should also involve cooperation throughout the supply chain. For example, SEMA member Weld Wheels recently strengthened its distributor program to certify dealers that sell genuine Weld wheels and provides consumers with a list of certified dealers on its website (www.weldwheels.com/dealer-locator).

Important features of any consumer awareness campaign may include the following components:

• Your company’s logo and specific aspects of that logo that you have seen misrepresented by counterfeiters.

• Features of your product that are difficult to reproduce or commonly reproduced inaccurately by counterfeiters and that consumers can check to identify a fake.

• Prices that are significantly lower than the average price for your company’s products are likely not produced by your company.

• A list of your products that are most frequently copied.

• A caution against purchasing from unauthorized web retailers.

• A list of authorized retailers where consumers can purchase genuine products.

• A help line, webpage or contact person for consumers to inquire about the authenticity of a product before buying.

Stay One Step Ahead

Counterfeiters thrive best when they attempt to sell a product that does not change from year-to-year. They can make one mold, focus on developing a single manufacturing process, and keep the copies coming. To make it more difficult on them, many companies rely on innovation and the introduction of new products. “Part of that entails evolving the product design where possible to maintain product differentiation that is visible to the consumer and distributor,” said Aeromotive President Steve Matusek. The problem is exacerbated when a particular product becomes so popular that private brands begin selling knock-offs sourced from offshore. “Once the offshore vendor is aware of unit volume and has production in place, it’s a simple step to start counterfeiting the branded product,” explained Matusek.

Another way to outsmart the bad guys is to sell very application-specific products rather than focusing on universal parts that can be used interchangeably on a wide range of vehicles. “We have a proliferation of part numbers with subtle differences to achieve different results on different makes, models and model years,” explained Borla Vice President of Sales and Marketing David Borla. Producers of counterfeit product tend to copy units they can sell in bulk, and Borla admits they have seen their universal mufflers copied over the years. Even where a manufacturer is selling a part in high volumes, skilled craftsmanship and high-quality materials can differentiate authentic product from the cheap knock-offs. “Our products are manufactured from aircraft-quality T-304 stainless steel with complex, patented internal technology,” said Borla. “An installer or other trained eye would certainly be able to tell the real thing from the knock-off,” he added.

Use Packaging Features That Can’t Be Copied

Products can be reproduced, even if the result is a poor-quality knock-off, but some packaging solutions involve features that cannot be copied. Holograms, specialized seals, labels, wraps and tracking and tracing tools can all be used to ensure product authenticity. Numerous vendors offer these solutions and can be researched online. Companies may also choose to develop unique packaging features in-house that are difficult for counterfeiters to copy. Cheap packaging materials can be a sign of cheap products, and consumers should be made aware of the packaging to expect when purchasing genuine products.

On the flip side, make consumers aware of the packaging commonly used by known counterfeiters, since it may be easier to identify fakes by inspecting the package rather than the product itself. For example, Aeromotive informs consumers on its website that genuine Aeromotive products do not come packaged or displayed in white Styrofoam.

Shut Down the Counterfeiters

Although branding, consumer awareness and packaging solutions are all valuable tools in a company’s intellectual property toolchest, shutting down the counterfeiters and keeping fakes from crossing the borders remains the ultimate goal.

SEMA members can utilize a variety of tools to help enforce their rights within the United States, ranging from issuing cease-and-desist letters to obtaining court rulings. It is also possible to stop illegal imports from entering the United States. For rights that have been registered with the U.S. Patent and Trademark Office (trademarks) or Library of Congress (copyrights), record those registrations with the U.S. Customs and Border Protection. Customs can then assist in seizing merchandise that is counterfeit or confusingly similar to a recorded trademark or copyright.

SEMA maintains a strict policy on intellectual property rights and works to resolve legitimate claims of intellectual property infringement at the SEMA Show and throughout the year. The SEMA intellectual property rights policy is available in the Exhibitor Services Manual section of the SEMA Show website at www.SEMAShow.com. Under the policy, no exhibitor may sell, advertise or display counterfeit or illegal knockoff products. If SEMA is unable to make a determination on a particular complaint, the complaining exhibitor is encouraged to submit its claims to a court of competent jurisdiction and obtain a court order against the wrongdoer.

A recent success story from the SEMA Show involves Aeromotive, which served court papers on an exhibitor showing counterfeit product online. “The defendant was served on the Show floor and a default judgment was recently awarded based on the complaint,” said Aeromotive Director of Business Development Kyle Fickler. “We feel that SEMA’s intellectual property rights policy and attorneys hired to enforce it are significant member benefits that are often underutilized,” added Fickler.

More detailed information on protecting your company’s intellectual property can be found on SEMA’s website at www.sema.org/ipr.

SEMA News—August 2015

HERITAGE
By Drew Hardin
Photo Courtesy Petersen Archive

Racing Roadsters

In the days of hot rodding’s infancy, there were a lot of ways—and places—to go fast if you lived in Southern California. Top-speed runs at the desert dry lakes had been going on since before World War II; drag racing was beginning to boom for those whose speed needs could be contained in a quarter-mile; and oval tracks flourished throughout the area, drawing everything from rough-and-tumble jalopies to nitro-fed midgets.

Petersen Publishing Company photographers Bob D’Olivo and Eric Rickman, joined by freelancer Walter Mahony, went to the quarter-mile dirt oval at Gardena Stadium on an early spring day in 1955 to capture the first roadster race of the new season on film. Their pictures formed the basis for “Bending the Quarter Mile,” which appeared in Hot Rod’s June 1955 issue.

“They drive ‘hell for leather,’ they’re tooling cheaper iron and bigger mills than anybody in the business and as a consequence you get racing in its hottest form,” said Hot Rod. “While the roadster jockeys spend untold hours on their equipment, the majority of it is of modified stock components and the boys don’t mind using it to the hilt because of comparative low replacement costs. Lest we leave the impression that these cars are on the make-shift side, remember that workmanship is usually of the highest caliber but the costs of fancy chrome work are more often than not plowed back into speed parts instead.”

At this particular event was a “wild assortment of machinery,” noted the editors. “Powerplant limitations are non-existent…. The Gardena go drew such strange bed fellows as: a Chrysler 6 and V8, several Offenhausers, blown and unblown flathead Fords, a Riley four-port and a Latin import Talbot Largo [sic] (a frilly version of the American Offy).” The victor, they reported with some surprise, was the “undernourished little Riley! With just the right amount of power and ideal gear combination for the small track, Rosie Roussel stroked down the middle of the Goliaths while the bigger jobs chopped their tires to shreds with overdoses of power and resultant wild cornering.”

“Wild” describes the scene here, as one “Rip” Erickson “takes a flyer on the boards at seventy,” said the caption to this photo. In the magazine, D’Olivo’s picture was cropped tightly on Erickson climbing the wall; the full-frame scene, notably the number-six roadster pointed the wrong way on the track, sheds some light as to how (or why) ol’ Rip found himself in that predicament.

According to the caption, Rip’s roadster “rode the wall, caught a post and bounced back on the track upright.”

SEMA News—August 2015

HERITAGE
By Drew Hardin
Photo Courtesy Petersen Archive

Racing Roadsters

In the days of hot rodding’s infancy, there were a lot of ways—and places—to go fast if you lived in Southern California. Top-speed runs at the desert dry lakes had been going on since before World War II; drag racing was beginning to boom for those whose speed needs could be contained in a quarter-mile; and oval tracks flourished throughout the area, drawing everything from rough-and-tumble jalopies to nitro-fed midgets.

Petersen Publishing Company photographers Bob D’Olivo and Eric Rickman, joined by freelancer Walter Mahony, went to the quarter-mile dirt oval at Gardena Stadium on an early spring day in 1955 to capture the first roadster race of the new season on film. Their pictures formed the basis for “Bending the Quarter Mile,” which appeared in Hot Rod’s June 1955 issue.

“They drive ‘hell for leather,’ they’re tooling cheaper iron and bigger mills than anybody in the business and as a consequence you get racing in its hottest form,” said Hot Rod. “While the roadster jockeys spend untold hours on their equipment, the majority of it is of modified stock components and the boys don’t mind using it to the hilt because of comparative low replacement costs. Lest we leave the impression that these cars are on the make-shift side, remember that workmanship is usually of the highest caliber but the costs of fancy chrome work are more often than not plowed back into speed parts instead.”

At this particular event was a “wild assortment of machinery,” noted the editors. “Powerplant limitations are non-existent…. The Gardena go drew such strange bed fellows as: a Chrysler 6 and V8, several Offenhausers, blown and unblown flathead Fords, a Riley four-port and a Latin import Talbot Largo [sic] (a frilly version of the American Offy).” The victor, they reported with some surprise, was the “undernourished little Riley! With just the right amount of power and ideal gear combination for the small track, Rosie Roussel stroked down the middle of the Goliaths while the bigger jobs chopped their tires to shreds with overdoses of power and resultant wild cornering.”

“Wild” describes the scene here, as one “Rip” Erickson “takes a flyer on the boards at seventy,” said the caption to this photo. In the magazine, D’Olivo’s picture was cropped tightly on Erickson climbing the wall; the full-frame scene, notably the number-six roadster pointed the wrong way on the track, sheds some light as to how (or why) ol’ Rip found himself in that predicament.

According to the caption, Rip’s roadster “rode the wall, caught a post and bounced back on the track upright.”

SEMA News—August 2015

HERITAGE
By Drew Hardin
Photo Courtesy Petersen Archive

Racing Roadsters

In the days of hot rodding’s infancy, there were a lot of ways—and places—to go fast if you lived in Southern California. Top-speed runs at the desert dry lakes had been going on since before World War II; drag racing was beginning to boom for those whose speed needs could be contained in a quarter-mile; and oval tracks flourished throughout the area, drawing everything from rough-and-tumble jalopies to nitro-fed midgets.

Petersen Publishing Company photographers Bob D’Olivo and Eric Rickman, joined by freelancer Walter Mahony, went to the quarter-mile dirt oval at Gardena Stadium on an early spring day in 1955 to capture the first roadster race of the new season on film. Their pictures formed the basis for “Bending the Quarter Mile,” which appeared in Hot Rod’s June 1955 issue.

“They drive ‘hell for leather,’ they’re tooling cheaper iron and bigger mills than anybody in the business and as a consequence you get racing in its hottest form,” said Hot Rod. “While the roadster jockeys spend untold hours on their equipment, the majority of it is of modified stock components and the boys don’t mind using it to the hilt because of comparative low replacement costs. Lest we leave the impression that these cars are on the make-shift side, remember that workmanship is usually of the highest caliber but the costs of fancy chrome work are more often than not plowed back into speed parts instead.”

At this particular event was a “wild assortment of machinery,” noted the editors. “Powerplant limitations are non-existent…. The Gardena go drew such strange bed fellows as: a Chrysler 6 and V8, several Offenhausers, blown and unblown flathead Fords, a Riley four-port and a Latin import Talbot Largo [sic] (a frilly version of the American Offy).” The victor, they reported with some surprise, was the “undernourished little Riley! With just the right amount of power and ideal gear combination for the small track, Rosie Roussel stroked down the middle of the Goliaths while the bigger jobs chopped their tires to shreds with overdoses of power and resultant wild cornering.”

“Wild” describes the scene here, as one “Rip” Erickson “takes a flyer on the boards at seventy,” said the caption to this photo. In the magazine, D’Olivo’s picture was cropped tightly on Erickson climbing the wall; the full-frame scene, notably the number-six roadster pointed the wrong way on the track, sheds some light as to how (or why) ol’ Rip found himself in that predicament.

According to the caption, Rip’s roadster “rode the wall, caught a post and bounced back on the track upright.”