Leader in Brand Protection Showing Off New Licensing Management System at BLE
By Gary Symons
TLL Editor in Chief
In the world of licensing, nothing is more important than protecting your brand.
But according to Franco Diaz (at right in above photo, with VP Pete Reyes) of the brand protection technology manufacturer JPatton, many brand owners don’t invest in brand protection, only to pay for it later in terms of reputational damage, declining stock price, lawsuits/litigation, and lost sales.
Diaz is head of Business Development in the Americas for JPatton, and over the years has seen some true horror stories, in which brands struggled for years to restore their image with consumers.
“Everyone knows the story of Tylenol, when someone was essentially poisoning the product, through easy access into the packaging. If any good came out of that criminal act it would be that as a result, today pretty much every product you can consume is packaged with a tamper-evident security feature for consumer safety,” Diaz says.
“What many people don’t realize is that counterfeiting is a business in itself with an estimated global value of $3 Trillion dollars in 2022. While unsuspecting consumers may feel duped by purchasing a counterfeit, the effects of counterfeiting go far beyond a one-off negative experience. Counterfeiting is also known to promote human trafficking, the illegal drug trade, government corruption and even terrorism. Its consequences are devastating.”
JPatton creates a variety of security products – both physical and digital – that comprehensively protect against illicit activities such as: counterfeiting, product diversion, product tampering and adulteration. Crucially, they also allow brands to quickly and easily authenticate legitimate product and isolate those that are suspect.
Unfortunately, Diaz says many brands don’t engage security protocols until after they’ve already been hit with a major counterfeiting scandal that damages their long-term reputation.
“The owners of strong brands are often in a state of denial with regards to the existence of threats to their brand, via counterfeiting,” Diaz explains. “There’s a belief that, it’s not going to happen to us, but what happens when it does hit them, the reaction is often to find a cheap quick fix which is usually the wrong long-term solution for them.
“It’s a bit like buying insurance; you have to be proactive about protecting your IP, products and supply chain, because the cost of failing to do so could be far higher than the cost of getting that security in the first place.”
Over the years, JPatton has seen just about every kind of counterfeit product you can imagine. For example, counterfeiters will put cheap or tainted wine and spirits into bottles branded by legitimate manufacturers, or fake labels on electrical wire and cables that are manufactured so poorly they actually start fires.
“Another common problem is an ongoing issue with fake cosmetics,” Diaz says. “We have seen products on the market found to contain urine, arsenic and other impurities that can harm unsuspecting users.
The incidence of counterfeiting is incredibly widespread, and it’s worth following JPatton’s Twitter account to see just how prevalent it is. In a single day, @JPatton posted stories on counterfeit Samsung storage drives; phony rolling papers; counterfeit medications in Mexico and in a separate case in Texas; a million dollars worth of bogus branded clothes at a single store in Ontario; fake Rolex and Prada watches; phony replica cell phones; counterfeit stamps being sold on Facebook; and consumer electronics sold under counterfeited brands in Idaho.
JPatton is one of the world leaders in brand protection technology securing licensed product for more than 200 top colleges, universities and their sports teams.
They also work with luxury brands, the US and foreign militaries, international sports leagues, electronic gaming, automobiles, apparel, collectibles/memorabilia, recreational events and many more.
That client base was built up because JPatton provides a comprehensive suite of both physical and digital measures that not only protect the brand, but actually increase its value, all without eating into the bottom line.
“Often companies will make the mistake of thinking that adopting security will never result in ROI. Diaz says. “But the opposite is true, because protecting your brand properly could increase its value in the eyes of loyal consumers.
“What we say when brands work with us is, look, we have a way to turn your brand protection efforts into a revenue stream for you.
“So, the result is you’re not paying to have your brand protected; you’re being paid to protect your brand. It’s a huge win-win.”
But the real payoff for brand protection technology usually comes when the licensor is in a court of law, trying to demonstrate that a suspect product is not actually from their factory. In cases where there is personal injury, major property damage, or damage to another company, such damages can cost millions of dollars. Having specific security features in your product and/or packaging to differentiate it from the suspect product will help to prove the licensor’s case.
JPatton is very well known for its security products, but this year at Brand Licensing Europe 2023 the company will be showing off a newer technology called Direct Licensing Hub that goes beyond security, and helps the licensor manage the relationship between their brand and their various licensees.
DLH is a full software suite dedicated to Licensing Program Management. That includes the ability to track the stages of licensing; to communicate quickly and easily with licensees as issues or opportunities arise; and with deep management tools that allow users to easily track and manage contracts, rights management, design submissions, royalty reporting, logo distribution, accounting, compliance, and of course, physical and digital brand protection.
“In many ways, this is the tool that brings it all together,” Diaz says. “For many years we have been a global leader in protecting brands, but now we’re also a leader in providing tools for brand management, and this software also works in a highly integrated way with our existing physical and digital brand protection technologies.
“We’re really excited to offer such a valuable tool for our clients this year.”
To learn more, you can contact Franco Diaz at franco@jpattonondemand.com, Quincy Mattingly, head of Business Development -EMEA at Quincy@jpattonondemand.com or make a point to visit the JPatton booth D265 this year at Brand Licensing Europe.