The economic impact of counterfeiting

Experts discuss the need for businesses and government to take a proactive approach in combating piracy

According to Kingstone, not only do governments have to start enforcing anti-piracy and counterfeiting laws, but they also have to stop rewarding nations that facilitate industrial espionage by not allowing them to join such things as the World Trade Organization. Kingstone also supports placing tariffs and duties on imported products to make purchasing and manufacturing counterfeit products less economically appealing.

Mattice says that one the most important things that business leaders can do to protect themselves is to educate their company and themselves about the dangers they face, as well as do their due diligence when it comes to the process of getting a product to the market.

"The most important thing is awareness. People need to become aware of the risks and threats they face and take appropriate steps to protect themselves," he said. "The other thing that needs to be done is we need to have a reassessment of this drive for the cheapest, fastest, quickest way to development and manufacture [a product]. No one is looking at long-term strategic values anymore. Everyone is looking for the short-term quick hit."

Kingstone also recommends that businesses take care to guard their trade secrets with the use of physical security tools by implementing such solutions as biometric verification and access control. He also advises employers to highly scrutinize the backgrounds of potential employees and conduct credit checks to determine if that person could potentially sell your company’s secrets for their own financial benefit.

"The economic security of this country is the number one national security issue we face and without economic security, we don’t have national security," Mattice said.