Japan Toymakers Boosting Efforts to Tackle Counterfeit Goods

June 28, 2018

Tokyo- Japanese toymakers are strengthening measures against counterfeit products being sold overseas, especially in China.

Overseas sales by Japanese toymakers have been growing due to the shrinking domestic market amid the declining birthrate.

They are concerned that overlooking the sale of counterfeit products can lead not only to confusion among consumers but also damage to brands.

Bandai Spirits Co., a unit of Bandai Namco Holdings Inc., estimates that pirated products cause an annual loss of revenue of over 3 billion yen in China.

"We have pinpointed makers of counterfeit products in collaboration with the Chinese government, but it has been a cat-and-mouse game, with highly skilled makers emerging one after another," said Bandai Spirits president, Masaru Kawaguchi.

The company sells character figures, including those from popular Japanese anime series "Mobile Suit Gundam," in about 15 countries and regions.

Beginning in September, some Bandai products will carry a sticker certifying its authenticity.

"We can't protect consumers or eradicate counterfeit goods unless we take preventative measures," Kawaguchi said. He also expressed concern about the risks such goods pose to the company's brand image.

Tomy Co., which sells toys in some 70 countries and regions, uses a Chinese research company to regularly check how copy goods are distributed online. The company plans to strengthen efforts to address piracy.

Chinese pirated goods are often exported to third countries, increasing the risk of damage to brands. Cooperation between governments is crucial since the private sector is limited in the action it can take.

The Japanese Ministry of Economy, Trade and Industry said that it will continue to call on the Chinese government to crack down on pirated goods.

The ministry added that it will promote training for customs officials across Asia in order to help them detect fake products. Jiji Press