In this blog post, we examine whether the production and consumption of counterfeit goods is an inevitable phenomenon or simply an economic choice from various perspectives.
“Counterfeits” have permeated our lives more deeply than we might realize. Furthermore, as counterfeiting techniques continue to evolve, they are causing headaches for legitimate companies. The “Chery QQ” model, once known as the “fake Matiz” for its resemblance to GM Daewoo’s “Matiz,” garnered significant attention in the automotive industry. At the 2015 Shanghai Motor Show, a Chinese automaker unveiled a concept car called the “EMGRAND,” which ingeniously combined the best features of Kia’s “K5” and Renault Samsung’s “SM5.” Additionally, China’s Z Company introduced the “E200,” which mimics the design of the German car brand “Smart.” These knockoff models go beyond simply targeting niche markets; they are threatening established automakers by offering prices that are only one-third of the original models.
Meanwhile, there are cases where the influence of knockoff manufacturers has grown so much that they end up acquiring the original companies. ‘Segway’ was a company that gained popularity among Hollywood stars for its two-wheeled scooters. However, even Segway, with its 15-year history, ended up being acquired by ‘Ninebot,’ the very knockoff manufacturer that had filed a patent infringement lawsuit against Segway for copying its products. Segway effectively succumbed to Ninebot’s financial might. Conversely, companies that once succeeded through counterfeit strategies can also find themselves tripped up by the same tactics. “Xiaomi,” which rapidly rose to become the world’s third-largest smartphone brand, appealed to consumers from its inception by prioritizing a “copy Apple” strategy—so much so that it earned the nickname “the counterfeit Apple.” Subsequently, Xiaomi grew into China’s largest smartphone manufacturer, gaining immense popularity with its “Mi Power Bank” series of smartphone power banks, which boasted low prices and high performance. However, even Xiaomi—which became famous for this “copycat” strategy—has recently been plagued by companies selling counterfeit power banks.
Counterfeiting is not limited to the manufacturing sector; it remains prevalent in the cultural industry as well. When the Hallyu wave swept across the globe, so-called “fake Girls’ Generation”—groups mimicking the Korean girl group Girls’ Generation—even emerged in China. Many composers and singers also frequently find themselves embroiled in plagiarism controversies. As such, counterfeit products today have reached a scale and level of influence that cannot be ignored.
So, what is the criterion for distinguishing between the real and the fake? This criterion can vary from person to person. Where do we draw the line between an original creative work and a counterfeit? Dictionaries define “intellectual property rights” as “property rights over the products of human intellectual creative activity.” In other words, they are rights granted to works produced through original creative activity. However, according to this definition, the cases mentioned earlier—such as the “fake Matiz” or “Ninebot”—clearly have differences from the original products. Can these differences not be viewed as “products of intellectual creative activity”? In reality, the criteria for such judgments are not clear, and court rulings often vary depending on the circumstances. The lawsuit between Samsung and Apple also stems from a similar context.
So why do people produce and consume knockoffs? Let’s discuss this from social, psychological, and evolutionary perspectives.
First, let’s look at the social aspect. Today’s society values “ideas” more than ever before. In past agricultural or industrial societies, the process of using available resources to produce goods was crucial, and the key to success lay in securing capital and labor. However, today, as the quality of life has improved and the service and cultural industries have grown in prominence, the importance of creative and attention-grabbing idea-based products has come to the fore. For example, Apple achieved global success with the innovative idea of the iPhone, and director Michael Bay generated $1.0874 billion in box office revenue with a single unique idea through the movie *Transformers*. Yet, coming up with innovative ideas is by no means easy. Every day, dozens or even hundreds of startups launch with new ideas, but most fail to realize their dreams and eventually shut down. Creativity is a painful process, and even if one endures that pain to come up with a novel idea, success is by no means guaranteed. Therefore, slightly modifying and adapting existing successful models can be a way to alleviate the pain of creation and reduce the likelihood of failure.
What about from a psychological perspective? In modern society, there are various “replica” products. It is common to see women using replicas of brands like “Chanel” or “Louis Vuitton.” Replica products of high-end international streetwear brands such as “Supreme” and “Bape” are also frequently seen. So, what is the psychology behind people who use replica products? Could emotions such as “pretense,” “obsession,” and “inferiority” be lurking deep within their hearts? In modern society, people feel “loneliness in a crowd” and live with the anxiety of not knowing when they might drift apart from others. This phenomenon is particularly pronounced in South Korea, which ranks first in suicide rates among OECD countries and ranks near the bottom in happiness indices. The high suicide rate even among celebrities, who lead glamorous lives, is not unrelated to this. Many people suffer in loneliness, unable to bridge the gap between their true selves and their masks. Those who are left with only the desire to look good to others eventually put on a mask, which leads to the use of replica products.
Finally, let’s consider this from an evolutionary perspective. In his 1859 book *On the Origin of Species*, Charles Darwin introduced the concept of natural selection. Natural selection is the theory that, through interaction with the environment, suitable individuals are selected, leading to genetic changes. However, there is a force even stronger than natural selection: “sexual selection.” Sexual selection is the phenomenon of preferring traits that confer an advantage in mating competition. A peacock’s large tail feathers cannot be used for flight and are easily spotted by predators, yet the male endures this inconvenience to appeal to females with his superior genes. In modern society, the consumption of counterfeit goods can also be interpreted from an evolutionary perspective. As mammals, humans are also subject to sexual selection, and modern people perceive appearance and brand as important competitive factors. This is why counterfeit products are consumed.
