The Impact Of Counterfeit On-Trademark Protection In Kenya Case Study Nairobi City

ABSTRACT

This research dissertation mainly dealt with the general objective and specific objectives of the study problem which is the impact of counterfeits on trademarks protection in Kenya, with the

area of study being specifically Nairobi City.

Chapter one of the study on the impact of counterfeits on trademarks protection in Kenya briefly explained the origin of trademarks and there protection laws and how they come to Kenya. More so it also explains what is counterfeit and counterfeiting and how it has become a growing threat

phenomenon to trademarks protection in the world especially in Kenya. Chapter two of the study clear explains the causes anci factors which encourages counterfeiting in Kenya markets. This includes lack of public awareness, laxity on the part oflaw, poor vigilance and prosecution in the country which are discussed in details in that chapter.

Chapter three of the dissertation deals with the legal framework of Kenya on the impact of counterfeits on trademarks protection. This chapter explains in details how the laws on trademarks protection have achieved their purpose of combating and their wealmess in combating the problem and how they can be improved.

Chapter four contains data analysis of the field work and explains the factors why counterfeits trade has flourished in Kenya to an extended of threatening local trademarked products oflocal industries Chapter five gives the conclusion of the research project and recommendations on completely eradicating or reducing counterfeits products in Kenya.

Table of Contents

DECLARATION .............................................................................................................................. i

APPROVAL ................................................................................................................................... ii

ACKNOWLEDGEMENT ............................................................................................................. iii

DEDICATION ................................................................................................................................ iv

TABLE OF CONTENT ...................................................................................... v

LIST OF CASES ............................................................................................................... vii

LIST OF STATUTES ...... , ............................................................................................................ vii

ABSTRACT ................................................................................................ Viii

Chapter One ............................................................................................................... 1

1.0 Introduction ........................................................................................................... 1

I.I Background of the Study ........................................................................................................... 1

1.2 Statement oftheproblem ........................................................................................................... 7

1.3 Puporse of the Study .................................................................................................................. 7

1.4 General Objective ......................................................................................................... 8

1.4.1 Specific Objectives ................................................................................................................. 8

1.5 Research Questions .................................................................................................................... 8

1.6 Hypothesis ............................................................................................................... 9

1.7 Significance of the Study ........................................................................................................... 9

1.8 Scope of the Study ........................................................................................................ 9

1.9 Theoritical Framework ............................................................................................................ 1 O

1.10 Conceptual Framework .......................................................................................................... 12

1.11 Literature Reveiw .................................................................................................................. 13

1.12 Methodology .......................................................................................................... 20

1.12.1 Introduction ........................................................................................................... 20

1.12.2 Research Design ........................................................................................................... 20

1.12.3 Study Population .......................................................................................................... 20

1.12.4 Sample Size ............................................................................................................... 20

1.12.5 Data Collection Methods .................................................................................................... 21

1.12.6 Sources ofData ....................................................................................................... 21

1.12.7 Primary Data ............................................................................................................. 21

1.12.8 SecondaryData .......................................................................................................... 21

1.12.9 Ethical Consideration ......................................................................................................... 22

1.12.10 Conclusion ............................................................................................................. 22

Chapter Two ........................................................................................................... 23

2.0 Introduction .......................................................................................................... 23

2.1 Counterfeit ........................................................................................................ 23

2.1.1 Lack of public awareness ..................................................................................................... 25

2.1.2 Laxity on the part of law ....................................................................................................... 26

2.1.3 Poor vigilance and prosecution ............................................................................................. 28

Chapter Three ........................................................................................................ 31

3.0 Introduction ........................................................................................................ 31

3.1 The Trademarks Act Cap 506 (amended in 2002) .................................................................. 31

3.2 The Industrial Protection Act 2001 ......................................................................................... 33

3.3 The Trade Descriptions Act cap 505 (amended in 2010) ........................................................ 33

3.4 The Anti Counterfeit Act 2008 ................................................................................................ 34

Chapter Four ........................................................................................................... 37

4.0introduction ......................................................................................................... 38

4.1 Gender. .................................................................................................... 37

4.2 Age ......................................................................................................... 37

4.3 level of education ....................................................................................... .38

4.4 Working experience years .............................................................................. 38

4.5 Public awareness on counterfeits impact on trademarks protection in Kenya .................. 39

4.6 The level of the knowledge of the illegality of counterfeits products trade .................... .40

4.7 Factors that lead to manufacturing of counterfeits in world market especially Kenya ........ .40

4.7.1 Counterfeiting is a profitable business .............................................................. .40

4.7.2 Globalization .......................................................................................... .41

4. 7.3 Cyb er squatting ....................................................................................... .41

4. 7.4Consumer' s experiences and perceptions on counterfeited products ........................... .41

4.8 The Impact of counterfeits products trade to original trademarks holders in Kenya ........... .42

4.8.1 Unfair competition ................................................................................... .42

4.8.2 Loss of market shares and sales .................................................................... .43

4.9 Effects of counterfeits products usage to consumers and governments ........................ .43

4.9.1 Consumers are affected by counterfeits in the following ways ................................ .44

4.9.2 The Government is affected by counterfeits in the following ways ........................... .44

4.10 Conclusion ............................................................................................. .45

Chapter Five ................................................................................................... .46

5.0 Introduction .............................................................................................. .46

5 .1 Conclusion ............................................................................................... .46

5.2Recommedations .......................................................................................... 49

APPENDIX 1: INSTRUMENTS .................................................................................................. 54

Questionnaire .................................................................................................. 54

Interview guide ............................................................................................... 57

Reference ...................................................................................................... 58