Consumers prefer to get a good deal, and dealers like to maintain a healthy profit margin. Somewhere in the relationship is a perfect balance, where buyers get a legitimate product for the best price while dealers make enough money to ensure that the customer can be supported properly. Transshipping, the practice of an authorized selling outside of its assigned territory or to an unauthorized dealer, plays havoc with this balance. Typically, the transhipper knows that it will not be providing follow-up service and/or customer support, and sets prices accordingly.In an effort to protect its network of licensed dealers and preserve intellectual property rights, Krell Industries revealed recently that it has contracted with Net Enforcers to police all unauthorized distribution of Krell-branded products on the Internet.
Krell says that it has established a "highly respected network of dealers" and, with the help of Net Enforcers, is "taking the initiative to protect the rights of these valued 'brick and mortar' shops." Krell's Bill McKiegan explains, "With transshipping becoming such a widespread market on the Internet, Krell is determined to ensure that our dealers are protected in their category, with our brand. Net Enforcers will help implement our initiative to protect our brand and track down any unlawful use of the Krell name.""Dealers and manufacturers invest time and money into building and protecting brand names," says a company statement, "and with the influx of auction and low-cost websites, they are fighting a battle that is hurting both the integrity of their business as well as the brand name. Because of transshipping, dealers are competing with a number of unofficial online outlets that offer the same products at a much lower price, making it extremely appealing to the consumer, yet taking business away from the licensed network."Other manufacturers who have taken advantage of Net Enforcer's services include Kenwood, Alpine, and Blaupunkt. In addition to outing transshippers, the company says it tracks down websites that "misuse a brand name or image, manipulate search engines to divert rightful traffic to their own addresses, falsely claim relationships with a brand to build their credibility, belittle the brand, or subject a brand to negative, anti-social or offensive associations."
Krell claims that in the event that transshippers and resellers are revealed, the company plans to prosecute any and all violators "to the fullest extent of the law."
