COUNTERFEIT PRODUCTS AND THE GROWTH OF INFANT INDUSTRIES IN LDCs

Counterfeit products have been on the rise for the last ten or more years in Uganda. They mainly come from international markets that consider low developing countries as dumping grounds. Many of these goods have replaced domestic products that were locally produced hence affecting the infant industries that are struggling to grow. Just as an infant is defenseless and vulnerable upon its entry into the world, these industries are weak and vulnerable to a variety of market challenges and economic pressures. They usually lack a skilled workforce, efficient production processes, experienced managers, and established sales channels and market share even in their own domestic markets. During this start-up phase for new industries, young firms often find it difficult, if not impossible, to compete with the established international competitors. Counterfeit goods are alleged to infringe any trademark, including packaging, bearing without authorization and is identical to the trademark validly registered in respect of those goods, or which cannot be distinguished in its essential aspects from that trademark, and which thereby infringes the rights of the owner of the trademark.