Intellectual Property
In recent years, innovative and highly technical products that enhance performance have come in high demand in the active lifestyle and athletic apparel market. For organizations competing on innovation and technology, differentiating one's products from those of competitors is imperative. As an industry leader in innovative outdoor active wear, Columbia has done just that, but not without the challenge of protecting its technology and innovative designs from substitutes developed by competitors and counterfeit operations. The Outdoor Industry Association estimates Columbia's losses between $100 and $200 million a year due to counterfeit or "knock-off" Columbia products sold worldwide, accounting for an average of about 10 percent of Columbia's sales in 2010. This sales percentage not only includes lost sales Columbia might have attained, but also the damages that low quality, counterfeit goods have on Columbia's image. Counterfeiting is an epidemic; popular Columbia products are reverse-engineered and reproduced to create products that fool consumers into thinking they are buying authentic Columbia brand products.