At a time when exchange rates are fluctuating rapidly, paying close attention to pricing is more important than ever. Significant swings in the exchange rate make it difficult to keep pricing in synch - and can lead to pricing arbitrage, which in turn fuels the gray market. Gray marketing often originates with authorized distributors that may be (directly or indirectly) exploiting vendors' variable product pricing or discounting and other incentive programs in order to gain an unfair price advantage. 

According to AGMA's Peter Hlavnicka the most common pricing weaknesses exploited by gray marketers are: Over-discounted buys, products sold in developing markets, discounted or free software licenses in a 'try and buy' scenario, products destined and priced for export, and excess inventory, aged, or manufacturer- discontinued products. A good pricing strategy and process can help prevent or contain the price arbitrage that triggers gray market speculation.

AGMA's Government Affairs Committee continues to play an active role in helping to shape public policy and raise awareness - and the fight against IP infringements is once again front and center on the national stage. Legislation designed to help prevent the sale of counterfeits to the military by cracking down on traffickers has been introduced, and AGMA feels feels that the introduction of the "Combating Military Counterfeits Act of 2011" is a big step forward in elevating the importance of IP issues to a national audience.

According to committee chair Scott Olsen, "The widespread and ever-increasing availability of counterfeit products poses a serious threat to our national security. This critical legislation will help protect our troops from counterfeit material that can find its way into body armor, vehicle parts, or military computers, by targeting those who traffic in such goods. The bill would create an enhanced offense and raise the statutory maximum penalty for counterfeit traffickers who know that the counterfeit product they sell is intended for use by the military.  The brave men and women of our Armed Forces who are serving in dangerous locations overseas shouldn't have to worry about the authenticity of their equipment, and this legislation helps toward this goal."

AGMA recently held its quarterly member meeting to discuss various topics related to brand protection issues.  Hosted by APC by Schneider Electric in Newport, R.I., examples of real-life scenarios involving the defense of intellectual property rights were provided by representatives from AGMA member companies and members of law enforcement.

One such presentation focused on the importance of keeping counterfeit parts out of the government supply chain. Counterfeit parts contaminate the market with substandard devices that often fail and may cause injuries or other damages. Thus, the United States is highly motivated to prevent counterfeit parts from entering the Federal government's marketplace and infrastructure. Inspector general Brian Miller was on hand at the meeting to discuss his office's wide range of activities - GSA, as the procurement arm of the Federal government, is heavily involved in purchasing information technology and other products for use across the government. Miller spoke to the importance of effectively indentifying counterfeit suppliers through investigations.

 Please click here for more information on the meeting.