Counterfeit cosmetics: protecting innovation and brand value in a risky market
Recent research from consumer watchdog Which? has sounded a clear alarm for cosmetics manufacturers. Its investigation found that around two-thirds of cosmetics sold by third-party sellers on major online marketplaces were likely counterfeit – including products marketed as Charlotte Tilbury, La Roche‑Posay, Maybelline, The Ordinary, and MAC.
For brands, this is not merely a reputational risk – it is a direct commercial threat. Counterfeit products can erode brand equity, divert sales, and undermine years of investment in research, formulation, marketing, and design. Highlighted in The Times, the findings make clear that cosmetic companies, from start-ups to global luxury brands, must take proactive steps to safeguard the intellectual property (IP) that underpins their innovation and growth.
The real consequences of counterfeiting
While lost sales are an obvious concern, counterfeit products carry wider commercial and operational risks. Many fakes evade regulatory safety standards, potentially containing harmful ingredients such as heavy metals, unregulated preservatives, or allergens. Even when no physical harm occurs, these products can damage consumer trust and diminish the perceived value of the authentic brand.
Counterfeits also saturate the market with misleadingly similar packaging, product shapes, and names, making it difficult for customers to differentiate between authentic and fake items. For manufacturers, this can compromise years of brand-building effort, dilute brand recognition, and make investor confidence harder to maintain.
Intellectual Property (IP): the cornerstone of protection
Intellectual property is the foundation for defending innovation and brand value. Cosmetics companies can leverage a combination of:
- Patents to protect innovative formulations, ingredient combinations, and manufacturing processes;
- Trade marks to secure brand names, logos, and product ranges;
- Design rights to safeguard distinctive product shapes, packaging, and visual identities.
Taken together, these rights clearly define what constitutes a genuine product and provide a legal basis to challenge counterfeits.
However, registering IP alone is not enough. Online marketplaces such as Amazon, eBay, TikTok Shop, and Vinted enable third-party sellers to list products with minimal oversight. Counterfeiters exploit this ecosystem, meaning manufacturers must actively enforce their rights to maintain protection.
Active enforcement: turning rights into results
Effective IP strategies combine protection with enforcement. Key actions include:
- Marketplace monitoring: proactively identifying counterfeit listings and issuing takedown notices supported by registered rights;
- Customs and border interventions: using IP registrations to prevent fake shipments from entering key markets;
- Legal action: targeting repeat offenders to deter further infringement and demonstrate commitment to brand protection.
Active enforcement is particularly critical after peak periods such as the festive season, when counterfeit activity often spikes. Manufacturers that act quickly not only protect revenue but also reinforce market credibility.
Aligning IP with commercial strategy
IP protection should be strategically aligned with business objectives. For start-ups and emerging brands, securing trade marks and design rights early helps avoid costly disputes, enables investment readiness, and provides a framework for future growth. For established and luxury brands, protecting every differentiating element – from signature packaging to premium product aesthetics – is essential to sustaining market positioning.
A robust IP programme also enables commercial opportunities such as licensing, partnerships, and international expansion. By integrating IP into broader business planning, manufacturers can turn protection into a tool for growth rather than a reactive cost.
Year-round monitoring and vigilance
Peak seasons like Christmas and summer are prime targets for counterfeiters. Manufacturers should review their IP coverage, ensure active monitoring systems are in place, and reinforce enforcement measures. Critical questions for brand owners include:
- Are all core innovations and designs fully protected?
- Are marketplaces being monitored effectively to detect infringements?
- Is the IP strategy aligned with investor expectations and long-term commercial goals?
A proactive approach ensures that brands maintain market leadership, defend their reputation, and safeguard commercial value.
Protecting innovation is protecting value
Counterfeiting in cosmetics is more than a legal issue – it is a strategic threat to the assets that define your brand. Manufacturers that embed IP protection and enforcement into their business strategy safeguard not only their innovation but also investor confidence, market positioning, and long-term growth prospects.
In today’s fast-moving, online-driven marketplace, strong IP protection is a key differentiator. It transforms a potential vulnerability into a commercial advantage, turning protection into a foundation for growth.
In cosmetics, what you protect shapes what you can achieve. Strong IP isn’t just about preventing loss – it’s about enabling sustainable, defensible growth.
If you would like to discuss the intellectual property strategy of your cosmetics or beauty business, please contact the author, Rosalyn Newsome, or a member of our specialist team.
