Could You be Using Knock Off Products at Your Customer Location?

Business consulting strategies

Most of us do not think about who owns the intellectual property of the products and materials we use in our daily lives. But the truth is, patent infringement and the manufacture and distribution of knock off products is a crime against the inventor, the manufacturer, licensed distributors and installation companies, as well as the end users. In addition, you could potentially be endangering the public and property by not using proper materials and/or procedures designed for the patented product. This unethical and illegal practice could result in a failure that creates safety issues for the public.

Knock off products are not limited to high-end watches; many products used by both personal and business consumers can be copied and sold to unsuspecting consumers. These items can include chemicals, mechanical devices, or even products needed for compliance or certification.

Who is ultimately responsible for patent infringement violations? The answer might not be as simple or clear as it seems. With complicated supply chains and the use of expanded distribution networks, many times we are buying products through companies that are far removed from the manufacturer. We may also come across a particular system at a customers’ site and think we can do better than what the manufacturer recommends, or that we can reduce cost by making our own improvised service plan for a particular product. One question you should ask yourself is this, “Will my business liability insurance cover me if a product I design, sell, or install fails at my customers’ business?” Also, by altering the Original Equipment Manufacturers (OEM) system you take on the liability of failure if the product does not perform as it was intended, one of the many potential negative consequences of altering OEM equipment or making your own. Manufacturers carry specialized product liability insurance that not only protects them, but also protects you and your customer in the event of a failure. Product liability insurance is voided or non-existent for knock off or altered products.

Another area where product infringement can become an issue is with safety. Products not manufactured with the proper materials can fail, which may cause slip and fall and/or fire hazards in a business environment. Products built as copies or with substandard practices can also cause other systems to fail, creating residual liabilities that may be covered by an OEM product but not a knock-off or altered product. Also, products that are not serviced correctly or have improper replacement parts can cause residual long term liabilities that include property loss, safety, or other legal compliance issues.

The liability trail begins with the consumer end user when dealing with a knock off product that fails. When a malfunction occurs, they are likely left with a failed product, a damaged facility, and the possibility of injuries. When the consumer learns that a system has failed, they in turn blame the installer or the manufacturer. When this occurs with an OEM product, the product liability insurance covers any failure of their product. All credible service companies will carry liability insurance that covers any failure caused by work they perform. The issue becomes increasingly complex if the insurance carriers determine that it was not their product or it was a lack of proper maintenance of the product that caused the failure. At this point all bets could be off for the service company and the end user.

Companies may also use OEM replacement parts not manufactured by the original manufacturer. The question a consumer or service company must ask is; does the use of a non-OEM part negate my original warranty or cause me potential liabilities if the system fails? Most OEM replacement manufacturers carry additional warranties and or make additional assertions that sometimes supersede and exceed the OEM systems protection. Make sure if you’re using OEM replacements that you’re using them from a reputable company that stands behind its product in the event of a failure. Another liability that comes with using unauthorized replacements is potential patent law violations. The use of products that infringe on a patent can cause losses that exceed the original cost of the product. End users and the companies that install infringing products can be held liable to replace the product and for any damages caused. These types of actions can also lead to costly legal fees and loss of time as you try to unravel how a product was used that violates patent law. You also run the risk of ruining your personal reputation and that of your company when a customer learns that they have liabilities because a knock-off was used on their property.

Wonder if your company has potential exposure? Is there another business issue on your mind?

© Individual Advantages, LLC. 2015

The post Could You be Using Knock Off Products at Your Customer Location? appeared first on IA Business Advisors.

Looking for help with Risk Management?

< Older Post

Newer Post >

A blue piggy bank is sitting on top of a stack of wooden blocks.

How to Mitigate Financial Risk Using the S.M.A.R.T. Management System

June 9, 2025

In an increasingly volatile economy, businesses cannot afford to be reactive when it comes to their finances. Whether you're a startup founder, a growing enterprise, or a seasoned business owner, the risk of financial instability is real—and growing. At IA Business Advisors, we help companies proactively navigate these risks using our comprehensive S.M.A.R.T. Management System . S.M.A.R.T. is more than just a goal-setting acronym. It is a decision-making and execution framework that brings clarity, structure, and alignment to every part of your business. From six-week action plans to one-year targets and long-term strategy, S.M.A.R.T. ensures your financial operations support healthy growth and resilience. Understanding Financial Risk in Today’s Business Climate Financial risk is multifaceted. It ranges from cash flow disruptions and market shifts to internal mismanagement and over-leveraged growth. As Brian Smith shared on a recent Daily Influence podcast episode, unchecked growth can drive a company into bankruptcy. Scaling without intention—chasing fast growth without aligning the internal team and financial resources—leads to diluted communication, quality issues, and operational chaos. Mitigating financial risk begins by understanding that more revenue doesn't always equal more stability. True sustainability comes from building systems that support intentional, well-paced growth. The S.M.A.R.T. Framework in Action: Reducing Financial Risk Our S.M.A.R.T. Management System guides businesses in creating resilient, financially stable operations through: 1. Specific: Build with Intentionality Clarity is power. One of our podcast guests, Mike Heatwole (CEO of The Dala Group), emphasized the importance of sitting down to define what matters most—whether that’s paying down debt, investing in growth, or launching a new venture. When your financial goals are specific, your strategy becomes targeted and less prone to reactive decision-making. “If we don’t know what the goal is, how do we get there?” — Mike Heatwole, CEO of The Dala Group 2. Measurable: Track What Matters Many companies are blindsided not by invisible risks, but by unmonitored ones. We help clients implement tools to track cash flow, margin fluctuations, and budget variances in real time. Visibility into your financial health gives you the power to respond early and course correct as needed. 3. Achievable: Assign Financial Stewardship Risk is reduced when financial responsibility is distributed. Through teamwide financial literacy and clear accountability, we empower organizations to make stronger daily decisions. No individual person should carry the entire burden—and no key area should go unmonitored. 4. Relevant: Make Risk Management a Habit Quarterly or biannual financial health check-ins create a sustainable rhythm. These don’t have to be complicated—they just need to be consistent. Regular reviews embed risk awareness into your company culture and decision-making process. 5. Timely: Foster Honest Dialogue Financial silence is a hidden threat. As Brian noted on the podcast, emotions like fear or shame can prevent businesses from facing financial realities. We encourage honest, blame-free communication around financial performance, creating space for solutions and collective action. Case in Point: Short-Term Action, Long-Term Impact One of our clients, a family-run distribution company, had strong revenue but was bleeding cash due to aging receivables. Together, we built a six-week S.M.A.R.T. Plan focused on accounts receivable recovery. We implemented weekly check-ins, assigned ownership, and used real-time tracking. Within 90 days, their outstanding A/R dropped by 22%, freeing up capital and restoring operational confidence. It’s Never Too Late to Get Financially Intentional Many leaders in their 40s, 50s, or 60s worry they’ve waited too long. But as Mike Heatwole wisely shared: “It’s never too late. Just get started. Do something.” Progress—not perfection—is the goal. Start small. Build momentum. Take the next best step. This mirrors a concept we love from The Gap and The Gain by Dan Sullivan: measure progress based on how far you've come, not just how far you have to go. Final Thoughts: Make Financial Stability a Strategy Mitigating financial risk isn’t about a dramatic overhaul. It’s about consistent action, visibility, and intentional decision-making. With the S.M.A.R.T. Management System, IA Business Advisors helps businesses turn risk into clarity, fear into focus, and instability into opportunity. If you’re ready to start, we’re ready to help. Let’s have a conversation about what matters most to you—and build from there.

Enhancing Interpersonal Relationships for Toxic Workplace Recovery

May 29, 2025

Hello, team! Mary here, continuing our journey through the I in Team series, where we challenge and empower you to Find , Be , and Build Your Influence. One of the most common things we’re asked to help our clients with is toxic workplace recovery. This directly connects to the culture of the team, and while rebuilding that culture takes time and intention, it is absolutely possible. In fact, with the guidance of our I in Team approach and S.M.A.R.T. Management system, we’ve successfully helped more than 19,000 teams evolve into high-performing, values-based cultures. If you’re ready to take the lead and breathe life back into your team, we’re here and ready to support you. Practice Emotional Intelligence One of the most impactful steps you can take on your toxic workplace recovery journey is to practice emotional intelligence (the ability to recognize, understand, and manage both your own emotions and the emotions of those around you). Toxic environments are often the result of emotional disconnection, poor communication, unnecessary competition, and a culture that avoids constructive feedback. Begin by shifting your perspective: respond with empathy, ask thoughtful questions, and use “I” statements. These habits model two traits, emotional regulation and empathy, that influence how your team interacts and solves problems. Start small. For example, set a personal goal to give one piece of sincere praise or recognition per day. This is a S.M.A.R.T. goal, and it starts to reinforce positive emotional exchanges. Over time, this contributes to a psychologically safe environment where people feel seen and supported. Foster Open Communication Once emotional intelligence begins to take root, toxic workplace recovery is just around the corner. Open communication becomes more natural because when team members are aware of their own and others’ emotions, communication becomes seamless. The number one rule? Listen. Really listen. Without listening, communication is incomplete. Try implementing monthly influence partnerships—team pairings that rotate so members can get to know each other beyond surface-level roles. This creates connection and, when done with consistency (Timely), fosters trust across your team. Another way to build open communication is by creating a structured feedback loop. Clarify how and when feedback should be given—perhaps during weekly one-on-ones or monthly review meetings—and make sure all team members understand the difference between criticism and constructive feedback. S.M.A.R.T. feedback is Specific and Relevant, and when delivered with respect, it encourages team members to grow without fear. Lead by Example As we say throughout the I in Team series, everyone is a leader regardless of title. Whether you’re in the C-suite or just starting your first job, how you show up directly shapes the culture of your team. To begin, set some respectful boundaries rooted in your values. Let others know what you need to succeed and what behaviors support or disrupt your work. When disagreements arise, demonstrate what respectful disagreement looks like—calm, focused on solutions, and free from personal attacks. If your workplace has leaned into competition, shift the focus to collaboration. Collaborate on micro-goals, like shared tasks or cross-functional projects. Make the results Measurable and celebrate wins together (publicly, if possible). Consider S.M.A.R.T.-based team-building events (like problem-solving challenges or goal-setting workshops) to reinforce collaboration in a meaningful way. Final Thoughts Toxic workplace recovery starts with you. Every interaction, every word, every moment of listening is a chance to model what’s possible. Show up the way you want others to show up. If your team is struggling to rebuild or you need expert guidance, reach out . We’re here to help. Let’s keep influencing responsibly and positively together.