Counterfeit Audioquest Cables

I think this is a great thread. First let me say that I don't own any AudioQuest (AQ) cables. Let me try to address your points. With regard to AQ benefitting from the existence of bogus copycat lookalikes: I would agree with that as imitation is the sincerest form of flattery, as they say. With regard to AQ deliberately allowing it to happen I am 50/50 on that one. I guess in theory AQ could drop their prices enough to put the copycats out of business, but that is not sound business strategy. With regard to the notion of being responsible for the copycats in the first place, I would not agree with that as the existence of the copycats is just the free market capitalist machine at work. Is AQ doing everything they possibly can to make the copycats' job harder? I doubt it. Is AQ doing anything in that regard? I don't know. Do they have a responsibility to do anything? I would think so, in order to protect their reputation. And lastly, as far as AQ being an "innovative" company: personally I find their marketing strategy to be off-putting. How so? They have too many products, each with slick names which lack imagination and give the consumer absolutely no clue whatsoever about the products' performance. The sum total of that marketing strategy is intended to bewilder the consumer, such that they only thing left to do is assume that their cable which they charge X for is better than a competing cable which is lesser in price. Cable companies are notorious for this type of marketing strategy, and I find AQ to be one of the biggest offenders in this regard. I could name others but since the topic deals with AQ I will leave it at that; the other cable companies who do this know who they are.

I've also thought AQ's authentication program to not have much value to the consumer. Whether it stimulates the fraud market or not, I can't say. I do agree that it does tend to scare buyers into paying more money to buy from authorized dealers. You would think a company of that size would have serialized cables, especially at the higher end, but then that might help the second hand market, which is not in AQ's interest.
Fortunately, I am not a fan of AQ cables. While they are good, there are better, IMHO. AQ is not alone in the battle of counterfeit cables though.

"Do they have a responsibility to do anything? I would think so, in order to protect their reputation."

I was involved with a clothing company that had a valuable trademark and they took counterfeiting very seriously. . .but not only for reputation. As I understand trademark and Intellectual Property law (which is NOT a lot), any company is required to actively enforce and defend their marks and IP. If they fail to do so, they can actually lose their copyrights, IP, etc. This is why Disney takes such a hard line with their marks and images. Not that they're trying to be mean or unfriendly, but that if they allow it to happen, they lose their protection.

My question on counterfeit cables is this, are they counterfeit or unauthorized? What I mean is are the cables cheap copies, made in some garage type facility, or are they the authentic cables pirated out of an authorized factory?