Counterfeit consumer goods
Encyclopedia
Counterfeit consumer goods, commonly called knock-offs, are counterfeit
or imitation products offered for sale. The spread of counterfeit goods has become global in recent years and the range of goods subject to infringement has increased significantly. According to estimates by the Counterfeiting Intelligence Bureau (CIB) of the International Chamber of Commerce (ICC), counterfeit goods make up 5 to 7% of world trade. A report by the Organisation for Economic Co-operation and Development
(OECD) states that up to $200 billion of international trade could have been for counterfeit and pirated goods in 2005, and around $250 billion in 2007. Other estimates conclude that a more accurate figure is closer to $600 billion lost, since the OECD estimates do not include online sales or goods counterfeited and sold within the same country.
The range of consumer goods that are counterfeited and sold as genuine is wide. Besides numerous smaller goods such as watches, purses, cigarettes, movies and software, larger items such as cars and motorcycles are also being knocked off, including Porsches and Ferraris. A bank in Germany found a fake gold ingot. There is a rapidly growing trade in fake drugs and computer parts, with some counterfeit electronic parts discovered by NASA, the U.S. Navy and the U.S. Army, which alone estimates that the growth in counterfeit electronics has more than doubled between 2005 and 2008. Among the causes for its growth are many: more of the world's manufacturing is being transferred overseas, the growth in internet e-commerce sales, and the fact that consumers hit by the recession will seek out lower-cost items.
The United States faces the most economic impact, being the world's largest consumer nation. Underwriters Laboratories
(UL) confirms that counterfeiting is "a thriving multi-billion dollar global industry," where the risks of legal consequences are low. In addition, counterfeiting profits fund other organized criminal activities. It estimates 750,000 jobs have been lost in the U.S. alone due to counterfeiting. The value of counterfeit goods seized at U.S. borders jumped 40% in one year, from 2007 to 2008, while Europe seized over 50% more during that same year.
U.S. Attorney General Eric Holder
stated that "intellectual property crimes are not victimless. The theft of ideas and the sale of counterfeit goods threaten economic opportunities and financial stability, suppress innovation and destroy jobs.” Director John Morton
of the Department of Homeland Security’s Immigration and Customs Enforcement (ICE) adds that "the sale of counterfeit U.S. brands on the Internet steals the creative work of others, costs our economy jobs and revenue and can threaten the health and safety of American consumers. . . we are dedicated to protecting the jobs, the income and the tax revenue that disappear when counterfeit goods are trafficked.” According to the U.S. Chamber of Commerce, for every $1 invested in fighting against counterfeits, the country gains $5 in new tax revenue.
Among the leading industries that have been seriously affected by counterfeiting are software, music recordings, motion pictures, luxury goods and fashion clothes, sportswear, perfumes, toys, aircraft components, spare parts and car accessories, and pharmaceuticals.
will find a wide selection of counterfeit designer brand garments at the infamous Silk Street. Counterfeiting in China
is so deep rooted that when shops selling relevant merchandise in Silk Street were shuttered by authorities, the owners protested publicly against this action.
Expensive watch
es are vulnerable to counterfeiting; it is a common cliché
that any visitor to New York City
will be approached on a street corner by a vendor with a dozen such counterfeit watch
es inside his coat, offered at bargain prices.
In Malaysia, Thailand, Vietnam and the Philippines, extremely authentic looking, but very poor quality watch fakes with self-winding mechanisms and fully working movements can sell for as little as US $20. On the other hand, some fakes' movements and materials are of remarkably passable quality — albeit inconsistently so — and may look good and work well for some years, a possible consequence of increasing competition within the counterfeiting community.
s, videotape
s and DVD
s, computer software
and other media which are easily copied can be counterfeited, and sold through vendors at street market
s, night market
s, mail order
, and numerous Internet
sources, including open auction sites like eBay
. In some cases where the counterfeit media has packaging good enough to be mistaken for the genuine product, it is sometimes sold as such. Music enthusiasts may use the term "bootleg recording
" to differentiate otherwise unavailable recordings from counterfeited copies of commercially released material.
In August 2011, it was reported that at least 22 fake Apple computer
stores were operating in parts of China, despite others having been shut down in the past by authorities at other locations. The following month, also in China, it was discovered that the popular mobile game Angry Birds
, had been re-created into a theme park without permission from its Finnish copyright or trademark owners.
(FDA), counterfeit drugs consist of those sold under a product name without proper authorization:
Experts estimate that counterfeit medications kill at least 100,000 people a year, mostly in undeveloped countries. According to the Economist magazine, between 15%-30% of antibiotic
drugs in Africa and South-East Asia are fake. The UN estimates that roughly half of the antimalarial drugs sold in Africa—worth some $438m a year—are counterfeits. Pfizer Pharmaceuticals has found fake versions of at least 20 of its products, such as Viagra and Lipitor, in the legitimate supply chains of at least 44 countries. Pfizer also found that nearly 20% of Europeans had obtained medicines through illicit channels, amounting to $12.8 billion in sales. Other experts estimate the global market for fake medications could be worth between $75 billion and $200 billion a year, as of 2010. Other counterfeit prescription drugs that have been found in the "legitimate" supply chain are Plavix, used to treat blood clots, Zyprexa for schizophrenia, Casodex, used to treat prostate cancer, Tamiflu, used to treat influenza, including Swine flu
, and Aricept is used to treat Alzheimers.
The EU reported that as of 2005 India
was by far the biggest supplier of fake drugs," accounting for 75 per cent of the global cases of counterfeit medicine. Another 7% came from Egypt
and 6% from China
. Those involved in their production and distribution include medical professionals such as pharmacists and physicians, organized crime syndicates, rogue pharmaceutical companies, corrupt local and national officials and terrorist organizations.
In 2005, counterfeit pharmaceuticals affected less than one percent in developed countries, such as the U.S. , Australia, and the EU, the problem was growing due to increased global sourcing and manufacturing. A study by the OECD concluded that "a worrisome trend is that counterfeits are increasingly being detected as having entered the supply chain of some of the most regulated jurisdictions," noting an example of one source reporting a 27% increase in number of incident over one year." According to the World Health Organization
(WHO), by 2006 developing countries had a counterfeit prevalence of 10-30 per cent or higher.
has increased. Numerous cases of intentional food fraud have been discovered over the last few years:
U.S.
However, in the U.S. , where the Food and Drug Administration
(FDA) is the primary regulatory body for food safety and enforcement, they admit that the "sheer magnitude of the potential crime" makes prevention difficult, along with the fact that food safety is not treated as a high priority. They note that with more than 300 ports of entry through which 13 percent of America's food supply passes, the FDA is only able to inspect about 2 percent of that food. "
Europe
Food counterfeiting and piracy is a serious threat in Europe. "A secret wave of dangerous fakes is threatening the people in Europe," states a EU high official.
In 2005, EU customs seized more than 75 million counterfeited and pirated goods, including foods, medicines and other goods, party due to internet sales. More than 5 million counterfeit food-related items, including drinks and alcohol products were seized.
, a large Japanese electronics company, was apparently copied and sold throughout South East Asia. An enterprising customer, dissatisfied by the fake NEC's warranty service, complained to the real NEC headquarters in Japan, who thereupon found that they were manufacturing and distributing products they had never heard of.
announced that "by seizing these domain names, we have disrupted the sale of thousands of counterfeit items, while also cutting off funds to those willing to exploit the ingenuity of others for their own personal gain.”
Some U.S. politicians are proposing to fine those who buy counterfeit goods, such as those sold in New York's Canal Street market. In Europe, France has already created stiff sentences for sellers or buyers, with punishments up to 3 years in prison and a € 300,000 fine. Also in Europe, non-profit organizations such as the European Anti-Counterfeiting Network, fight the global trade in counterfeit goods.
During a counterfeit in bust in New York in 2007, federal police seized $200 million in fake designer clothing, shoes, and accessories, from one of the largest-ever counterfeit smuggling rings. Labels seized included Chanel
, Nike
, Burberry
, Polo
, Ralph Lauren
and Baby Phat
. Counterfeit goods which are a "major plague for fashion and luxury brands," and numerous companies have made legal efforts to block the sale of counterfeits from China. Many of the goods are sold to retail outlets in Brooklyn
and Queens
.
For trademark owners wishing to identify and prevent the importation of counterfeit goods, the U.S. Customs and Border Protection
agency supports a supplemental registration of trademarks through their Intellectual Property Rights e-Recordation program. These registrations may be supported by brand manuals prepared by or on the behalf of brand owners in order to facilitate the identification of counterfeit goods, including use as evidence by trademark owners as evidence in obtaining court orders for the seizure of infringing merchandise. This mechanism may be used by brand owners to gray market goods, also referred to as channel diversion, in reference to goods produced legitimately but sold through unauthorized distributors and vendors, in addition to counterfeit goods produced as copies of brand name items.
Counterfeit
To counterfeit means to illegally imitate something. Counterfeit products are often produced with the intent to take advantage of the superior value of the imitated product...
or imitation products offered for sale. The spread of counterfeit goods has become global in recent years and the range of goods subject to infringement has increased significantly. According to estimates by the Counterfeiting Intelligence Bureau (CIB) of the International Chamber of Commerce (ICC), counterfeit goods make up 5 to 7% of world trade. A report by the Organisation for Economic Co-operation and Development
Organisation for Economic Co-operation and Development
The Organisation for Economic Co-operation and Development is an international economic organisation of 34 countries founded in 1961 to stimulate economic progress and world trade...
(OECD) states that up to $200 billion of international trade could have been for counterfeit and pirated goods in 2005, and around $250 billion in 2007. Other estimates conclude that a more accurate figure is closer to $600 billion lost, since the OECD estimates do not include online sales or goods counterfeited and sold within the same country.
The range of consumer goods that are counterfeited and sold as genuine is wide. Besides numerous smaller goods such as watches, purses, cigarettes, movies and software, larger items such as cars and motorcycles are also being knocked off, including Porsches and Ferraris. A bank in Germany found a fake gold ingot. There is a rapidly growing trade in fake drugs and computer parts, with some counterfeit electronic parts discovered by NASA, the U.S. Navy and the U.S. Army, which alone estimates that the growth in counterfeit electronics has more than doubled between 2005 and 2008. Among the causes for its growth are many: more of the world's manufacturing is being transferred overseas, the growth in internet e-commerce sales, and the fact that consumers hit by the recession will seek out lower-cost items.
The United States faces the most economic impact, being the world's largest consumer nation. Underwriters Laboratories
Underwriters Laboratories
Underwriters Laboratories Inc. is an independent product safety certification organization. Established in 1894, the company has its headquarters in Northbrook, Illinois. UL develops standards and test procedures for products, materials, components, assemblies, tools and equipment, chiefly dealing...
(UL) confirms that counterfeiting is "a thriving multi-billion dollar global industry," where the risks of legal consequences are low. In addition, counterfeiting profits fund other organized criminal activities. It estimates 750,000 jobs have been lost in the U.S. alone due to counterfeiting. The value of counterfeit goods seized at U.S. borders jumped 40% in one year, from 2007 to 2008, while Europe seized over 50% more during that same year.
U.S. Attorney General Eric Holder
Eric Holder
Eric Himpton Holder, Jr. is the 82nd and current Attorney General of the United States and the first African American to hold the position, serving under President Barack Obama....
stated that "intellectual property crimes are not victimless. The theft of ideas and the sale of counterfeit goods threaten economic opportunities and financial stability, suppress innovation and destroy jobs.” Director John Morton
John Morton
John Morton was an English prelate who served as Archbishop of Canterbury from 1486 to 1500. He was elevated to the cardinalate in 1493.-Life:...
of the Department of Homeland Security’s Immigration and Customs Enforcement (ICE) adds that "the sale of counterfeit U.S. brands on the Internet steals the creative work of others, costs our economy jobs and revenue and can threaten the health and safety of American consumers. . . we are dedicated to protecting the jobs, the income and the tax revenue that disappear when counterfeit goods are trafficked.” According to the U.S. Chamber of Commerce, for every $1 invested in fighting against counterfeits, the country gains $5 in new tax revenue.
General description
According to the OECD, counterfeit products encompass all products made to closely imitate the appearance of the product of another as to mislead consumers. Those can include the unauthorised production and distribution of products that are protected by intellectual property rights, such as copyright, trademarks and trade names. In many cases, different types of those infringements can often overlap: Music piracy mostly infringes copyright as well as trademarks; fake toys infringe design protection. The term "counterfeiting" therefore addresses piracy and related issues, such as copying of packaging, labelling, or any other significant features of the goods.Among the leading industries that have been seriously affected by counterfeiting are software, music recordings, motion pictures, luxury goods and fashion clothes, sportswear, perfumes, toys, aircraft components, spare parts and car accessories, and pharmaceuticals.
Apparel and accessories
Counterfeit clothes, shoes and handbags from designer brands are made in varying quality; sometimes the intent is only to fool the gullible buyer who only looks at the label and doesn't know what the real thing looks like, while others put some serious effort into mimicking fashion details. Others realize that most consumers do not care if the goods they buy are counterfeit and just wish to purchase inexpensive products. The popularity of designer jeans in 1978, spurred a flood of knockoffs. Factories that manufacture counterfeit designer brand garments and watches are usually located in developing countries. Many international tourists visiting BeijingBeijing
Beijing , also known as Peking , is the capital of the People's Republic of China and one of the most populous cities in the world, with a population of 19,612,368 as of 2010. The city is the country's political, cultural, and educational center, and home to the headquarters for most of China's...
will find a wide selection of counterfeit designer brand garments at the infamous Silk Street. Counterfeiting in China
China
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...
is so deep rooted that when shops selling relevant merchandise in Silk Street were shuttered by authorities, the owners protested publicly against this action.
Expensive watch
Watch
A watch is a small timepiece, typically worn either on the wrist or attached on a chain and carried in a pocket, with wristwatches being the most common type of watch used today. They evolved in the 17th century from spring powered clocks, which appeared in the 15th century. The first watches were...
es are vulnerable to counterfeiting; it is a common cliché
Cliché
A cliché or cliche is an expression, idea, or element of an artistic work which has been overused to the point of losing its original meaning or effect, especially when at some earlier time it was considered meaningful or novel. In phraseology, the term has taken on a more technical meaning,...
that any visitor to New York City
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
will be approached on a street corner by a vendor with a dozen such counterfeit watch
Counterfeit watch
A counterfeit watch is an illegal copy of an authentic watch. According to estimates by the Swiss Customs Service, there are some 30 to 40 million counterfeit watches put into circulation each year. For example, the number and value of Customs’ seizures rose from CHF 400,000 and 18 seizures in 1995...
es inside his coat, offered at bargain prices.
In Malaysia, Thailand, Vietnam and the Philippines, extremely authentic looking, but very poor quality watch fakes with self-winding mechanisms and fully working movements can sell for as little as US $20. On the other hand, some fakes' movements and materials are of remarkably passable quality — albeit inconsistently so — and may look good and work well for some years, a possible consequence of increasing competition within the counterfeiting community.
Media products and stores
Compact DiscCompact Disc
The Compact Disc is an optical disc used to store digital data. It was originally developed to store and playback sound recordings exclusively, but later expanded to encompass data storage , write-once audio and data storage , rewritable media , Video Compact Discs , Super Video Compact Discs ,...
s, videotape
Videotape
A videotape is a recording of images and sounds on to magnetic tape as opposed to film stock or random access digital media. Videotapes are also used for storing scientific or medical data, such as the data produced by an electrocardiogram...
s and DVD
DVD
A DVD is an optical disc storage media format, invented and developed by Philips, Sony, Toshiba, and Panasonic in 1995. DVDs offer higher storage capacity than Compact Discs while having the same dimensions....
s, computer software
Computer software
Computer software, or just software, is a collection of computer programs and related data that provide the instructions for telling a computer what to do and how to do it....
and other media which are easily copied can be counterfeited, and sold through vendors at street market
Street market
A street market is an outdoor market such as traditionally held in a market square or in a market town, and often held only on particular days of the week...
s, night market
Night market
Night markets or night bazaars are street markets which operate at night and are generally dedicated to more leisurely strolling, shopping, and eating than more businesslike day markets.-Geographical spread:...
s, mail order
Mail order
Mail order is a term which describes the buying of goods or services by mail delivery. The buyer places an order for the desired products with the merchant through some remote method such as through a telephone call or web site. Then, the products are delivered to the customer...
, and numerous Internet
Internet
The Internet is a global system of interconnected computer networks that use the standard Internet protocol suite to serve billions of users worldwide...
sources, including open auction sites like eBay
EBay
eBay Inc. is an American internet consumer-to-consumer corporation that manages eBay.com, an online auction and shopping website in which people and businesses buy and sell a broad variety of goods and services worldwide...
. In some cases where the counterfeit media has packaging good enough to be mistaken for the genuine product, it is sometimes sold as such. Music enthusiasts may use the term "bootleg recording
Bootleg recording
A bootleg recording is an audio or video recording of a performance that was not officially released by the artist or under other legal authority. The process of making and distributing such recordings is known as bootlegging...
" to differentiate otherwise unavailable recordings from counterfeited copies of commercially released material.
In August 2011, it was reported that at least 22 fake Apple computer
Apple Computer
Apple Inc. is an American multinational corporation that designs and markets consumer electronics, computer software, and personal computers. The company's best-known hardware products include the Macintosh line of computers, the iPod, the iPhone and the iPad...
stores were operating in parts of China, despite others having been shut down in the past by authorities at other locations. The following month, also in China, it was discovered that the popular mobile game Angry Birds
Angry Birds
Angry Birds is a puzzle video game developed by Finnish computer game developer Rovio Mobile. Inspired primarily by a sketch of stylized wingless birds, the game was first released for Apple's iOS in December 2009...
, had been re-created into a theme park without permission from its Finnish copyright or trademark owners.
Medications
According the U.S. Food and Drug AdministrationFood and Drug Administration
The Food and Drug Administration is an agency of the United States Department of Health and Human Services, one of the United States federal executive departments...
(FDA), counterfeit drugs consist of those sold under a product name without proper authorization:
- "Counterfeiting can apply to both brand name and generic products, where the identity of the source is mislabeled in a way that suggests that it is the authentic approved product. Counterfeit products may include products without the active ingredient, with an insufficient or excessive quantity of the active ingredient, with the wrong active ingredient, or with fake packaging."
Experts estimate that counterfeit medications kill at least 100,000 people a year, mostly in undeveloped countries. According to the Economist magazine, between 15%-30% of antibiotic
Antibiotic
An antibacterial is a compound or substance that kills or slows down the growth of bacteria.The term is often used synonymously with the term antibiotic; today, however, with increased knowledge of the causative agents of various infectious diseases, antibiotic has come to denote a broader range of...
drugs in Africa and South-East Asia are fake. The UN estimates that roughly half of the antimalarial drugs sold in Africa—worth some $438m a year—are counterfeits. Pfizer Pharmaceuticals has found fake versions of at least 20 of its products, such as Viagra and Lipitor, in the legitimate supply chains of at least 44 countries. Pfizer also found that nearly 20% of Europeans had obtained medicines through illicit channels, amounting to $12.8 billion in sales. Other experts estimate the global market for fake medications could be worth between $75 billion and $200 billion a year, as of 2010. Other counterfeit prescription drugs that have been found in the "legitimate" supply chain are Plavix, used to treat blood clots, Zyprexa for schizophrenia, Casodex, used to treat prostate cancer, Tamiflu, used to treat influenza, including Swine flu
2009 flu pandemic
The 2009 flu pandemic was an influenza pandemic, and the second of the two pandemics involving H1N1 influenza virus , albeit in a new version...
, and Aricept is used to treat Alzheimers.
The EU reported that as of 2005 India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
was by far the biggest supplier of fake drugs," accounting for 75 per cent of the global cases of counterfeit medicine. Another 7% came from Egypt
Egypt
Egypt , officially the Arab Republic of Egypt, Arabic: , is a country mainly in North Africa, with the Sinai Peninsula forming a land bridge in Southwest Asia. Egypt is thus a transcontinental country, and a major power in Africa, the Mediterranean Basin, the Middle East and the Muslim world...
and 6% from China
China
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...
. Those involved in their production and distribution include medical professionals such as pharmacists and physicians, organized crime syndicates, rogue pharmaceutical companies, corrupt local and national officials and terrorist organizations.
In 2005, counterfeit pharmaceuticals affected less than one percent in developed countries, such as the U.S. , Australia, and the EU, the problem was growing due to increased global sourcing and manufacturing. A study by the OECD concluded that "a worrisome trend is that counterfeits are increasingly being detected as having entered the supply chain of some of the most regulated jurisdictions," noting an example of one source reporting a 27% increase in number of incident over one year." According to the World Health Organization
World Health Organization
The World Health Organization is a specialized agency of the United Nations that acts as a coordinating authority on international public health. Established on 7 April 1948, with headquarters in Geneva, Switzerland, the agency inherited the mandate and resources of its predecessor, the Health...
(WHO), by 2006 developing countries had a counterfeit prevalence of 10-30 per cent or higher.
Food
Food fraud, "the intentional adulteration of food with cheaper ingredients for economic gain," is a well-documented crime that has existed in the U.S. and Europe for many decades. It has only received most attention in recent years as the fear of bioterrorismBioterrorism
Bioterrorism is terrorism involving the intentional release or dissemination of biological agents. These agents are bacteria, viruses, or toxins, and may be in a naturally occurring or a human-modified form. For the use of this method in warfare, see biological warfare.-Definition:According to the...
has increased. Numerous cases of intentional food fraud have been discovered over the last few years:
U.S.
- In 2008, U.S. consumers were "panicked" and a "media firestorm" ensued when Chinese milk was discovered to have been adulterated with the chemical melamineMelamineMelamine is an organic base and a trimer of cyanamide, with a 1,3,5-triazine skeleton. Like cyanamide, it contains 66% nitrogen by mass and, if mixed with resins, has fire retardant properties due to its release of nitrogen gas when burned or charred, and has several other industrial uses....
, to make milk appear to have a higher protein content. It caused 900 infants to be hospitalized with six deaths. - In 2007, the University of North CarolinaUniversity of North CarolinaChartered in 1789, the University of North Carolina was one of the first public universities in the United States and the only one to graduate students in the eighteenth century...
found that 77 percent of fish labeled as red snapperRed SnapperRed Snapper may refer to:Fish:* Several species from the genus Lutjanus, for example the red snapper .* Several species from the genus Sebastes, for example the vermilion rockfish and yelloweye rockfish Red Snapper may refer to:Fish:* Several species from the genus Lutjanus, for example the red...
was actually tilapiaTilapiaTilapia , is the common name for nearly a hundred species of cichlid fish from the tilapiine cichlid tribe. Tilapia inhabit a variety of fresh water habitats, including shallow streams, ponds, rivers and lakes. Historically, they have been of major importance in artisan fishing in Africa and the...
, a common and less flavorful species. The Chicago Sun-TimesChicago Sun-TimesThe Chicago Sun-Times is an American daily newspaper published in Chicago, Illinois. It is the flagship paper of the Sun-Times Media Group.-History:The Chicago Sun-Times is the oldest continuously published daily newspaper in the city...
tested fish at 17 sushi restaurants found that fish being sold as red snapper actually was mostly tilapia. Other inspections uncovered catfishCatfishCatfishes are a diverse group of ray-finned fish. Named for their prominent barbels, which resemble a cat's whiskers, catfish range in size and behavior from the heaviest and longest, the Mekong giant catfish from Southeast Asia and the second longest, the wels catfish of Eurasia, to detritivores...
being sold as grouperGrouperGroupers are fish of any of a number of genera in the subfamily Epinephelinae of the family Serranidae, in the order Perciformes.Not all serranids are called groupers; the family also includes the sea basses. The common name grouper is usually given to fish in one of two large genera: Epinephelus...
, which normally sells for nearly twice as much as catfish. Fish is the most frequently faked food Americans buy, which includes "selling a cheaper fish, such as pen-raised Atlantic salmon, as wild Alaska salmon." In one test, Consumer ReportsConsumer ReportsConsumer Reports is an American magazine published monthly by Consumers Union since 1936. It publishes reviews and comparisons of consumer products and services based on reporting and results from its in-house testing laboratory. It also publishes cleaning and general buying guides...
found that less than half of supposedly "wild-caught" salmonSalmonSalmon is the common name for several species of fish in the family Salmonidae. Several other fish in the same family are called trout; the difference is often said to be that salmon migrate and trout are resident, but this distinction does not strictly hold true...
sold in 2005-2006 were actually wild, and the rest were farmedAquaculture of salmonSalmon, along with carp, are the two most important fish groups in aquaculture. In 2007, the aquaculture of salmon and salmon trout was worth US$10.7 billion. The most commonly farmed salmon is the Atlantic salmon. Other commonly farmed fish groups include tilapia, catfish, sea bass, bream and...
. - French cognac was discovered to have been adulterated with brandy, and their honey was mixed with cheaper sugars, such as high-fructose corn syrup.
- In 2008, U.S. food safety officers seized more than 10,000 cases of counterfeit extra virgin olive oil, worth more than $700,000, from warehouses in New York and New Jersey. Olive oil is considered one of the most frequently counterfeited food products, according to the FDA, with one study finding that a lot of products labeled as "extra-virgin olive oil" actually contained up to 90% soybean oil.
However, in the U.S. , where the Food and Drug Administration
Food and Drug Administration
The Food and Drug Administration is an agency of the United States Department of Health and Human Services, one of the United States federal executive departments...
(FDA) is the primary regulatory body for food safety and enforcement, they admit that the "sheer magnitude of the potential crime" makes prevention difficult, along with the fact that food safety is not treated as a high priority. They note that with more than 300 ports of entry through which 13 percent of America's food supply passes, the FDA is only able to inspect about 2 percent of that food. "
Europe
Food counterfeiting and piracy is a serious threat in Europe. "A secret wave of dangerous fakes is threatening the people in Europe," states a EU high official.
In 2005, EU customs seized more than 75 million counterfeited and pirated goods, including foods, medicines and other goods, party due to internet sales. More than 5 million counterfeit food-related items, including drinks and alcohol products were seized.
Companies
There has been at least one instance of an entire fake parallel manufacturing / distributing / retail system. NECNEC
, a Japanese multinational IT company, has its headquarters in Minato, Tokyo, Japan. NEC, part of the Sumitomo Group, provides information technology and network solutions to business enterprises, communications services providers and government....
, a large Japanese electronics company, was apparently copied and sold throughout South East Asia. An enterprising customer, dissatisfied by the fake NEC's warranty service, complained to the real NEC headquarters in Japan, who thereupon found that they were manufacturing and distributing products they had never heard of.
Enforcement
On November 29, 2010, the U.S. Department of Homeland Security seized and shut down 82 websites as part of a U.S. crackdown of websites that sell counterfeit goods, and was timed to coincide with "Cyber Monday," the start of the holiday online shopping season. Attorney General Eric HolderEric Holder
Eric Himpton Holder, Jr. is the 82nd and current Attorney General of the United States and the first African American to hold the position, serving under President Barack Obama....
announced that "by seizing these domain names, we have disrupted the sale of thousands of counterfeit items, while also cutting off funds to those willing to exploit the ingenuity of others for their own personal gain.”
Some U.S. politicians are proposing to fine those who buy counterfeit goods, such as those sold in New York's Canal Street market. In Europe, France has already created stiff sentences for sellers or buyers, with punishments up to 3 years in prison and a € 300,000 fine. Also in Europe, non-profit organizations such as the European Anti-Counterfeiting Network, fight the global trade in counterfeit goods.
During a counterfeit in bust in New York in 2007, federal police seized $200 million in fake designer clothing, shoes, and accessories, from one of the largest-ever counterfeit smuggling rings. Labels seized included Chanel
Chanel
Chanel S.A. is a French fashion house founded by the couturier Gabrielle "Coco" Chanel, well established in haute couture, specializing in luxury goods . She gained the name "Coco" while maintaining a career as a singer at a café in France...
, Nike
Nike, Inc.
Nike, Inc. is a major publicly traded sportswear and equipment supplier based in the United States. The company is headquartered near Beaverton, Oregon, which is part of the Portland metropolitan area...
, Burberry
Burberry
Burberry Group plc is a British luxury fashion house, manufacturing clothing, fragrance, and fashion accessories. Its distinctive tartan pattern has become one of its most widely copied trademarks. Burberry is most famous for its iconic trench coat, which was invented by founder Thomas Burberry...
, Polo
Polo
Polo is a team sport played on horseback in which the objective is to score goals against an opposing team. Sometimes called, "The Sport of Kings", it was highly popularized by the British. Players score by driving a small white plastic or wooden ball into the opposing team's goal using a...
, Ralph Lauren
Ralph Lauren
Ralph Lauren is an American fashion designer and business executive; best known for his Polo Ralph Lauren clothing brand.-Early life:...
and Baby Phat
Baby Phat
Baby Phat is an urban fashion line of clothing and other items for women and girls. Besides clothing, the brand also includes accessories for phones, jewelry, shoes and fragrances. It is the corporate "sibling" of the clothing brand Phat Farm created by Russell Simmons. Baby Phat uses a sleek cat...
. Counterfeit goods which are a "major plague for fashion and luxury brands," and numerous companies have made legal efforts to block the sale of counterfeits from China. Many of the goods are sold to retail outlets in Brooklyn
Brooklyn
Brooklyn is the most populous of New York City's five boroughs, with nearly 2.6 million residents, and the second-largest in area. Since 1896, Brooklyn has had the same boundaries as Kings County, which is now the most populous county in New York State and the second-most densely populated...
and Queens
Queens
Queens is the easternmost of the five boroughs of New York City. The largest borough in area and the second-largest in population, it is coextensive with Queens County, an administrative division of New York state, in the United States....
.
For trademark owners wishing to identify and prevent the importation of counterfeit goods, the U.S. Customs and Border Protection
U.S. Customs and Border Protection
U.S. Customs and Border Protection is a federal law enforcement agency of the United States Department of Homeland Security charged with regulating and facilitating international trade, collecting import duties, and enforcing U.S. regulations, including trade, customs and immigration. CBP is the...
agency supports a supplemental registration of trademarks through their Intellectual Property Rights e-Recordation program. These registrations may be supported by brand manuals prepared by or on the behalf of brand owners in order to facilitate the identification of counterfeit goods, including use as evidence by trademark owners as evidence in obtaining court orders for the seizure of infringing merchandise. This mechanism may be used by brand owners to gray market goods, also referred to as channel diversion, in reference to goods produced legitimately but sold through unauthorized distributors and vendors, in addition to counterfeit goods produced as copies of brand name items.
International agreements
On October 1, 2011, the governments of eight nations including Japan and the United States signed the Anti-Counterfeiting Trade Agreement (ACTA), which is designed help protect intellectual property rights, especially costly copyright and trademark theft. The signing took place a year after lengthy negotiations among 11 parties: Australia, Canada, the European Union, Japan, the Republic of Korea, Mexico, Morocco, New Zealand, Singapore, Switzerland and the United States. The EU, Mexico and Switzerland have not yet signed the agreement. Some commentators ague that the agreement is nonetheless worthless without Chinese involvement, as China is the main source of the world's counterfeit goods.See also
- Trademark infringementTrademark infringementTrademark infringement is a violation of the exclusive rights attaching to a trademark without the authorization of the trademark owner or any licensees...
- Trade dressTrade dressTrade dress is a legal term of art that generally refers to characteristics of the visual appearance of a product or its packaging that signify the source of the product to consumers...
- Copyright infringementCopyright infringementCopyright infringement is the unauthorized or prohibited use of works under copyright, infringing the copyright holder's exclusive rights, such as the right to reproduce or perform the copyrighted work, or to make derivative works.- "Piracy" :...
- Intellectual property infringement in the People's Republic of China
- Counterfeit moneyCounterfeit moneyCounterfeit money is currency that is produced without the legal sanction of the state or government to resemble some official form of currency closely enough that it may be confused for genuine currency. Producing or using counterfeit money is a form of fraud or forgery. Counterfeiting is probably...
- Anti-Counterfeiting Trade AgreementAnti-Counterfeiting Trade AgreementThe Anti-Counterfeiting Trade Agreement is a proposed plurilateral agreement for the purpose of establishing international standards on intellectual property rights enforcement...
- Counterfeit medicationsCounterfeit medicationsA counterfeit medication or a counterfeit drug is a medication or pharmaceutical product which is produced and sold with the intent to deceptively represent its origin, authenticity or effectiveness...
- Counterfeit watchCounterfeit watchA counterfeit watch is an illegal copy of an authentic watch. According to estimates by the Swiss Customs Service, there are some 30 to 40 million counterfeit watches put into circulation each year. For example, the number and value of Customs’ seizures rose from CHF 400,000 and 18 seizures in 1995...
- AuthenticationAuthenticationAuthentication is the act of confirming the truth of an attribute of a datum or entity...
- Track and trace
- Packaging and labellingPackaging and labellingPackaging is the science, art, and technology of enclosing or protecting products for distribution, storage, sale, and use. Packaging also refers to the process of design, evaluation, and production of packages. Packaging can be described as a coordinated system of preparing goods for transport,...
- Security printingSecurity printingSecurity printing is the field of the printing industry that deals with the printing of items such as banknotes, passports, tamper-evident labels, product authentication, stock certificates, postage stamps and identity cards...
- Knock Off (film)
- Parallel importParallel importA parallel import is a non-counterfeit product imported from another country without the permission of the intellectual property owner. Parallel imports are often referred to as grey product, and are implicated in issues of international trade, and intellectual property.The practice of parallel...
- ShanzhaiShanzhaiShanzhai refers to Chinese imitation and pirated brands and goods, particularly electronics. Literally "mountain village" or "mountain stronghold", the term refers to the mountain stockades of regional warlords or bandits, far away from official control...
Further reading
- Phillips, Tim. Knockoff: The Deadly Trade in Counterfeit Goods Kogan Page, U.K. (2006)
- Wilson, Bee. Swindled: The Dark History of Food Fraud, from Poisoned Candy to Counterfeit Coffee, Princeton University Press (2008)
External links
- Naitonal Food Safety and Toxicology Center, "The Counterfeit Food Scope and Threat - Seminar " Michigan State University