Swiss-Authentication

NHL All Star counterfeit jerseys affect hockey teams

2012-01-25T23:40:00.003-06:00

{Picking up a cheap jersey from a street vendor this weekend could be tempting — but the national hockey organization wants you to know this does more harm than good.

“People don’t realize they’re buying counterfeits,” says Tom Prochnow, NHL vice-president of legal and business affairs. “We’re trying to educate these people specifically.”}

Counterfeits have to become a higher importance for people to truly pay attention. (Tony Zafiropoulos)

India also brought $4.4 million of counterfeit products in US

2012-01-25T00:33:00.000-06:00

pharmabiz.com story:

{Pharmaceutical products formed the major portion of the counterfeit goods from India seized by the American authorities during the year of 2011 as India and Pakistan made it into the `top ten’ list of source countries pushing counterfeit goods into the US.

China continued to remain at the top of the list by accounting for 62 per cent of counterfeit goods seized by the US authorities during the year. India stood third, though it accounted for just 3 per cent of the goods seized after Hong Kong which contributed 18 per cent, as per the official report by the Customs and Border Protection (CBP) on International trade.}

India is also increasing counterfeit products in a large way. Although China still has the lead. (Tony Zafiropoulos)

Fake Britain(blog video) shows videos on counterfeit dangers

2012-01-23T12:56:00.000-06:00

christophernejman.blogspot.com story:

{A young boy is killed by using a fake electrical plug for his personal computer game not knowing it was fake. From electronics to fake fish, fake tools, fake vodka, fake organic foods.}

Mr. Nejman has created a good blog discussing actual stories with the dangers behind counterfeit products. A faulty circuit breaker can fail, cause a fire and then cause a death to a young boy. (Tony Zafiropoulos)

China rural agency targeting rural sellers of counterfeits

2012-01-23T12:22:00.000-06:00

china.org.cn story:

{Counterfeit consumer products and producer goods which are closely related to farmers' lives, including home appliances and fertilizer, will be the targets of the crackdown, according to a circular jointly issued by the National Development and Reform Position and nine other ministries and offices.}

Assuming China is trying to do what this mini story suggests, It would be a step in the right direction. It is so hard to tell what is actually happening in China. (Tony Zafiropoulos)

New Jersey man caught selling counterfeit NHL jerseys

2012-01-20T01:29:00.001-06:00

New Jersey man caught selling counterfeit NHL jerseyswivb.com story:

{Brian Bartoe, 36, pleaded guilty Friday to trafficking in counterfeit goods. Prosecutors say the fake jerseys, primarily Bills and Sabres, were made in China and bore counterfeit trademarks. Bartoe received them between September 2009 and April 2010 until U.S. Customs and Border Protection intercepted shipments.}

I wanted to highlight one person and their decision to sell counterfeits - this method is multiplied a hundred times across the nation and thousands of times across the world. (Tony Zafiropoulos)

Clay iPads sold in Canada

2012-01-19T01:13:00.002-06:00

{Canadian scammers are buying iPad 2s, replacing them in their original packaging with ZipLoc bags filled with modeling clay, "professionally shrink-wrapping" the boxes, then returning them for refunds, absconding with the precious fondleslabs.

The precisely weighted, shrinkwrapped packages containing the clay-filled bags are then resold by unwitting stores to unwitting customers such as scam victim Mark Sandhu, who bought what he thought was an iPad 2 as a Christmas gift for his wife.}

I think it is a clever counterfeit/criminal effort. The problem with real counterfeits is that they are harder to distinguish than obviously clay iPads. these were made to return devices and pocket the money or some other kind of scam. (Tony Zafiropoulos)

SOPA: Anti-Piracy bill - blackouts on Wikipedia/Reddit

2012-01-18T07:25:00.001-06:00

ov-3.net story:

{SOPA, on the other hand, stands for Stop Online Piracy Act, also known as House Bill 3261 or H.R. 3261. It is a bill that was introduced in the US Congress on October 26, 2011, by House Judiciary Committee Chair Representative Lamar Smith and a bipartisan group of 12 initial co-sponsors. The bill, if made law, would expand the ability of U.S. law enforcement and copyright holders to fight online trafficking in copyrighted intellectual property and counterfeit goods. Presented to the House Judiciary Committee, it builds on the similar PRO-IP Act of 2008 and the corresponding Senate bill, the PROTECT IP Act.

Companies like Reddit and Wikipedia will go black on January 18 to protest against SOPA and PIPA because they think it will give enormous power to the government to censor the internet. }

The activists believe that shining the light on this SOPA legislation will help defeat it. It is likely that SOPA legislation has overstepped it's boundaries, although it is an attempt at curbing counterfeit goods websites the enforcement and privacy issues surrounding this is what the activists have a problem with. (Tony Zafiropoulos)

Indian tobacco company says: "Losing $50Billion to China counterfeits"

2012-01-16T11:30:00.000-06:00

thecre.com story:

{Officials say that Chinese manufacturers are intensifying their efforts to “counterfeit” Da Buer (Dabur) and Indian Tobacco Company (ITC) and other Indian products selling consumer goods giant, damage the legitimacy of these brands, annual losses of up to 50 billion U.S. dollars.

“The Da Buer large number of counterfeit products from China, we carried out in China at least 20 raids, but the Chinese did not take appropriate action.” Da Buer, India’s fourth large consumer products company.}

China only takes appropriate action when it behooves themselves, by setting up high profile stings for the cameras, but when the standard counterfeit operations come along they are not as interested. As this report indicates. (Tony Zafiropoulos)

Burkey pleads guilty 13 counts of copyright violations

2012-01-15T12:03:00.000-06:00

stratfordobserver.co.uk story:

{A MAN who ran an illegal business modifying games consoles for four years claimed he didn't know what he was doing was wrong when trading standards finally caught up with him.The 42-year-old was handed a 12 month community order and ordered to do 150 hours unpaid work after a successful prosecution by Warwickshire County Council Trading Standards.

Burkey first came to the attention of trading standards in November 2010 after it received information illegal goods and services were being offered for sale on the website.}

This is a clear case of a person who modified game consoles on his own and tried to sell them online. The problem is that people do not take intellectual property rights seriously.. (Tony Zafiropoulos)

5 leading golf companies help shut 62 counterfeit goods golf sites

2012-01-13T00:16:00.002-06:00

todaysgolfer.co.uk story:

{The world's leading golf equipment manufacturers have pulled together to close 62 websites offering counterfeit goods to customers.

Manufacturers including Titleist, TaylorMade, Callaway, Ping and Cleveland are part of The US Anti-Counterfeiting Working Group who have announced that a preliminary injunction has been issued by the Southern District Court of Florida to shut down 62 websites where counterfeit clubs were sold.

In 2009 Briton Gary Bellchambers was jailed for four years for his part in the world's biggest ever eBay fraud where he sold more than £2m worth of counterfeit equipment.}

This is an interesting development, the golf companies used the district court of Florida to close the counterfeit goods websites. (Tony Zafiropoulos)

Counterfeiting in China - at a Crisis Point

2012-01-12T06:05:00.003-06:00

resources.alibaba.com story:

{"Counterfeiting in China has reached a crisis point." This common view is heard from many foreign executives and government officials. The problem appears to be getting worse each year: Not only is the quality of counterfeits improving, counterfeit goods are appearing in more overseas markets.The problems with intellectual property (IP) infringements are, however, not an issue just for the PRC government. Many foreign companies have done little to protect their IP rights in China, leaving their products vulnerable to counterfeiting. In addition, as a senior official of the PRC Ministry of Public Security pointed out at a recent conference jointly sponsored by the World Customs Organization and Interpol, it is often foreigners who supply the machines to make counterfeits and buy the counterfeits that are produced.}

It is good to see this again, there is a page up on alibaba that has a good article up. It is still apt today, and remember that alibaba is the ebay of China. (Tony Zafiropoulos)

Louis Vuitton files lawsuit against flea market in San Antonio

2012-01-11T00:57:00.002-06:00

kutnews.org story:

{Opening arguments began this week in a lawsuit filed by luxury fashion brand Louis Vuitton against San Antonio’s Eisenhauer flea market. The French company says the flea market allowed vendors to sell counterfeit products and is seeking $18 million.

Louis Vuitton’s lawyer said in opening arguments that the company sent representatives to the Eisenhauer Market and found as many as 15 vendors selling fake Louis Vuitton products, the San Antonio Express-News reports.}

Louis Vuitton also has sued Ebay in the past for allegedly helping sell counterfeits, so this is not out of the ordinary. This is an obvious move to push flea markets across the world to quit selling fake bags masquerading as Louis Vuitton bags.

The problem is that some of the bags are obviously fake and customers know they are not Louis Vuitton and they still buy them since they are cheaper.

All arguments used by consumer advocates in the past in these pages. (Tony Zafiropoulos)

24,792 seized, 2011 US Customs - 24% increase from 2010

2012-01-10T04:05:00.000-06:00

cbp.gov story:

{Theft of American intellectual property is a serious crime, and U.S. Customs and Border Protection and U.S. Immigration and Customs Enforcement announced today that their vigorous, ongoing efforts to protect America from the trade in counterfeit and pirated goods during fiscal year 2011 resulted in 24,792 seizures, a 24 percent increase over 2010.

Despite the significant increase in the number of seizures, the domestic value for seizures in fiscal year 2011 decreased by five percent to $178.9 million and the manufacturer’s suggested retail price declined slightly to $1.1 billion. This is primarily due to a shift toward using international mail, express courier and consolidated shipping services to import counterfeit and pirated goods.}

As the report stated, the health care fakes increased, but the value decreased. Maybe there is smaller items being counterfeited in 2011 versus 2010. Or at least of the items faked only the smaller ones were caught. (Tony Zafiropoulos)

CLC seizes 60,000 pieces of sport apparel in 2011

2012-01-09T06:55:00.003-06:00

espn.go.com story:

{Last year, more than 60,000 pieces of counterfeit merchandise valued at more than $1 million overall were seized by Collegiate Licensing Company.

So, who are these vendors?

One cited in Atlanta was the man selling the shirts with the expletives. He said he planned to keep $8 of the $20 shirt cost, with $12 going to his boss. He expected to make $1,500 to $2,000 that day before he was stopped by CLC investigators and Atlanta police for vending without a permit.}

The interesting thing is there was a conversation with a vendor, where he made $8 and the owner would make $12. in an area where one can make $2000 per day. It is no wonder that there are plenty of counterfeiters trying to ply their craft.

(Tony Zafiropoulos)

Counterfeits can kill or severely harm someone

2012-01-08T20:09:00.001-06:00

scribd.com story:{Law enforcement in Zambia seized fake shampoo containing acidBody-builders and others buying steroids on the black market in Australia were sold repackaged livestock steroids as human steroids}Oumaima Semmar listed a number of items like the 2 above, and actually created a decent list of one persons counterfeit goods presentation. It was very good, I thought, the only problem is there are no references to any of the data. I include it because it is plausible information as regular readers of this blog can attest in the last 2 years. (Tony Zafiropoulos)

China says it seized $844.5 million in counterfeits in 2011

2012-01-06T00:14:00.004-06:00

chinadaily.com.cn story:{China's quality supervision departments investigated and seized counterfeit goods valued at 5.33 billion yuan ($844.5 million) through law enforcement last year, the General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) said Thursday.

At an AQSIQ work conference, the administration's chief Zhi Shuping said that the administration's work last year focused on inspections of dairy products, liquor, meat and food additives, as well as intellectual property rights infringements.}

I wonder how many counterfeits there were actually produced in China? Probably not just the amount seized. If 10-20% of the total counterfeits get seized then there were $6.4 to $7.2 Billion counterfeits created. (Tony Zafiropoulos)

Winter Classic in Philadelphia had $350,000 counterfeits seized

2012-01-05T14:31:00.000-06:00

myfoxphilly.com story:

{In the wake of the 2012 Bridgestone NHL Winter Classic, customs officials and the NHL seized over 1,600 counterfeit items with a manufacturer’s suggested retail price of $350,000.

Approximately 150 international mail parcels were seized and nine vendors have been investigated since December 28.}

All special sporting events get extra attention from the counterfeiters. (Tony Zafiropoulos)

$1.24 Billion of counterfeits seized in South Africa in 2011

2012-01-04T00:30:00.000-06:00

bizcommunity.com story:

{IOL reports that Durban police have sized falsely branded clothing worth about R60-million from a container that was packed with fake Nike, Adidas, Puma, Daniel Hechter, Levi and Uzzi clothes and shoes.

The goods will be destroyed and Mdunge says that arrests in connection with the shipment are "imminent". The total value of counterfeit goods seized at the Durban harbour over the past year amounts to R10-billion}

10Billion South African Rands is equal to $1.24 Billion. As we noted on 12/30/11 $308 million were seized, so a total of 1.24 Billion Dollars was seized in South Africa over 2011. And as mentioned this is a huge amount for South Africa, as their GDP is much smaller than the US. (Tony Zafiropoulos)

Electronic parts are counterfeited - up to $660Billion for 2009

2012-01-03T00:37:00.000-06:00

sgwin.com story:

{Electronic parts and components form the building blocks of all electronic devices; our lives are filled with electronic products which are full of components such as semiconductors, resistors and capacitors. The average household has dozens of devices from children’s toys to audio/visual equipment to smoke detectors, and each year we become more and more dependent on these devices.

The estimated global spending on electronic parts and components that go into all these devices we buy for 2009 is around 660 billion US dollars, so it’s easy to see why it’s caught the eye of component counterfeiters trying to get their piece of the pie through breaking the law.}

The electronic parts industry is an industry that is easily counterfeited. (Tony Zafiropoulos)

National Defense Authorization Act 2012 law: effects anti-counterfeiting

2012-01-02T12:42:00.002-06:00

ag-ip-news.com story:

{The International Trademark Association (INTA) welcomed in a press release the signing of the National Defense Authorization Act of 2012 into law.

The Act includes measures to address counterfeit military products and to provide for higher penalties to those who knowingly sell counterfeits that are intended for use by the military or that are identified as meeting military standards.}

So this is where Congress snuck in some legislation for anti-counterfeiting - as more details come in we will cover them. (Tony Zafiropoulos)

Happy New Year To All 2012

2011-12-31T07:15:00.001-06:00

Let's make it one to remember. (Tony Zafiropoulos) 12/31/2011

$308 million in counterfeits seized in South Africa

2011-12-30T05:08:00.002-06:00

ewn,co.za story:{The South African Police Service (Saps) have confiscated counterfeit goods worth more than R2.5 billion from entering the country.

This was after Saps began with their countrywide anti-piracy 'Operation Duty Calls' in October.

Goods seized included shoes, perfumes, cigarettes, clothes and electronics. }

2.5 Billion Rand comes to $308million. For South Africa that is quite a bounty The GDP of South Africa is $357 Billion, so this confiscation was ~.1% of South African GDP.

If the US had that happen, the equivalent seizure would be $15Billion (GDP of USA is $15Trillion). (Tony Zafiropoulos)

£10 million of counterfeit goods seized at heathrow airport

2011-12-29T01:17:00.000-06:00

maltp.com story:

{Sheffield Trading Standards manager Phil Glaves said: We are dealing with big distribution networks at the moment, especially tobacco and alcohol, but were also seeing an explosion in sportswear in the run-up to the Olympics.

At Heathrow UGG drinkAirport 1,100 seizures were made of items valued at 10m in the last eight months the same as the whole of last year.In August, 45,000 pairs of ke Ugg boots were found in container freight in Southampton, the biggest such seizure in Europe.

Phil said: Theres only a certain percentage of stuff Customs can check.We are only a small department and we have a lot of enquiries ongoing. It does give us cause for concern.Its big business people are importing stuff from everywhere.}

This site about Uggs are highlighting a case where the customs people in the UK agree that they are not big enough to catch all of the counterfeits. 10 million pounds of counterfeit goods were seized this year. And that is just a drop in the bucket. (Tony Zafiropoulos)

1.7 million visits redirected to fake sites

2011-12-28T00:54:00.001-06:00

nternetretailer.com story:

Jewelry retailer Links of London has taken action against 230 web sites that were using its name to attract online shoppers or selling counterfeit versions of Links items. The campaign has increased traffic to Links of London’s e-commerce site and reduced its online advertising costs.

1.7 million visits were redirected to fake Links of London sites. The more aggressive online posturing helped cause the fake sites to multiply. (Tony Zafiropoulos)

Louis Vuitton sues Warner Bros for fake bag use in movie

2011-12-27T06:29:00.001-06:00

knockoffreport.com story:

{French luxury brand Louis Vuitton has filed a lawsuit against Warner Bros. over the use of a Louis Vuitton knockoff bag in "The Hangover: Part II."

According to the suit, filed in U.S. District Court in New York on Thursday, an airport scene in the film makes use of a counterfeit bag made by a company named Diophy, which is currently being sued by Louis Vuitton for trademark infringement.}

This is interesting news, you can sue the movie company for the counterfeits that they use, thus forcing more companies that are users to shoulder some of the burden for proof of authenticity.

If the company does not review the products that they buy for their sets, they may be sued when using them in scenes. It will be interesting to see if this lawsuit will work. But from Louis Vuitton past lawsuits this is a clear strategy of theirs. To sue everyone they can to use the authentic version or not use them. (Tony Zafiropoulos)

Study investigates effects of counterfeits

2011-12-26T00:09:00.000-06:00

scribd.com study:

{This study has been conducted on the negative effect on the good will of the brands just becauseof the counterfeit product that is present in the market. As counterfeit product does not full fillthe needs & want of the consumers as they are expecting & as a result the image & good will of the brand affected, it also has adverse effect of counterfeiting is on the economy as a whole. The presence of counterfeits might shake the confidence of shoppers in product quality beingavailable in the country “shoppers’ paradise” could get damaged. Counterfeiters, attracted by lowcosts and high margins could even push genuine retailers out of the market affected by cost and profit pressures.

/snip/

Author says about the GOODWILL, Goodwill is the difference between the value of a business enterprise as a whole and the sum of the current fair values of its identifiable tangibleand intangible net assets.}

The conclusion is at the bottom paragraph above, about the goodwill of the products and company has accumulated in the public eye.

Goodwill is necessary to make more profit, but then if one makes profit counterfeiters try to take profit away. It is inevitable to eventually prove to the customer that your products are authentic.(Tony Zafiropoulos)

Merry Christmas to all

2011-12-25T01:08:00.001-06:00

from Swiss Authentication

Worldwide sting nets $76million out of 121 cities

2011-12-23T00:55:00.000-06:00

myfoxphoenix.com story:{"Counterfeiting remains a significant problem that demands strong enforcement efforts both here and abroad," said U.S. Immigration and Customs Enforcement Director John Morton.ICE and other agencies, as well as the Mexican and South Korean governments, targeted flea markets, seaports, land ports of entry, swap meets and retail stores between Nov. 1 and Dec. 9 in 66 cities in the U.S., 55 cities in Mexico and in Seoul, South Korea. Handbags, cell phones, toys, computer software, DVDs and sports jerseys were among other items seized.}This was a large sting operation, and was designed to create some news. I wonder if anyone will notice (Tony Zafiropoulos)

$77million counterfeits seized in the US by ICE

2011-12-22T00:14:00.003-06:00

nytimes.com story:

{“They’re keeping up with the times,” said John Morton, the director of United States Immigration and Customs Enforcement, which plans to announce Thursday that recently it has seized about 327,000 counterfeit items worth about $77 million in the United States, along with some merchandise from Mexico.

“People tend to focus on luxury goods and DVDs, and that really understates the problem,” Mr. Morton said. “We live in an age where literally everything, from medicine to air bags to circuit boards, are being counterfeited.” }John Morton is right, everything is being counterfeited. Not just luxury goods. Including Electronics and other products that need to be of a quality that prevents accidents. (Tony Zafiropoulos)

US Customs seizes $171K of Christmas Lights in LA

2011-12-21T00:30:00.000-06:00

cbp.gov story:

{ U.S. Customs and Border Protection officers assigned to the Los Angeles/Long Beach seaport complex seized 151 life-size decorative lights of Santa Claus, a snowman and a polar bear with electrical adaptors containing counterfeit Underwriters Laboratories, Inc. (UL) markings.

Products bearing counterfeit UL certification marks have not undergone this rigorous testing and certification process, and can present potential safety hazards to the end-user.

The holiday figurines were seized on Nov. 23 and 25. CBP officers discovered the infringing merchandise in two shipments arriving from China. The estimated manufacturer’s suggested retail price for the 151 units is $173,000 with an estimated domestic value of $110,000. }

Yes, when there are counterfeit lights there can be electrical problems, and with the right problem there could be fire. (Tony Zafiropoulos)

Alliance Party advocates distributing counterfeits to homeless(people in need)

2011-12-20T00:30:00.000-06:00

allianceparty.org story:

{North Down Alliance Councillor Andrew Muir has welcomed the approach adopted by the Trading Standards service in Northern Ireland to donate counterfeit goods to charity for redistribution to homeless and vulnerable people describing it as 'imaginative' and encouraging other public bodies to consider better ways to dealing with confiscated and lost property.}

A political party in Northern Ireland is placing a slightly smaller focus on counterfeits and also redistributing the nice clothes to people who need it (homeless etc.) (Tony Zafiropoulos)

twitter post: some counterfeits sold at higher prices - avoids attention

2011-12-19T00:40:00.000-06:00

twitter post:

{Counterfeit Goods being sold at higher prices to avoid being seen as obviously fake. Investigates with @adriangoldberg at 9pm.

(Tony Zafiropoulos)

£1.3 Billion of fake products in UK

2011-12-18T12:00:00.000-06:00

bbc.uk story:

{Industry advisers say not enough is being done to tackle the illicit trade, which costs the UK economy around £1.3bn a year.

They include fake branded clothing, designer jewellery and GHD hair straighteners.}

the UK has a serious counterfeit goods problem, Many places for imports to enter the country, and apparently they also stay under the radar with a reduced police presence among other things. (Tony Zafiropoulos)

Australia warns more counterfeits before Christmas

2011-12-16T00:44:00.002-06:00

insideretailing.com story:

{Dodgy online dealers are taking advantage of the Christmas silly season to dupe consumers into buying fake sporting goods online.

The Australian Sporting Goods Association (ASGA) says that it has received increased reports of consumers being ripped off by dodgy online dealers selling counterfeit products.}

As Christmas nears counterfeits will increase and not just in Australia. (Tony Zafiropoulos)

What is the value of counterfeit products in marketplace?

2011-12-15T00:54:00.002-06:00

axiomsmt.com story:

{Unfortunately not in this day in age, when counterfeit products have become more prevalent in the United States then even the products they are knocking off. In the case of Consumer Goods, research shows that upwards of 70% of the goods on the market are counterfeit, causing some firms an estimated $20 billion in lost profit.

Regrettably, this is not just an epidemic in the Consumer Goods industry. It’s spreading across all sectors, from technology manufacturers, to pharmaceutical and drug production, to even vehicle manufacturing. However, there is one industry that has the potential to be the most threatening to our lives and our country’s safety. Unfortunately this industry is also the most difficult to monitor and protect. }

All industries have counterfeit products, the question is how much has the counterfeit industry invaded the legitimate Intellectual property owners. $20 Billion in lost profit may be an understatement, or may be totally off. Some people say that the counterfeits fill a market need. the real problem is that these numbers are hard to quantify. (Tony Zafiropoulos)

The serious problem of Counterfeiting products

2011-12-13T00:09:00.001-06:00

emeraldinsight.com story:

{Counterfeiting is a serious problem besetting an increasing number of industries. It affects not only products whose brand name is synonymous with its quality or flavour, but also products which require a high level of research and development, and marketing. Counterfeit merchandise cuts into profits and harms the brand owner's reputation. To be effective in eradicating counterfeiting, one also has to understand the consumer's propensity to purchase counterfeit products.}

The counterfeiter is leeching off the manufacturers efforts, including marketing and research and development. (Tony Zafiropoulos)

If Counterfeit electrical products installed, contractor may be liable

2011-12-12T00:37:00.001-06:00

advad.info story:

{William J. Ferguson, vice president of administration and common counsel for Babcock Energy Inc., warns unscrupulous electrical contractors who use counterfeit electrical merchandise: You shall be sued for breach of agreement.}

So now the manufacturer will sue the electrical contractor. thereby pushing the burden of proof unto the contractor. (Tony Zafiropoulos)

Buyers of counterfeits not prosecuted in Singapore

2011-12-11T10:30:00.000-06:00

singaporelegaladvice.com story:

{Buyers of counterfeit goods will probably not be prosecuted by law, if the purpose of the purchase is solely for personal use, although they do face the possibility of having their fake branded goods confiscated by the authorities.}

it is interesting that there is no penalty for the buyer, the manufacturer may have problems (of the counterfeits) but the buyer will just get the counterfeits confiscated. (Tony Zafiropoulos)

Saudi Arabia and China taking steps to reduce counterfeits

2011-12-09T07:04:00.001-06:00

arabnews.com story:

{Saudi Arabia and China have agreed to prepare a blacklist of exporters and importers of counterfeit goods from China, according to a senior official of the Ministry of Commerce and Industry.

Speaking to Al-Eqtisadiah business daily, he said the new agreement would be implemented based on a previous agreement signed between Beijing and the European Union under which all counterfeit Chinese products would be banned in EU states and stringent punitive measures taken against those involved in their trade.}

Saudi Arabia does not want to be a conduit like UAE, and thus is making this agreement. (Tony Zafiropoulos)

Counterfeits can be dangerous - beware of what you buy

2011-12-08T06:23:00.001-06:00

mirror.co.uk story:

{Consumer group Which? issued the warning after investigating fake items on the market.

Worryingly, sellers are even using reputable websites like Amazon and eBay to offload duff must-have gadgets and designer items.

Which? executive director Richard Lloyd warned: “Don’t be tempted to buy fake goods this Christmas. Some of the products we tested weren’t just poor quality, they were dangerous.”}

We have made this point many times, as counterfeits can be dangerous. (Tony Zafiropoulos)

$446k in counterfeits seized in LA

2011-12-07T07:14:00.001-06:00

dailynews.com story:

{As a result of a six-month investigation titled Operation Bell Bottoms II, authorities in November arrested 10 people, and seized $446,000 in counterfeit goods and $23,000 in cash.

Counterfeiters, who don't pay sales taxes, cost the retail industry $2 billion in losses and $5.2 billion in overall lost revenue to L.A. County in 2005, according to the L.A. County Economic Development Corp.

Internet piracy and movie bootlegs have caused the loss of 106,000 jobs across nine sectors, for a total of $4.4billion in lost wages annually in L.A. alone, according to the LAEDC.}

Another decent sized counterfeit bust near the Western US ports area. (Tony Zafiropoulos)

Counterfeits seized near Nova Scotia, Canada

2011-12-06T00:15:00.000-06:00

theguardian.pe.ca story:

{RCMP has seized counterfeit products from a store in Summerside.

The seizure took place on Friday after officers from the "L" Division Federal Enforcement Section noticed brand name items for sale at the store which are only sold with the company's official store or website.}

Yes, all manner of police officers now look out for counterfeit products. (Tony Zafiropoulos)

NY Times video chronicles Dubai as a conduit for counterfeits

2011-12-05T00:04:00.001-06:00

nytimes video story:

{Massive free trade zones like those in Dubai are being used by counterfeiters to smuggle fake drugs from China to Europe and the United States.}

Dubai is definitely a conduit - because it is a free trade zone and thus is one of the areas around the world where counterfeiters use to push their product. Very interesting video (Tony Zafiropoulos)

Dubai seizes 3 tons of counterfeits

2011-12-04T13:54:00.000-06:00

arabianbusiness.com story:

{Dubai Customs inspectors said on Sunday they had foiled a bid to bring a huge quantity of counterfeit goods into the country.

The three-tonne cargo arrived in the emirate from an Asian country and was found to contain large quantities of products contrary to what was written in the customs declaration.

He added that tests revealed that the international trademarks were found to be counterfeits.}

Dubai is one of the conduits into the western markets, so this is not surprising. It is welcome news, the more counterfeit products are off the market the better. (Tony Zafiropoulos)

Counterfeit products aren't being seized if not destined for EU

2011-12-02T01:12:00.001-06:00

businessweek.com story:{Nokia Oyj may lose a bid to force the U.K. to seize fake handsets after the European Union’s top court said customs officials can only detain counterfeit products when there is some proof they will be delivered within the EU.

Nokia is challenging the U.K.’s position that customs officials can’t seize fake products in transit through the EU without proof they will actually end up in one of the region’s countries. Espoo, Finland-based Nokia argued this risks making the EU a “safe harbor” for counterfeiters.

U.K. customs officials stopped a shipment of about 400 fake Nokia mobile-phone handsets and accessories in transit from Hong Kong to Colombia. While Nokia, the world’s largest maker of mobile phones, said the products were fakes, the U.K. officials said they couldn’t intercept them because they lacked evidence that they would be diverted back into the EU}

This is interesting, the court seems to think that international traffic does not go back to the EU. Sometimes traffic can't be controlled, and if the products are fake they should be intercepted. Sometimes it takes a little while before the product comes back to the EU. (Tony Zafiropoulos)

Customs opening industry specific import entry centers

2011-12-01T00:30:00.000-06:00

cbp.gov press release:

{U.S. Customs and Border Protection announced today the establishment of two industry-specific centers: the Center of Excellence and Expertise – Electronics in Los Angeles and the Center of Excellence and Expertise – Pharmaceuticals in New York.

Initially, the centers will serve as a single point of processing for businesses enrolled in CBP’s trusted shipper programs, the Customs-Trade Partnership Against Terrorism (C-TPAT) and the Importer Self-Assessment (ISA).

The centers will also serve as a resource to the broader trade community and to CBP’s U.S. government partners; center personnel will answer questions, provide information and develop trade facilitation strategies to address uniformity and compliance concerns}

Hopefully Intellectual property investigation will still be done in these centers, although it seems that the 'trusted' shippers will be given wide latitude. (Tony Zafiropoulos)

Senate approves amendment against military counterfeits

2011-11-30T06:53:00.001-06:00

senate.gov story:

{The U.S. Senate today unanimously approved an amendment to a key Defense funding bill which includes a measure from U.S. Senator Sheldon Whitehouse (D-RI) to crack down on criminals who traffic in counterfeit military products. The bipartisan Combating Military Counterfeits Act, which was cosponsored by Senators Coons (D-DE), Leahy (D-VT), Hatch (R-UT), McCain (R-AZ), Kyl (R-AZ), Graham (R-SC), Klobuchar (D-MN), and Blumenthal (D-CT), was included in a larger amendment offered by Senators Levin (D-MI) and McCain. The measure would bolster efforts to protect troops and the United States military supply chain from dangerous counterfeit products.

A January 2010 study by the Commerce Department quoted a Defense Department official estimating that counterfeit aircraft parts were “leading to a 5 to 15 percent annual decrease in weapons systems reliability.” Similarly, the Government Accountability Office has reported that the Defense Department discovered in testing that it had procured body armor that was misrepresented as being “Kevlar,” and that a supplier sold the Defense Department a personal computer circuit that it falsely claimed was a $7,000 circuit that met the specifications of a missile guidance system.}

This was a no brainer, and it still took months for the Senate to move on this amendment. This is still a reactionary legislation, consumers still do not know when they buy if it is fake or not. With this amendment the fake parts can be prosecuted with higher penalties, but the damage may have been done already. (Tony Zafiropoulos)

On Cyber-Monday Feds close 150 websites due to counterfeits

2011-11-29T00:54:00.001-06:00

cbsnews.com story:

{Federal authorities have seized the domain names of 150 websites accused of selling counterfeit or pirated merchandise.

Officials said the websites - which sold professional sports jerseys, golf equipment, designer handbags and sunglasses, footwear and DVDs, among other items - will now greet visitors with a seizure banner that notifies them of the federal action and informs them that copyright infringement is a federal crime. }

Here is the list of the domain names seized. Homeland Securities and ICE cracked down on online sites to reduce the potential of counterfeit goods sold. (Tony Zafiropoulos)

Heparin found likely to be counterfeit by FDA - from China

2011-11-28T02:55:00.001-06:00

nytimes.com story:

{Federal drug regulators, in announcing Wednesday that the mystery contaminant in heparin was an inexpensive, unapproved ingredient altered to mimic the real thing, moved closer to concluding that Americans might be the latest victims of lethal Chinese drug counterfeiting.

Federal officials stopped short of saying that the contaminant — constituting as much as 50 percent of the active ingredient in heparin — was counterfeit. “At the moment we don’t know definitely whether the contaminant was introduced intentionally or by accident,” said Dr. Janet Woodcock, director of the Food and Drug Administration’s center for drug evaluation and research.}

This is not a surprise - many of these stories will come along, The FDA has an interesting graphic for the supply chain:.

I wanted to point out the several places a counterfeit product can slip into the supply chain(Manufacturer to wholesale distributor and in the repackaging area). Unfortunately it is very difficult to trace unless the company has a large operation in place, not just a supply chain checking for product tracing, but also a check for fake product. Like one does not trust what is being made (especially in China).(Tony Zafiropoulos)

Honeywell expands anti-counterfeit operation in UAE

2011-11-27T14:16:00.001-06:00

constructionweekonline.com story:

{Honeywell, the US based technology manufacturers, announced on Thursday that it had expanded its ongoing campaign against counterfeit refrigerants being sold under its name in the Middle East.

Following a combined effort between UAE’s police, customs, local municipalities and other government officials, the month of August saw the seizure of around 6,000 cylinders of materials branded as ‘Honeywell Genetron 134a’, but was in actuality dangerously toxic and flammable substances.

“We have created simple posters for garages and services, where we explain in simple terms how dangerous it can be to use non-genuine products,” said Sanders.

Tests have shown that the use of the fake Genetron R-134a can lead to serious health and safety risks as it is made up of flammable and unsafe mixtures that are also harmful to refrigeration equipment.

Honeywell has been involved in pursuing counterfeit products for more than 10 years, with successful seizures in more than 20 countries across six continents.

Over the last two years alone, working in cooperation with local governments, the company has confiscated more than 200,000 fake products.}

Honeywell found counterfeit products and then worked with UAE to remove the counterfeits from the market. In some products like refrigeration equipment it will be dangerous to put sub-standard parts, and that is why Honeywell is trying to educate its customers. (Tony Zafiropoulos)

Happy Thanksgiving

2011-11-24T06:54:00.001-06:00

Business Software Alliance against "Stop Online Piracy Bill"

2011-11-23T06:34:00.001-06:00

technolog.msnbc.msn.com story:

{Less than a month ago, the alliance was behind the bill: "The Business Software Alliance today commended House Judiciary Committee Chairman Lamar Smith (R-Texas) for introducing the 'Stop Online Piracy Act' (H.R. 3261) to curb the growing rash of software piracy and other forms of intellectual property theft that are being perpetrated by illicit websites," the group said in a news release.

What's happened since then? Many have taken a closer look at the bill's provisions, including one that requires websites and telecom service providers to be monitoring their networks for piracy, and another that would let law enforcement actually seize a website and shut it down.}

Yes, the normally anti-piracy Business Software Alliance has taken a stand against the "Stop Online Piracy act". They are not liking the summary powers of taking down websites as well as the extra vigilance of looking out for piracy websites by hosting company. Essentially the hosting company has to find out if the websites they sell have counterfeit products for sale. This is difficult to gauge, as we have pointed out many times. (Tony Zafiropoulos)

Apple finds counterfeit iPhones in NY Chinatown.

2011-11-22T00:24:00.001-06:00

engadget.com is link to iPhone five pic ) here is the engadget.com story:

{It all began when company representatives visited the Chinatown-area stores on "multiple occasions over several weeks," where they bought and examined the items, described in court records as "exact duplicates" of their authentic counterparts. On July 27th, Apple executed a few ex parte seizure warrants, which allowed authorities to seize any goods bearing its logo. US District Judge Kiyo Matsumoto has already granted an injunction to stop the stores from selling the alleged knockoffs, but hasn't yet decided whether Apple Story will have to change its name. The complaint also seeks undisclosed monetary damages and asks that all existing counterfeit goods be destroyed, though court documents suggest that both sides are close to reaching a deal. Neither Apple nor the defendants have commented on the accusations, but we'll let you know as soon as we learn more.}

Apple is very busy trying to find counterfeits. the problem is there are so many across the whole world - there has to be a more effective way to find real from fake ... (Tony Zafiropoulos)

70% of counterfeit drugs consumed in Nigeria are imported from India or China

2011-11-21T00:45:00.001-06:00

vanguardngr.com story:

{Barely a year after the introduction of the Mass Authentication Service (MAS) Truscan technology that enables consumers to enter twelve digit numbers and send same to a dedicated number via sms that equally responds via same sms – either in the negative or positive – about the genuineness of the product prospective consumers are receiving instant affirmation or revocation regarding the authenticity of drugs.}

Contrary to the often held view that counterfeit drugs are locally manufactured, Orhii said 70% of drugs consumed in Nigeria are imported with China and India having been identified as the hub of shipment of fake drugs into the country, and this is in spite of the stiff penalties against drug counterfeiting.}

While the Nigerians used the new Truscan technology they found out that almost all counterfeits are made in China and India. Not really a surprise after all. (Tony Zafiropoulos)

Google against anti-pirate bill due to technicality

2011-11-18T07:03:00.001-06:00

mobile.mcall.com story:

{The legislation has pit Internet giants, consumer groups and first amendment advocates against the U.S. copyright industries, including Hollywood studios and record labels, who have long argued for tougher protection.

A U.S. House of Representatives bill would allow a private party to go straight to a website's advertising and payment providers and request they sever ties.

"A corporation, a copyright 'troll,' or anyone with an axe to grind could send a notice... without first involving law enforcement or triggering any judicial process," Google policy counsel Katherine Oyama told a House Judiciary Committee hearing.}

It may be true that a troll or a person who has an axe to grind can bring down websites which may be legiitimate or other non counterfeit sellers. Working within the judicial system takes more time and effort. So it would seem that some checks and balances would only be prudent.

Huffington Post wrong about counterfeits

2011-11-17T06:57:00.001-06:00

huffingtonpost.com story:

{It all started with the scandals of the 1980s over the $600 toilet seats and $400 wrenches that President Reagan's Defense Department was accused of wasting its money by the Congress. At the time, the news media ignored reasonable voices pointing out that tooling often has to be made to produce parts in certain manufacturing processes. This tooling cost then has to be amortized into the piece price of the part; i.e., tooling cost divided by the number of parts ordered plus piece price equals selling price. Since defense and military parts are produced in much lower volume than commercial products, the amortized tooling costs add much more to the part cost than it does for commercial parts}

The article goes on to say that cost savings and the COTS (or Commercial Off The Shelf) program helped cause the counterfeit parts situation.

This is just plain wrong - only the Chinese cultural tendency of copying and reselling the copied inferior stuff is what is behind the counterfeit epidemic. As we have noted many times in this blog in the last 2 years.

Just because the government wanted to save some money to have dual purpose items does not mean the counterfeits are now inevitable. If the $600 toilet seat should continue to be made for the air force special made, then of course we would have less of everything. The natural progression is to reduce cost not increase. So if in reducing costs one looks at materials from China then one should not also assume that some of those products could be counterfeit. The onus should be on China's penchant for inferior and corrupt products. (Tony Zafiropoulos)

1400 packages of counterfeits received in Richmond, VA

2011-11-16T06:44:00.001-06:00

7thsspace.com story:

{Alsaidi pleaded guilty before United States Magistrate Judge M Hannah Lauck in Richmond, Va ., to one count of trafficking in counterfeit goods. In his guilty plea, Alsaidi admitted that he sold shoes and apparel that he knew were counterfeit at his two stores in Petersburg, Va ., from May 2007 until March 2009. Alsaidi also admitted that he purchased these counterfeit goods from an individual in New York.

According to court documents, Alsaidi received more than 1,400 packages of counterfeit merchandise at his stores from New York over a 23-month period. The merchandise bore fake trademarks for companies such as Nike, NFL, Lacoste, True Religion and Coogi.}

It is interesting to note that it took about two years before authorities found this faulty transaction. And the it took another sizable amount of time before catching the criminal. (Tony Zafiropoulos)

$4.8 Billion lost in taxes in Indonesia due to counterfeits

2011-11-15T07:04:00.001-06:00

upfrontnewswire.com story:

{The Indonesian economy loses at least Rp. 43.2 trillion ($4.8 billion) a year in potential taxes due to counterfeit goods being imported into the country, according to a study released on Tuesday

The study, conducted by the University of Indonesia’s Institute for Economic and Social Research and the Indonesian Anti-Counterfeiting Society (MIAP), surveyed 500 people from June to October of this year on their consumption of fake goods, }

It is interesting to note that a university in Indonesia made this study which are notoriously difficult to guage how much money one is actually losing to counterfeits. The problem is what is the effect of a $100 counterfeit item? If it gets exchanged outside of the tax stream, that is one thing but some counterfeits are sold in stores and deprive the manufacturer of market share, not tax revenue to the state.. (Tony Zafiropoulos)

$20,000 of counterfeits seized in Alabama at traffic stop

2011-11-14T00:43:00.001-06:00

nwfdailynews.com story:

{A 55-year-old man from Gadsen, Ala., was arrested Friday afternoon and charged with possession of over $20,000 worth of counterfeit merchandise.

In his car, deputies found over $20,000 worth of counterfeit goods made to look like products from companies including Louis Vuitton, Polo, Tory Burch and Gucci, the sheriff's office reported.}

The officers are paying attention to the counterfeit situation. And in Alabama there seems to be enterprising small time crime rising. (Tony Zafiropoulos)

Kenya crimelords counterfeiting electronic parts

2011-11-10T23:22:00.001-06:00

xinhuanet.com story:

{Counterfeiting in Kenya is master- minded by local criminal networks through filling of used food and non-food containers with substandard versions of genuine products, a senior official of the state agency fighting the vice said.

Counterfeiting is estimated to cost Kenya at least 1 million U. S. dollars in lost sales and government revenues and led to the setting up of the Anti Counterfeit Agency last year, with mandate to enforce the law and educate the public on the vice.}

Kenya is waking up to a large counterfeit and crime problem that is costing the Kenyan government millions of dollars. (Tony Zafiropoulos)

$3.5mil designer counterfeits seized in NY

2011-11-10T00:15:00.001-06:00

abcnewyork.com story:

{An NYPD investigation into a counterfeit luxury goods business in New York City culminated Wednesday in six arrests and the recovery of tens of thousands of counterfeit purses and wallets, authorities said. The fake luxury goods had a total estimated street value of $3.5 million, according to police

The items seized from the store had been shipped from China, and included counterfeits of designer name products like Tory Burch and Michael Kors, according to police.}

It seems that even though the Chinese exports are down, the counterfeit market is still going strong. Of course the counterfeit market is not tracked by the Chinese government that would be an admission that they know and allow the counterfeit market to flourish. (Tony Zafiropoulos)

Senate Armed Services Committee reviews Chinese counterfeits entering Defense supply chain

2011-11-09T05:57:00.001-06:00

abcnewsradioonline.com story :

{The Senate Armed Services Committee will hold a hearing Tuesday on counterfeit electronic parts in the Defense Department’s supply chain, which, they say, affects the military’s ability to defend the nation.

The committee hearing will take aim at China, which has been singled out as a source of the counterfeit goods, providing U.S. troops with “unreliable” weapons by using “fake parts” that have been “salvaged from trash heaps by Chinese counterfeiters.

“In more than 70 percent of the cases, the trail led to China, where a brazenly open market in counterfeit electronic parts thrives,” Levin said. “Rather than act to address the problem, Chinese authorities have impeded our investigation.”

We have been sounding the alarm for a couple of years now about counterfeit products, this is not a surprise. Also the 'revelation' that the Chinese government is impeding the investigation is not a surprise either. (Tony Zafiropoulos)

Chinese bought fake watches with Groupon China

2011-11-08T00:30:00.000-06:00

ft.com story :

{Groupon’s Chinese daily deals website has promised to refund hundreds of customers after Tissot-branded watches sold in a deal last month turned out to be counterfeit.

More than 500 Chinese consumers from 10 different cities who bought the fake watches for Rmb690 ($108) apiece have organised themselves in two groups on QQ, the world’s largest instant messaging system, to protect their rights and exchange information.}

There is some serious problem with the watch company that sold the fake watches, but Groupon is culpable at least partially due to not enough due diligence. (Tony Zafiropoulos)

18 hr workdays in Chinese run Zambia mines

2011-11-07T06:53:00.003-06:00

rfa.org story:

{It cited poor health and safety conditions, up to 18-hour work shifts per day, and anti-union activities in violation of national laws or international labor standards.

“Many of the poor health and safety practices we found in Zambia’s Chinese-run mines look strikingly similar to abuses we see in China,” said Daniel Bekele, Africa director at Human Rights Watch, which released the 122-page probe report last week.

Aside from its poor record in Africa for workers safety and labor practices, China has been criticized for allowing harmful and counterfeit products manufactured by private Chinese companies into African states.

"African nations do not have the institutions to keep harmful and counterfeit products from entering, and China has either not figured out or is not interested in preventing these problems at the source," said David Shinn, an African expert at George Washington University.}

The Chinese are not paying attention to these reports and are claiming they are false. But there seems to be a backlash growing in Zambia, as the Zambias are not happy with the Chinese labor practices. the report also discusses the counterfeit products that China has forced upon Africa. (Tony Zafiropoulos)

25 mil counterfeit items seized ($2.84 Billion) in 1 yr in China

2011-11-06T10:59:00.000-06:00

news.xinhuanet.com story :

{China's police have solved over 28,000 cases with 18 billion yuan (2.84 billion U.S. dollars) involved over the course of a year-long crackdown on intellectual property rights (IPR) infringements and counterfeit goods.

This campaign will be launched in 182 Chinese cities. It is estimated that more than 25 million fake luxury goods, pirated books and discs, and counterfeit medicines and foods will be destroyed, the statement said.}

this is what could happen every year or more, even this amount may not be the total amount of the counterfeit market in China. What is obvious is that either several years ago the Chinese government was being duplicitous or China is so corrupt that even the government does not know the extent of the problem. (Tony Zafiropoulos)

Fake beauty products sometimes contain urine says SCDEA

2011-11-04T00:12:00.000-05:00

heraldscotland.com story:

{The Scottish Crime and Drug Enforcement Agency (SCDEA) has warned the budget buys can pose health risks such as rashes and other allergic reactions, while also financing organised crime networks.

The crime-fighting agency claimed that some bottles of fake perfume contain urine as a substitute for the stabilisers found in genuine fragrances.}

The Scots have found some fake beauty products with urine, so buyer beware. (Tony Zafiropoulos)

18,000 fake iPad and Android devices on sale around the net

2011-11-03T04:52:00.004-05:00

timesofindia.com story:

{On a single day in July, almost 18,000 fakes and clones resembling the iPad and Android devices were available for sale on 23 e-commerce sites, according to MarkMonitor Inc, a San Francisco-based firm that helps companies protect their brands.}

There are definitely a lot of fake devices out in the wild. The trick is going to be: how can one differentiate real from fake. (Tony Zafiropoulos)

$25 million of counterfeit designer clothing seized in Canada

2011-11-02T00:50:00.000-05:00

newswire.ca story:

{Investigators from the Royal Canadian Mounted Police (RCMP) Greater Toronto Area Federal Enforcement Section and the Canada Border Services Agency (CBSA) have 'cracked down' on imports of counterfeit products destined for businesses in the GTA.

Dubbed Project OSCORPION, an estimated 25 million dollars in counterfeit designer label clothing, purses, boots, sunglasses, watches, scarves and perfume have been seized in the past four weeks and will not reach the GTA marketplace. Most of the counterfeit products seized originated from China and were shipped to Canada through sea ports in British Columbia.}

Another big bust - this time it was in Canada. (Tony Zafiropoulos)

Medicrime convention held by Council of Europe in Moscow

2011-11-01T01:11:00.003-05:00

ipbrief.net story:

{Yet, the objective of the Convention is quite an important one because counterfeit drugs pose problems much different from other counterfeited goods. Although sales of counterfeit haute-couture bags enjoys much more publicity, buying a fake Louis Vuitton does not have the side-effects on health as ingesting a counterfeit painkiller. And while one can easily recognize the fake 2500 euro bag, it is much harder to distinguish between pills – some of which contain the right ingredients at the right dosages and some that do not. Further, the impact of counterfeited drugs is not only on public health: in 2006, Pfizer was forced to call back quantities of its best-selling anti-cholesterol drug after counterfeited products had entered the UK market.}

"coe.int link to Council of Europe story"

It is interesting that Russia, France, Germany, and Israel have already agreed to a framework of illegal acts with International Crime laws against the counterfeiting of medicine. Of course counterfeit medicine is much more dangerous than a counterfeit handbag, or shoe. Even if there were trademarks infringed upon.

(Tony Zafiropoulos)

80,000 counterfeit cigarettes seized in Dudley, UK

2011-10-31T07:24:00.002-05:00

dudleynews.co.uk story:

{A total of 78,940 cigarettes were taken from the stall. No duty had been paid on any of them, leading to around £18,000 being evaded.

“Dudley welcomes reputable traders, but we also have a duty to protect shoppers and other, law abiding stall holders which is why we make regular checks with our trading standards officers.}

This is an example of the duties not paid when selling counterfeit cigarettes which have no duties on them. (Tony Zafiropoulos)

Commenter about counterfeits wrong about counterfeit goods

2011-10-30T13:53:00.000-05:00

buffalonews.com story:

{Story excerpt:

Two women reportedly selling counterfeit designer goods from a storefront and kiosk at Cheektowaga’s Super Flea and Farmers’ Market on Walden Avenue were arrested Friday on federal charges of trafficking in counterfeit goods.

and the comment (Anthony Overfield):

Exactly how does anyone know the goods were fake? The "Real" stuff is probably made in china too. Do they know for certain that the goods didn't come from the companies that make the "goods" for the legitimate companies? China doesn't have the same kind of laws we have.

We certainly know nothing is made here, so what is the difference? So companies that charge rich people 1000 times what an item costs them to produce lose a couple bucks because 2 poor people try to make a couple bucks at the FLEA MARKET. Give me a BREAK! }

Notice the ignorance of the commenter - even if everything is made in China, the intellectual property was created elsewhere. The trademark is not for the counterfeiters to use. Counterfeiters are criminals and send profits to criminal enterprises, sometimes it is even terrorists. The real products should have authenticating abilities. (Tony Zafiropoulos)

Agents seize 17000 counterfeits within St. Paul, MN

2011-10-28T00:13:00.000-05:00

startribune.com story:

{An industrial spy tries to steal $20 million in trade secrets from Minnesota-based Valspar paints. A crew of counterfeiters wants to move a million bucks worth of knockoff cellphone equipment through St. Paul. In a five-day Twin Cities sweep, federal agents seize 17,000 counterfeit items, everything from faux football jerseys to charade Chanel perfume.}

Even St. Paul gets counterfeiters and not the small ones... with 10-100 items. The size of the bust was 17,000 items.

(Tony Zafiropoulos)

$4.3mil of inks and cartridges seized in Phillipines

2011-10-27T00:10:00.001-05:00

journal.com story:

{The South East Asia Anti-Counterfeit Team and the National Bureau of Investigation have seized several counterfeit HP products amounting to P18,417,924 in a Metro Manila raid.}

The recovered counterfeit HP products were 16,656 finished inks, 183 finished toners, 613 unfinished toners, 3,237 unfinished ink cartridges, 22 toner flat packages, ink filling machines and counterfeiting equipment and components. }

$4.3mil is equivalent to 18.4million Phillipine Pesos. So there were quite a few cartrdges faked. The Phillipines are trying to stop the counterfeit traffic coming into and out of the country.

(Tony Zafiropoulos)

$250,000 fake iPhone accessories seized in LA (Gabriel Valley)

2011-10-26T00:05:00.000-05:00

sgvtribune.com story:

{A three-month investigation into the sale of alleged counterfeit iPhone parts and accessories led to the arrest last week of three San Gabriel Valley residents and the seizure of $250,000 of merchandise, authorities said Monday.}

Another large counterfeit products bust seizure in the US, there has to be a simple way to find counterfeits.

(Tony Zafiropoulos)

1% of counterfeits seized at border in McCloskey case

2011-10-25T00:15:00.000-05:00

eetimes.com story:
{Last month, details of the case against McCloskey were revealed in the 78-page “memorandum in aid of sentencing” that the government filed with the district court. The memorandum offers a rare glimpse into how a rogue broker operating out of a house on a quiet residential street in Clearwater, Fla., was able to dupe the system, put countless innocents at risk and compromise national security for nearly five years.

Of the estimated 3,263 shipments of semiconductors imported by VisionTech between December 2006 and September 2010, only 35 were confirmed as containing counterfeits and seized at the border by U.S. Customs agents. Those 35 shipments contained a total of nearly 60,000 counterfeit ICs, according to the government’s memorandum.}

Obviously it is difficult to find actual counterfeits in the stream of imports coming into the country, but this is an excellent example where only 35 shipments of 3263 were caught. (Tony Zafiropoulos)

Gray market in China introduces iPhone4S for $2000

2011-10-23T16:30:00.000-05:00

shanzai.com story:
{But even then the gray market is working overtime to import unlocked iPhone 4S from Australia and the UK and selling at more than USD 2,000 in China. According to a Chinese tech site DoNews, the first shipment of unlocked iPhone 4S models to land in China from Australia fetched over 15,000 RMB (US$2,350) per model in pre-bookings. Even a Beijing vendor is selling iPhone 4S 32GB for USD 2,043 (13,000 Yuan) and 16GB version for USD 1,729.}

I found this website (shanzai.com) which discusses some of the models being introduced in Asia. Shanzai means remade phones, or as i would call them look alikes but not exactly. Definitely cheaper and more prevalent when the market does not bring in the phones that are demanded.. (Tony Zafiropoulos)

Counterfeit components hard to differentiate in an IT product

2011-10-21T08:15:00.001-05:00

techtarget.com story:{There are several ways to define the IT gray market: used, poor-quality and counterfeit. The used equipment market, sometimes called the “secondary market,” is an established and perfectly accepted means of liquidating old or excess IT equipment. For example, when equipment is refreshed in the data center, the old equipment that is removed is often sold off to the secondary market, which then resells the equipment as “used.” It’s an excellent way for businesses to obtain replacement parts for older systems that a manufacturer no longer supports, but that you cannot yet upgrade or replace.But there is a darker side to the gray market, where poor-quality components or outright counterfeit components are incorporated into a product without the buyer’s knowledge, and this is where we’ll focus attention. A poor-quality component may be entirely legitimate and marked honestly from a supplier, but simply lacks the characteristics or reliability needed for the system where it’s used. A counterfeit component is even worse, designed and marked to simulate another manufacturer. A good counterfeit may be impossible to spot without a close inspection.}The close inspection is where Swiss Authentication can help with Authenticating components, as it is sometimes very difficult in differentiating new chips from counterfeit chips. (Tony Zafiropoulos)

Business Insider downplaying counterfeits by China

2011-10-20T11:47:00.000-05:00

businessinsider.com story:
("'The problem for the U.S. is they owe China so much debt,' he [Shi Yinhong, director of the Center on American Studies at Beijing’s Renmin University] said, referring to the Chinese government’s vast holdings of U.S. Treasury bonds, estimated at about $1.5 trillion."

China is well known as the home of counterfeit products — from imitation iPads and iPhones to fake software to pirated CDs and DVDs."

Actually, the vast majority of these products are not counterfeits, consumers know that they are not getting the brand name product. The products are unauthorized copies of brand products.}

Dean Baker at Business Insider is all too willing to sweep the counterfeit products created by China under rug. Intellectual Property and unauthorized copies are taking profits and jobs from the US, and that is also helping the imbalance between China and the US dollar. China may have "invested" $1.5 Trillion in treasury bonds, but by counterfeiting hundreds of Billions of dollars every year, I say who is taking from whom?

What may be the original issue (as China sees it) is due to the Boxers Rebellion in the early 20th century. The west took advantage of China's lack of technology and other issues. So since China has a long memory they are trying to wash this memory with counterfeit products. And unwitting apologists like Dean Baker will let them.

. (Tony Zafiropoulos)

Loudspeaker mftr builds factory in China and keeps control

2011-10-19T08:57:00.000-05:00

online.wsj.com story:
(This one features Bowers & Wilkins, a small U.K.-based manufacturer of loudspeakers whose products grace homes of audiophiles—as well as the famous Abbey Road studios.

British firms once dominated this industry but many of its famous brands such as Wharfedale, Mission and KEF are now owned by Chinese concerns. B&W had no intention of throwing in the towel. But it risked pricing itself out of its biggest market, the crowded entry-level segment where speakers cost from €300 a pair —the firm's high-end products cost a hundred times as much.

The solution was to build a factory in China. This allowed B&W to reduce the labor costs in its new 600 Series line of loudspeakers by a startling 90%, according to Geoff Edwards, B&W's head of operations.

"The labor savings paid for the improvements in technology," he says.

B&W's 600 Series has some unusual features including woven Kevlar speaker cones and diamond-cut brushed aluminum tweeter trims. Its bespoke components are difficult to counterfeit—or so B&W hopes.}

This is a little bit unusual, as years ago China would not have allowed the factory to be built if it was still in control of a foreign entity, but that apparently has changed. It is possible that B&W will forestall some counterfeiters by focusing on their manufacturing process. But this will only effect a little bit of time. (Tony Zafiropoulos)

$3Bil in counterfeits produced in Turkey

2011-10-18T09:22:00.002-05:00

morogluarseven.av.tr pdf report:
(According to the Counterfeit Economy Report of the Chamber of Commerce of Ankara (ATO), Turkey is the second-largest counterfeit product market in the world, with $3 billion of turnover. The report shows that the counterfeit product market has become a new and powerful sector that threatens the economy.

Counterfeiters imitate the top-selling products as soon as they become ‘trendy’. The most common counterfeits are watches, sneakers, football uniforms, sunglasses, toys, bags, electronic devices, mobile phones, pharmaceuticals and, recently, the popular Ugg boots.

The report shows that the most counterfeited trademarks are: Apple Iphone, Nokia, Abercrombie & Fitch, Nike, Adidas, Puma, Converse, Polo, Panasonic, Microsoft, Citizen, Ray-Ban, Versace, Armani, Gucci, Dolce & Gabbana, Christian Dior, Paul & Shark, Diesel, Louis Vuitton, Ralph Lauren, Barbie, DKNY, Prada, Lacoste, Kappa, Harley Davidson, Casio, Aiwa, Sanyo, and Sony.

Turkey has $3Billion in counterfeits per year according to the chamber of commerce of Ankara. criminal activity goes where it finds a lax environment. (Tony Zafiropoulos)

2 tons of fake cosmetics and herbal medicine seized in UAE

2011-10-17T09:40:00.003-05:00

gulftoday.ae story:
(Inspection teams of the Abu Dhabi Municipality, represented by the Department of Public Health, have seized two tonnes of cosmetics and counterfeit or unfit-for-use herbal medicines, which did not meet the government-specified health standards.

The campaign covering a number of outlets also found other irregularities. Most of the exhibitors were not generally licensed to do business in the Emirate of Abu Dhabi and in particular trading in cosmetics and accessories. Some were selling products with indecent images. }

UAE is a conduit to the western world for counterfeits. The seizure is one of regular instances of seizures... (Tony Zafiropoulos)

Australia Blacktown seizes $1mil of counterfeit purses

2011-10-16T15:33:00.000-05:00

blacktownsun.com.au story:
(Detectives and staff from Trademark Investigation Services went to a stall at the markets about 8am on Sunday, and discovered more than 500 authentic-looking handbags and shoes that they allege are fake.}

Items allegedly purporting to be brand names such as Louis Vuitton, Gucci, Chanel, Burberry, Prada, Miu Miu, Marc Jacobs, and Jimmy Choo and Nike.}

Australia is clamping down on counterfeits, The trademark investigation services have caught another one. (Tony Zafiropoulos)

Scotland counterfeits fueling gang profits

2011-10-14T08:49:00.000-05:00

dailymail.co.uk story:
(Gangs use the trade in fake goods to fund areas such as human trafficking, firearms and illegal drugs, officials have warned.

Detective Chief Inspector Ronnie Megaughin, from the SCDEA, said: 'The trade in fake goods is not a victimless crime - there is no such thing. It is linked to a bigger and more serious picture.

'Those who are involved in this illegal activity are very often also responsible for peddling drugs in our communities, forcing people into the sex trade and trading in firearms.'}

Increasingly these stories are out there - crime lords are creating or finding counterfeits and making a large amount of profits. Typically criminals are also noticing the difficulty of prosecution. (Tony Zafiropoulos)

Counterfeits seized in Pakistan along with Guns and Drugs

2011-10-13T08:01:00.001-05:00

nation.com story:
(The police recovered a Kalashnikov, one 30-bore pistol, fake Pak currency amounting to 28,000 rupees, 200 American dollars, one thousand bottle of liquor, one-kg opium and 2-kg hashish.

Meanwhile, the City police SHO recovered one large barrel with 225 litre of liquor and 1000 empty liquor bottles from Arain Goods Mianwali. }

Counterfeit alcohol, Heroin, Guns, and currency was seized. As we have mentioned in the past counterfeit goods are made and sold by criminals, and in this case possibly terrorists. (Tony Zafiropoulos)

Fake Crabs in China - disrupting legitimate crab sales

2011-10-12T07:36:00.000-05:00

npr.org story:
(Each fall, the fakery even extends to the world of seafood and East China's Yangcheng Lake, which is just a short train ride from Shanghai. Yangcheng is home to what are reputed to be China's tastiest and most expensive hairy crabs.

The trick is finding a real one. The market in counterfeit Yangcheng hairy crabs is 10 times the market in real ones, according to the Yangcheng Lake Hairy Crab Association.

Local crab wholesalers have fought counterfeiters for years with various tactics. They've used lasers to etch the Yangcheng name on crab shells. This year, the crab association distributed 15 million plastic tags to certify their crabs were the real thing.}

China definitely has a counterfeit problem, and a public which is more interested in price than genuine products. That is the Chinese culture, and it will likely never change. (Tony Zafiropoulos)

Shardonnay sold as fake wine from Australia

2011-10-11T07:55:00.003-05:00

thisislondon.co.uk story:
(Trading Standards said they had found thousands of bottles of fake Jacob's Creek wine. The misspelled labels offer "Wine of Austrlia", tell people to "Drink Responsibily" and point them to the "Drinkoware" website.

Its licensing committee heard how nearly 16 litres of spirits, 111 bottles of fake wine and three bottles of Bollinger - all fakes - were found at a Costcutter in Caledonian Road.}

If you read butchered English on the product it is a large clue that this is a counterfeit product. And alcoholic drinks are rising in counterfeit incidents. (Tony Zafiropoulos)

Mobile phone sales increase in UAE & counterfeits cause service problems

2011-10-10T07:00:00.000-05:00

gulfnews.com story:(Dubai: A report reveals that mobile phone retailers in the UAE are being hit by a growing counterfeit market and called for new measures to stop imports and sales of fake goods.

The study by the Dubai Chamber of Commerce abd Industry, has also found that customer service is costing companies an increasing amount as sales of smartphones rise.

But the study also revealed that mobile phone sales in the UAE are expected to achieve a compound annual growth rate (CAGR) of 5 per cent to $414 million in 2015, up from an estimated $349 million in 2011.

It found that at the end of 2010 there were about 10.9 million mobile phone subscribers in this country, for a market penetration rate of 231 per cent. The mobile phone handset penetration is expected to grow from 238 per cent in 2011 to 257 per cent in 2015 and revenue from sales of personal digital assistants and smartphones is projected to surge 139 per cent during the same period.}

UAE has a serious counterfeit problem and will continue to have sales and service problems as long as the counterfeits come into the country. (Tony Zafiropoulos)

Flea market Columbus OH shuts down, $4mil counterfeits seized

2011-10-09T12:14:00.003-05:00

10tv.com story:
(The Eastland Mega Flea Market was shut down on Saturday while deputies took inventory of the items, 10TV’s Justin Moss reported.

Sheriff Zach Scott told 10TV News that he expected to recover at least $4 million in goods.

The goods included items such as knock-off purses, jewelry, and clothing.

Amazing that some flea markets have such a large cache of counterfeit goods. (Tony Zafiropoulos)

Counterfeit products seized in 40 London businesses

2011-10-07T08:04:00.002-05:00

islingtontribune.com story:(A staggering 800 litres of spirits, 5,000 bottles of wine and more than 3,500 cigarettes and other tobacco products have been seized so far this year.

In all, 40 businesses have or are being prosecuted for the sale of illegal goods, involving £20,000 in evaded tax.}

Counterfeit Alcohol can be dangerous due to its nature, if it is methane or other toxic liquids, they could be fatal. London seems to have a problem with counterfeit goods. (Tony Zafiropoulos)

60,000 counterfeits seized in Florida worth $28.4mil

2011-10-06T01:09:00.003-05:00

claimsjournal.com story:
(Five federal search warrants executed in an intellectual property rights investigation related to counterfeit goods, in Tampa, netted 60,760 counterfeit items with a manufacturer suggested retail price of $28,386,757, according to U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).}

Customs caught several shipment with search warrants, and another major seizure occurred.. (Tony Zafiropoulos)

Chinese Counterfeit phones (Shanzai) still popular in rural markets

2011-10-05T08:07:00.002-05:00

latimes.com story:
("Chinese phone makers are learning to play the game by putting a twist on existing technology and putting a patent on it," Shenkar said.

"Being able to take a blueprint and turn it into a product in a very quick time will serve you very well when you eventually have your own concept," he said. "China is not the first or only imitator, but it's the first imitator that has tremendous capability."

Still, demand for shanzhai phones remains strong in rural areas and among migrant workers earning only a few hundred dollars a month.

"People in China are practical," said CK Lu, an analyst with research firm Gartner Inc. "It's not shameful to use fake phones any more than it is to carry a fake Louis Vuitton bag."}

The story outlines how some Chinese are wanting the real phones instead of the counterfeits, but the interesting thing is that quote by CK Lu "It's not shameful to use fake phones than it is to carry a fake Louis Vuitton bag". There you have it, Chinese are ok with fake items and that is why they are the counterfeit capital of the world. And now that they have copied the brand and features of legitimate products the systems have been developed to make Chinese centric phones for the Chinese market. Copy, imitate, then innovate, it is a successful method to overtake the marketplace - especially in China. (Tony Zafiropoulos)

Fake iPhone5 already on market before authentic released

2011-10-04T08:23:00.000-05:00

news.sky.com story:
(The specifications of the new device are a tightly held secret.

But at the Fangshitong Market in Beijing, fake iPhone 5s are selling for as little as £28 each.

Traders also sell counterfeit iPhone 3s and 4s, as well as knock-off BlackBerries and Nokia smartphones.

"The designs were stolen from Apple and posted on the internet," said one stallholder who would identify himself only as Mr Chen.}

In Shanghai the counterfeiters of iPhone5's have been caught in this inewp.com story.

Sometimes the counterfeiters can trump the legitimate enterprise. In fact since the counterfeiters are not too worried of warranty claims and focus groups and the like, they can release product faster than the actual companies releasing authentic product. (Tony Zafiropoulos)

$5.4mil of counterfeit goods seized in Cincinnati area

2011-10-03T08:57:00.002-05:00

wlwt.com story:
(U.S. customs agents at the DHL hub in northern Kentucky said they seized more than $5 million in counterfeit goods being shipped through the hub -- in only five days.

Agents conducted 289 seizures of intellectual property rights-infringing merchandise during the operation. The total value of the items seized was $5,390,671.73, the agency said.

The products range from electrical items such as curling irons and hair dryers that can catch fire or shock consumers, to fitness equipment, to pirated DVDs, to personal care items such as makeup that may contain harmful bacteria, to clothing, hats and handbags.}

Another large bust of counterfeit items in an in-country air hub. These busts are happening with a certain amount of frequency. It is like there are a lot more counterfeit goods being smuggled into the country. (Tony Zafiropoulos)

Pfizer creates counterfeit drug awareness campaign

2011-10-02T15:11:00.000-05:00

tulsaworld.com story:
(Counterfeit drugs can be very dangerous, containing toxic substances such as rat poison or lead, or they can have the wrong amount of the real drug's active ingredient. In addition, people who buy medicines from illegal online pharmacies risk financial fraud and identity theft if they provide credit card or other personal information.

The effort includes a website ( tulsaworld.com/awarerx), a video series on a new YouTube channel (tulsaworld.com/spotfakemedsvideo) and takeovers of websites counterfeiters have previously used to sell knock-offs of Pfizer medicines. }

Pfizer is attempting to educate the public with a website and a youtube channel. It is still difficult to see what a fake drug is versus an authentic drug. It remains to be seen how effective this will be.

. (Tony Zafiropoulos)

Customs Border Patrol seizes computer network equipment

2011-09-30T13:04:00.000-05:00

cbp.gov story:

{A Chantilly, Va., woman, Chun-yu Zhao, recently received a 60-month prison sentence and heavy financial penalties for masterminding a conspiracy to import counterfeit computer networking equipment. U.S. Customs and Border Protection personnel using solid detective work and meticulous financial analysis were able to detect and bring Zhao to justice.

CBP officers intercepted computer networking products that were believed to be counterfeit. CBP’s National Targeting and Analysis Group, or NTAG, in California, pieced together common elements in hundreds of unrelated shipments that ultimately identified the Zhao operation.}

I think these were Cisco routers and had mislabeled labels which tipped off the Customs agents. (Tony Zafiropoulos)

$5.4mil in counterfeits seized at Cincinnati/N Kentucky airport

2011-09-29T07:05:00.000-05:00

news.cincinnati.com story:(Customs officers seized almost $5.4 million in ball caps, purses, watches and other counterfeit products last week during a crackdown at Cincinnati/Northern Kentucky International Airport.

The campaign by U.S. Customs and Border Protection comes a year after a similar but longer operation netted $21 million in knockoff products at the airport.}

Notice there was a larger operation seized a year ago (of $21 mil) and the counterfeiters tried again, So when you see news reports of these seizures, it does not mean that there will be no more seizures even at these levels. (Tony Zafiropoulos)

Beware of Fake Arctic Ice Vodka - includes methane

2011-09-28T23:59:00.000-05:00

BBC news story:{Three men were arrested in the city in July on suspicion of illegally manufacturing the alcohol.About 12,000 litres of counterfeit vodka branded as Arctic Ice was seized by HM Revenue and Customs (HMRC).}Here is a case where ingesting Vodka can be dangerous to your health. (Tony Zafiropoulos)

Chinese Vice Premier: China faces challenges of rampant counterfeit production

2011-09-27T09:06:00.000-05:00

news.xinhua.com story:
(The government must make manufacturers "pay a steep price" for making shoddy goods and focus on tackling quality issues that threaten people's lives and health, Wang told a meeting for work quality here.

China faces the challenges of inadequate innovation by enterprises, a lack of well-known brands, rampant counterfeit production in some areas and a frequent occurrence of accidents linked with low-quality products, said Wang.}

This is the official line of the Chinese government: we face the challenges of counterfeit products. At least Wang admits that there is a lack of well known brands and a frequent occurrence of accidents.

It is one of the reasons the Chinese counterfeit most things, for profit and to establish their own brands with their own slightly changed products from some Western authentic version.

. (Tony Zafiropoulos)

15% increase to patent filing costs

2011-09-26T10:32:00.002-05:00

uspto.gov pdf file

Utility patent application now $380

Design Patent application now $250

Plant Patent application now $250

Provisional Application filing $250

Another way to raise revenue from companies that are trying to innovate. (Tony Zafiropoulos)

NZ Trade Mark Amendment bill causes higher costs

2011-09-26T00:04:00.000-05:00

radionz.co,nz story:(Two new bills have been passed under the Trade Marks Amendment Bill which are designed to cut compliance costs and crack down on counterfeit goods.Mr Thoreau says foreign businesses will be able to protect their trade marks in New Zealand much more easily than in the past.He says that means New Zealand businesses will face significant costs in trying to protect their interests once the foreign entities have got their trade marks covered in New Zealand.}So New Zealand businesses have to spend more money to prevent counterfeiters to potentially fake their products. But the additional trademark protection will make the defense of the products easier. Although I am sure the counterfeiters will just try other methods. (Tony Zafiropoulos)