IP Theft Skyrockets 193% from April: Industry Report

Released on = June 27, 2005, 10:15 am

Press Release Author = Gieschen Consultancy

Industry = International Trade

Press Release Summary = Counterfeit and piracy seizures and losses, related to intellectual property theft, for May jumped 193% ($49 Million) to $103 Million (USD) from April, as reported by Gieschen Consultancy.

Press Release Body = Monday June 27, 2005 -- Calgary, Canada -- Based on worldwide
counterfeit enforcement activity (investigations, raids, seizures, arrests, charges, convictions, sentences, civil litigation, public announcements) for month of May 2005, as reported through the DOPIP Security Counterfeit Intelligence Report, more than 300 incidents valued at $230,308,305 (US Dollars) were analyzed from 41 countries.

The top 10 countries reporting intellectual property violations:

1. China, $64 Million (USD) seizures and losses.
2. Hungary, $13 Million.
3. USA, $6.9 Million.
4. Argentina, $6.0 Million.
5. Thailand, $2.3 Million.
6. Philippines, $2.0 Million.
7. Malaysia, $2.0 Million.
8. Canada, $1.9 Million.
9. UK, $1.5 Million.
10. Italy, $0.7 Million.

Other countries include Algeria, Australia, Brunei, France, Greece, India, Ireland,
Malta, Pakistan, Singapore, South Africa, Turkey, and UAE.

The top 20 countries pursuing all forms of counterfeiting and pirate activity
(documents, identification and intellectual property):

1. Canada, $75 Million (USD) seizures and losses, 10 incidents.
2. China, $64 Million, 6 incidents.
3. USA, $53 Million, 139 incidents.
4. Hungary, $13 Million, 1 incident.
5. Peru, $6.7 Million, 1 incident.
6. Argentina, $6.0 Million, 1 incident.
7. Thailand, $2.3 Million, 2 incidents.
8. Philippines, $2.1 Million, 8 incidents.
9. Malaysia, $2.0 Million, 11 incidents.
10. Italy, $1.9 Million, 3 incidents.
11. UK, $1.8 Million, 27 incidents.
12. India, 34 incidents.
13. Pakistan, 6 incidents.
14. Australia, 6 incidents.
15. Japan, 6 incidents.
16. South Africa, 3 incidents.
17. Singapore, 1 incident.
18. Greece, 2 incidents.
19. Turkey, 2 incidents.
20. UAE, 1 incident.

Other countries include Algeria, Angola, Bahrain, Bangladesh, Botswana, Brunei,
Czech Republic, France, Germany, Guam, Ireland, Jamaica, Latvia, Malta, Mauritius,
Nepal, New Zealand, Russia, Taiwan, Vietnam, Zimbabwe.

For more information: http://www.goldsec.com/Security_Research.htm

The most popular items to counterfeit:

1. Financial Instruments, 121 incidents worth $52.6 Million.
2. Entertainment & Software, 64 incidents worth $9.1 Million.
3. Identification, 42 incidents worth $73.6 Million.
4. Clothing & Accessories, 24 incidents worth $84.3 Million.
5. Other Documents, 23 incidents.
6. Drugs & Medical, 11 incidents.
7. Cigarettes & Tobacco Products, 3 incidents.
8. Industrial Goods & Supplies, 3 incidents.
9. Computer Equipment & Supplies, 2 incidents worth $6.2 Million.
10. Electronic Equipment & Supplies, 2 incidents worth $1.3 Million.
11. Food & Alcohol, 2 incidents.
12. Perfume & Cosmetics, 2 incident worth $2.3 Million.
13. Jewelry & Watches, 1 incident.

The top 10 (of 79) brands counterfeited:

1. Nike.
2. Adidas.
3. Louis Vuitton.
4. Gucci.
5. Microsoft
6. Prada.
7. Puma.
8. Burberry.
9. Chanel.
10. Cialis.

The top 10 (of 209) items counterfeited:

1. DVDs.
2. CDs.
3. Drugs.
4. Software.
5. Currency (US), 20s.
6. Checks.
7. Currency (US), 100s.
8. Passports.
9. Drivers Licenses.
10. Credit Cards.

In summarizing the activity for the month of May, Glen Gieschen, Managing Director
of Gieschen Consultancy stated "Intellectual property enforcement during May was
particularly strong with countries such as Canada, Peru, and Argentina raiding large
counterfeiting operations involved in the distribution and manufacturing of knockoff
items. In particular Canada, accused by the United States of being soft on IP
enforcement, has come alive with a significant number of raids and seizures of bogus
entertainment, software and clothing products. This activity marks a departure for
Canada from its narrow focus on pirated health and safety products to a more
balanced approach.

The manufacturing hub for these products remains in Asia with China, Malaysia, and
Thailand being traced as the source in most cases. China remains the worst offender
as more than $4.4 Million in fake products were exported to other countries such as
Italy, Japan, the Philippines, and UK. The range of products seized and traced back
to China was also very broad including clothing and accessories, cigarettes and
tobacco products and industrial goods. Other countries were more focused on
producing specific types of counterfeits such as entertainment and software in
Malaysia and clothing in Thailand."

About Gieschen Consultancy

Gieschen Consultancy, provides counterfeit intelligence analysis and security
research relating to documents, products and intellectual property. Gieschen
Consultancy educates clients regarding counterfeiting issues, and assists in
developing anti-counterfeiting, brand protection and enforcement solutions.
Providing the knowledge of the criminal Modus Operandi (methods of operation), legal
and political issues, security technology, industry reports and statistical
information, effective strategies can then be developed, implemented and monitored.

For more information visit http://www.gieschen.com/.

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Web Site = http://www.gieschen.com/

Contact Details = Glen Gieschen
Managing Director
Gieschen Consultancy
Glen@Gieschen.com
Phone 403-256-5680
Calgary, Alberta Canada