Press Release
Summary = During the month of October, 25,064,295 counterfeiting
items were seized and sold worldwide, up 143% from September, valued
at $79,775,852 USD. As reported by Gieschen Consultancy, the top
countries that aggressively pursued counterfeiters, were the United
States (38%, $30,254,132), Taiwan (20%,
$15,783,000), Italy (9%, $7,000,000), UK (7%, $5,198,800), Columbia
(6%, $5,101,000), South Africa (6%, $4,982,900), and India (5%,
$3,956,450). China ranked 8th.
Press Release
Body = Wednesday November 10, 2004 -- Calgary, Canada -- Based on
the past month of worldwide counterfeit enforcement activity (investigations,
raids, seizures, arrests, charges, convictions, sentences, public
announcements), as
reported through the DOPIP Security Counterfeit Intelligence Report,
more than 245 incidents were analyzed.
The profile
of the average counterfeit operation:
• Involves
6 people, between the ages of 15 and 61 years old.
• Sells more than 40,000 counterfeit items valued at $140,000
USD items before being caught.
• When caught, more than 61,000 counterfeit items are seized
valued at $184,000.
• Finds electronics (cell phones, computer equipment, etc.)
the most profitable to counterfeit, followed by drugs (medications,
alcohol, etc.), digital media (CDs, DVDs, etc.), financial items
(currency, checks, etc.), retail merchandise
(clothing, shoes, etc.) and industrial goods (fuel, ball bearings,
etc.).
• If involved in FMCG (Fast Moving Consumer Goods), is most
likely to counterfeit Louis Vuitton, followed by Nike, Gucci, Dove,
Coach, and Christian Dior brand name merchandise.
• Requires false identification to avoid detection.
• If involved in counterfeit identification, is likely to
focus on drivers licenses, breeder documents (birth certificates,
social security cards, etc.), passports and visas.
• Uses a computer, printer, scanner, laminating machine, and
software to reproduce identification, documents and packaging.
Only 244 types
of items were counterfeited from the 25 Million items seized and
sold in October:
• DVDs
and CDs (both physical and electronic copies) being the most popular
Entertainment items.
• Liquor, cigarettes and medication were the most popular
Drugs.
• Batteries, game controllers and cameras were the most popular
Electronics items.
• Currency and checks were the most popular Financial items.
• Milk powder was the most popular Food item.
• Clothing, handbags & purses, shoes, perfume and jewelry
were the most popular Retail Merchandise items.
• Passports, drivers licenses, and birth certificates were
the most popular Identification items.
• Degrees, tickets (event), prescriptions, mark sheets, immigration
documents, and diplomas were the most popular Miscellaneous Documents.
Other interesting
October facts:
• The
origin of counterfeit goods, when manufactured outside of the country
they are
sold or seized, were traced back to China in the majority of cases,
followed by Pakistan, Malaysia, India, and Russia.
• More than 1,532 individuals participated in counterfeiting.
• 71% of anti-counterfeiting operations involve raids, seizures
and arrests.
• 4.3 years is the average sentence for each individual involved
in counterfeiting.
• 38 Countries reported counterfeit activity in October (Australia,
Bangladesh, Bulgaria, Canada, China, Columbia, Fiji, Gambia, Ghana,
India, Indonesia, Iran, Ireland, Israel, Italy, Jamaica, Japan,
Kenya, Lebanon, Malaysia, Malta, Mexico, New Zealand, Pakistan,
Philippines, Russia, Sierra Leone, Singapore, South Africa, South
Korea, Sri Lanka, Taiwan, UAE, Uganda, UK, USA, Vietnam, and Zambia).
In summarizing
the months activity, Glen Gieschen, Managing Director of Gieschen
Consultancy stated "the month of October has shown an increasing
trend for counterfeiters to diversify their portfolio of products.
Once they establish a market for a particular item, they flood it
with multiple products, taking advantage of clients that are looking
for a variety of items. It is rare for a consumer to drive to a
single location in search for one purse or pair of shoes. Thus the
counterfeiters are now manufacturing a wider variety of items to
meet their clients needs.
The danger in
this scenario is that consumers are now "shopping for counterfeits"
due to the convenience. As this activity becomes more acceptable,
consumers, who normally shop for their own personal needs, are being
drawn into purchasing a variety of items for their friends and families.
Now the consumer becomes a distributor of counterfeit goods, which
is evident by the increasing number of smaller counterfeit shipments
seized by customs officials. 5 or 10 counterfeit items for one individual
may be for personal use, however 20 - 50, sometimes shipped or delivered
to a customers home, becomes rather suspicious. You can draw a
parallel of this activity to the initial introduction of the music
download service, such as Napster, where you begin downloading songs
for your personal use, then providing illegal copies to others and
eventually making your counterfeit music library available for anyone
to counterfeit. We are at the point now where consumers are beginning
to cr
oss the line into becoming a counterfeit distributor and thus a
part of the problem. It is clear counterfeiters would like this
trend to continue and are focusing their attention on marketing
their products."
About DOPIP
SCI Reports
DOPIP is a powerful source of information regarding illegal activities
such as counterfeiting, forgery, product tampering and diversion.
It provides breaking news reports and analysis relating to document,
product and intellectual product security. Security technology providers,
enforcement agencies, trade organizations, and brand owners will
find this information indispensable for detection, deterrence and
prevention. DOPIP SCI Reports is available as an annual subscription
for $195 USD.
For more information visit http://www.goldsec.com/Security_Updates.htm.
About Gieschen Consultancy
Gieschen Consultancy, is a trusted provider of in-depth information,
analysis and reporting for the document, product and intellectual
property security industry. Gieschen Consultancy applies more than
10 years security experience to assist clients in developing anti-counterfeiting,
brand protection and enforcement solutions. Through the knowledge
of security technology, criminal Modus Operandi
(methods of operation), legal and political issues, statistical
information and competitive intelligence, effective strategies are
developed, implemented and monitored.
For more information visit http://www.gieschen.com/
Web Site = http://www.gieschen.com/
Contact Details
= Glen Gieschen
Managing Director
Gieschen Consultancy
Glen@Gieschen.com
Phone 403-256-5680
Calgary, Alberta Canada
2022
