Report: IP Theft up 22%, massive $3 Trillion Counterfeits
Released on = May 25, 2005, 2:16 pm
Press Release Author = Gieschen Consultancy
Industry = International Trade
Press Release Summary = Counterfeit and piracy losses in April surged over the
Trillion Dollar (USD) mark for the second time in 4 months exposing links to fraud,
assault, drugs, immigration violations, identity theft, murder, prostitution,
illegal weapons, and terrorism, as reported by Gieschen Consultancy. Intellectual
property theft incidents (trademark infringement and copyright violations) also
peaked at its highest level in the past months, up 22% from January.
Press Release Body = Wednesday May 25, 2005 -- Calgary, Canada -- Based on
worldwide counterfeit enforcement activity (investigations, raids, seizures,
arrests, charges, convictions, sentences, civil litigation, public announcements)
for month of April 2005, as reported through the DOPIP Security Counterfeit
Intelligence Report, more than 250 incidents worth $3,000,045,753,460 (US Dollars)
were analyzed from 42 countries.
The top 20 countries pursuing counterfeiters and pirates:
Other countries include Bahrain, Congo, Croatia, Cyprus, Czech Republic, Fiji,
France, Georgia, Ghana, Ireland, Israel, Ivory Coast, Japan, Namibia, Netherlands,
New Zealand, Nigeria, Norway, Pakistan, Taiwan, Vietnam, and Zimbabwe.
For more information: http://www.goldsec.com/Security_Research.htm
The most popular items to counterfeit:
1. Financial Instruments, 85 incidents worth $3.0 Trillion.
2. Entertainment & Software, 54 incidents worth $22.5 Million.
3. Identification, 39 incidents worth $3.0 Million.
4. Other Documents, 30 incidents worth $2.4 Million.
5. Clothing & Accessories, 9 incidents worth $5.6 Million.
6. Food & Alcohol, 9 incidents worth less than $1.0 Million.
7. Computer Equipment & Supplies, 5 incidents worth $2.8 Million.
8. Industrial Goods & Supplies, 5 incidents worth $10.0 Million.
9. Cigarettes, 4 incidents worth $8.9 Million.
10. Other Goods, 4 incidents worth less than $1.0 Million.
11. Drugs & Medical, 2 incidents worth less than $1.0 Million.
12. Jewelry & Watches, 2 incidents worth $2.8 Million.
13. Perfume & Cosmetics, 1 incident worth less than 1.0 Million.
14. Toys, 1 incidents worth less than $1.0 Million.
In summarizing the activity for the month of April, Glen Gieschen, Managing Director
of Gieschen Consultancy stated "More than 90% of counterfeit and piracy activity was
the result of seizures by law enforcement, customs, immigration, military and other
government agencies which removed the items from the distribution chain. This
action prevented trillions of dollars worth of poor quality and hazardous items from
finding their way into the hands of consumers and businesses. Unfortunately, April
was the second month since December where the value of fake items has neared the
trillion dollar mark. Based on the types of bogus items seized, it is clear the
manufacturing operations have not been affected by past raids and are increasing
their capacity to meet a growing demand. Specifically, phony copyright and
trademarked products are expanding through innovative marketing and distribution
channels such as Internet retain and auctions, mail order, and spam operations.
Detecti
ng the manufacturing locations further challenges intellectual property enforcement
personnel as items are outsourced and assembled in multiple locations.
The profession of counterfeiting, once dominated by experienced and skilled
tradesmen using sophisticated techniques and expensive equipment has changed rapidly
in the past 20 years. It is now a hobby and novelty to some, a method to supplement
income, and increasingly a career to a growing number of young people. The
simplicity and status of producing, selling and purchasing counterfeits without
significant consequences or stigmas makes it attractive. The youngest age group
appears to effect the most financial damage to society through the duplication of
financial instruments (average age 29), entertainment and software (31), other
documents (32), identification (37), clothing and accessories (40). In addition,
the very young (12 and 14 years of age) were attracted to counterfeit currency and
pirating music, movies, and games software. Older individuals, showing that
experience, larger capital investments, and sophistication are required dominate
drugs and medical equi
pment (44), cigarettes (46), food and alcohol (46), industrial goods and supplies
(49), jewellery and watches (60).
The frustration of pursing the individuals and entities responsible for producing,
distributing and selling counterfeit items has led to more effective forms of
punishment. In particular, brand and copyright owners who are increasingly finding
the legal systems too slow and costly to prevent the sale of counterfeit items are
using the power of the Internet and media to inform the public of suspected
counterfeiters. The decision not to pursing further legal or criminal remedies is
taken after appropriate evidence is gathered and in some cases warnings have been
issued. Once published, these names are collected and distributed through search
engines and investigative agencies. In the month of April more than 84 businesses
and 174 individuals were published. Trade and commerce organizations find this
information useful to their members who routinely perform background and due
diligence checks on potential partners, suppliers and business associates. Brand
enforcement pers
onnel use the intelligence to network with the IP owners who may help them share
the costs of pursing legal or criminal actions against these individuals and
entities. Governments such as the US and Nigeria have also caught on to this
technique. Recently published lists of CD and DVD counterfeiters in Pakistan by
the US government led to raids and seizures and a list of fake drug manufacturers
has prompted action by India."
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/.
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.
As a member of the DOPIP Security Counterfeit Intelligence group, you will be
supporting a global education campaign to raise awareness of counterfeiting and
piracy issues.
Standard DOPIP (Document, Product and Intellectual Property) Membership - $295 USD
per individual. This membership provides access to a number of resources which
include the daily Standard DOPIP SCI Report which monitors more than 5,000 news and
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monthly counterfeit research data will be provided and you will be invited to
contribute content to the monthly DOPIP Security Counterfeit Intelligence global
press releases.
Premium DOPIP Membership - $835 USD per individual. This cost includes all of the
features of the Standard membership, plus additional monitoring of 11,000 print news
and information sources daily for relevant information.
For more information visit http://www.goldsec.com/Security_Updates.htm.
Web Site = http://www.gieschen.com/
Contact Details = Glen Gieschen
Managing Director
Gieschen Consultancy
Glen@Gieschen.com
Phone 403-256-5680
Calgary, Alberta Canada
2025
