$79 Million Counterfeited Worldwide in October
 

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.

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 cross 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/.

Contacts:
Glen Gieschen
Managing Director
Gieschen Consultancy
e-mail protected from spam bots
Phone 403-256-5680
Calgary, Alberta Canada

 
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