Counterfeiting Worldwide Up 378% Topping $212,435,492 USD in September!

 

During the month of September, counterfeiting worldwide nets $212,435,492 up 378% from August. Total losses of $92,709,480 were recorded in addition to the seizure of $119,726,012 counterfeit items. China "strikes out" this month with no specific incidents in comparison to the United States, which leads the world in counterfeit enforcement activity at 73%, followed by India (11%), Nigeria (9%), and the United Kingdom (4%) as surveyed by Gieschen Consultancy.

Calgary, Canada October 7, 2004 -- Based on the past month of counterfeit enforcement activity, as reported through the DOPIP Security Competitive Intelligence Report, more than 178 incidents were analyzed. On average, the price of each counterfeit item seized was $5.26, each seizure totaled $520,840, involved 3 individuals, and 92,020 counterfeit items. Overall the results indicate that 595 individuals from 29 countries were involved in counterfeit activity.

The variety of counterfeit items seized included more than 256 categories, with financial documents (currency & checks) as the most popular items to counterfeit at 35.9%, followed by identity documents (passports, Visas, drivers licenses and birth certificates) at 20.3%, general merchandise (clothing, food, electronic items) at 18.8%, digital media (CDs, DVDs, VCDs) at 11.7%, other documents (tickets, passes, manuals, accounting forms) at 6.3%, drugs (prescription & non-prescription) at 4.7%, and industrial items (paint, belts, gas cylinders) at 1.6%.

66% of the counterfeit enforcement activity for this period focused on raids, seizures and arrests. The remaining activity was directed towards investigations (10%), charges (9%), convictions (3%), sentencing (5%), and public announcements (4%).

In summarizing the months activity, Glen Gieschen, Managing Director of Gieschen Consultancy stated "the United States, United Kingdom and India are aggressively pursuing counterfeiters. A true measure of countries which are committed towards protecting intellectual property rights (IPR) is evidenced by both the quantity of raids, seizures, arrests and indifference to the size of the crime. These countries consistently pursue small and large counterfeiters which appears to set them apart from other countries.

With regards to China, unfortunately they struck out with no specific enforcement activity reported. Unlike August where 7 specific incidents were reported, ranging from $45,000 to $32, 200,000 they reported only quarterly or year-to-date totals which provided no significant enforcement activity. It would benefit China to publicize each and every counterfeit raid to prove to the WTO, the United States and other countries that they are working hard to enforce intellectual property rights.

As reported last month, a disturbing trend towards the use and manufacturing of counterfeit identification continues. The most common form of counterfeit primary identification used by criminals and terrorists is passports (25%), followed by other forms of identification such as identity cards (19%), Visas (11%), and drivers licenses (7%). Secondary forms of identification used to obtain primary ID, termed breeder documents, are also found on these individuals, such as birth and marriage certificates."

Further results are as follows:

    Of the 78 brands owners identified through counterfeit items, the most popular are Adobe, Gucci, Louis Vuitton, Marlboro, Microsoft, Polo Ralph Lauren, Tiffany and Co., and Tommy Bahama.

Activity by top 7 countries:

1.    United States, $1,880,327 per incident. 83 incidents and seizures/losses of $156,067,166.
2.    India, $834,992 per incident. 29 incidents and seizures/losses of $24,214,756.
3.    Nigeria. 1 incident and seizures/losses of $20,000,000.
4.    United Kingdom, $516,265 per incident. 15 incidents and seizures/losses of $7,744,000.
5.    Germany, $505,000 per incident. 3 incidents and seizures/losses of $1,515,000.
6.    South Africa, $346,225 per incident. 4 incidents and seizures/losses of $1,384,900.
7.    Taiwan, $295,000 per incident. 2 incidents and seizures/losses of $590,000.

    Counterfeit methods reported include the use of computers (PC and laptops), computer generated check software, bond paper, cutters, printers (desktop, laser, run of the mill), scanners, color copiers, blank check paper, cutting tools, fax machines, digital cameras, drug manufacturing operations, DVD burning towers, recording equipment, rubber stamps, watermark replication techniques, sophisticated printing equipment and typewriters.

    Counterfeit activity was compiled from 29 Countries (Australia, Bangladesh, Bulgaria, Canada, China, Denmark, Germany, Ghana, India, Israel, Jamaica, Japan, Malaysia, Malta, New Zealand, Nigeria, Pakistan, Philippines, Saudi Arabia, Senegal, South Africa, South Korea, Sri Lanka, Taiwan, UAE, Uganda, UK, USA and Vietnam)

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.

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


 
 
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