Counterfeit

Last updated
Counterfeit t-shirts at a flea market Counterfeit designer shirts.jpg
Counterfeit t-shirts at a flea market

A counterfeit is a fake or unauthorized replica of a genuine product, such as money, documents, designer items, or other valuable goods. [1] [2] [3] Counterfeiting generally involves creating an imitation of a genuine item that closely resembles the original to deceive others into believing it is authentic. [4]

Contents

Counterfeit products are often made to take advantage of the higher value of the original product, typically using lower-quality materials or production methods. [5] Counterfeit food, drinks, medicines, and personal care products can contain harmful or inactive ingredients, causing anything from mild issues to serious, life-threatening. [6] [7] [8] [9] Counterfeit footwear, clothing, and accessories have been found to contain high levels of lead, arsenic, and phthalates. [10]

Forgery of money or government bonds

Counterfeit Brazilian real banknotes Realfalso.jpg
Counterfeit Brazilian real banknotes

Counterfeit money is currency that is produced without the legal sanction of the state or government; this is a crime in all jurisdictions of the world. The United States Secret Service, mostly known for its guarding-of-officials task, was initially organized primarily to combat the counterfeiting of U.S. dollars in the wake of the American Civil War. Both sides had printed counterfeit notes in attempts to destabilize the other's economy, [11] [12] an example of economic warfare.

Counterfeit government bonds are public debt instruments that are produced without legal sanction, with the intention of "cashing them in" for authentic currency or using them as collateral to secure loans or lines of credit through legitimate channels.

Counterfeiting of documents

U.S. CBP Office of Field Operations agent checking the authenticity of a travel document at an international airport using a stereo microscope CBP checking authenticity of a travel document.jpg
U.S. CBP Office of Field Operations agent checking the authenticity of a travel document at an international airport using a stereo microscope

Forgery is the process of making facsimiles or adapting documents with the intention to deceive. It is a form of fraud, and is often a key technique in the execution of identity theft. Uttering is a term in United States law for the forgery of non-official documents, such as a trucking company's time and weight logs.

Questioned document examination is a scientific process for investigating many aspects of various documents, and is often used to examine the provenance and verity of a suspected forgery. Security printing is a printing industry specialty, focused on creating legal documents which are difficult to forge.

Counterfeit goods

Counterfeit goods are products that illegally use a registered trademark on items identical or similar to the original, designed to mislead buyers into thinking they are purchasing authentic products. [2] [3] Similarly, pirated goods infringe copyright, [13] typically involving unauthorized reproductions or distributions of copyrighted works, [14] such as movies, music, or software. The exact definitions of both counterfeit and pirated goods can vary by country, depending on local intellectual property laws.

Bulk bag of counterfeit Viagra CBP with bag of seized counterfeit Viagra.jpg
Bulk bag of counterfeit Viagra

The colloquial terms "dupe" (short for "duplicate") or "knockoff" are often used interchangeably with "counterfeit," though they have different meanings. [15] Dupes and knockoffs generally mimic the physical look of other products without copying the brand name or logo of a trademarked item, unlike counterfeits. [16] [17] Despite this distinction, counterfeits are frequently misleadingly marketed as dupes. [18]

According to the Organisation for Economic Co-operation and Development (OECD), the presence of counterfeit goods in global trade has grown substantially. In 2005, counterfeit and illegally copied products accounted for up to $200 billion in international trade. [19] This figure rose to $250 billion by 2007, representing 1.95% of world trade, up from 1.85% in 2000. [20] By 2019, counterfeit and pirated goods made up approximately 2.5% of global trade, valued at an estimated $464 billion. [21] In the EU, imports of counterfeit and pirated products reached as high as €119 billion (approximately $134 billion), accounting for up to 5.8% of total imports that year. [21]

A Sharpie marker, next to a counterfeit "Shoupie" marker SharpieVsShoupie.JPG
A Sharpie marker, next to a counterfeit "Shoupie" marker

The increase in counterfeit goods sales, driven by the rise of globalized supply chains and e-commerce, is enabled through the use of small packages, sometimes referred to as de minimis shipments. [1] [22] Counterfeit goods purchased from e-commerce websites or social media apps are shipped in small packages to bypass customs inspections and exploit de minimis benefits, such as duty-free imports and expedited customs processing, allowing them to reach buyers directly. [23] [24] [25] In 2023, 92% of counterfeit seizures in the U.S. involved small packages. [26]

Counterfeit LG brand and products, such as televisions, monitors, air conditioners, etc. LGjeonja, 'doghan jjagtung daeeung' naseossda.jpg
Counterfeit LG brand and products, such as televisions, monitors, air conditioners, etc.

China (including Hong Kong) is a major source of counterfeit goods, responsible for an estimated 80% of the world’s counterfeits, [27] contributing over 1.5% to its GDP, [28] [29] and accounting for 84% of all counterfeit items seized by U.S. Customs and Border Protection in 2023. [30] Other significant sources include India, Thailand, the Philippines, Turkey, Vietnam, Colombia, Mexico, and the United Arab Emirates. [30] The most frequently seized counterfeit items are footwear, clothing, leather goods, and electrical machinery and electronic equipment. [21] In 2023, apparel and accessories made up 26.2% of the counterfeit goods seized by U.S. Customs and Border Protection. [31]

An authentic Intel flash memory IC (right) and a counterfeit replica (left); although the packaging of these ICs is the same, the X-ray images reveal that the inside structure of the fake one is different An authentic flash memory IC and its counterfeit replica.png
An authentic Intel flash memory IC (right) and a counterfeit replica (left); although the packaging of these ICs is the same, the X-ray images reveal that the inside structure of the fake one is different

Counterfeit components are also present in the military supply chain. [33] A report from an investigation initiated by the United States Senate Committee on Armed Services in March 2011 revealed over 1,800 cases of suspected counterfeit electronic parts within more than 1 million defense-related products. [34] [35] A follow-up report in 2012 found that counterfeit parts came "overwhelmingly from China." [36] [37] By 2022, concerns over counterfeit components in the supply chain persisted, notably affecting the F-35 fighter jets. [38] In 2023, Forbes reported that Chinese materials, components, and software were still present in the Department of Defense's supply chain. [39]

Counterfeit culture

Counterfeit culture is the thriving markets surrounding fake streetwear. Most commonly, these markets originate out of areas where the inability to buy popular streetwear brands has fueled more sophisticated markets for counterfeit goods. These markets have spawned the emergence of a tribe of widely available copycat brands.

In countries like North Korea and Russia where trade sanctions were imposed in the past to prevent the importation of popular brands, demand was stimulated for available counterfeit alternatives. The economic standing of a country or region also contributed to the demand for these products as the average consumer can't afford luxury prices but will gain the same social impact purchasing a knock-off whose quality is almost indistinguishable from the original's.

Luxury streetwear is out of reach for many people, not just because of international sanctions and low wages, but because exclusivity is built into its business model. Social and cultural forces are driving the unique fashion scene. In particular, social media has a huge influence on over these markets giving people images of things they can't own and further fueling the desire to obtains certain "hyped" items by any means accessible.

Designers have even begun to acknowledge the trend of counterfeit culture by referencing fake or knock-off goods in their designs. This brought counterfeit culture into the realm of popular culture and has essentially shifted global acceptance towards becoming more lenient of these products as an appropriate alternative.

Anti-counterfeiting technologies

Anti-counterfeiting technologies are added to products or their packaging to allow consumers or inspectors to check whether a product is authentic. The EUIPO Observatory on Infringements of Intellectual Property Rights has developed an anti-counterfeiting technology guide, [40] to address the lack of information on technology solutions available on the market and help companies improve their protection against counterfeiting. [41] [42] In this guide, the main anti-counterfeiting technologies currently on the market are described, and classified into five main categories: [43]

The International Standard Organization has also published standards related to the implementation of anti-counterfeiting solutions, including ISO 12931 [44] and ISO 22381.

See also

Related Research Articles

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<span class="mw-page-title-main">Office of the United States Trade Representative</span> United States trade body

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<span class="mw-page-title-main">European Union Intellectual Property Office</span>

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Brand piracy is the act of naming a product in a manner which can result in confusion with other better known brands. According to author Robert Tönnis The term brand piracy is unauthorized usage of protected brand names, labels, designs or description of trade. Annika Kristin states "brand Piracy is considered to be the premeditated use of registered trademark, its name, its tradename or the packaging and presentation of its products". It is a major loss to MNEs around the world as it causes a loss of revenue and image of the brand.

<span class="mw-page-title-main">Counterfeit watch</span> Unauthorised copy of an authentic watch

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As in most developing countries, intellectual property law in Senegal is weak. Copyright infringement is not regarded as a crime, and it is widely accepted by consumers. Senegal's criminal law provisions do not provide for criminal procedures in case of trademark counterfeiting or copyright piracy on a commercial scale. In addition, because of budget constraints, Senegal's Copyright Office has had difficulty enforcing sanctions against individuals who infringe copyrights in the course of business, including hackers and distributors of infringed copies. Nonetheless, the Copyright Office has begun vigorous attempts against counterfeit media, seizing items as well as putting stickers on legal merchandise. It is currently continuing these enforcement efforts. Microsoft began an anti-piracy campaign in Senegal in early 2004 and reports some success in converting users of pirated Microsoft products through the sale of deeply discounted Microsoft licenses.

<i>Shanzhai</i> Goods designed to imitate high-end products

Shanzhai is a Chinese term literally meaning "mountain fortress" or "mountain camp", whose contemporary use usually encompasses counterfeit, imitation, or parody products and events and the subculture surrounding them. Shanzhai products can include counterfeit consumer and electronic goods, which can involve the imitation and trademark infringement of brands and companies. The term's modern usage grew around 2008 when shanzhai smartphones reached their greatest domestic use. Today, some relate the term with grassroots innovation and creativity rather than with falsehood or imitation.

Counterfeit consumer goods are goods illegally made or sold without the brand owner's authorization, often violating trademarks. Counterfeit goods can be found in nearly every industry, from luxury products like designer handbags and watches to everyday goods like electronics and medications. Typically of lower quality, counterfeit goods may pose health and safety risks.

<span class="mw-page-title-main">Brand protection</span> Prevent third parties from using intellectual property

Brand protection is the process and set of actions that a right holder undertakes to prevent third parties from using its intellectual property without permission, as this may cause loss of revenue and, usually more importantly, destroys brand equity, reputation and trust. Brand protection seeks primarily to ensure that trademarks, patents, and copyrights are respected, though other intellectual property rights such as industrial design rights or trade dress can be involved. Counterfeiting is the umbrella term to designate infringements to intellectual property, with the exception of the term piracy which is sometimes (colloquially) used to refer to copyright infringement.

<span class="mw-page-title-main">Trademark infringement</span> Violation of trademark rights

Trademark infringement is a violation of the exclusive rights attached to a trademark without the authorization of the trademark owner or any licensees. Infringement may occur when one party, the "infringer", uses a trademark which is identical or confusingly similar to a trademark owned by another party, especially in relation to products or services which are identical or similar to the products or services which the registration covers. An owner of a trademark may commence civil legal proceedings against a party which infringes its registered trademark. In the United States, the Trademark Counterfeiting Act of 1984 criminalized the intentional trade in counterfeit goods and services.

<span class="mw-page-title-main">Operation In Our Sites</span> US federal Internet copyright enforcement

Operation In Our Sites is an ongoing effort by the U.S. government's National Intellectual Property Rights Coordination Center to detect and hinder intellectual property violations on the Internet. Pursuant to this operation, governmental agencies arrest suspects affiliated with the targeted websites and seize their assets including websites' domain names. Web users intending to access targeted websites are directed to the server operated by the U.S. government, and greeted with a graphic bearing the seals of the United States Department of Justice (DOJ), the National Intellectual Property Rights Coordination Center (NIPRCC), and U.S. Immigration and Customs Enforcement (ICE).

References

  1. 1 2 "counterfeit". LII / Legal Information Institute. Retrieved 2024-10-11. A counterfeit is the fraudulent copy of money, documents, designer pieces, or other valuable items.
  2. 1 2 "WTO | Glossary - counterfeit". www.wto.org. Retrieved 2024-10-11. Unauthorized representation of a registered trademark carried on goods identical or similar to goods for which the trademark is registered, with a view to deceiving the purchaser into believing that he/she is buying the original goods.
  3. 1 2 "WTO | intellectual property (TRIPS) - agreement text - enforcement". www.wto.org. Retrieved 2024-10-11. (a) "counterfeit trademark goods" shall mean any goods, including packaging, bearing without authorization a trademark which is identical to the trademark validly registered in respect of such goods, or which cannot be distinguished in its essential aspects from such a trademark, and which thereby infringes the rights of the owner of the trademark in question under the law of the country of importation;
  4. ↑ "Counterfeiting § 1". American Jurisprudence 2d. Vol. 20 (2nd ed.). West. The term 'counterfeit' signifies the imitation of a genuine article having a resemblance intended to deceive and be taken for the original.
  5. ↑ "Counterfeiting (Intended for a non-legal audience)". International Trademark Association. Retrieved 2024-10-12. In simple terms, counterfeits are imitations of real products that are manufactured without approval from the owner of the brand. Counterfeit products are usually of substantially lower quality than the authentic goods and can even be dangerous, as they are often poorly made or made using dangerous or toxic chemicals and materials. Unfortunately, many well-known and successful companies, spanning just about every industry, fall victim to counterfeiting.
  6. ↑ OECD/EUIPO (2022). Dangerous Fakes: Trade in Counterfeit Goods that Pose Health, Safety and Environmental Risks. Illicit Trade. Paris: OECD Publishing. Counterfeit food, beverages, pharmaceuticals and related personal care items which have been improperly formulated or which contain ingredients that are harmful can have effects ranging from mild inconveniences to consumers, to life-threatening situations. Moreover, in the case of pharmaceuticals, the lack of active ingredients can deprive consumers of the possibility to treat diseases effectively, thus prolonging illnesses that would otherwise be treatable.
  7. ↑ Eban, Katherine (2024-06-04). "Why Counterfeit Ozempic Is a Global-Growth Industry". Vanity Fair. Retrieved 2024-10-13.
  8. ↑ "Overdose deaths from fake pills are rising, especially among younger adults". NBC News. 2023-08-31. Retrieved 2024-10-13. The CDC report, released to coincide with International Overdose Awareness Day, found that from mid-2019 to the end of 2021, overdose deaths involving counterfeit drugs more than doubled, from 2% to 4.7%.
  9. ↑ Ahillan, Tharanika (2024-08-04). "Fifth of medicines in Africa may be sub-par or fake, research finds". The Guardian. ISSN   0261-3077 . Retrieved 2024-10-13. Estimates published last year by the UN Office on Drugs and Crime put the human cost of falsified and substandard medicines at up to 500,000 deaths a year in sub-Saharan Africa.
  10. ↑ Wright, Beth (2022-03-24). "US counterfeit fashion goods contain dangerous chemicals". Just Style. Retrieved 2024-10-13. A new study shows counterfeit fashion goods contain dangerous levels of chemicals and heavy metals, with 36.2% of counterfeit products tested – including clothing, footwear, and other accessories – failing to comply with US product safety standards.
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  12. ↑ "Catching Counterfeiters". U.S. Marshals Service. 15 June 2020. Archived from the original on 29 December 2021. Retrieved 29 December 2021.
  13. ↑ Global Trade in Fakes: A Worrying Threat (PDF) (Report). Organisation for Economic Co-operation and Development (OECD). June 2021. Retrieved 12 October 2024. ...and the term pirated describes tangible goods that infringe copyright.
  14. ↑ "WTO | intellectual property (TRIPS) - agreement text - enforcement". www.wto.org. Retrieved 2024-10-12. (b) 'pirated copyright goods' shall mean any goods which are copies made without the consent of the right holder or person duly authorized by the right holder in the country of production and which are made directly or indirectly from an article where the making of that copy would have constituted an infringement of a copyright or a related right under the law of the country of importation.
  15. ↑ Judkis, Maura (2023-03-23). "In Gen Z's world of 'dupes,' fake is fabulous — until you try it on". Washington Post. ISSN   0190-8286 . Retrieved 2024-10-13. Such items used to be called knockoffs...But now they're dupes, a Gen Z rebranding of fashion and beauty products that are cheaper versions of the real thing — duplicate, but also duplicity, since the wearer might trick someone into believing they bought designer.
  16. ↑ Lee, Medora (2023-06-14). "Who needs pricey lululemon leggings or Dyson Airwrap when you can get affordable dupes?". USA TODAY. Retrieved 2024-10-13. ...Counterfeits and dupes aren't technically the same. Dupes copy or imitate the physical appearance of other products but don't copy the brand name or logo of a trademarked item the way a counterfeit, or fake, does.
  17. ↑ "Counterfeiting (Intended for a non-legal audience)". International Trademark Association. Retrieved 2024-10-12. Knock-offs, on the other hand, are designed to look like authentic products, but they are not exact replicas and may differ in some ways. Knock-offs also don't feature the trademark or logo of another brand, but will usually have the brand of the company that made them.
  18. ↑ Shamsian, Nicolette (2023-12-07). "Fashion Victims: Dupes Are A Serious Problem - Above the Law". abovethelaw.com. Retrieved 2024-10-13.
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  20. ↑ "Magnitude of counterfeiting and piracy of tangible products – November 2009 update" (PDF). OECD, Paris. 2009. Archived (PDF) from the original on 25 September 2015. Retrieved 15 November 2016.
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  30. 1 2 Intellectual Property Rights Seizure Statistics: Fiscal Year 2023 (PDF) (Report). U.S. Customs and Border Protection. June 2024. Retrieved 12 October 2024.
  31. ↑ "Intellectual Property Rights | U.S. Customs and Border Protection". www.cbp.gov. Retrieved 2024-10-12. Wearing Apparel/Accessories topped the list for number of seizure lines with 26,891 products, representing 26.2% of all IPR seizures in FY 2023. Watches/Jewelry were among the top products seized in terms of total MSRP value with seizures valued at over $1 billion (USD), representing 38.4% of the total value of goods seized in FY 2023. Handbags/Wallets came in second with an estimated value of over $658 million (USD), corresponding to approximately 23.9% of the total value of goods seized due to intellectual property rights violations.
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  40. ↑ "EUIPO Anti-Counterfeiting Technology Guide". European Observatory on Infringements of Intellectual Property Rights. 26 February 2021. Archived from the original on 17 March 2021.
  41. ↑ Dillon, Frank (8 June 2021). "13% of consumers misled into buying counterfeit goods or services". The Irish Times. Archived from the original on 8 June 2021. Retrieved 17 June 2021.
  42. ↑ "Counterfeit problem? The 2021 Anti-counterfeiting Technology Guide". Scantrust. 22 March 2021. Archived from the original on 23 March 2021. Retrieved 17 June 2021.
  43. ↑ Linsner, Bristows LLP-Marc (2 March 2021). "EUIPO Observatory publishes Anti-counterfeiting Technology Guide | Lexology". www.lexology.com. Archived from the original on 23 June 2021. Retrieved 18 March 2021.
  44. ↑ Nouvelle, L'Usine (5 October 2012). "ISO 12931, la norme anti-contrefaçon pour tous" (in French). Archived from the original on 20 September 2021. Retrieved 17 June 2021.{{cite journal}}: Cite journal requires |journal= (help)
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