Counterfeit & Piracy Report: 13% of counterfeiters use the Internet, IP theft up to 42%:

Wednesday July 27, 2005 — Calgary, Canada — Based on worldwide counterfeit enforcement activity (investigations, raids, seizures, arrests, charges, convictions, sentences, civil litigation, public announcements) for month of June 2005, as reported through the DOPIP Security Counterfeit Intelligence Report, more than 291 incidents valued at $623,766,946 (US Dollars) were analyzed from 46 countries.

The top 10 countries reporting intellectual property violations:

1. USA, $87 Million (USD) seizures and losses.
2. South Korea, $8.0 Million.
3. Italy, $3.7 Million.
4. Spain, $3.0 Million.
5. UK, $3.0 Million.
6. Germany, $2.8 Million.
7. Slovenia, $1.6 Million.
8. UAE, $1.1 Million.
9. Kuwait, $0.7 Million.
10. China, $0.6 Million.

Other countries include Australia, Canada, Czech Republic, Guam, India, Indonesia, Ireland, Malaysia, Malta, Namibia, New Zealand, Nigeria, Pakistan, Philippines, South Africa and Sri Lanka.

The top 20 countries pursuing all forms of counterfeiting and pirate activity (documents, identification and intellectual property):

1. Philippines, $501 Million (USD) seizures and losses, 7 incidents.
2. USA, $91 Million, 126 incidents.
3. South Korea, $8.0 Million, 1 incident.
4. Italy, $3.7 Million, 5 incidents.
5. Bulgaria, $3.5 Million, 2 incidents.
6. Spain, $3.0 Million, 2 incidents.
7. UK, $3.0 Million, 28 incidents.
8. Germany, $2.8 Million, 1 incident.
9. Slovenia, $1.6 Million, 1 incident.
10. UAE, $1.1 Million, 2 incidents.
11. India, $1.0 Million, 35 incidents.
12. Kuwait, 1 incident.
13. Uganda, 2 incidents.
14. China, 7 incidents.
15. Czech Republic, 4 incidents.
16. South Africa, 7 incidents.
17. Ireland, 3 incidents.
18. Malta, 2 incidents.
19. Tanzania, 1 incident.
20. Malaysia, 10 incidents.

For more information: http://www.goldsec.com/Security_Research.htm

The most popular items to counterfeit:

1. Financial Instruments, 118 incidents worth $509 Million.
2. Entertainment & Software, 66 incidents worth $91 Million.
3. Identification, 31 incidents.
4. Clothing & Accessories, 30 incidents worth $8.6 Million.
5. Other Documents, 18incidents worth $1.2 Million.
6. Food & Alcohol, 7 incidents worth $8.0 Million.
7. Drugs & Medical, 6 incidents.
8. Industrial Goods & Supplies, 4 incidents worth $1.7 Million.
9. Jewelry & Watches, 4 incidents worth $2.9 Million.
10. Cigarettes & Tobacco Products, 2 incidents.
11. Electronic Equipment & Supplies, 2 incidents.
12. Computer Equipment & Supplies, 1 incidents.
13. Other Goods, 1 incident.
14. Perfume & Cosmetics, 1 incident.

The top 10 brands counterfeited:

1. Nike.
2. Microsoft.
3. Louis Vuitton.
4. Adidas.
5. Prada.
6. Christian Dior.
7. Adobe.
8. Bosch.
9. Burberry.
10. Calvin Klein.



The top 10 items counterfeited:

1. Currency.
2. DVDs.
3. Checks.
4. Drugs.
5. Software.
6. CDs.
7. Drivers Licenses.
8. Passports.
9. Credit Cards.
10. Handbags.

In summarizing the activity for the month of June, Glen Gieschen, Managing Director of Gieschen Consultancy stated "The market for fake and bogus goods is growing with the help of the Internet. Nearly 13% of all enforcement activity for June was directed towards spam, internet auctions, retail sites and other Internet activities which sell or distribute counterfeit and pirated items. P2P services such as eDonkey and BitTorrent play a significant role in copyright infringement as music, films, software and books are distributed freely or at a fraction of the cost. Other venues such as Internet chat rooms and private forums are also being used by criminals and terrorists to provide information regarding manufacturing techniques and to distribute high value items such as fake ID (passports, drivers licenses, and birth certificates). With an increase in Internet users in both developed and developing regions, in particular the Middle East and Asia, the potential market for these items is expanding rapidly."

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 information sources daily for relevant information. In addition, limited access to 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.

Contacts

Glen Gieschen
Managing Director
Gieschen Consultancy
Glen@Gieschen.com
Phone 403-256-5680
Calgary, Alberta Canada