Bogus Brands Fake-Out Consumers: Counterfeit & Piracy Report

— Calgary, Canada — Based on worldwide counterfeit enforcement activity (investigations, raids, seizures, arrests, charges, convictions, sentences, civil litigation) for month of September 2005, as reported through the DOPIP Security Counterfeit Intelligence Report, more than 309 incidents valued at $117,401,832 (US Dollars) were analyzed from 55 countries.

The top 10 brands counterfeited:

1. Microsoft.
2. Nike.
3. Adidas.
4. Burberry.
5. Louis Vuitton.
6. Sony.
7. Lacoste.
8. Reebok.
9. Viagra.
10. Benson & Hedges.

The top 10 items counterfeited:

1. Currency.
2. Films.
3. Software (Business).
4. Checks.
5. Medicines.
6. Music.
7. Passports.
8. Software (Games).
9. Drivers Licenses.
10. Cigarettes.

The top 10 countries reporting intellectual property violations:

1. Denmark, $33 Million (USD) seizures and losses.
2. Hong Kong, $17.6 Million.
3. Indonesia, $14.3 Million.
4. USA, $12.3 Million.
5. Nigeria, $5.8 Million.
6. China, $5.4 Million.
7. France, $3.9 Million.
8. UK, $3.5 Million.
9. Pakistan, $3.3 Million.
10. Hungary, $2.5 Million.

Other countries include Argentina, Australia, Bangladesh, Bulgaria, Canada, Columbia, Germany, Ghana, Greece, India, Israel, Italy, Jamaica, Japan, Malaysia, Netherlands, New Zealand, Philippines, Russia, Saudi Arabia, Sweden, Taiwan, UAE, Uganda, and Vietnam.

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

1. USA, 98 incidents, $12.8 Million (USD) seizures and losses.
2. India, 38 incidents, $1.4 Million.
3. UK, 30 incidents, $3.5 Million.
4. Canada, 12 incidents, $2.0 Million.
5. Malaysia, 12 incidents.
6. Philippines, 8 incidents.
7. China, 7 incidents, $5.4 Million.
8. Nigeria, 7 incidents, $5.8 Million.
9. Russia, 6 incidents.
10. Hungary, 5 incidents, $2.5 Million.
11. Australia, 5 incidents.
12. Germany, 4 incidents, $1.4 Million.
13. Japan, 4 incidents.
14. Hong Kong, 3 incidents, $17.6 Million.
15. France, 3 incidents, $4.0 Million.
16. Pakistan, 3 incidents, $3.4 Million.
17. UAE, 3 incidents.
18. Indonesia, 2 incidents, $14.3 Million.
19. Columbia, 2 incidents, $4.6 Million.
20. Italy, 2 incidents, $1.4 Million.

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

The most popular items to counterfeit:

1. Financial Instruments, 103 incidents worth $9.3 Million.
2. Entertainment & Software, 65 incidents worth $8.1 Million.
3. Identification, 27 incidents worth $14.4 Million.
4. Other Documents, 24 incidents.
5. Clothing & Accessories, 22 incidents worth $26.1 Million.
6. Drugs & Medical, 11 incidents worth $9.9 Million.
7. Industrial Goods & Supplies, 11 incidents worth $35.2 Million.
8. Electronic Equipment & Supplies, 7incidents.
9. Food & Alcohol, 6 incidents.
10. Cigarettes & Tobacco Products, 4 incidents worth $10.3 Million.
11. Perfume & Cosmetics, 4 incidents.
12. Computer Equipment & Supplies, 3 incidents.
13. Jewelry & Watches, 3 incidents.
14. Toys, 3 incidents.
15. Other Goods, 2 incidents.

In summarizing the activity for the month of September, Glen Gieschen, Managing Director of Gieschen Consultancy stated, "In the month of September, Microsoft products were the most heavily seized products during intellectual property enforcement raids indicating a high consumer preference towards pirated software. It has become apparent in 2005 that Microsoft is the top software brand counterfeited, and is consistently in the top 5 global brands pirated. In the past 10 months, Microsoft has made the top 5 list 50% of the time. The only other brand with a larger presence in the market for counterfeit products is Louis Vuitton, which spends more than $18 Million annually protecting its brand. In the past year more than 1,375 types of counterfeits from 930 brands, brand owners and victims were identified, originating from 935 illegal manufacturers, distributors and sellers."

According to Charles Maier, the Counterfeit Intelligence Manager for Gieschen Consultancy, “When consumer products manufacturers, intellectual property licensors and other brand owners spend billions of dollars every year to build these brands, it makes economic sense to protect themselves against product counterfeiting. They need to keep up-to-date on who is counterfeiting what and where – then enforce the domestic or international laws that protect their copyrights and trademarks to maintain the integrity of their products and their own good name in the marketplace.”

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