Brand pirates cruise the net for victims: Oct. Counterfeit & Piracy Report

Monday November 21, 2005 — Calgary, Canada — Based on worldwide counterfeit enforcement activity (investigations, raids, seizures, arrests, charges, convictions, sentences, civil litigation) for the month of October 2005, as reported through the DOPIP Security Counterfeit Intelligence Report, more than 341 incidents valued at $1,046,014,145 (US Dollars) were analyzed from 54 countries.

The top 10 brands counterfeited:

1. Adidas.
2. Nike.
3. Louis Vuitton.
4. Microsoft.
5. Chanel.
6. Gucci.
7. Prada.
8. Fendi.
9. Manchester United.
10. Puma.

The top 10 items counterfeited:

1. Currency.
2. Films.
3. Music.
4. Software
5. Medicines.
6. Passports.
7. Drivers Licenses.
8. Checks.
9. Credit Cards.
10. Certificates.

The top 10 countries reporting intellectual property violations:

1. USA, 38 incidents, $7.4 Million (USD) seizures and losses.
2. UK, 25 incidents, $3.7 Million.
3. India, 17 incidents.
4. Malaysia, 16 incidents, $2.7 Million.
5. Philippines, 10 incidents.
6. Italy, 4 incidents, $9.1 Million.
7. China, 4 incidents.
8. Russia, 3 incidents, $1.1 Million.
9. Nigeria, 3 incidents.
10. Australia, 3 incidents.

Other countries include Belgium, Brunei, Bulgaria, Canada, Czech Republic, Finland, Hong Kong, Hungary, Jamaica, Kuwait, Malawi, Malta, Mauritius, Namibia, Pakistan, Saudi Arabia, Spain, Thailand, Turkey, Vietnam, and Zimbabwe.

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

1. USA, 123 incidents, $914 Million (USD) seizures and losses.
2. India, 50 incidents, $1.3 Million.
3. UK, 36 incidents, $13 Million.
4. Malaysia, 20 incidents, $2.7 Million.
5. Philippines, 13 incidents.
6. Canada, 11 incidents.
7. Nigeria, 6 incidents.
8. Russia, 5 incidents, $2.3 Million.
9. China, 5 incidents.
10. Italy, 4 incidents, $9.1 Million.
11. Pakistan, 4 incidents.
12. Australia, 4 incidents.
13. South Africa, 3 incidents $1.5 Million.
14. Hungary, 3 incidents.
15. Hong Kong, 3 incidents.
16. Japan, 3 incidents.
17. Bulgaria, 3 incidents.
18. Vietnam, 3 incidents.
19. Albania, 2 incidents, $16 Million.
20. Thailand, 2 incidents, $1.2 Million.

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

The most popular items to counterfeit:

1. Financial Instruments, 115 incidents worth $999.5 Million.
2. Entertainment & Software, 69 incidents worth $10.5 Million.
3. Identification, 43 incidents worth $16.3 Million.
4. Other Documents, 31 incidents.
5. Clothing & Accessories, 30 incidents worth $2.7 Million.
6. Industrial Goods & Supplies, 12 incidents worth $4.5 Million.
7. Drugs & Medical, 12 incidents.
8. Cigarettes & Tobacco Products, 7 incidents worth $1.7 Million.
9. Electronic Equipment & Supplies, 6 incidents worth $6.7 Million.
10. Food & Alcohol, 6 incidents.
11. Perfume & Cosmetics, 4 incidents.
12. Toys, 2 incidents worth $3.1 Million.
13. Other Goods, 2 incidents.
14. Jewelry & Watches, 3 incidents.

In summarizing the activity for the month of October, Glen Gieschen, Managing Director of Gieschen Consultancy stated, "The highest number of incidents to date (341) was recorded in October. Upon further analysis, a number of negative trends were discovered which indicate a shift towards counterfeiting intellectual property theft versus more traditional items such as credit cards, checks, and currency. In total, more than 120 fake brands were identified from 210 types of bogus items seized. In addition, investigations focused on Internet sales jumping to 17% of enforcement activity which represents a 47% increase from the past 3 month average. This indicates that brand owners are shifting resources to combat the growing threat posed by spammers, eRetailers, auctions and trade boards which are becoming more prevalent. Traditional selling techniques through street vendors, boot sales, markets, door to door, and home sales also remain strong at 25% of all activity.

October also provided ample evidence of the link between copyright and trademark infringements and more serious crimes. Individuals and businesses involved in the sale of pirate CDs, DVDs, software and games along with fake handbags, shoes, tobacco and watches are not as innocent as they may seem. In 37% of the cases, counterfeiters were found to be involved in drug trafficking and use, 20% carry weapons, 11% commit other frauds, and 26% carry out other crimes such as assault, extortion, murder, theft, immigration violations, money laundering, identity theft, and robbery. Increasingly a more violent type of criminal is being attracted to this activity as profit margins are higher, and penalties and chances of being arrested are relatively low.

In tracking down the source of counterfeit items, China has been listed in 61% of the cases, exporting more than $10 Million imitation goods which supports the conclusions made by the European Union in the recent international customs operation "FAKE". In analyzing the EU data it was determined that 18 million pirated items originating from China worth $13 Million were seized from 120 consignments in the 10 day period. If the operation was to continue year round, it would equate to 175 fully loaded Boeing 747 cargo aircraft entering the EU annually with goods valued at $500 Million. If customs organizations would release reports on individual seizures, the public would be more informed about the scope of the problem and dangers that items such as counterfeit drugs, sunglasses, mobile phone batteries and razorblades pose to the public.

In the past 12 months more than 39 countries have accused China of exporting more than 343 million items valued at $141 Million from 162 raids and seizures. No other country compare in its the scope and magnitude of exports. The next closest countries are Hong Kong, India, Malaysia, Indonesia, Pakistan, Russia, Taiwan, and Turkey, which combined exported a total of 35 million fake items."

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 intelligence delivered to the reader daily via email. It provides 24x7x365 monitoring, analysis and intelligence of counterfeit enforcement incidents from around the world in the areas of document, product and intellectual product security. Who would benefit from this knowledge? Enforcement, product and brand protection personnel, security technology providers, anti counterfeit and anti piracy organizations, and brand owners will find this information indispensable.

The intelligence that DOPIP reports provide will keep you updated on criminal Modus Operandi (methods of operation), legal and political activity, industry reports, technology, implementation examples, and much more.

DOPIP is more than a simple news service, it provides actionable intelligence. In addition to private investigative reports, more than 16,000 public, private, print and Internet news and information sources are electronically scoured daily for relevant topics. Each piece of information is then reviewed an analyzed by an counterfeit intelligence analyst and input into the DOPIP Counterfeit database. The intelligence is then organized into a simple-to-use report which allows each reader to quickly locate and identify intelligence relevant to their interests. Each information piece is presented in brief summarized format with a number of classifications. The result is an executive report that is quick and easy to navigate, concise and provides links to in-depth intelligence. In 2 minutes, the entire report can be initially scanned and relevant intel identified for retrieval and further analysis. On average, more than 40 intelligence items are presented each day from around the world, giving a truly global perspective on the issues, trends and events that shape this industry.

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