'World IP Theft Day' Report on Piracy and Counterfeiting

Monday May 2, 2005 — Calgary, Canada — In support of World Intellectual Property Day, Gieschen Consultancy has released intellectual property theft figures for the first quarter of 2005 indicating the scope and depth of counterfeiting and piracy activity. Based on global counterfeit enforcement activity (investigations, raids, seizures, arrests, charges, convictions, sentences, civil litigation, public announcements), as reported through the DOPIP Security Counterfeit Intelligence Report, more than 837 incidents were analyzed from 67 countries.

The most common intellectual property to counterfeit (based on enforcement incidents):

1. Entertainment & Software, $59.4 Million, 125 incidents (CDs, DVDs, software, games).
2. Clothing & Accessories, $64.7 Million, 50 incidents.
3. Drugs & Medical Supplies, $13.5 Million, 22 incidents (medication, herbal remedies, vaccines, ointments).
4. Cigarettes, $99.1 Million, 13 incidents.
5. Food & Alcohol, $0.1 Million, 13 incidents (milk drinks, wine, rum, soy sauce).
6. Industrial Goods & Supplies, $2.2 Million, 13 incidents (ball bearings, insecticides, cards, motors, detergents, automotive parts, adhesives).
7. Electronic Equipment & Supplies, $25.5 Million, 11 incidents (processors, memory chips, batteries, cameras, electric razors).
8. Other Documents, $3.7 Million, 9 incidents (certificates of authenticity and books).
9. Computer Equipment & Supplies, $0.2 Million, 8 incidents (printer cartridges).
10. Other Goods, $123 Million, 4 incidents (mosquito coils, pottery, golf clubs, building materials).
11. Perfume & Cosmetics, $0.1 Million, 4 incidents (lotions, perfume, nail polish, creams)
12. Toys, $4.5 Million, 4 incidents. (scooters, playing cards, dolls).
13. Jewelry & Watches, $0.1 Million, 3 incidents. (pens, bracelets, charms).

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

The top seizures and losses of counterfeit trademark and pirated copyright works:

1. Marlboro, West, Superkings, Regal, $92 Million.
2. AMD, STMicroelectronics, $25 Million.
3. DirecTV, $21.7 Million.
4. Louis Vuitton, $19.1 Million.
5. Real Madrid, Barcelona, $14.5 Million.
6. Pfizer, $12.8 Million.
7. Nike, Louis Vuitton, Fendi, Burberry, Alviero Martini, $3.9 Million.
8. Microsoft, $3.2 Million.
9. Louis Vuitton, Gucci, Rado, Cartier, $3.2 Million.
10. Yu-Gi-Oh, $3.0 Million.

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

In summarizing the first quarter of activity, Glen Gieschen, Managing Director of Gieschen Consultancy stated "The amount of criminal, terrorist, and government efforts being directed towards counterfeiting trademarks and copyright works has increased steadily each month. Copyright infringement for the first quarter totalled $63 Million, while counterfeit trademarks reached $333 Million. In addition, more than 80 million phony items were seized which, upon further investigation, led enforcement personnel to the discovery that 800 million items had been sold.

Attempts to trace the manufacturing sources were successful in one-third of the cases which originated with 122 companies, criminal entities and terrorist organizations. The top 3 countries named as sources for multiple forms of counterfeit and pirated goods were China, India and Malaysia. In 25% of the cases, China was identified as the source for entertainment & software, cigarettes, clothing & accessories, computer equipment & supplies, electronic equipment & supplies, industrial goods & supplies, documents and toys. India was linked to 16% of the cases involving clothing & accessories, drugs & medicine, entertainment & software, food & alcohol, identification, industrial goods & supplies, documents, and perfume & cosmetics. In third spot, Malaysia was named in 5.4% of the incidents involving entertainment & software, food & alcohol and documents.

The result of this activity has been to focus efforts on developing intellectual property and brand protection measures by corporations and governments. In the past 3 months more than 50 news articles were written focusing on various preventative measures."

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

• 48 Countries reported counterfeit activity in February: Australia, Bangladesh, Bosnia, Brunei, Bulgaria, Canada, China, Cyprus, Czech Republic, France, Ghana, Greece, Hong Kong, India, Indonesia, Israel, Italy, Japan, Kenya, Latvia, Lebanon, Liberia, Malaysia, Malta, Mexico, Nepal, Netherlands, New Zealand, Nigeria, Pakistan, Philippines, Portugal, Russia, Saudi Arabia, Singapore, South Africa, South Korea, Spain, Taiwan, Turkey, UAE, Uganda, UK, USA, Vietnam, Yugoslavia.

The current months counterfeit activity: http://www.goldsec.com/

The full report of counterfeit activity for the month can be purchased from Gieschen Consultancy.

About DOPIP SCI Reports

DOPIP is a powerful source of information regarding illegal activities such as counterfeiting, forgery, product tampering and diversion. It provides current news reports, information 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. Standard or Premium Sources DOPIP SCI Reports are available as an annual subscription for $295 USD and $835 respectively.

For more information visit http://www.goldsec.com/Security_Updates.htm.


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/.

Contacts

Glen Gieschen
Counterfeit Intelligence Analyst
Gieschen Consultancy
Glen@Gieschen.com
Phone 403-256-5680
Calgary, Alberta Canada