IP Theft Skyrockets 193% from April: Report

Wednesday June 29, 2005 — Calgary, Canada — Based on worldwide counterfeit enforcement activity (investigations, raids, seizures, arrests, charges, convictions, sentences, civil litigation, public announcements) for month of May 2005, as reported through the DOPIP Security Counterfeit Intelligence Report, more than 300 incidents valued at $230,308,305 (US Dollars) were analyzed from 41 countries.

The top 10 countries reporting intellectual property violations:

1. China, $64 Million (USD) seizures and losses.
2. Hungary, $13 Million.
3. USA, $6.9 Million.
4. Argentina, $6.0 Million.
5. Thailand, $2.3 Million.
6. Philippines, $2.0 Million.
7. Malaysia, $2.0 Million.
8. Canada, $1.9 Million.
9. UK, $1.5 Million.
10. Italy, $0.7 Million.

Other countries include Algeria, Australia, Brunei, France, Greece, India, Ireland, Malta, Pakistan, Singapore, South Africa, Turkey, and UAE.

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

1. Canada, $75 Million (USD) seizures and losses, 10 incidents.
2. China, $64 Million, 6 incidents.
3. USA, $53 Million, 139 incidents.
4. Hungary, $13 Million, 1 incident.
5. Peru, $6.7 Million, 1 incident.
6. Argentina, $6.0 Million, 1 incident.
7. Thailand, $2.3 Million, 2 incidents.
8. Philippines, $2.1 Million, 8 incidents.
9. Malaysia, $2.0 Million, 11 incidents.
10. Italy, $1.9 Million, 3 incidents.
11. UK, $1.8 Million, 27 incidents.
12. India, 34 incidents.
13. Pakistan, 6 incidents.
14. Australia, 6 incidents.
15. Japan, 6 incidents.
16. South Africa, 3 incidents.
17. Singapore, 1 incident.
18. Greece, 2 incidents.
19. Turkey, 2 incidents.
20. UAE, 1 incident.

Other countries include Algeria, Angola, Bahrain, Bangladesh, Botswana, Brunei, Czech Republic, France, Germany, Guam, Ireland, Jamaica, Latvia, Malta, Mauritius, Nepal, New Zealand, Russia, Taiwan, Vietnam, Zimbabwe.

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

The most popular items to counterfeit:

1. Financial Instruments, 121 incidents worth $52.6 Million.
2. Entertainment & Software, 64 incidents worth $9.1 Million.
3. Identification, 42 incidents worth $73.6 Million.
4. Clothing & Accessories, 24 incidents worth $84.3 Million.
5. Other Documents, 23 incidents.
6. Drugs & Medical, 11 incidents.
7. Cigarettes & Tobacco Products, 3 incidents.
8. Industrial Goods & Supplies, 3 incidents.
9. Computer Equipment & Supplies, 2 incidents worth $6.2 Million.
10. Electronic Equipment & Supplies, 2 incidents worth $1.3 Million.
11. Food & Alcohol, 2 incidents.
12. Perfume & Cosmetics, 2 incident worth $2.3 Million.
13. Jewelry & Watches, 1 incident.

The top 10 (of 79) brands counterfeited:

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



The top 10 (of 209) items counterfeited:

1. DVDs.
2. CDs.
3. Drugs.
4. Software.
5. Currency (US), 20s.
6. Checks.
7. Currency (US), 100s.
8. Passports.
9. Drivers Licenses.
10. Credit Cards.

In summarizing the activity for the month of May, Glen Gieschen, Managing Director of Gieschen Consultancy stated "Intellectual property enforcement during May was particularly strong with countries such as Canada, Peru, and Argentina raiding large counterfeiting operations involved in the distribution and manufacturing of knockoff items. In particular Canada, accused by the United States of being soft on IP enforcement, has come alive with a significant number of raids and seizures of bogus entertainment, software and clothing products. This activity marks a departure for Canada from its narrow focus on pirated health and safety products to a more balanced approach.

The manufacturing hub for these products remains in Asia with China, Malaysia, and Thailand being traced as the source in most cases. China remains the worst offender as more than $4.4 Million in fake products were exported to other countries such as Italy, Japan, the Philippines, and UK. The range of products seized and traced back to China was also very broad including clothing and accessories, cigarettes and tobacco products and industrial goods. Other countries were more focused on producing specific types of counterfeits such as entertainment and software in Malaysia and clothing in Thailand."


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