Counterfeit Explained

A counterfeit is a fake or unauthorized replica of a genuine product, such as money, documents, designer items, or other valuable goods.[1] [2] [3] Counterfeiting generally involves creating an imitation of a genuine item that closely resembles the original to deceive others into believing it is authentic.[4]

Counterfeit products are often made to take advantage of the higher value of the original product, typically using lower-quality materials or production methods.[5] Counterfeit food, drinks, medicines, and personal care products can contain harmful or inactive ingredients, causing anything from mild issues to serious, life-threatening.[6] [7] [8] [9] Counterfeit footwear, clothing, and accessories have been found to contain high levels of lead, arsenic, and phthalates.[10]

Forgery of money or government bonds

See main article: Counterfeit money.

Counterfeit money is currency that is produced without the legal sanction of the state or government; this is a crime in all jurisdictions of the world. The United States Secret Service, mostly known for its guarding-of-officials task, was initially organized primarily to combat the counterfeiting of U.S. dollars in the wake of the American Civil War. Both sides had printed counterfeit notes in attempts to destabilize the other's economy,[11] [12] an example of economic warfare.

Counterfeit government bonds are public debt instruments that are produced without legal sanction, with the intention of "cashing them in" for authentic currency or using them as collateral to secure loans or lines of credit through legitimate channels.

Counterfeiting of documents

See main article: Forgery.

Forgery is the process of making facsimiles or adapting documents with the intention to deceive. It is a form of fraud, and is often a key technique in the execution of identity theft. Uttering is a term in United States law for the forgery of non-official documents, such as a trucking company's time and weight logs.

Questioned document examination is a scientific process for investigating many aspects of various documents, and is often used to examine the provenance and verity of a suspected forgery. Security printing is a printing industry specialty, focused on creating legal documents which are difficult to forge.

Counterfeit goods

See main article: Counterfeit consumer good. Counterfeit goods are products that illegally use a registered trademark on items identical or similar to the original, designed to mislead buyers into thinking they are purchasing authentic products. Similarly, pirated goods infringe copyright,[13] typically involving unauthorized reproductions or distributions of copyrighted works,[14] such as movies, music, or software. The exact definitions of both counterfeit and pirated goods can vary by country, depending on local intellectual property laws.

The colloquial terms "dupe" (short for "duplicate") or "knockoff" are often used interchangeably with "counterfeit," though they have different meanings.[15] Dupes and knockoffs generally mimic the physical look of other products without copying the brand name or logo of a trademarked item, unlike counterfeits.[16] [17] Despite this distinction, counterfeits are frequently misleadingly marketed as dupes.[18]

According to the Organisation for Economic Co-operation and Development (OECD), the presence of counterfeit goods in global trade has grown substantially. In 2005, counterfeit and illegally copied products accounted for up to $200 billion in international trade.[19] This figure rose to $250 billion by 2007, representing 1.95% of world trade, up from 1.85% in 2000.[20] By 2019, counterfeit and pirated goods made up approximately 2.5% of global trade, valued at an estimated $464 billion.[21] In the EU, imports of counterfeit and pirated products reached as high as €119 billion (approximately $134 billion), accounting for up to 5.8% of total imports that year.The increase in counterfeit goods sales, driven by the rise of globalized supply chains and e-commerce, is enabled through the use of small packages, sometimes referred to as de minimis shipments.[22] Counterfeit goods purchased from e-commerce websites or social media apps are shipped in small packages to bypass customs inspections and exploit de minimis benefits, such as duty-free imports and expedited customs processing, allowing them to reach buyers directly.[23] [24] [25] In 2023, 92% of counterfeit seizures in the U.S. involved small packages.[26] China (including Hong Kong) is a major source of counterfeit goods, responsible for an estimated 80% of the world’s counterfeits,[27] contributing over 1.5% to its GDP,[28] [29] and accounting for 84% of all counterfeit items seized by U.S. Customs and Border Protection in 2023.[30] Other significant sources include India, Thailand, the Philippines, Turkey, Vietnam, Colombia, Mexico, and the United Arab Emirates.

The most frequently seized counterfeit items are footwear, clothing, leather goods, and electrical machinery and electronic equipment. In 2023, apparel and accessories made up 26.2% of the counterfeit goods seized by U.S. Customs and Border Protection.[31] Counterfeit components are also present in the military supply chain.[32] A report from an investigation initiated by the United States Senate Committee on Armed Services in March 2011 revealed over 1,800 cases of suspected counterfeit electronic parts within more than 1 million defense-related products.[33] [34] A follow-up report in 2012 found that counterfeit parts came "overwhelmingly from China."[35] [36] By 2022, concerns over counterfeit components in the supply chain persisted, notably affecting the F-35 fighter jets.[37] In 2023, Forbes reported that Chinese materials, components, and software were still present in the Department of Defense's supply chain.[38]

Counterfeit culture

Counterfeit culture is the thriving markets surrounding fake streetwear. Most commonly, these markets originate out of areas where the inability to buy popular streetwear brands has fueled more sophisticated markets for counterfeit goods. These markets have spawned the emergence of a tribe of widely available copycat brands.

In countries like North Korea and Russia where trade sanctions were imposed in the past to prevent the importation of popular brands, demand was stimulated for available counterfeit alternatives. The economic standing of a country or region also contributed to the demand for these products as the average consumer can't afford luxury prices but will gain the same social impact purchasing a knock-off whose quality is almost indistinguishable from the original's.

Luxury streetwear is out of reach for many people, not just because of international sanctions and low wages, but because exclusivity is built into its business model. Social and cultural forces are driving the unique fashion scene. In particular, social media has a huge influence on over these markets giving people images of things they can't own and further fueling the desire to obtains certain "hyped" items by any means accessible.

Designers have even begun to acknowledge the trend of counterfeit culture by referencing fake or knock-off goods in their designs. This brought counterfeit culture into the realm of popular culture and has essentially shifted global acceptance towards becoming more lenient of these products as an appropriate alternative.

Anti-counterfeiting technologies

Anti-counterfeiting technologies are added to products or their packaging to allow consumers or inspectors to check whether a product is authentic. The EUIPO Observatory on Infringements of Intellectual Property Rights has developed an anti-counterfeiting technology guide,[39] to address the lack of information on technology solutions available on the market and help companies improve their protection against counterfeiting.[40] [41] In this guide, the main anti-counterfeiting technologies currently on the market are described, and classified into five main categories:[42]

The International Standard Organization has also published standards related to the implementation of anti-counterfeiting solutions, including ISO 12931[43] and ISO 22381.

See also

See main article: Outline of forgery.

External links

Notes and References

  1. Web site: counterfeit . 2024-10-11 . LII / Legal Information Institute . en . "A counterfeit is the fraudulent copy of money, documents, designer pieces, or other valuable items.".
  2. Web site: WTO Glossary - counterfeit . 2024-10-11 . www.wto.org . "Unauthorized representation of a registered trademark carried on goods identical or similar to goods for which the trademark is registered, with a view to deceiving the purchaser into believing that he/she is buying the original goods.".
  3. Web site: WTO intellectual property (TRIPS) - agreement text - enforcement . 2024-10-11 . www.wto.org . (a) “counterfeit trademark goods” shall mean any goods, including packaging, bearing without authorization a trademark which is identical to the trademark validly registered in respect of such goods, or which cannot be distinguished in its essential aspects from such a trademark, and which thereby infringes the rights of the owner of the trademark in question under the law of the country of importation;.
  4. Book: American Jurisprudence 2d . West . 2nd . 20 . Counterfeiting § 1 . "The term 'counterfeit' signifies the imitation of a genuine article having a resemblance intended to deceive and be taken for the original.".
  5. Web site: Counterfeiting (Intended for a non-legal audience) . 2024-10-12 . International Trademark Association . en . "In simple terms, counterfeits are imitations of real products that are manufactured without approval from the owner of the brand. Counterfeit products are usually of substantially lower quality than the authentic goods and can even be dangerous, as they are often poorly made or made using dangerous or toxic chemicals and materials. Unfortunately, many well-known and successful companies, spanning just about every industry, fall victim to counterfeiting.".
  6. Book: OECD/EUIPO . Dangerous Fakes: Trade in Counterfeit Goods that Pose Health, Safety and Environmental Risks . 2022 . OECD Publishing . Illicit Trade . Paris . 10.1787/117e352b-en . 978-92-64-34676-5 . "Counterfeit food, beverages, pharmaceuticals and related personal care items which have been improperly formulated or which contain ingredients that are harmful can have effects ranging from mild inconveniences to consumers, to life-threatening situations. Moreover, in the case of pharmaceuticals, the lack of active ingredients can deprive consumers of the possibility to treat diseases effectively, thus prolonging illnesses that would otherwise be treatable.".
  7. Eban . Katherine . 2024-06-04 . Why Counterfeit Ozempic Is a Global-Growth Industry . 2024-10-13 . Vanity Fair . en-US.
  8. Web site: 2023-08-31 . Overdose deaths from fake pills are rising, especially among younger adults . 2024-10-13 . NBC News . en . "The CDC report, released to coincide with International Overdose Awareness Day, found that from mid-2019 to the end of 2021, overdose deaths involving counterfeit drugs more than doubled, from 2% to 4.7%.".
  9. News: Ahillan . Tharanika . 2024-08-04 . Fifth of medicines in Africa may be sub-par or fake, research finds . 2024-10-13 . The Guardian . en-GB . 0261-3077 . "Estimates published last year by the UN Office on Drugs and Crime put the human cost of falsified and substandard medicines at up to 500,000 deaths a year in sub-Saharan Africa.".
  10. Web site: Wright . Beth . 2022-03-24 . US counterfeit fashion goods contain dangerous chemicals . 2024-10-13 . Just Style . en-US . "A new study shows counterfeit fashion goods contain dangerous levels of chemicals and heavy metals, with 36.2% of counterfeit products tested – including clothing, footwear, and other accessories – failing to comply with US product safety standards.".
  11. Web site: Weidenmier . Marc . Money and Finance in the Confederate States of America . EH.net . Economic History Association . 29 December 2021 . 20 January 2022 . https://web.archive.org/web/20220120112154/https://eh.net/encyclopedia/money-and-finance-in-the-confederate-states-of-america/ . live .
  12. Web site: Catching Counterfeiters . U.S. Marshals Service . 15 June 2020 . 29 December 2021 . 29 December 2021 . https://web.archive.org/web/20211229205759/https://www.usmarshals.gov/history/counterfeit/counterfeit.htm . live .
  13. Global Trade in Fakes: A Worrying Threat . June 2021 . Organisation for Economic Co-operation and Development (OECD) . "...and the term pirated describes tangible goods that infringe copyright." . 12 October 2024.
  14. Web site: WTO intellectual property (TRIPS) - agreement text - enforcement . 2024-10-12 . www.wto.org . "(b) 'pirated copyright goods' shall mean any goods which are copies made without the consent of the right holder or person duly authorized by the right holder in the country of production and which are made directly or indirectly from an article where the making of that copy would have constituted an infringement of a copyright or a related right under the law of the country of importation.".
  15. News: Judkis . Maura . 2023-03-23 . In Gen Z's world of 'dupes,' fake is fabulous — until you try it on . 2024-10-13 . Washington Post . en-US . 0190-8286 . "Such items used to be called knockoffs...But now they’re dupes, a Gen Z rebranding of fashion and beauty products that are cheaper versions of the real thing — duplicate, but also duplicity, since the wearer might trick someone into believing they bought designer.".
  16. Web site: Lee . Medora . 2023-06-14 . Who needs pricey lululemon leggings or Dyson Airwrap when you can get affordable dupes? . 2024-10-13 . USA TODAY . en-US . "...Counterfeits and dupes aren’t technically the same. Dupes copy or imitate the physical appearance of other products but don’t copy the brand name or logo of a trademarked item the way a counterfeit, or fake, does.".
  17. Web site: Counterfeiting (Intended for a non-legal audience) . 2024-10-12 . International Trademark Association . en . "Knock-offs, on the other hand, are designed to look like authentic products, but they are not exact replicas and may differ in some ways. Knock-offs also don’t feature the trademark or logo of another brand, but will usually have the brand of the company that made them.".
  18. Web site: Shamsian . Nicolette . 2023-12-07 . Fashion Victims: Dupes Are A Serious Problem - Above the Law . 2024-10-13 . abovethelaw.com . en-US.
  19. Web site: 2007 . The Economic Effect of Counterfeiting and Piracy, Executive Summary . live . https://web.archive.org/web/20151112004447/http://www.oecd.org/dataoecd/13/12/38707619.pdf . 12 November 2015 . 15 November 2016 . OECD, Paris.
  20. Web site: 2009 . Magnitude of counterfeiting and piracy of tangible products – November 2009 update . live . https://web.archive.org/web/20150925164615/http://www.oecd.org/dataoecd/57/27/44088872.pdf . 25 September 2015 . 15 November 2016 . OECD, Paris.
  21. Web site: 2021-06-21 . Global Trade in Fakes . 2024-10-11 . OECD . en.
  22. Book: OECD . Trade in Counterfeit and Pirated Goods: Mapping the Economic Impact . 2016-04-18 . Organisation for Economic Co-operation and Development . Paris . en . "Counterfeit and pirated trade is a global and dynamic phenomenon. Recently, markets for IP-infringing products have become increasingly globalized and are affected by global trends. The post-crisis revival of trade, including growing market openings in many regions, the emergence and globalization of value chains, and booming e-commerce in global trade, underpin global market dynamics for both legitimate and counterfeit goods.".
  23. Web site: McDaniel . Christine . 2023-07-05 . Solving The Big Problems That Come In Small Parcels . 2024-10-12 . Forbes . en.
  24. Web site: 2021 . The Sociotechnical Evolution of Product Counterfeiting: How Social Media, Social Networks, and Social Commerce are "E-Socializing" Product Counterfeiting – Center for Anti-Counterfeiting and Product Protection . 2024-10-12 . en-US.
  25. Web site: 2023-08-09 . New research exposes the dark side of social media influencers: facilitating counterfeit trade . 2024-10-12 . University of Portsmouth . en.
  26. Web site: Nishimura . Kate . 2024-10-10 . De Minimis Package Volume Hit 4 Million Per Day in 2024, CBP Says . 2024-10-12 . Sourcing Journal . en-US.
  27. Web site: China: Multi-pronged approach proves best fit to tackle rise in counterfeits . 2024-10-12 . www.worldtrademarkreview.com . en.
  28. Web site: Redfearn . Nick . Cross-border trade in counterfeit goods . 2024-10-12 . rouse.com . "China’s role in counterfeit trade cannot be overstated. Counterfeit goods from China are estimated to make up approximately 12.5 % of China’s total exports and over 1.5 % of its GDP...".
  29. Measuring the Magnitude of Global Counterfeiting: Creation of a Contemporary Global Measure of Physical Counterfeiting . February 2016 . U.S. Chamber of Commerce Global Intellectual Property Center . 12 October 2024.
  30. Intellectual Property Rights Seizure Statistics: Fiscal Year 2023 . June 2024 . U.S. Customs and Border Protection . 12 October 2024.
  31. Web site: Intellectual Property Rights U.S. Customs and Border Protection . 2024-10-12 . www.cbp.gov . en . "Wearing Apparel/Accessories topped the list for number of seizure lines with 26,891 products, representing 26.2% of all IPR seizures in FY 2023. Watches/Jewelry were among the top products seized in terms of total MSRP value with seizures valued at over $1 billion (USD), representing 38.4% of the total value of goods seized in FY 2023. Handbags/Wallets came in second with an estimated value of over $658 million (USD), corresponding to approximately 23.9% of the total value of goods seized due to intellectual property rights violations.".
  32. Web site: Wagner . Paul . 2019-11-02 . Combating Counterfeit Components in the DoD Supply Chain – DSIAC . 2024-10-13 . en-US.
  33. Senate Armed Services Committee, Senate Armed Services Committee Announces Investigation into Counterfeit Electronic Parts in DOD Supply Chain, published 9 March 2011, accessed 2 January 2022
  34. Trace Laboratories, Inc., Counterfeit Electronic Components: Understanding the Risk, accessed 4 January 2022
  35. Web site: 2012-05-21 . Senate Armed Services Committee Releases Report on Counterfeit Electronic Parts . 13 October 2024 . U.S. Senate Committee on Armed Services . U.S. Government.
  36. Nash-Hoff, M. Senate Report Reveals Extent of Chinese Counterfeit Parts in Defense Industry, published 31 May 2012, accessed 12 March 2022
  37. Web site: Losey . Stephen . Gould . Joe . 2022-12-05 . Fake parts: A Pentagon supply chain problem hiding in plain sight . 2024-10-13 . Defense News . en.
  38. Web site: Tegler . Eric . 2023-08-23 . China Was a Key DoD Supplier A Decade Ago - It Still Is . 2024-10-13 . Forbes . en.
  39. Web site: 26 February 2021 . EUIPO Anti-Counterfeiting Technology Guide . live . https://web.archive.org/web/20210317234513/https://euipo.europa.eu/ohimportal/en/web/observatory/news/-/action/view/8550135 . 17 March 2021 . European Observatory on Infringements of Intellectual Property Rights.
  40. News: Dillon. Frank. 8 June 2021. 13% of consumers misled into buying counterfeit goods or services. live. 17 June 2021. The Irish Times. en. https://web.archive.org/web/20210608145106/https://www.irishtimes.com/business/retail-and-services/13-of-consumers-misled-into-buying-counterfeit-goods-or-services-1.4586818 . 8 June 2021 .
  41. Web site: 22 March 2021. Counterfeit problem? The 2021 Anti-counterfeiting Technology Guide. live. 17 June 2021. Scantrust. en-US. https://web.archive.org/web/20210323203139/https://www.scantrust.com/anti-counterfeiting-in-2021-from-blockchain-and-holograms-to-copy-detection-patterns/ . 23 March 2021 .
  42. Web site: Linsner. Bristows LLP-Marc. EUIPO Observatory publishes Anti-counterfeiting Technology Guide Lexology. 18 March 2021. www.lexology.com. 2 March 2021 . en. 23 June 2021. https://web.archive.org/web/20210623191454/https://www.lexology.com/library/detail.aspx?g=91842dca-ae41-424a-867c-d8c9c53b68a0. live.
  43. 5 October 2012. ISO 12931, la norme anti-contrefaçon pour tous. fr. 17 June 2021. 20 September 2021. https://web.archive.org/web/20210920212801/https://www.usinenouvelle.com/article/iso-12931-la-norme-anti-contrefacon-pour-tous.N183472. live . Nouvelle . L'Usine .

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