Big brands lose billions to counterfeiting

16 Jan 2006

In 2005, brands were tracked to counterfeit and piracy seizures and losses of more than US$1.54 billion. More than 40% of the brands counterfeited are composed of a list of 25 which include software giants, clothing designers, pharmaceutical companies, printer manufacturers, and luxury goods retailers.

27% of the top 11 brands affected by counterfeiting are included in the Forbes Top 100 World's Leading Companies, indicating the global nature of this problem.

Based on worldwide counterfeit enforcement activity - investigations, raids, seizures, arrests, charges, convictions, sentences, civil litigation - for 2005, as reported through the DOPIP Security Counterfeit Intelligence Report, more than 3 703 incidents valued at over US$3 billion were analyzed from 133 countries.

View the full report at http://www.goldsec.com/PR/06-01-16-2.htm

The top brands counterfeited in each classification include:

Marlboro - Cigarette & Tobacco Products

Louis Vuitton - Clothing & Accessories

Canon - Computer Equipment & Supplies

Viagra - Drugs & Medical

Nokia - Electronic Equipment & Supplies

Microsoft - Entertainment & Software

Pepsi - Food & Alcohol

Underwriters Laboratories - Industrial Goods & Supplies

Rolex - Jewelry & Watches

Bodum - Other Goods

Johnson & Johnson - Perfume & Cosmetics

Titleist - Toys & Sports Equipment

The top 20 (of 79) countries reporting intellectual property violations:

USA, 402 incidents, $289 million seizures and losses

UK, 240 incidents, $516 million

India, 185 incidents, $6.9 million

Malaysia, 71 incidents, $13 million

Philippines, 54 incidents, $18 million (... more details in full report)

The most popular items to counterfeit:

Financial Instruments, 1 435 incidents worth $3.254 trillion

Entertainment & Software, 706 incidents worth $695 million

Identification, 521 incidents worth $124 million

Clothing & Accessories, 306 incidents worth $283 million

Other Documents & Packaging, 262 incidents worth $12 million
(more details in full report)

China was named as a counterfeit distribution and manufacturing source in 65.2% of the investigations, 167 incidents, with $178 million in seizures and losses (more details in full report).

The geographic regions traced to counterfeit distribution and manufacturing sources:

Asia, named in 80.1% of the investigations, 205 incidents, $198 million in seizures and losses

Europe, 7.8%, 20 incidents, $224 million

North America, 3.9%, 10 incidents, $1.2 million

The top 10 other crimes linked to counterfeiters:

Fraud, 29.4% of incidents

Theft, 16.4% of incidents

Drug possession & trafficking, 14.5% of incidents

About Gieschen Consultancy

Gieschen Consultancy provides counterfeit intelligence analysis for brand protection, brand enforcement and security research. Being in possession of intelligence and knowledge behind the criminal, civil, and ethical problems surrounding counterfeiting and piracy issues, clients are more effective in developing strategies to counter this growing threat.