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Date: April 19, 2024 Fri
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Results for counterfeiting
46 results foundAuthor: Organisation for Economic Co-Operation and Development. Directorate for Science, Technology and Industry Title: The Economic Impact of Counterfeiting and Piracy Summary: Responding to concerns in governments and the business community, the Organisation for Economic Co-Operation and Development (OECD) launched a project in 2005 to assess the magnitude and impact of counterfeiting and piracy. The objective of the project was to improve factual understanding and awareness of how large the problem is and the effects that infringements of intellectual property rights have on governments, business and consumers in member countries and non-member economies. Details: Paris: OECD, 2008 Source: Year: 2008 Country: France URL: Shelf Number: 111035 Keywords: CounterfeitingPiracy |
Author: Canadian Anti-Counterfeiting Network Title: Report on Counterfeiting and Piracy in Canada: A Road Map for Change Summary: In Canada, the political will to address the country's serious IP (internet protocol) crime problem has failed to materialize despite the overwhelming evidence of its harm to Canadian competitiveness and a mounting tide of domestic and international criticism. This report sets out clear actions to strengthen Canada's IP enforcement system to create an environment in which an innovation economy can thrive. Taking strong and decisive action against IP crime represents a tremendous opportunity for the federal government to demonstrate its commitment to combating crime and to Canadian economic prosperity, innovation and competitiveness. Details: Toronto: Canadian Anti-Counterfeiting Network, 2007 Source: Year: 2007 Country: Canada URL: Shelf Number: 115334 Keywords: Computer CrimeCounterfeitingPiracy |
Author: U.S. Government Accountability Office Title: Intellectural Property: Observations on Efforts to Quantify the Economic Effects of Counterfeit and Pirated Goods Summary: This report assesses the impact of counterfeit and pirated goods on the economy and industries of the U.S. to help the government better protect the intellectual property rights of holders. The report: (1) examines existing research on the effects of counterfeiting and piracy on consumers, industries, government and the U.S. economy; and (2) identifies insights gained from efforts to quantify the effects of counterfeiting and piracy on the U.S. economy. Details: Washington, DC: GAO, 2010. 36p. Source: Internet Resource; GAO-10-423 Year: 2010 Country: United States URL: Shelf Number: 118411 Keywords: CounterfeitingPiracy, Intellectual Property |
Author: Fenoff, Roy S. Title: Africa's Counterfeit Pharmaceutical Epidemic: The Road Ahead Summary: The production, distribution, and consumption of counterfeit pharmaceuticals represent a particularly dangerous public health risk; estimates of the numbers of counterfeit pharmaceuticals range from 10 to 15 percent of the world drug supply. This report examines the problem of Africa's counterfeit pharmaceutical epidemic. Details: East Lansing, MI: Anti-Counterfeiting and Product Protection Program (A-CAPPP), School of Criminal Justice, Michigan State University, 2009. 20p. Source: Internet Resource Year: 2009 Country: Africa URL: Shelf Number: 118797 Keywords: Counterfeit MedicinesCounterfeitingIllicit DrugsPharmacy Crimes |
Author: Europol Title: OCTA 2009: EU Organised Crime Threat Assessment Summary: The 2009 OCTA assesses the threat of organized crime in the EU through the analysis of the organized groups, of the criminal markets, and of their interaction within and without territorial entities denominated as criminal hubs. Through this approach it finds that the most significant criminal sectors are drug trafficking, trafficking in human beings, illegal immigration, fraud, counterfeiting and money laundering. Details: The Hague: European Police Office, 2009. 64p. Source: Internet Resource Year: 2009 Country: International URL: Shelf Number: 119244 Keywords: CounterfeitingHuman TraffickingIllegal ImmigrationMoney LaunderingOrganized Crime |
Author: United Nations Office on Drugs and Crime Title: The Globalization of Crime: A Transnational Organized Crime Threat Assessment Summary: "In The Globalization of Crime: A Transnational Organized Crime Threat Assessment, UNODC analyses a range of key transnational crime threats, including human trafficking, migrant smuggling, the illicit heroin and cocaine trades, cybercrime, maritime piracy and trafficking in environmental resources, firearms and counterfeit goods. The report also examines a number of cases where transnational organized crime and instability amplify each other to create vicious circles in which countries or even subregions may become locked. Thus, the report offers a striking view of the global dimensions of organized crime today." Details: Vienna: UNODC, 2010. 303p. Source: Internet Resource Year: 2010 Country: International URL: Shelf Number: 119407 Keywords: CounterfeitingCybercrimeHuman TraffickingMaritime CrimeMigrant SmugglingOrganized CrimePiratesTransnational Crime |
Author: Beare, Margaret Title: Global Transnational Crime: Canada and China Summary: This paper presents a review of the phenomena of transnational crime/organized crime (TNC/OC) as it relates to Canada and China. The paper begins by outlining the changing understanding of TNC/OC. Three issues dominate much of the current debate: issues of the breakdown in strictly ‘ethnic’-based operations and the refocus of law enforcement on criminal markets; the changing perception of the structure of criminal organizations and finally, a recognition of harm as a determinant of the types of criminal activity that ought to be treated internationally with the seriousness of the more traditional organized crimes. Next, this paper identifies the key illicit markets related to Canada and China. These markets include: money laundering, drug trafficking, human smuggling and the counterfeiting of goods, cards and currency. This paper concludes with a discussion on areas of tension and opportunities for enhanced cooperation on a bilateral and multilateral basis between Canada and China. One key unresolved tension relates to China’s quest for international assistance in combating corruption. China and Canada have ratified the UN Convention Against Corruption and in addition Canada is involved in four international agreements dealing with the criminal aspect of corruption – but from China’s perspective these agreements were supposed to assist countries in their fight against various forms of corruption but are either not effective or are not implemented. Details: Toronto: Canadian International Council, 2010. 24p. Source: Internet Resource: China Paper No. 16: Accessed August 22, 2010 at: http://www.onlinecic.org/resourcece/archives/chinapapers/cic_chinapapersno16_bearepdf Year: 2010 Country: Canada URL: http://www.onlinecic.org/resourcece/archives/chinapapers/cic_chinapapersno16_bearepdf Shelf Number: 119658 Keywords: CounterfeitingDrug TraffickingHuman SmugglingIllicit MarketsMoney LaunderingOrganized CrimeTransnational Crime (Canada and China) |
Author: Mace, Robyn R. Title: A Case Study of Melamine as a Counterfeit Food Product Additive in Chinese Human and Animal Food Supply Chain Networks Summary: The global counterfeit food market is estimated at approximately US $49 billion. European Union Customs reported a 200% increase in food-related counterfeit seizures over the past several years, and the UK’s Food Standards Agency recently launched a series of educational, investigative, and resource initiatives to focus on food fraud and counterfeit. The expanding international trade of agricultural and food products, enhanced production capabilities, and simultaneous consumer interest demands for organic, rare, and limited-availability foods are stimulating a growing market for counterfeit food products. Counterfeit food and food adulteration pose public health risks from ingestion; social risks from illness, public panic or disorder; diminished confidence in the food supply; and economic losses to food suppliers as well as the governments that tax them. Compounding these issues for consumers and other stakeholders are a complex and variable system of regulatory and voluntary national and international product standards and labeling, enforcement agencies’ lack of oversight or legal punitive mechanisms, and a general lack of public awareness of the problem. Little is known about the prevalence, characteristics, or impacts of food counterfeit and fraud or the types and effectiveness of prevention and intervention strategies. This paper will introduce the problem of food adulteration, counterfeit, and fraud, using the 2007-2008 Chinese melamine contaminations in international animal and human food supply chains as an example. This case study illuminates the interdependence of and implications for the safety of the international food supply chain networks that feed the world, and suggests risk-based detection and prevention strategies and interventions based on an analytic (triangle) model of food fraud and counterfeit. Details: East Lansing, MI: Michigan State University, Anti-Counterfeiting and Product Protection Program, 2009. 19p. Source: Internet Resource: Accessed September 21, 2010 at: http://news.msu.edu/media/documents/2010/02/78b37df6-b11a-4776-a220-5fac5b8ea51e.pdf Year: 2009 Country: United States URL: http://news.msu.edu/media/documents/2010/02/78b37df6-b11a-4776-a220-5fac5b8ea51e.pdf Shelf Number: 119839 Keywords: Counterfeit FoodCounterfeiting |
Author: Tilley, Nick Title: Business Views of Organised Crime Summary: This report describes research that examined the impact of organised crime against businesses located in three high crime residential neighbourhoods in the U.K. The study is based on detailed interviews with managers or owners of 420 businesses in three high crime neighbourhoods. It was concerned with the effects of both direct and indirect organised crime, including: direct victimisation of the businesses from organised crime groups; the creation of a local climate of organised crime and intimidation that drives out certain businesses or acts as a barrier to the establishment of others; and the arrival of unfair competition through the sale and distribution of illicit goods whether stolen, counterfeit or contraband. Details: London: Home Office, 2008. 66p. Source: Internet Resource: Research Report 10: Accessed September 22, 2010 at: http://rds.homeoffice.gov.uk/rds/pdfs08/horr10c.pdf Year: 2008 Country: United Kingdom URL: http://rds.homeoffice.gov.uk/rds/pdfs08/horr10c.pdf Shelf Number: 113412 Keywords: Business CrimesCounterfeitingOrganized CrimeStolen GoodsVictimization |
Author: Clift, Charles Title: Combating Counterfeit, Falsified and Substandard Medicines: Defining the Way Forward? Summary: Counterfeit, falsified and substandard medicines pose a serious threat to human health, particularly in poorer countries with weak regulatory mechanisms. But the relationship between combating counterfeit medicines, addressing safety, quality and efficacy issues and enforcing privately owned intellectual property rights has become controversial. There are concerns that a wider definition of "counterfeit" threatens the trade in generic medicines of assured quality on which many developing countries depend; and about the legitimacy of the International Medical Products Anti-Counterfeiting Taskforce (IMPACT), the detention of generic drugs in transit in the European Union, and the negotiation of the Anti-Counterfeiting Trade Agreement (ACTA). "Counterfeit" has a specific meaning in intellectual property, related to willful trademark violations. But in relation to medicines it is now sometimes used in a much broader sense to do with misrepresentation of identity or source, or even medicines that are simply "substandard". Some countries use the term "falsified" to describe medicines that misrepresent their identity or source, but do not necessarily violate intellectual property rights. "Substandard" medicines are those that do not meet quality standards specified for them, but may also be defined specifically to cover products from authorized manufacturers which fail to meet quality standards set for them. Failure to reach agreement on the definitions of counterfeit, falsified and substandard medicines hampers the constructive policy debate and collaboration at the international level that are necessary to take effective action against the producers and distributors of these medicines. Details: London: Chatham House, 2010. 16p. Source: Internet Resource: Briefing Paper: Accessed December 21, 2010 at: http://www.chathamhouse.org.uk/files/17868_1110bp_counterfeit.pdf Year: 2010 Country: International URL: http://www.chathamhouse.org.uk/files/17868_1110bp_counterfeit.pdf Shelf Number: 120564 Keywords: Counterfeit MedicineCounterfeiting |
Author: Haken, Jeremy Title: Transnational Crime In The Developing World Summary: This report analyzes the scale, flow, profit distribution, and impact of 12 different types of illicit trade: drugs, humans, wildlife, counterfeit goods and currency, human organs, small arms, diamonds and colored gemstones, oil, timber, fish, art and cultural property, and gold. Though the specific characteristics of each market vary, in general it can be said that these profitable and complex criminal operations originate primarily in developing countries, thrive in the space created by poverty, inequality, and state weakness, and contribute to forestalling economic prosperity for billions of people in countries across the world. Details: Washington, DC: Global Financial Integrity, 2011. 68p. Source: Internet Resource: Accessed February 8, 2011 at: http://www.gfip.org/storage/gfip/documents/reports/transcrime/gfi_transnational_crime_high-res.pdf Year: 2011 Country: International URL: http://www.gfip.org/storage/gfip/documents/reports/transcrime/gfi_transnational_crime_high-res.pdf Shelf Number: 120716 Keywords: Art CrimeCounterfeitingDrug TraffickingFinancial CrimesHuman TraffickingIllicit TradeOffenses Against the EnvironmentTransnational CrimeWildlife Crime |
Author: Ledbury Research Title: Counterfeiting Luxury: Exposing the Myths. 2nd ed. Summary: Building on the findings of the 2006 Edition of Counterfeiting Luxury: Exposing the Myths Report, our 2007 edition probes further into the impact that counterfeit and look-alike products has on luxury brands in the UK. Based on the results of an extensive survey of over 2,000 consumers and a number of focus groups, this report reviews what changes have taken place over the last 12 months in terms of purchasing drivers and attitudes of consumers of counterfeit and look-alike goods and provides guidance to brand owners as to how to change consumer behaviour. Details: London: Davenport Lyons, 2007. 30p. Source: Internet Resource: Accessed August 23, 2011 at: http://www.a-cg.org/guest/pdf/Counterfeiting_Luxury_2007_Report.pdf Year: 2007 Country: International URL: http://www.a-cg.org/guest/pdf/Counterfeiting_Luxury_2007_Report.pdf Shelf Number: 122472 Keywords: Consumer FraudCounterfeit GoodsCounterfeitingCrime Prevention |
Author: Savona, Ernesto U. Title: Understudied Organized Crime Offending: A Discussion of the Canadian Situation in the International Context Summary: This report provides an analysis of selected possible understudied organized crime activities in the Canadian context, contributing to the knowledge on both of the nature and the scope of organized crime. The analysis involved an extensive review of the existing state of organized crime literature in the international context. The analysis was based on available literature, official reports and informed speculations. Details: Ottawa: Public Safety Canada, 2011. 38p. Source: Internet Resource: Accessed January 12, 2012 at: http://transcrime.cs.unitn.it/tc/fso/pubblicazioni/AP/Understudied_Organized_Crime_Offending_A_Discussion_of_the_Canadian_Situation_in_the_International_Context-English.pdf Year: 2011 Country: International URL: http://transcrime.cs.unitn.it/tc/fso/pubblicazioni/AP/Understudied_Organized_Crime_Offending_A_Discussion_of_the_Canadian_Situation_in_the_International_Context-English.pdf Shelf Number: 123556 Keywords: Counterfeit GoodsCounterfeitingGamblingHazardous WastesOffenses Against the EnvironmentOrganized CrimeWildlife Crime |
Author: U.S. Chamber of Commerce Title: What are Counterfeiting and Piracy Costing the American Economy Summary: Counterfeiting and piracy are costing the U.S. public billions of dollars every year. But the problem is more insidious than that. It damages investment and innovation; has potentially devastating economic consequences for small businesses; puts a severe strain on law enforcement agencies; nearly always escapes taxation; threatens public health and safety; diverts government resources from other priorities; and has links to terrorism and organized crime. Counterfeiting and piracy, once viewed as “victimless” crimes mainly consisting of selling cheap knockoff sunglasses and watches, have mushroomed in recent years to endanger every product that is created. From dangerous substandard replacement parts for airplane engines to ineffective pharmaceuticals to illegally copied compact discs manufactured by the millions in clandestine factories around the world, sales of counterfeit and pirated goods are skyrocketing. Profits from these illicit sales are being funneled worldwide into the pockets of everyone, from groups associated with known terrorists to organized crime elements. The problem of counterfeiting and piracy goes beyond the manufacture, distribution, and sale of cheap, unauthorized goods. It threatens our national security, lessens the value of legitimate brand names, and erodes the profits of nearly every business in America. Details: Washington, DC: National Chamber Foundation, 2005. 23p. Source: Internet Resource: Accessed February 13, 2012 at: http://www.fnal.gov/directorate/OQBP/sci/sci_reference_docs/SCI%20Costs%20to%20Economy%20uschamber.pdf Year: 2005 Country: United States URL: http://www.fnal.gov/directorate/OQBP/sci/sci_reference_docs/SCI%20Costs%20to%20Economy%20uschamber.pdf Shelf Number: 124114 Keywords: Counterfeit Goods (U.S.)CounterfeitingPiracy (Copyright)Theft of Intellectural Property |
Author: U.S. Chamber of Commerce. Coalition Against Counterfeiting and Piracy (CACP) Title: No Trade in Fakes Supply Chain Tool Kit Summary: The growing problem of counterfeiting and piracy threatens businesses and consumers in nearly every region of the world. Fake products deprive legitimate businesses of revenue and undermine consumer confidence in their brand names. The damage affects both the brand and domestic and foreign subcontractors that supply materials, components, and finished products to the brand owner. Consumers are also adversely affected because they are deceived into buying fake products that don't meet the brand owner's standards and can pose health and safety hazards. Governments have a particularly critical role to play in this effort. They must create the necessary legal infrastructure to protect trademarks and copyrights effectively and enforce intellectual property laws to deter fraudulent behavior. Businesses, however, must also do their part to prevent the production and sale of counterfeit products. Many aspects of the counterfeiting problem are beyond the control of businesses. But one important area over which businesses can exert a large measure of control is the security of their supply chain. Lax security creates opportunities for counterfeit and stolen goods to make their way into legitimate production, wholesale, and retail channels. Globalization, the Internet, and advanced technology have made it easier for counterfeiters to infiltrate fake products into the supply chain and increase the availability of these products in markets around the world. Yet many businesses, particularly small and medium-size companies, do not fully appreciate the bottom-line cost of lax supply chain security and the adverse impact it has on brand value. To assist businesses and raise awareness of the importance of supply chain security, the Coalition Against Counterfeiting and Piracy (CACP) has developed a tool kit of best practices that companies in a variety of industry sectors are using to improve their internal systems and coordinate with other stakeholders, including subcontractors and government authorities. The CACP recognizes that supply chain requirements vary from industry to industry. There is not one set of best practices effective for all businesses. However, there are lessons that can be learned from businesses that take the security of their supply chains seriously. The following tool kit provides a useful guide for businesses to assess the effectiveness of their supply chain practices and consider new options for improving performance. In addition, this tool kit includes 7 case studies highlighting companies who are employing successful strategies to help protect their products from counterfeiters and modern-day pirates. Details: Washington, DC: Accenture, 2006. 25p. Source: Internet Resource: Accessed March 13, 2012 at http://www.fnal.gov/directorate/OQBP/sci/sci_reference_docs/SCI%20No%20Trade%20in%20Fakes%20CACP.pdf Year: 2006 Country: United States URL: http://www.fnal.gov/directorate/OQBP/sci/sci_reference_docs/SCI%20No%20Trade%20in%20Fakes%20CACP.pdf Shelf Number: 124469 Keywords: Consumer FraudCounterfeitingCrime PreventionCrimes Against BusinessesPiracy |
Author: Qian, Yi Title: Brand Management and Strategies Against Counterfeits Summary: In this paper, I provide a theory for the brand-protection strategies to counterfeiting under weak intellectual property rights. My theoretical framework has general implications for endogenous sunk cost investments as a means of deterring counterfeiters. My model incorporates two layers of asymmetric information that counterfeits can incur: counterfeiters fooling consumers, and buyers of counterfeits fooling other consumers. Brands have a number of different tools at their disposal to maintain a separating equilibrium in the face of counterfeits. One of the theoretical predictions of this study is that counterfeit entry would induce incumbent brand to introduce new products. This helps to explain the innovation strategies that authentic firms employ in response to entry by their counterfeiters in the real world. Authentic prices rise if and only if the counterfeit quality is lower than a threshold level. In addition, the model demonstrates how authentic producers could invest in self-enforcement to increase counterfeiters' incentives to separate themselves. Better channel management through company stores and other costly devices are forms of non-price signals and complement a company's own enforcements against counterfeits. These predictions are validated using a unique panel data collected from Chinese shoe companies covering the years 1993-2004. Data further reveal that companies with worse relationships with the government invest more in various self-enforcement strategies, which are effective in reducing counterfeit sales, and that the set of strategies are complements rather than substitutes. Details: Cambridge, MA: National Bureau of Economic Research, 2012. 43p. Source: NBER Working Paper Series 17849: Internet Resource: Accessed March 14, 2012 at http://www.nber.org/papers/w17849.pdf?new_window=1 Year: 2012 Country: United States URL: http://www.nber.org/papers/w17849.pdf?new_window=1 Shelf Number: 124552 Keywords: Businesses and CrimeCounterfeitingRetail Crime |
Author: Content First, LLC Title: Counterfeiting and Piracy in Brazil: The Economic Impact Summary: This report, commissioned by the Brazil-U.S. Business Council, reviews the economic costs of counterfeit and pirated goods for the Brazilian economy. Copies of software, compact discs, medicines, mobile phones, food and drink, car parts, tobacco products, and imitation designer fashions are sold every day in the huge Brazilian market of nearly 180 million consumers. New technology means that more goods than ever are vulnerable to copying. Counterfeiting and piracy hurt not only companies doing business in Brazil, but in turn, all Brazilians. Major industries, such as software and music, lose more than half of their sales to these illegal activities. Consequently, there are fewer jobs for Brazilians, the government collects less tax revenue, Brazilian consumers must pay higher prices for inferior products, and counterfeited products endanger the health and safety of consumers. Measuring the full economic impact of counterfeiting and piracy is hard because these activities are clandestine. Even the Brazilian government lacks official data on the economic damages caused by the sales of counterfeit or pirated goods. Despite these limitations, a review of the best available industry estimates indicates that at least $1.6 billion in sales are lost every year to counterfeiting and piracy. The copyright industry alone estimates yearly losses of nearly $800 million. Industry estimates also show that Brazil would net $500 million a year in lost cigarette tax revenue if counterfeiting or piracy were reduced or eliminated. The data developed for this report are based on a survey of major industry sectors, interviews with trade association representatives, and a review of existing reports and literature. Details: Washington, DC: Brazil-U.S. Business Council, 2004. 15p. Source: Internet Resource: Accessed April 10, 2012 at: http://www.iccwbo.org/uploadedFiles/BASCAP/Pages/Counterfeiting_and_Piracy_in_Brazil%5B1%5D.pdf Year: 2004 Country: Brazil URL: http://www.iccwbo.org/uploadedFiles/BASCAP/Pages/Counterfeiting_and_Piracy_in_Brazil%5B1%5D.pdf Shelf Number: 124913 Keywords: CounterfeitingFraudIntellectual Property Rights (Brazil)Piracy (Copyright) |
Author: Trimble, Meridee Jean Title: U.S. Policy Options Toward Stopping North Korea’s Illicit Activities Summary: North Korea began its involvement in illicit activities in the 1970s, but it took the United States until the new millennium to develop a series of major law enforcement approaches to counter these activities. North Korea’s illicit activities are purportedly the funding input for the development of its nuclear weapons program, which constitutes the output. The main illicit activities to be discussed include drug production and trafficking, the counterfeiting of U.S. currency, cigarettes and pharmaceuticals, missile sales and human trafficking. The United States has aggressively addressed the nuclear threat that North Korea poses, but has been slow to address the inputs that fund the outputs. This thesis seeks to answer the question of why it took the United States over three decades to address the illicit activities of North Korea that purportedly fund its nuclear program. Details: Monterey, CA: Naval Postgraduate School, 2007. 91p. Source: Internet Resource: Master's Thesis: Accessed April 18, 2012 at: http://www.dtic.mil/dtic/tr/fulltext/u2/a475783.pdf Year: 2007 Country: Korea, North URL: http://www.dtic.mil/dtic/tr/fulltext/u2/a475783.pdf Shelf Number: 125018 Keywords: CounterfeitingDrug TraffickingHuman TraffickingIllegal Activities (North Korea)Illicit Goods |
Author: Pacula, Rosalie Liccardo Title: An Alternative Framework for Empirically Measuring the Size of Counterfeit Markets Summary: NBER Program(s): PE This paper develops a new method for estimating trends in the size of counterfeit markets. The method draws on principles of microeconomic theory and uses aggregated product-level data to estimate counterfeiting activities in various geographic markets. Using confidential firm unit forecasts and actual sales information, a two stage approach is employed that first accounts for unexpected but observable factors that could lead to forecasting error and then, in the second stage, considers the influence of market susceptibility to IPR infringement. Data are analysed for 45 related products sold by a single firm operating in 16 countries during the period 2006-2011. Our models predict larger amounts of counterfeiting in countries with higher corruption norms, lower government control and effectiveness. Predictions of the level of counterfeiting obtained from the second stage are then compared to estimates of counterfeiting derived internally by the firm using shadow-shopping methods. While our two stage model generally under-predicts the level of counterfeiting in each year, it generates trends in counterfeiting that are broadly consistent with those obtained using more costly and intensive methods. Details: Cambridge, MA: National Bureau of Economic Research, 2012. 36p. Source: Internet Resource: NBER Working Paper No. 18171: Accessed June 26, 2012 at: http://papers.nber.org/papers/w18171?utm_campaign=ntw&utm_medium=email&utm_source=ntw Year: 2012 Country: International URL: http://papers.nber.org/papers/w18171?utm_campaign=ntw&utm_medium=email&utm_source=ntw Shelf Number: 125395 Keywords: Counterfeit GoodsCounterfeiting |
Author: TRANSCRIME Title: Plain Packaging and Illicit Trade in the UK: Study on the Risks of Illicit Trade in Tobacco Products as Unintended Consequences of the Introduction of Plain Packaging in the UK Summary: This study analyses the risks of the illicit trade in tobacco products (ITTP) which may arise as the unintended consequences of the introduction of plain packaging of tobacco products in the UK. The tobacco market is a dual market. It consists of a legitimate and an illegal part, which implies that changes to the legal market may affect the illicit market as well. The ITTP is a threat to the effectiveness of tobacco control policies aimed at curbing smoking and its dangerous effects on human health. Details: Trento, Italy: Transcrime - Joint Research Centre on Transnational Crime, 2012. 38p. Source: Internet Resource: Accessed September 14, 2012 at: http://transcrime.cs.unitn.it/tc/fso/pubblicazioni/AP/Transcrime-Plain_packaging_and_illicit_trade_in_the_UK.pdf Year: 2012 Country: United Kingdom URL: http://transcrime.cs.unitn.it/tc/fso/pubblicazioni/AP/Transcrime-Plain_packaging_and_illicit_trade_in_the_UK.pdf Shelf Number: 126346 Keywords: Counterfeit ProductsCounterfeitingIllegal TobaccoIllicit Tobacco (U.K.)Organized Crime |
Author: Calderoni, Francesco Title: Crime Proofing the Policy Options for the Revision of the Tobacco Products Directive: Proofing the Policy Options Under Consideration for the Revision of EU Directive 2001/37/EC Against the Risks of Unintended Criminal Opportunities Summary: The report by Transcrime uses a widely endorsed crime proofing methodology that assesses opportunities for crime inadvertently created by regulation. Analyzing all the proposed policy options for the revision of the TPD, Transcrime found three major policy areas which are likely to increase crime: generic packaging for tobacco products, implementation of a “polluter pays principle” and a ban on the display of tobacco products at the point of sale. “The crime proofing exercise we have conducted has shown that some of the policy options envisaged by the European Commission carry significant risks of creating unintended opportunities for the illicit trade in tobacco products. In particular, there is a high risk that a measure such as generic packaging may increase the counterfeiting of tobacco products and make it difficult for consumers to distinguish legitimate products from illegitimate ones” said the report’s author, Professor Ernesto Savona. Available information on the currently on-going impact assessment for the revision of the TPD indicates that the Directorate General for Health and Consumer Protection (DG SANCO) paid almost no attention to the potential impacts on the illegal trade in tobacco products. “Contrary to their own guidelines, European policymakers rarely consider the crime risk implications when drafting new legislation and the revision of the Tobacco Products Directive by DG SANCO seems to confirm this,” continued Professor Savona. In the report, Transcrime emphasizes the need for further research and attention by policy makers to assess, among the many consequences, also the crime impact of proposed tobacco policy measures, something that has been systematically overlooked so far. Details: Trento, Italy: Transcrime - Joint Research Centre on Transnational Crime, 2012. 60p. Source: Internet Resource: Accessed September 14, 2012 at: http://transcrime.cs.unitn.it/tc/537.php Year: 2012 Country: Europe URL: http://transcrime.cs.unitn.it/tc/537.php Shelf Number: 126347 Keywords: Counterfeit TobaccoCounterfeitingCrime PreventionCrime ProofingIllegal TobaccoIllicit TobaccoOrganized CrimeTobacco Control Policy |
Author: Qian, Yi Title: Untangling Searchable and Experiential Quality Responses to Counterfeits Summary: In this paper, we untangle the searchable and experiential dimensions of quality responses to entry by counterfeiters in emerging markets with weak intellectual property rights. Our theoretical framework analyzes the market equilibria under competition with non-deceptive counterfeiting and deceptive counterfeiting, respectively, as well as under monopoly branding. A key theoretical prediction is that emerging markets can be self-corrective with respect to counterfeiting issues in the following sense: First, counterfeiters could earn positive profits by pooling with authentic brands only when consumers have good faith in the market (believe in a low probability that any product is a counterfeit). When the proportion of counterfeits in the market exceeds a cutoff value, brands would invest in self-differentiation from the competitive fringe counterfeiters. Second, to attain a separating equilibrium with counterfeiters, branded incumbents upgrade the searchable quality (e.g. appearance) of their products more and improve the experiential quality (e.g. functionality) less, as compared to monopoly equilibrium. This prediction uncovers the nature of product differentiation in the searchable dimension and helps in analyzing the real-world innovation strategies employed by authentic firms in response to entries by counterfeit entities. In addition, the welfare analyses hint at a non-linear relationship between social welfare and intellectual property enforcement. Details: Cambridge, MA: National Bureau of Economic Research, 2013. 32p. Source: Internet Resource: NBER Working Paper Series; Working Paper 18784: Accessed February 11, 2013 at: http://www.nber.org/papers/w18784 Year: 2013 Country: International URL: http://www.nber.org/papers/w18784 Shelf Number: 127560 Keywords: CounterfeitingCrimes Against BusinessesRetail Crime |
Author: De Cat, Dennis Title: Counterfeiting and Consumer Behaviour Summary: Many reports state that the overall magnitude of counterfeiting is obviously on the rise. For instance, the Taxation and Customs Union from the European Commission (EC) reports that the number of counterfeit articles detained in EU member states only, has risen from 25 million in 1999 to 178 million in 2008 (European Commission, 2008). The most frequently cited number to ‘value’ counterfeiting is the one the OECD proposes in their analysis of international trade data. They suggest that, worldwide, up to USD 200 billion of internationally traded products could have been counterfeit in 2005. However, one must remain critical. As the OECD report suggests itself, “available information on counterfeiting and piracy falls far short of what is needed for robust analysis and for policymaking”. Chaudry and Zimmerman (2008) even state it is virtually impossible to determine the real size of the worldwide counterfeit product market as it concerns an illegal activity. Green and Smith (2002) blame the fact that there exists no exact standard or agreement about the factors that should be taken into account when calculating the monetary value of counterfeiting for this non-transparency. Nevertheless, they also suggest that product counterfeiting is significant and growing. This statement is confirmed by previous research on the reasons of counterfeit growth by Vagg and Harris (2000). Not only the magnitude of counterfeiting is increasing. The same goes for the scope of counterfeiting. Chaudry and Zimmerman (2008) state that the types of products being counterfeited are broadening. Not only CD’s, DVD’s, computer equipment, clothes and shoes are being counterfeited. Other product categories frequently being imitated are toys, pharmaceuticals, automobile component parts, electrical equipment, food and beverages, tobacco and personal care products. This is confirmed by the OECD (2008) which even finds a shift from luxury goods to common consumer goods. These results are also congruent with the findings of the Taxation and Customs Union from the EC. Gentry et al. (2006) even put it more extreme: “If one can attach some value to a consumer brand, one is likely to find counterfeit imitations of it, somewhere.” This view is supported by Lewis (2009) who ads the aspect of the illegal profit margin that has to be high enough before a product is attractive for being counterfeited. Despite the fact that other product categories are on the rise, the OECD (2008) and the EC (2008) report that fashion items (i.e. clothing, jewellery, accessories and footwear) still account for the largest part of counterfeit trade, e.g. the textile sector and jewellery together make up 66,2% of all interventions by European Customs. Gessler (2009) states that counterfeiting is the major obstacle the luxury fashion industry is facing today. These astonishing numbers explain why the author opted for investigating non-deceptive counterfeiting (i.e. people are fully aware of the fact they are buying a counterfeit at the time of purchase) and consumer behaviour in the luxury fashion industry. The consequences of counterfeiting are enormous at various levels. Gessler (2009) divides ‘the true costs of counterfeiting’, i.e. the consequences of the phenomenon, in six categories: the cost to brand owners, government burdens, the effects counterfeiting has on consumers, child and forced labour issues in the production of these counterfeits, organised crime and terrorist funding activities of counterfeiters and the moral cost of counterfeiting. Later on in this paper the author will make a distinction on the basis of personal and societal harm counterfeit trade causes. One thing is clear: counterfeiting may no longer be seen as a victimless crime as it has a damaging effect on businesses, national economies, consumers and on society as a whole (UNICRI, 2009; Santos and Ribeiro, 2006). In the anti-counterfeiting literature many authors propose different strategies to counter product and brand counterfeiting. These anti-counterfeiting tactics range from the use of RFID tags (Tuyls and Batina, 2006) to the development of new legal frameworks (Bush et al., 2001). However, Berman (2008) states also companies can contribute to the reduction of the counterfeiting problem through the development of consumer education programs that publicize the personal and societal dangers counterfeiting causes. A part of this education process is that ‘marketers need to develop advertising campaigns that focus on the significant safety, performance and financial risks associated with the purchase of counterfeit merchandise’. To the author’s best knowledge, no such research has been conducted before that classifies and investigates the potential consequences of counterfeiting in such an extensive way. Furthermore, by integrating the construct of ‘societal harm’, this research responds to the critical remark Gessler (2009) made: ‘Unfortunately, the societal impact of counterfeiting remains largely under researched and often neglected’. In this research we will assess the impact of consumers’ awareness of societal consequences on their attitudes toward purchasing CLFI. Altogether, the main interest of this research goes out to examining consumers’ attitude toward purchasing counterfeit luxury fashion items (CLFI) and their intention to purchase CLFI. More specifically, the author will be investigating if there exists a difference in attitude toward purchasing CLFI if one is being informed about the personal harm counterfeits cause rather than being informed about the societal consequences bound to counterfeit trade. In addition, several factors proven important in previous research (e.g. subjective norms, perceived behavioural control, etc.) will be reinvestigated in a Belgian context. The relationship between the price level, the quality level and perceived quality will be examined as well. Finally, the linkage between attitudes and intentions is assessed in a counterfeit-related context. Details: Ghent, Belgium: Ghent University, 2010. 109p. Source: Internet Resource: Thesis: Accessed March 7, 2013 at: http://lib.ugent.be/fulltxt/RUG01/001/459/733/RUG01-001459733_2011_0001_AC.pdf Year: 2010 Country: International URL: http://lib.ugent.be/fulltxt/RUG01/001/459/733/RUG01-001459733_2011_0001_AC.pdf Shelf Number: 127865 Keywords: Consumer BehaviorConsumer FraudCounterfeit GoodsCounterfeiting |
Author: United Nations Interregional Crime and Justice Research Institute (UNICRI) Title: Confiscation of the Proceeds of IP Crime: A modern tool for deterring counterfeiting and piracy Summary: The theft of Intellectual Property (IP) in the forms of trademark counterfeiting and copyright piracy is a socio-economic problem of enormous scale that has escalated significantly in the last decade. In one country after another, the massive infiltration of counterfeit and pirated products has created an enormous drain on national economies around the world — crowding out billions in legitimate economic activity and facilitating an “underground economy” that deprives governments of revenues for vital public services, forces higher burdens on tax payers, dislocates hundreds of thousands of legitimate jobs and exposes consumers to dangerous and ineffective products. Moreover, the Internet is increasingly exploited as an illicit marketplace for counterfeiting and piracy. The latest estimate from ICC BASCAP indicates that the total global value of counterfeiting and piracy could reach a staggering peak of USD 1.7 trillion by 2015. IP crime has emerged as a lucrative and growing new activity for organized criminal networks. There is strong evidence that organized criminal groups are moving into counterfeiting and piracy in ever-growing numbers. The high profits and low risk associated with modest penalties and lax enforcement of intellectual property IP crime has made this a major new business opportunity for organized crime networks. Today, counterfeiting and piracy play a key role in the operations of transnational criminal organizations. One recent example of this was the Interpol-led Operation “Black Poseidon”. The operation targeted products being traded illicitly across Eastern Europe (namely Belarus, Georgia, Moldova, Turkey and Ukraine) by transnational organized crime groups. Counterfeit products included computers, pharmaceuticals, agrochemicals, electronics, alcohol and cigarettes. The operation led to the seizure of goods worth over €120 million and 1,400 persons under arrest or investigation. The emergence of organized IP crime accelerates the globalization of counterfeiting and piracy, helps fund other criminal activities such as extortion, illegal drugs and human trafficking, compromises the international financial system for money laundering purposes and, ultimately, makes it more difficult for existing law enforcement measures to be effective. Details: Turin, Italy: United Nations Interregional Crime and Justice Research Institute, 2013. 84p. Source: Internet Resource: accessed August 10, 2013 at: www.iccwbo.org Year: 2013 Country: International URL: Shelf Number: 129618 Keywords: Copyright PiracyCounterfeit ProductsCounterfeitingCriminal NetworksOrganized Crime (International)Theft of Intellectual Property |
Author: United Nations Office of Drugs and Crime Title: Focus on The Illicit Trafficking of Counterfeit Goods and Transnational Organized Crime Summary: As a global, multibillion dollar crime, organized criminal groups have not hesitated to cash in on the trade in counterfeit goods. In many parts of the world, international, regional and national law enforcement authorities have uncovered intricate links between this crime and other serious offences including illicit drugs, money laundering and corruption. Some estimates put the counterfeit business at well in excess of $250 billion a year and hundreds of billions more, if pirated digital products and domestic counterfeit sales are included. The involvement of organized criminal groups in the production and distribution of counterfeit goods has been documented by both national and international authorities. Groups such as the Mafia and Camorra in Europe and the Americas, and the Triads and Yakuza in Asia have diversified into the illicit trafficking of counterfeit goods, while at the same time being involved in crimes varying from drug and human trafficking, to extortion and money laundering. UNODC's own research reports have recognized the strategic and operational criminal link between counterfeiting and activities such as drug trafficking. There is an additional societal impact caused by counterfeiting. The trade in counterfeit products can result in increased corruption and law enforcement costs, have a serious impact on public health and safety, lead to social and environmental concerns, and result in the infringement of other criminal and administrative laws such as tax and customs evasion as well as fraud. The illicit trafficking of counterfeit goods: A criminal act With the combination of high profits and low penalties resulting from a greater social tolerance compared to other crimes, the illicit trafficking of counterfeit goods is an attractive money-making avenue for organized criminal groups. In some instances, the illicit trafficking of counterfeit goods is more profitable than other illegal activities, such as the trafficking and sale of narcotic drugs, people and weapons. Yet while the illicit trafficking of counterfeit goods is often perceived as a 'lesser crime', the consequences can be quite serious, with the costs going far beyond just the illegal copying of products. Details: Vienna: UNODC, 2014. 10p. Source: Internet Resource: Accessed July 11, 2014 at: http://www.unodc.org/documents/counterfeit/FocusSheet/Counterfeit_focussheet_EN_HIRES.pdf Year: 2014 Country: International URL: http://www.unodc.org/documents/counterfeit/FocusSheet/Counterfeit_focussheet_EN_HIRES.pdf Shelf Number: 132649 Keywords: Counterfeit ProductsCounterfeitingOrganized CrimeTransnational Crime |
Author: Caneppele, Stefano Title: Crime Proofing of the New Tobacco Products Directive Summary: This study concerns the crime proofing of the Proposal for the Revision of the Tobacco Products Directive presented in December 2012, and it is an update of a study on the crime proofing of the policy options under consideration of the revision of Directive 2001/37/EC. The crime proofing of legislation is a scientific approach developed by Transcrime in 2006 (Savona, 2006a; Savona, 2006b; Savona, Calderoni et al., 2006; Savona, Maggioni, et al., 2006; Morgan and Clarke, 2006; Albrecht and Kilchling, 2002). The core idea is that legislation may produce unintended opportunities for crime, thereby having potential criminogenic effects. When these opportunities and where they may occur is known, the legislation may be "proofed" against crime. This study is concerned with the impact of the new Tobacco Products Directive (TPD) on crime, and all the more so on the Illicit Trade in Tobacco Products (henceforth ITTP), an area that has not been considered by any of the impact assessment studies carried out by the EU Commission in preparation of the new Directive. Consequently, no knowledge is officially available on the impact of the new regulation upon the ITTP. This report aims at filling this gap by using the available data and making estimates. In January 2012, Transcrime presented a study which proofed the policy options under consideration for the revision of EU Directive 2001/37/EC against the risks of unintended criminal opportunities for the illicit trade in tobacco products (Calderoni, Savona, & Solmi, 2012). The study highlighted that "DG SANCO paid almost no attention to the impact on the ITTP" and that "certain measures considered for the revision of the TPD may have serious consequences" regarding possible risks of increased ITTP (Calderoni et al. 2012, p.42). The impact assessment (IA) released on December 2012 denies the risks of the ITTP. The EU Commission declared "that the preferred policy options do not [ in the assessment of the Commission - lead to increased illicit trade" (European Commission, 2012a, p. 6). More than being the result of an IA of the policy options and their trade-off on ITTP, this statement is an a priori assumption that excludes the area of crime from the IA carried out by the EU Commission. This is a serious flaw that may compromise the validity of the results of the impact assessment itself, and which does not comply with the EU's official impact assessment guidelines (European Commission, 2009). Details: Trento, IT: Transcrime, 2013. 88p. Source: Internet Resource: Accessed July 28, 2014 at: http://www.transcrime.it/wp-content/uploads/2013/11/Crime-Proofing-of-the-NEW-TPD_6.pdf Year: 2013 Country: Europe URL: http://www.transcrime.it/wp-content/uploads/2013/11/Crime-Proofing-of-the-NEW-TPD_6.pdf Shelf Number: 132805 Keywords: Cigarette Smuggling (Europe) Counterfeiting Illegal Tobacco Illicit TradeTobacco Smuggling Underground Economy |
Author: KPMG Title: Illicit Tobacco in Australia Summary: For the first time since the implementation of Australia's plain packaging experiment we now have hard data to replace the anecdotes and predictions about its true impact, and the data show that since the introduction of this policy the black market has grown while consumption of tobacco overall has not declined. This report shows that smugglers and counterfeiters have been the big winners in Australia since the implementation of plain packaging at a great loss to the treasury. In less than a year, consumption of illegal, branded cigarettes, some of which now enjoy higher market share than legal brands in Australia, has increased by 154 percent. As a result, the government has lost up to AUD1.0 billion in tax revenue, while the criminal gangs behind this activity have lined their pockets. PMI supports reasonable regulation, but we believe governments have a responsibility to ensure the laws they pass meet their stated goals, uphold the rule of law, are evaluated based on objective standards and do not lead to negative consequences, such as boosting the illegal market at the expense of legitimate manufacturers and retailers. As studies quantifying actual changes in behavior and the marketplace since the introduction of plain packaging continue to come out of Australia, it is our hope that this evidence will not be ignored. Details: London: KPMG, 2014. 74p. Source: Internet Resource: Accessed August 4, 2014 at: https://www.imperial-tobacco.com/assets/files/cms/KPMG_FY2013_Illicit_Trade_Report___FINAL___11_April_2014.pdf Year: 2014 Country: Australia URL: https://www.imperial-tobacco.com/assets/files/cms/KPMG_FY2013_Illicit_Trade_Report___FINAL___11_April_2014.pdf Shelf Number: 132880 Keywords: CounterfeitingIllegal MarketsIllegal Tobacco (Australia)Illicit TobaccoSmugglingTax Evasion |
Author: Cho, Soo-Haeng Title: Combating Strategic Counterfeiters in Licit and Illicit Supply Chains Summary: Counterfeit goods are becoming more sophisticated, from shoes to infant milk powder to aircraft parts, creating problems for consumers, firms, and governments. By comparing two types of counterfeiters-deceptive, so infiltrating a licit (but complicit) distributor, or nondeceptive in an illicit channel-we provide insights into the impact of anticounterfeiting strategies on a brand-name company, a counterfeiter, and consumers. Our analysis highlights that the effectiveness of these strategies depends critically on whether a brand-name company faces a nondeceptive or deceptive counterfeiter. For example, by improving quality, the brand-name company can improve her expected profit against a nondeceptive counterfeiter when the counterfeiter steals an insignificant amount of brand value. However, the same strategy does not work well against the deceptive counterfeiter unless high quality facilitates the seizure of deceptive counterfeits significantly. Similarly, reducing price works well in combating the nondeceptive counterfeiter, but it could be ineffective against the deceptive counterfeiter. Moreover, the strategies that improve the profit of the brand-name company may benefit the counterfeiter inadvertently and even hurt consumer welfare. Therefore, firms and governments should carefully consider a trade-off among different objectives in implementing an anticounterfeiting strategy. Details: Pittsburgh: Carnegie Mellon University - Tepper School of Business, 2014. 45p. Source: Internet Resource: Accessed May 16, 2015 at: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1525743 Year: 2014 Country: United States URL: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1525743 Shelf Number: 135682 Keywords: Consumer FraudConsumer ProtectionCounterfeit ProductsCounterfeitingSupply Chains |
Author: Europol Title: 2015 Situation Report on Counterfeiting in the European Union Summary: Although the majority of counterfeit products in circulation in Europe are manufactured outside the EU - and evade detection at the EU's external borders - research for the report highlights how domestic EU production is on the rise with cases originating in Belgium, the Czech Republic, Italy, Poland, Portugal, Spain and the UK. This large-scale domestic production of counterfeit goods in the EU is becoming an increasingly profitable business for organised crime groups and organisations. Counterfeiters, who operate with significantly lower risks, have been found to have links with other forms of crime such as trafficking in human beings - notably for labour exploitation - as well as with other criminal groups, originating from different countries in and outside Europe. The most significant enabler for distributing these counterfeit goods is the Internet. Consumers are drawn to e-commerce sites due to their prices, 24/7 availability and direct delivery. Some websites are of such high quality that they rival those of the rights holder. Counterfeiters are able to function across multiple jurisdictions, evading capture, and are also able to take down and set up new websites overnight without losing their customer base. The report explores how Chinese organised criminal groups involved in distributing counterfeit goods are highly mobile, specialised teams. Those operating in Italy are known to have close relationships with the Camorra and collaborate to import counterfeit goods. Chinese diaspora communities across Europe are extensive and there is a concentration of Chinese counterfeit businesses in several Italian provinces that are all associated with the textile and fashion industries. Parts of Madrid and its suburbs have also been infiltrated by Chinese organised crime groups. These criminal groups operate across Europe and use legitimate businesses to facilitate the movement of counterfeit products. They have also established and developed collusive relationships with a network of money transfer agencies, enabling them to launder and send large amounts of money to China. After China, India is the next priority concern due to its impact on the EU through counterfeit pharmaceutical products; Turkey for foodstuffs; Indonesia for weak legislation and corruption issues; and the Philippines for low rates of enforcement. Details: The Hague: Europol, 2015. 70p. Source: Internet Resource: Accessed May 20, 2015 at: https://www.europol.europa.eu/content/2015-situation-report-counterfeiting-european-union Year: 2015 Country: Europe URL: https://www.europol.europa.eu/content/2015-situation-report-counterfeiting-european-union Shelf Number: 135731 Keywords: Consumer ProtectionCounterfeit GoodsCounterfeitingOrganized Crime |
Author: Viles, Nathan Title: The Social Costs of Currency Counterfeiting Summary: Currency counterfeiting is costly for society. Law enforcement agencies allocate substantial resources to deter, detect and prosecute counterfeiting operations, households and businesses suffer a direct loss to counterfeiters and undertake costly prevention measures, and central banks spend considerable resources upgrading and improving the security of banknotes. Without these prevention efforts, there is a risk that the public could lose confidence in the currency and reduce its use relative to more costly payment alternatives. This paper examines the social costs of counterfeiting in Australia. First, we provide some statistics on counterfeiting domestically and compare Australia's experience with some other economies internationally. We find that the direct costs of counterfeiting in Australia are relatively low when compared with other economies, but that there can be substantial deadweight costs associated with prevention efforts and losses of confidence in the currency. Second, we focus on quantifying the effect of a loss of confidence in the currency. To do this, we estimate a structural vector auto-regression using the Australian data. In response to a positive one standard deviation counterfeiting shock, the demand for banknotes declines and the use of credit cards and bank deposits increase. These results are consistent with the presence of substitution effects. Using a scenario to quantify the real resource costs associated with these substitution effects, our estimates suggest that an increase in counterfeiting of around A$140 000, spread over ten years, leads to a total increase in social costs of A$7.0 million. Although the statistical uncertainty implied in the model and scenario estimates is large, the results suggest that there are significant pay-offs from efforts to prevent and deter counterfeiting activity in Australia. Details: Sydney: Reserve Bank of Australia, 2015. 40p. Source: Internet Resource: Research Discussion Paper 2015-05: Accessed May 27, 2015 at: http://www.rba.gov.au/publications/rdp/2015/pdf/rdp2015-05.pdf Year: 2015 Country: Australia URL: http://www.rba.gov.au/publications/rdp/2015/pdf/rdp2015-05.pdf Shelf Number: 135790 Keywords: CounterfeitCounterfeiting |
Author: Quercioli, Elena Title: The Economics of Counterfeiting Summary: This paper develops a new tractable strategic theory of counterfeiting as a multi-market large game played by good and bad guys. There is free entry of bad guys, who choose whether to counterfeit, and what quality to produce. Opposing them is a continuum of good guys who select a costly verification effort. In equilibrium, counterfeiters produce better quality at higher notes, but verifiers try sufficiently harder that verification still improves. We develop and use a graphical framework for deducing comparative statics. We prove that the passed and counterfeiting rates vanish for low and high notes. Our predictions are consistent with time series and cross-sectional patterns in a unique data set that we assemble largely from the U.S. Secret Service: (1) One plus the seized/passed ratio rises in the note, but less than proportionately; (2) The passed rate rises 40-fold from $1 to $20, and levels off, dropping at higher notes; (3) Counterfeit quality rises in the note; (4) Since 1970, the seized-passed ratio is down 90%, and the passed rate is up 75%; (5) Inexpensive digital production leaped up in 1994-8; and (6) Canada's introduction of color notes temporarily nearly stopped counterfeiting. Details: Unpublished paper, 2013. 30p. Source: Internet Resource: Accessed June 4, 2015 at: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1325892 Year: 2013 Country: United States URL: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1325892 Shelf Number: 135896 Keywords: CounterfeitingEconomics of CrimeFinancial Crimes |
Author: Fung, Ben Title: Counterfeit Quality and Verification in a Monetary Exchange Summary: Recent studies on counterfeiting in a monetary search framework show that counterfeiting does not occur in a monetary equilibrium. These findings are inconsistent with the observation that counterfeiting of bank notes has been a serious problem in some countries. In this paper, we show that counterfeiting can exist as an equilibrium outcome in a model in which money is not perfectly recognizable and thus can be counterfeited. A competitive search environment is employed in which sellers post offers and buyers direct their search based on posted offers. When sellers are uninformed about the quality of the money, their offers are pooling and thus buyers can extract rents by using counterfeit money. In this case, counterfeit notes can coexist with genuine notes under certain conditions. We also explicitly model the interaction between sellers' verification decisions and counterfeiters' choices of counterfeit quality. This allows us to better understand how policies can affect counterfeiting. Details: Ottawa: Bank of Canada, 2011. 37p. Source: Internet Resource: Working Paper 2011-4: Accessed July 23, 2015 at: http://www.bankofcanada.ca/wp-content/uploads/2011/02/wp11-4.pdf Year: 2011 Country: Canada URL: http://www.bankofcanada.ca/wp-content/uploads/2011/02/wp11-4.pdf Shelf Number: 136146 Keywords: Counterfeit CurrencyCounterfeitingFinancial Crimes |
Author: Frontier Economics Title: The economic and social impacts of counterfeiting and piracy in Turkey Summary: This study is the first attempt to estimate the magnitude and costs of counterfeiting in Turkey. The magnitude of counterfeiting in the economy includes the value of imported, domestically produced, and digitally retrieved counterfeit products, and adds up to 1% of the GDP. The costs of counterfeiting include tax losses, additional welfare payments, health costs, as well as costs to the wider economy such as lost FDI and exports. Estimates on employment losses due to all these factors also are included. These estimates are based on a Frontier-developed methodology that is built on work by the OECD, and show that counterfeiting is a serious problem for Turkey. Counterfeiting is not only a law enforcement issue, but is also a core problem that is relevant for economic policy-makers. The recently published Global Competitiveness Report 2011-12 by the World Economic Forum classifies Turkey as a transition economy passing from an efficiency-driven to innovation-driven stage. Completing this transition will necessitate a tough stance against counterfeiting. Firms in an efficiency-driven economy compete and grow by cutting down costs, while firms in an innovation-driven economy compete and grow by creating unique value at the global level. Illicit entities that produce counterfeit products may "compete" on cost, but they cannot act as building blocks of an innovation-driven economy. They are destined to stay as small enterprises that generate little or self-employment with low wages, all the while skirting the law. Entities involved in counterfeiting are necessarily driven into informal, illicit markets. They are excluded not only from the tax collection system, but also from the global manufacturing value-chains of modern corporations that bring local firms opportunities to scale up to the global level. Needless to say, informal firms have limited access to bank credit and venture capital, further limiting their growth prospects. If the Turkish economy is to upgrade to an innovation-driven stage, it will be based on high-impact enterprises that are able to scale-up to the global level by creating unique value. Only firms that are not involved in counterfeiting can acquire and retain global customers and investors in the long-run. It is natural to see this value be distributed to wider society in form of larger employment with higher wages. This is why avoiding counterfeiting should be an economic-policy priority. Tackling counterfeiting is a difficult challenge. It requires not only close enforcement, but the necessary incentives to create long-lasting transformation in the habits of entrepreneurs. To create a policy environment against counterfeiting requires a high level of policy coordination among different departments in the government. Dialogue and coordination among the ministries of Culture and Tourism, Justice, Health, the Interior, Economy, Customs and Trade, as well as institutions such as the Turkish Patent Institute and the Scientific and Technical Research Council of Turkey (TUBITAK), as well as between public institutions and private sector representatives are essential. To ensure coordination and dialogue among so many different agents, political will is critical. This report is a first step in building this political will by revealing the large magnitude and long list of costs associated with counterfeiting and piracy in Turkey. Details: Ankara: BASCAP (Business Action to Stop Counterfeiting and Piracy, 2011. 43p. Source: Internet Resource: Accessed November 16, 2015 at: www.iccwbo.org Year: 2011 Country: Turkey URL: www.iccwbo.org Shelf Number: 137281 Keywords: Counterfeit ProductsCounterfeitingEconomic CrimesFinancial CrimesIllicit MarketsPirated Goods |
Author: Frontier Economics Title: Estimating the Global Economic and Social Impacts of Counterfeiting and Piracy Summary: Government efforts to stabilize the economy and stimulate economic growth, trade and employment must include the critical and pervasive role that intellectual property (IP) protection plays in driving, innovation, development and jobs. The massive infiltration of counterfeit and pirated products, or IP theft, creates an enormous drain on the global economy - crowding out billions in legitimate economic activity and facilitating an "underground economy" that deprives governments of revenues for vital public services, forces higher burdens on tax payers, dislocates hundreds of thousands of legitimate jobs and exposes consumers to dangerous and ineffective products. Reliable information on the scope, scale, costs and impacts of counterfeiting and piracy is critical for helping policymakers to better understand that the trade in fake goods is damaging their economies, threatening the health and safety of their citizens and stifling innovation and creativity. Policymakers with better information on of how counterfeiting and piracy undermine IP, innovation, economic growth and employment are better able to make the fight against IP theft a higher public policy priority and take the actions needed to prevent the damage inflicted by counterfeiting and piracy. In this regard, government efforts to strengthen IP enforcement regimes can more appropriately be considered as investments that pay tangible dividends to economic development and society. Because counterfeiters and pirates operate outside the law, estimating the extent of counterfeiting and piracy and the harm these activities cause is extremely challenging. Illegal businesses do not report information on their activities to any government agency so measuring their size must be done using indirect methods. For this reason, Business Action to Stop Counterfeiting and Piracy (BASCAP), an initiative of the International Chamber of Commerce, is commissioning experts (including Frontier for this report) to examine the issue and to develop methodologies for estimating the economic and social impacts of counterfeiting and piracy. No one report or approach will yield a complete picture or provide all the answers, but BASCAP is committed to learning from as many sources of expertise as possible. Details: Paris: BASCAP (Business Action to Stop Counterfeiting and Piracy), 2011. 61p. Source: Internet Resource: Accessed November 16, 2015 at: www.iccwbo.org Year: 2011 Country: International URL: www.iccwbo.org Shelf Number: 137282 Keywords: Counterfeit GoodsCounterfeitingEconomic CrimesFake GoodsFinancial CrimesPirated Products |
Author: Trend Micro Title: Ascending the Ranks. The Brazilian Cybercriminal Underground in 2015 Summary: The fastest route to cybercriminal superstardom can be found in Latin America, particularly in Brazil. Any criminal aspirant can gain overnight notoriety with just a little bit of moxie and the right tools and training, which come in abundance in the country's untamed underground. This past year, we observed an influx of new players in the scene. Most of them are young and bold individuals with no regard for the law. Unlike their foreign counterparts, they do not rely so much on the Deep Web for transactions. They exhibit blatant disregard for the law by the way they use the Surface Web, particularly popular social media sites like Facebook and other public forums and apps. Using online aliases on these sites, they make names for themselves, flagrantly showing off all the spoils of their own mini operations. Although they share what they know to peers, they mostly work independently, trying to outdo the competition and ascend the ranks to become the top players in their chosen fields. Online banking is their biggest target; this makes banking malware and respective how-to tutorials prevalent. This trend remains consistent with what we reported two years ago. But since then, new offerings have also sprouted, including localized ransomware and personally identifiable information (PII)-querying services. Illegal goods that were only peddled in Brazil's backstreets have likewise crossed over to the underground. Anyone can now purchase counterfeit money and fake diplomas online. The brazenness of cybercriminal operations should come as no surprise. Brazilian law enforcement agencies already have a lot on their plate; budding criminals online are only additions to their list of challenges. Although they have started investing in the fight against this growing problem, will their efforts be enough to at least slow down its pace. Details: Irving/Las Colinas, TX: Trend Micro, 2015. 320. Source: Internet Resource: TrendLabs Research Paper: Accessed February 1, 2016 at: https://www.trendmicro.com/cloud-content/us/pdfs/security-intelligence/white-papers/wp-ascending-the-ranks.pdf Year: 2015 Country: Brazil URL: https://www.trendmicro.com/cloud-content/us/pdfs/security-intelligence/white-papers/wp-ascending-the-ranks.pdf Shelf Number: 137721 Keywords: Bank FraudCounterfeitingCybercrimeOnline VictimizationSocial Media |
Author: Carrera, Sergio Title: The Cost of Non-Europe in the Area of Organised Crime and Corruption: Annex I - Organised Crime Summary: This Research Paper examines the costs of non-Europe in the field of organised crime. It provides an interdisciplinary analysis of the main legal/ethical, socio-political and economic costs and benefits of the EU in policies on organised crime. It offers an in-depth examination of the transformative contribution that the EU has made, in terms of investigation, prosecution and efficiency, to trans-border operational activities and the protection of its citizens' rights. Finally, it seeks to answer the questions of what are the costs and benefits of European cooperation and what forms of cooperation would bring more European added value. Details: Brussels: European Parliamentary Research Service, 2016. 177p. Source: Internet Resource: Accessed March 30, 2016 at: http://www.europarl.europa.eu/RegData/etudes/STUD/2016/579318/EPRS_STU(2016)579318_EN.pdf Year: 2016 Country: Europe URL: http://www.europarl.europa.eu/RegData/etudes/STUD/2016/579318/EPRS_STU(2016)579318_EN.pdf Shelf Number: 138492 Keywords: Costs of CrimeCounterfeitingCybercrimeDrug TraffickingEconomic CrimesEnvironmental CrimeHuman traffickingOrganized CrimeWeapons Trafficking |
Author: Interpol Title: Against Organized Crime: Interpol Trafficking and Counterfeiting Casebook 2014 Summary: INTERPOL has launched a casebook outlining the links between illicit trade, counterfeiting and organized crime. 'Against Organized Crime: INTERPOL Trafficking and Counterfeiting Casebook 2014' is a compilation of cases from law enforcement worldwide involved in the fight against trafficking in illicit goods and counterfeiting. Through these real-life examples divided into chapters, the reference book details the strong connections between illicit trade and other crimes such as counterfeiting and smuggling, fake medicines, arms smuggling, trafficking in human beings and organs, drug trafficking, financial crimes, terrorism, environmental crime and cybercrime. "The criminal networks behind trafficking in illicit goods and counterfeiting are complex and pervasive, reaching far beyond national borders. The INTERPOL Trafficking and Counterfeiting casebook is the first publicly released study to provide comprehensive evidence of the clear connection between illicit trade and other types of organized crime," said INTERPOL Secretary General Ronald K. Noble. The casebook discusses the organized criminal networks which are often behind illicit trade, using the profits to fund other criminal endeavours. It also highlights the role INTERPOL is playing to assist law enforcement around the globe in combating these crimes through its Trafficking in Illicit Goods and Counterfeiting programme, by coordinating regional operations, bringing police together, organizing capacity building and training sessions, and awareness raising. Details: Lyon, France: Interpol, 2014. 132p. Source: Internet Resource: Accessed May 4, 2016 at: http://www.interpol.int/News-and-media/News/2014/N2014-057 Year: 2014 Country: International URL: http://www.interpol.int/News-and-media/News/2014/N2014-057 Shelf Number: 138918 Keywords: CounterfeitingIllicit GoodsIllicit NetworksIllicit TradeOrganized Crime |
Author: KPMG Title: Illicit Tobacco in Australia. 2015 Half Year Report Summary: This bi-annual report provides an overview of the nature and dynamics of the legal and illicit tobacco markets and an independent assessment of the size of the illicit tobacco market in Australia. It is commissioned jointly by British American Tobacco Australia, Imperial Tobacco Australia Limited and Philip Morris Limited. Key highlights: - Illicit tobacco consumption declined marginally to 14.3% of total consumption in the twelve months to June 2015. This was the first decline seen since 2012 - The overall decline was driven by a significant decrease in contraband consumption, such as manufactured cigarettes - The decline in illicit tobacco consumption was partially offset by a large rise in unbranded ("Chop Chop") tobacco. Details: London: KPMG, 2015. 83p. Source: Internet Resource: Accessed June 1, 2016 at: https://home.kpmg.com/uk/en/home/insights/2015/11/illicit-tobacco-in-australia.html Year: 2015 Country: Australia URL: https://home.kpmg.com/uk/en/home/insights/2015/11/illicit-tobacco-in-australia.html Shelf Number: 139255 Keywords: Counterfeiting Illegal Markets Illegal Tobacco (Australia) Illicit Tobacco Smuggling Tax Evasion |
Author: Ernst & Young Title: Counterfeiting, piracy and smuggling: Growing threat to national security Summary: The report, titled, "Counterfeiting, piracy and smuggling: Growing threat to national security", highlights the drivers of financing of terrorism and how activities such as counterfeiting, piracy and smuggling have become channel for sustaining criminal and terrorist activities. It analyzes and provides insight into the links between counterfeiting, smuggling and financing of terrorism. Details: London: Ernst & Young, 2013. 40p. Source: Internet Resource: Accessed June 10, 2016 at: http://www.ey.com/Publication/vwLUAssets/EY-Government-and-Public-Sector-Growing-threat-to-national-security-an-analysis/$File/EY-Counterfeiting-piracy-and-smuggling-Growing-threat-to-national-security.pdf Year: 2013 Country: International URL: http://www.ey.com/Publication/vwLUAssets/EY-Government-and-Public-Sector-Growing-threat-to-national-security-an-analysis/$File/EY-Counterfeiting-piracy-and-smuggling-Growing-threat-to-national-security.pdf Shelf Number: 139366 Keywords: CounterfeitingPiracySmugglingTerrorist Financing |
Author: World Economic Forum Title: State of the Illicit Economy: Briefing Papers Summary: While the state of the global economy continues to fluctuate, its illegitimate counterpart, the illicit economy, has seen unprecedented growth. As such, it has etched its way into all aspects of society, and is cause for serious global concern. From healthcare to infrastructure to the arts, the illicit economy does not affect just one aspect of society, but all of them: business, government, civil society and individuals. It is a disruptor of social order to the greatest extent. A call to action must be made. The illicit economy is formed from the proceeds of illicit trade which is, in turn, largely rooted in organized crime. Whether it is human trafficking, arms trafficking, the illegal wildlife trade, counterfeiting or money laundering, these activities are incredibly lucrative and fuel the magnitude of the illicit economy. Our Global Agenda Council on Illicit Trade 2012-2014 estimated the shadow economy to be worth $650 billion. More current research projects that the cost to the global economy of counterfeiting alone could reach USD 1.77 Trillion in 2015. With technological advancements and the international nature of trade in the world today, this value is expected to continue to rise. Illicit trade operates on a vast scale and unprecedented pace, making it increasingly challenging to tackle. There are multiple initiatives and organizations, as well as public and private initiatives, dedicated to combating one or several aspects of illicit trade, but this is not a fight that can be won unilaterally. To achieve success, a global and multidisciplinary approach is needed in which the knowledge, expertise and experiences of various actors can be tapped into and shared. As an international institute for public-private partnership, the World Economic Forum provides a neutral platform for parties to come together and discuss the issue of illicit trade. The aim is to foster structured dialogue between business, civil society and government so that common methods and solutions of tackling this trade can be found. Through multidisciplinary cooperation and joint action, results can be achieved. We can disrupt the proliferation of illicit trade, whether it is by simply raising awareness of the problem within affected communities, or by finding ways of detecting and preventing crimes that contribute to ruining the economy. The World Economic Forum's Meta-Council on the Illicit Economy aims to take this principle of public-private cooperation forward. By engaging leading experts in the field, the Meta-Council will try to find viable multi-stakeholder solutions to limiting this criminal activity. This paper on the State of the Illicit Economy is the first step in the process. It sets out the parameters within which illicit trade operates, the contributing factors to illicit trade, the role that various societal sectors can play in the fight against it, and the types of solutions needed to combat it. Details: Geneva, SWIT: World Economic Forum, 2015. 20p. Source: Internet Resource: Accessed September 8, 2016 at: http://www3.weforum.org/docs/WEF_State_of_the_Illicit_Economy_2015_2.pdf Year: 2015 Country: International URL: http://www3.weforum.org/docs/WEF_State_of_the_Illicit_Economy_2015_2.pdf Shelf Number: 140237 Keywords: CounterfeitingHuman TraffickingIllegal TradeIllicit MiningIllicit TradeOrganized Crime |
Author: FICCI Title: Socio-Economic Impact of Counterfeiting, Smuggling and Tax Evasion in Seven Key Indian Industry Sectors: Executive Summary Summary: This report is a first ever compilation of facts and figures on counterfeiting, smuggling and tax evasion in seven key industry sectors in India. This research has deployed a methodology which is by far the most comprehensive till date, at least in India. Lakhs of data points have been analyzed and 129 existing sources have been referred and relied upon. The data crunching was followed by a robust validation exercise with relevant stake holders. This qualitative element is the most significant part of the research that needs to be emphasized before this audience and all those who read and make use of it. Our industry and government is very concerned about weak intellectual property protection and enforcement in India. The exponential growth of intellectual property (IP) crime has been illustrated very clearly by various studies and information from a variety of sources as well as the media. While counterfeiting used to consist primarily of apparel and other such items, the high profitability and low risk involved has allowed criminals, including organized crime rings, to become very active, counterfeiting virtually everything including, for instance, pharmaceutical products, electrical products, software, movies, food, wine, personal care products, automobile parts and luxury goods. While IP crime can lack, for some, the social stigma of many other criminal offences, this illegal activity is a drain on the economy and is responsible for loss of employment, a reduction in tax revenues for governments, and poses serious consumer health and safety risks due to the poor quality of products and sometimes hazardous nature of the fakes. Virtually no industry escapes this illegal activity. Details: New Delhi: FICCI, 2012. 9p. Source: Internet Resource: Accessed December 14, 2016 at: http://ficcicascade.com/studies.php?adjacents=10&page=4 Year: 2012 Country: India URL: http://ficcicascade.com/studies.php?adjacents=10&page=4 Shelf Number: 146104 Keywords: Counterfeit GoodsCounterfeitingOrganized CrimeSmuggling of GoodsTax Evasion |
Author: NetNames Title: Counting the Costs of Counterfeiting: A NetNames Report Summary: Today, the ease and reach of digital commerce presents extraordinary opportunities and serious threats to businesses, brands and consumers alike. The collision of counterfeiting, globalization and the fast-growing digital world has created a perfect storm, allowing the supply and demand for fake goods to converge. EXTRAORDINARY GROWTH In an environment where counterfeiting is as profitable as illegal drugs, but remains far less risky for criminals, we are seeing explosive growth. Expanding by over 15% every year, counterfeiting now costs more than 2% of total global economic output, or around $1.8 trillion per year. There is little doubt as to the crucial role played by the digital world in this meteoric rise, with a 15% increase in sales of counterfeit goods online last year. The internet has made counterfeiting a shifting problem that is difficult to combat. Rogue websites, online auctions and digital piracy all give counterfeiters lucrative and anonymous channels for their activities. PHARMA WORST AFFECTED While counterfeiting is a major challenge for every industry, pharma is the worst affected sector by any metric. Counterfeiters have claimed around a third of the entire market - worth some $200 billion - and are implicated in the deaths of up to one million people each year due to toxic or ineffective drugs. ENTER THE DRAGON: THE ROLE OF CHINA The United States, Europe and Australasia - the largest markets for fake goods - are all attempting to harmonize and intensify their multi-pronged strategy to combat counterfeiting and digital piracy. However, the tidal wave of counterfeit and grey-market goods from China shows little sign of being stemmed, remaining responsible for 70% of worldwide seizures. While global companies depend on Chinese manufacturing, this same ecosystem provides a haven of cheap labor and raw materials for counterfeiters. COST AND CONVENIENCE DRIVE CONSUMERS TO COUNTERFEITS Consumers remain largely innocent victims in this struggle, with 90% seeing counterfeiting as morally wrong. However, the demand for branded goods and the desire to find lower prices online mean that 28 consumers unknowingly buy fake goods for every person that does so intentionally. When consumers do deliberately consume counterfeit and pirated goods, cost and convenience are the major factors in their decision: 19% purchase fake products when the original is too expensive, while 22% will turn to digital piracy when there is no legal alternative. THE HEAVY TOLL ON BRANDS Counterfeiting creates a heavy financial burden for brands eroding profitability, market share and outside investment. While fake goods destroy around 10% of top-line revenues, they also force brands to make further investments in combatting the problem, and leave them less able to invest in future innovations. Even more insidious are the risks to both brand reputations and customers. Online, reputations can be instantly damaged in front of a global audience: 78% of consumers would shun a brand if they found themselves on a bogus website, even though the company itself was not negligent. Meanwhile, the risks to customers are not just financial, but also physical. G20 countries now see an estimated 3,000 deaths annually due to counterfeit consumer goods alone. NEW TECHNOLOGIES CREATE NEW RISKS Counterfeiters will continue to exploit the potential of new technologies and the digital world to further their reach, profitability and anonymity. The rise of mobile and social is fragmenting the online landscape - exposing brands not just to counterfeiting, but also to evolving threats such as phishing, cybersquatting, traffic diversion and other forms of online fraud. ACTION IS ESSENTIAL New technologies will also be critical to the fight against counterfeiting, with RFID, digital authentication and new generic top-level domains (gTLDs) all allowing brands to strengthen their posture against fraudsters. In particular, given the skyrocketing risks from the combination of digital channels and fake goods, a proactive and effective online anti-counterfeiting strategy is now essential for every brand to safeguard customers, revenues and reputation. Details: London: Digital Citizens Alliance, 2015. 44p. Source: Internet Resource: Accessed April 13, 2017 at: https://www.netnames.com/assets/shared/whitepaper/pdf/NetNames-Counterfeiting-Report-A4-2015.pdf Year: 2015 Country: International URL: https://www.netnames.com/assets/shared/whitepaper/pdf/NetNames-Counterfeiting-Report-A4-2015.pdf Shelf Number: 144902 Keywords: Consumer FraudConsumer ProtectionCosts of CrimeCounterfeit GoodsCounterfeitingFake GoodsFraudOnline Victimization |
Author: Frontier Economics Title: The Economic Impacts of Counterfeiting and Piracy. Report prepared for BASCAP and INTA Summary: EXECUTIVE SUMMARY Counterfeiting and piracy are highly pervasive across countries and sectors, representing a multi-Billion-dollar industry globally that continues to grow. Measuring the scale of counterfeiting and piracy helps us to understand the size of the problem, and the related social costs. It also helps inform policymakers so that they can target resources appropriately towards combating counterfeiting and piracy. 1.1 Extending the findings of the OECD/EUIPO Our starting point is the recent work undertaken by the Organization for Economic Cooperation and Development (OECD) and European Union Intellectual Property Office (EUIPO) to measure the extent of piracy and counterfeiting in international trade. The OECD/EUIPO Report builds on a previous, ground-breaking study by the OECD in 2008. Since the publication of the initial report, researchers at the OECD have been able to bring significant enhancements to their research methodology, including improved econometric modelling, greater magnitudes of data and increased primary data from customs experts. The OECD/EUIPO estimates that trade in counterfeit and pirated products accounted for as much as 2.5% of the value of international trade, or $461 Billion, in 2013.2 Notably, this figure represents an increase of more than 80% over the OECD's findings in 2008. Our report seeks to quantify the global value of counterfeiting and piracy and related economic and social costs. As revealing as the OECD/EUIPO Report is, its focus is on one specific aspect of counterfeiting and piracy: the international trade of counterfeits across borders. We therefore draw on and extend the OECD/EUIPO Report to include additional types and impacts of counterfeiting and piracy delineated, but not quantified, in their analysis. Specifically, this study quantifies three additional categories of losses: (i) the value of domestically produced and consumed counterfeit goods, (ii) the value of digital piracy, and (iii) wider economic impacts. Our approach and analysis is a follow-on study from our 2011 report for BASCAP, which built on the OECD's 2008 analysis. Our analysis consists of the following four dimensions. - Quadrant 1: Internationally traded counterfeit and pirated goods. We reprise the OECD/EUIPO's recent estimates of the value of counterfeit and pirated physical goods in international trade. This captures the value of counterfeit goods that cross international borders. We also develop projections of this value to 2022. - Quadrant 2: Domestically produced and consumed counterfeit and pirated goods. We estimate the value of domestically produced and consumed counterfeit and pirated goods using the findings of the OECD/EUIPO Report as a starting point. This captures the value of counterfeits that are produced and consumed within the borders of a country. - Quadrant 3: Piracy distributed through the Internet, mainly by peer-to-peer (P2P) sharing and streaming. We estimate the value of digital piracy in film, music, and software, which is not captured in the OECD/EUIPO Report as it is based on physically traded goods. Our analysis draws on industry data and studies. - Quadrant 4: Wider economic and social impacts. Building on the magnitudes calculated in quadrants 1-3, we measure related economic and social impacts of counterfeiting and piracy. Specifically, we: - Develop an econometric estimate of the impact of counterfeiting and piracy on foregone economic growth. □ Present effects of the displacement by counterfeiting and pirating activities of legitimate activities on employment, FDI, and sales tax revenues. - Estimate costs of criminality related to counterfeiting and pirating activities 1.2 Key findings Our analysis shows that the scale of counterfeiting and piracy globally is large, that it has grown since previous estimates, and that this growth is expected to continue. Our estimates of these values across all four quadrants are shown in Table 1.S below. We estimate that the value of international and domestic trade in counterfeit and pirated goods in 2013 was $710 -$ 917 Billion. We estimate that, in addition to this, the global value of digital piracy in movies, music and software in 2015 3 was $213 Billion. We estimated wider economic costs associated with the effects of counterfeiting and piracy on the displacement of legitimate economic activity. This estimate also provides a starting point for inferring fiscal losses. We also estimated the effects of counterfeiting and piracy on Foreign Direct Investment (FDI) and crime. We find significant effects on the job market through the displacement of legitimate economic activity by counterfeiting and piracy. We estimate net job losses in 2013 to lie, globally, between 2 and 2.6 million, and we project net job losses of 4.2 to 5.4 million by 2022. We also estimated the effects of changes in the incidence of counterfeiting and piracy on economic growth. Our econometric model, estimating the impact of changes in the intensity of counterfeiting and piracy on economic growth, suggests that a percentage point reduction in the intensity of counterfeiting and piracy would be worth between $30 Billion to $54 Billion in 2017 for the 35 OECD countries. Our forward projections begin with OECD/EUIPO's estimates of international trade in counterfeit and pirated goods, augmented by forecasts of growth in import volumes and the ratio of customs seizures to real imports. Using these, we forecast that the value of trade in counterfeit and pirated goods could reach $991 Billion by 2022. We carry out a similar exercise to illustrate how the size of domestic production and consumption of counterfeit and pirated goods may change over time. We use data on recent and forecast rates of growth in global trade and GDP, and projected growth in the rate of counterfeiting. Using this approach, we forecast that the value of domestically produced and consumed counterfeit and pirated goods could range from $524 - $959 Billion by 2022. Applying the methodology used in our previous study, we combine two different approaches to project digital piracy into the future. The first approach assumes that digital piracy will maintain its share of total counterfeiting and piracy over time. The second approach assumes that digital piracy grows proportionally to global IP traffic. Combining these two approaches, we forecast that the value of digital piracy in movies, music and software could reach from $384 - $856 Billion by 2022. Details: Brussels: Frontier Economics, 2017. 61p. Source: Internet Resource: Accessed April 14, 2017 at: http://www.inta.org/Communications/Documents/2017_Frontier_Report.pdf Year: 2017 Country: Europe URL: http://www.inta.org/Communications/Documents/2017_Frontier_Report.pdf Shelf Number: 144910 Keywords: Counterfeit Goods Counterfeiting Digital PiracyEconomic Crimes Fake GoodsFinancial Crimes Pirated Products |
Author: union des fabricants (unifab) Title: Counterfeiting and terrorism Summary: Remember that counterfeiting is defined as the reproduction or total or partial use of an intellectual property right without authorisation from its owner. It currently represents up to 10% of world trade and costs an estimated 40,000 jobs per year in France and 2.5 million to G20 countries. In 2009, the OECD assessed the global financial impact of counterfeiting at between $250 billion and $500 billion. We estimate that in 2015, "counterfeiting will represent a turnover of over $1.700 billion world-wide. This is more than the value of drugs and prostitution combined". The counterfeiter therefore aims to create confusion between the original product and the counterfeit product, in order to benefit from another's reputation or the result of investments made by the true holder of an intellectual property right. From a legal viewpoint, digital piracy (music, film, software, book, graphic) is therefore a form of counterfeiting, as is the production of fake brand items. In France, counterfeiting is governed by the Code of Intellectual Property in Articles L 335-2 to L 335-9 for the infringement of copyright and related rights, L 513- 4 for the violation of pictures and models, L 613-3 for the infringement of patents, and L 713-2 and L 713-3 for the infringement of trademarks and services. In France, counterfeiting is covered under both civil and criminal law. Thus, under criminal law, counterfeiting is punishable by three years imprisonment and a 300,000 euro fine, with penalties increased to five years' imprisonment and a 500,000 euro fine when the acts are committed by an organised group, or when they concern products that are hazardous to consumer health or safety. However, the proven presence of counterfeiting within terrorist organisations raises questions about the adequacy of current criminal penalties, and particularly how they are applied. Terrorism is also punishable under the Criminal Code. This defines a terrorist act as an act pertaining to "an individual or collective undertaking aimed at seriously disturbing public order by intimidation or terror" (Article L 421-1 CC amended by Law of 13 November 2014). It covers two categories of offences: - First, existing offences committed in relation to a terrorist undertaking. It therefore concerns common crimes in specific circumstances which give them a specific nature; - Second, a number of offences defined independently, without reference to an existing offence. The funding of a terrorist undertaking therefore represents a specific offence (Article 421-2-2 of the Criminal Code). Which is punishable by 10 years' imprisonment and a fine of 225,000 euros. However, the penalty is increased to 20 years' imprisonment, with a fine of 500,000 euros for those directing or organising a terrorist group. Unifab' publication of this report aims to provide an insight into the links between terrorism and counterfeiting, as well as demonstrating that this illegal activity is a favourite method for financing terrorist actions. This study deals with industrial and commercial counterfeiting, in addition to the infringement of copyright. However, it excludes the falsification of means of payment and administrative papers. Moreover, it is primarily based on information collected from companies, the media, professional and public organisations, and european and international agencies. Details: Paris: unifab, 2016. 32p. Source: Internet Resource: Accessed August 30, 2017 at: https://euipo.europa.eu/ohimportal/documents/11370/71142/Counterfeiting+%26%20terrorism/7c4a4abf-05ee-4269-87eb-c828a5dbe3c6 Year: 2016 Country: France URL: https://euipo.europa.eu/ohimportal/documents/11370/71142/Counterfeiting+%26%20terrorism/7c4a4abf-05ee-4269-87eb-c828a5dbe3c6 Shelf Number: 146942 Keywords: Consumer FraudCounterfeit ProductsCounterfeitingTerrorist Financing |
Author: U.S. Chamber of Commerce Title: Measuring the Magnitude of Global Counterfeiting: Creation of a Contemporary Global Measure of Physical Counterfeiting Summary: Counterfeiting today represents a tremendous and ever increasing global threat. Counterfeit products- from goods and merchandise, tobacco products and industrial parts to currency and medicines - circulate across the globe. Yet these products cause real damage to consumers, industries and economies. First and foremost, counterfeit goods jeopardize consumers and pose a serious safety risk: fake toys contain hazardous and prohibited chemicals and detachable small parts; brake pads made of compressed grass; counterfeit microchips for civilian aircrafts; all these and many more may and tragically already have led to injuries and deaths. Counterfeit products also result in detrimental effects on economies due to decreased innovation, loss of revenue and taxation, and higher employment rate. Disturbingly, a growing body of evidence draws a clear link between physical counterfeiting and terrorist groups which exploit the easy-made money and high profit margin to fund terror activities around the world. The continuous growth of the global counterfeiting industry is a major cause for concern. Fueled by the proliferation of internet use and social media platforms, the magnitude of global physical counterfeiting is estimated to have increased considerably since the beginning of this century. One prominent example for this increase is reflected in the OECD's studies on global counterfeiting. In its first study from 2008 - The Economic Impact of Counterfeiting and Piracy - the OECD estimated that global trade of counterfeit goods accounted for 1.9% of world trade in 2007, or 250 billion USD. In its recently published study of 2016 - Trade in Counterfeit and Pirated Goods: Mapping the Economic Impact - the OECD now estimates that global trade-related counterfeiting accounts for 2.5% of world trade, or 461 billion USD. A key finding from these two OECD studies is that global counterfeiting has grown both organically with a growth rate of 0.6% (of its estimated share of world trade), and, since world trade has in itself increased constantly since 2009, also grown in its overall dollar figure. In this context, the US Chamber's Measuring the Magnitude of Global Counterfeiting study seeks to make a contribution to this growing body of literature and complement the OECD's work in two ways: 1. The study provides a deep-dive analysis of trade-related physical counterfeiting on a comparative level, and; 2. It provides a breakdown of the share of the global rate of physical counterfeiting (as both a percentage and with a USD figure) for the 38 economies included in the 2016 U.S. Chamber of Commerce's GIPC International IP Index (fourth edition published in February 2016) based on new modeling of an economy's propensity for counterfeiting, including factors such as broader levels of IP enforcement and estimated rates of corruption. The study makes the following key findings: 1. China alone is estimated to be the source for more than 70% of global physical trade-related counterfeiting, amounting to more than 285 billion USD. Physical counterfeiting accounts for the equivalent of 12.5% of China's exports of goods and over 1.5% of its GDP. China and Hong Kong together are estimated as the source for 86% of global physical counterfeiting, which translates into 396.5 billion USD worth of counterfeit goods each year. 2. Despite China and Hong Kong's dominant share of global counterfeiting, a considerable amount of physical counterfeiting activity as share of world trade can be attributed to other economies as well. Indeed, the level of counterfeiting activity attributed to some economies is substantial and bears significant economic and public health implications, both locally and internationally. 3. In addition to the modeled estimates of rates of global physical counterfeiting and percentage attributed to each economy, this report has also examined the value of seized counterfeit goods in the 38 economies sampled and the World Customs Organization (WCO). The value of counterfeit goods seized and reported by customs authorities today from our sample of 38 economies ($5.2 billion) represents slightly less than 2.5% of the global measure of physical counterfeiting of $461 billion dollars. This suggests that though customs authorities' activities yield results and their efforts are highly laudable, the extent of their successes still represents "a drop in an ocean." This does not mean to say that economies should not continue to step up efforts to combat counterfeiting. Recent actions taken by economies include enhancing customs authorities' scope of action, strengthening IP protection, introducing targeted measures aimed at deterring counterfeiting, and joining international trade and enforcement initiatives. Taken together, these steps are expected to increase economies' ability to limit counterfeiting activities both domestically and globally over time. 4. Our analysis of seizure data from customs authorities shows that the dearth of seizure data is acute. Of the 38 economies examined in this study, only a third of the customs authorities publish data. Moreover, only a small proportion of these publish reliable, consistent, and detailed seizure statistics. Additionally, the data are often focused on intermittent seizures of varying scope and so do not necessarily reflect systematic efforts against counterfeiting. Details: Washington, DC: U.S. Chamber of Commerce, Global Intellectual Property Center, 2016. 40p. Source: Internet Resource: Accessed August 30, 2017 at: http://www.theglobalipcenter.com/wp-content/themes/gipc/map-index/assets/pdf/2016/GlobalCounterfeiting_Report.pdf Year: 2016 Country: International URL: http://www.theglobalipcenter.com/wp-content/themes/gipc/map-index/assets/pdf/2016/GlobalCounterfeiting_Report.pdf Shelf Number: 146943 Keywords: Counterfeit ProductsCounterfeitingIllegal TradeOrganized CrimePirated GoodsTerrorist Financing |
Author: Organisation for Economic Co-operation and Development Title: Mapping the Real Routes of Trade in Fake Goods Summary: Trade in counterfeit and pirated goods is a vital threat for modern, innovation-driven economies, a worldwide phenomenon that grows in scope and magnitude. Counterfeiters ship infringing products via complex routes, with many intermediary points, which poses a substantial challenge to efficient enforcement. This study looks at the issue of the complex routes of trade in counterfeit pirated goods. Using a set of statistical filters, it identifies key producing economies and key transit points. The analysis is done for ten main sectors for which counterfeiting is the key threat. The results will facilitate tailoring policy responses to strengthen governance frameworks to tackle this risk, depending on the profile of a given economy that is known as a source of counterfeit goods in international trade. Details: Paris: OECD, 2017. 159p. Source: Internet Resource: Accessed September 1, 2017 at: https://euipo.europa.eu/tunnel-web/secure/webdav/guest/document_library/observatory/documents/reports/Mapping_the_Real_Routes_of_Trade_in_Fake_Goods_en.pdf Year: 2017 Country: International URL: https://euipo.europa.eu/tunnel-web/secure/webdav/guest/document_library/observatory/documents/reports/Mapping_the_Real_Routes_of_Trade_in_Fake_Goods_en.pdf Shelf Number: 147000 Keywords: Counterfeit ProductsCounterfeitingIllicit Trade |