Job Losses to Counterfeits

Fakes don't just cost companies revenue--they cause job losses and take money from your local economies:

According to the Straits Times, "International lawyers want more action against fake goods worldwide, as fakes improve in quality and with no dwindling of counterfeiters in sight.

At yesterday's International Bar Association (IBA) conference session at Suntec City on measures to combat counterfeiting and piracy, delegates spoke strongly about the issue - one seen as not only an economic threat but also involving serious safety, health and environmental concerns.

A global IBA survey on counterfeiting involving 39 countries is under way. It will be presented at next year's conference in Argentina.

The fake goods, ranging from boutique bags to designer clothes and other high-tech goods, take up between 5 and 7 per cent of the global trade, said Mr Clive Elliot, who is spearheading the survey.

The lack of enforcement action 'remains the rule rather than the exception' and the purpose of the survey is to identify key challenges and draw up a set of guidelines to use globally, he added.

Part of the allure for counterfeiters was in the cash windfalls to be made.

Canadian counsel Ira Nishisato pointed out that profit margins in the industry was 1,100 per cent compared to 300 per cent for heroin, citing a Motion Picture Association report.

Delegates also heard some 250 million such products were seized in the European Union countries alone last year, up from 75 million in 2005.

Fakes caused losses of between 120 billion euros ($250 billion) and 270 billion euros a year worldwide and some 200,000 European jobs."

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