The Sun Never Sets on Counterfeiters

The $600 billion per year counterfeiting problem is detailed in this New York Sun piece by Liz Peek from last week. The article summarizes the problem succinctly:

"Designer goods are just the tip of the iceberg. Sales of all counterfeit goods are estimated at more than $600 billion annually, up from $5.5 billion in 1982.... sales of counterfeit pharmaceuticals now total some $70 billion a year worldwide. Some 35% of the software installed on computers in 2005 was fake, more than $12 billion in copied auto parts are sold annually, and there have been more than one hundred airline crashes caused by fake (and faulty) parts. This is a serious and huge business, threatening the health and safety of people everywhere."

The article then details a two-pronged strategy to deal with counterfeiting. While enforcement at the production level is difficult in China (the epicenter of the counterfeit trade), consumers can be made aware of the counterfeiting link to drug trafficking, child labor and terrorism, while technology can enhance interdiction of counterfeit goods by law enforcement and merchants. Eastman Kodak is specifically noted for its secret innovation that enables law enforcement to distinguish between authentic goods and even "perfect fakes" with a handheld scanner. Noting the $10 billion per year market for such technology, Peek surmises a windfall for those security experts able to stay one step ahead of the bad guys.