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.

Las Vegas Counterfeiter Enslaves Children in Sex Trade

An anti-counterfeiting researcher forwarded The Authentics Foundation an article from 2007 which we had previously not been aware of. On March 10, 2007, Mike Tobin of the Cleveland Plain Dealer wrote a piece titled "Las Vegas man admits arranging sex tourism." It outlined the shocking case of Russell Herman, 52, who plead guilty in U.S. District Court in Cleveland "to charges he operated a business that arranged for tourists to visit brothels with underage girls in Thailand."

Immigrations and Customs Enforcement first began investigating Herman in December 2005 because of a website on which he sold counterfeit Gucci, Prada and Rolex merchandise. Investigators then realized this counterfeiter was also arranging "for tourists to have sex with girls as young as 12. Many of the girls were kept padlocked in cells unless they were having sex, according to court documents."

"The ICE agent contacted Herman and asked about the availability of girls between the ages of 10 and 14, according to court documents. Herman replied, "Thailand is a lot of fun and you'll experience some incredible things here!!!"

Another ICE agent called Herman in November 2006 and said he was interested in traveling to Thailand, where Herman was living. Herman said that for $1,000, he would take the agent to a hotel where 15-year-old girls would be brought to the undercover agent's room.

A few days later, Herman met the undercover agent and took him to several places where they were solicited for sex. Some of the girls appeared to be as young as 12, the ICE agent said in court documents."

Source: Cleveland Plain Dealer