BREAKING NEWS - LVMH Wins Judgment Against eBay

Luxury goods holding company LVMH, maker of luxury brands such as Louis Vuitton, wins $61 million judgment against ebay for the sale of counterfeit LVMH goods on ebay's website.

Developing.....

Counterfeiting Causes Fires

From the Electrical Safety Foundation International, a blurb about the dangers of buying counterfeit electrical appliances. Not only do counterfeiters often skimp on the safety measures included in the original product design, but who could you possibly hold responsible for a fire caused by a fake product? The original manufacturer? Probably not. Fly-by-night counterfeiters? Maybe, if you can find them. But even then, do they have the resources to withstand a lawsuit?


(Hat tip: Digital Silence)

Nuclear Silver Lining?

From Russia and the art world, news of a museum curator who has found what she terms to be a foolproof method of determining whether a painting is fake. Isotopes from exploded nuclear devices wind up back in nature in traceable amounts. Paintings use plant and mineral elements that contain traces of these isotopes. Since these isotopes are only known to be found in nuclear fallout, detection provides conclusive proof that the fakes were made after 1945.

Ingenious. Read the whole thing.

High Tech Labels to Combat Counterfeiting

Underwriters Laboratories hosted the 2008 International Law Enforcement IP Crime Conference that wrapped up today, and unveiled a new labeling technology utilizing a holograph with color-shifting ink that it says will be extremely difficult to duplicate.

Counterfeit Triangle?

The triangle region overlapping the South American countries of Argentina, Brazil and Paraguay is known for its unbridled capitalism, unlawfulness, and even more alarmingly, its rumored harboring of suspected terrorists. And with criminal activities afoot, counterfeiting is not usually far behind. Writing on Gadling.com, Jeremy Kressman describes this triangle as a “A vast bazaar of illegal weapons, counterfeit goods and illicit substances,” while IP Tango deduces the difficulty for IP owners to enforce their rights when law enforcement is weak in any particular area.

Check out both articles for a look at how criminal counterfeiters fill the void left by weak governments and lack of rule of law.

June 12 is World Day Against Child Labor

The Authentics Foundation
Partners with
CARE USA
Supporting the Global Launch of the
Pasty Collins Trust Fund Initiative
Advocacy Grants Program

Quality Education: Unlocking the Power Within
Liberated from Exploitation, Empowered to End Poverty

World Day Against Child Labor
12 June 2008

In observance of World Day Against Child Labor (WDACL), the Authentics Foundation is pleased to announce its partnership with CARE USA’s global launch of the Pasty Collins Trust Fund Initiative (PCTFI) Global Advocacy Grants Program (AGP) focused on increasing the educational attainment for girls marginalized by hazardous and exploitative child labor.

The Authentics Foundation recognizes CARE’s leadership and efforts in combating hazardous and exploitative children labor around the world and is pleased to be a part of this year’s WDACL observances. CARE is staging and participating in global observances in Indonesia, Tanzania, NW Balkans & Serbia, Togo, Ghana, Mali, Bolivia, Ecuador, Peru, Nicaragua, Honduras, Guatemala, El Salvador and the United States supporting this year’s WDACL theme “Education, the Right Response to Child Labor.”

Along with the financial support of the Authentics Foundation, CARE USA, the International Labor Organization-International Program for the Elimination of Child Labor (ILO-IPEC), and its national partners are working in tandem hosting national public awareness events around the world focusing on the importance of a quality education for children engaged in hazardous and exploitative child labor, especially girls. This advocacy initiative being launched today will give a voice to girls who are hidden, often along the margins of society quietly toiling away in isolation, never having the chance to realize the promise of an education-much less ever seeing the inside of a classroom for themselves. No longer will their voices go unheard. Central to their struggle of lifting themselves out of poverty is unlocking the power within through the provisions of a quality education.

The Authentics Foundation will be funding a four-year policy and advocacy program aimed at bring about lasting change for adolescent girl child laborers. By working towards a more conducive policy environment in favor of specific policies that liberate girls trapped by hazardous and exploitative child labor and that ensure the promise of a quality education, the Authentics Foundation envisions a world free from the exploitation of children, empowering the end of global poverty. Through specific interventions targeting sustainable change will this vision become a reality for 216 million child laborers around the world.

For more information on the Authentics Foundation, please visit www.myauthentics.com and to learn more about CARE’s efforts to eliminate hazardous and exploitative child labor please visit www.care.org and do your part by making a contribution today.

Drug Dealers are Hawking Counterfeits Too

" Police are urging people to provide more information about drug dealers in their community.

The call follows a successful recent raid on a house in Boyer Street, in which suspected crack cocaine and heroin were seized along with cash, counterfeit DVDs and jewellery.

Officers from Stockbrook Safer Neighbourhood Team and colleagues from Pear Tree targeted the property on April 28.

A man was arrested on suspicion of possession with intent to supply class A drugs and was bailed pending further inquiries.

Sergeant Matt Williamson, of the Stockbrook Safer Neighbourhood Team, said: "This demonstrates that, if we receive intelligence from the local community, we will take positive action wherever possible.

"We would urge anyone who has suspicions about drug-related activity in their neighbourhood to contact the police or Crimestoppers about it.

"We know drugs can have a detrimental affect on local areas and want to do what we can.""

Via Derby Evening Telegraph

Counterfeit Gang Exploited Workers

"Spanish police arrested five Pakistani men on suspicion of trafficking fake luxury goods and forcing people to work in illegal conditions.

Police say the gang was distributing around 2,500 fake items a day.

Clothing and accessories were made in Asia and imported to Spain to be "finished" and have fake designer labels attached. Police say the falsified brands included Burberry, Carolina Herrera and Chanel.

Police said in a statement Wednesday that the gang exploited four workers in a windowless warehouse in the southern Madrid suburb of Villaverde. The statement says the men are aged between 22 and 45 years old."


Photo Credit
Via Houston Chronicle

Danger of Fake Football Fan Gear

"Up to a fifth of the club replica shirts worn by fans at this month's Champions League, FA Cup final and Championship and League One and Two playoffs are likely to be fakes - but potentially sporting a serious or even deadly hidden danger.

Research shows a fifth of Britons buy fake goods - but one of the world's leading textile testing organisation is warning of a hidden danger in the estimated GBP500 million worth of fake football shirts that will be sold in the UK in 2008.

Manchester-based Shirley Technologies Limited (STL), which tests textiles for manufacturers worldwide, says that while the consumer's first thought is to bag a branded - if unlawful - bargain fake shirt from a market stall or online, the risk is not to the wallet, but to the health of thousands of people.

"Within days of Manchester United and Chelsea confirming their places in the Champions League final, unofficial merchandise - including shirts - was plain to see on TV coverage of fans at games on the Bank Holiday weekend," said Phil Whitaker of Shirley Technologies.

"There is no way the unofficial shirts could be fully tested in the period between the semi-finals and them first appearing. A fake sports shirt, no matter how convincing it looks, can contain a huge range of hidden dangers for the buyer and wearer - and be a death sentence for the maker.

"Only a few weeks ago, we saw the effect of an allergic reaction one woman had to underwear she bought from a high street store - and while something clearly did slip the textile testing net, it is unlikely that such a big name would buy from questionable sources.

"We test textiles and clothing for the major brands and retailers, and we know that some of the counterfeit shirts that will find their way into the possession of football fans are simply not tested for harmful content.

"A genuine branded shirt will be tested for its pH value - how much of an irritant the material can be, for harmful dyes - which may be allergenic or even carcinogenic, for extractable heavy metals - cadmium and chromium, and organo tin compounds and so on.

"That sort of content may show itself in a low profile way as a skin irritant to the wearer - or could possibly spark an allergic reaction in the worst cases.

"But as the consumer becomes more and more aware of organic and ecological issues, the key point is that the makers - and we have seen stories about illegal sweatshops on the Indian sub-continent - are exposed to a deadly chemical cocktail, all day every day, to produce uncertified and unofficial sports club merchandise.

"Many of these chemicals are shortcuts, and so too are the methods used to dispose of them as part of the manufacturing process: straight into watercourses and lakes.

"That is the extent of the hidden danger of counterfeit sports shirts," said Phil Whitaker.

(STL) is a UKAS (United Kingdom Accreditation Service) accredited laboratory providing competitive, independent, expert textile testing, certification, advisory and investigation services across the traditional and specialist textile industries.

STL is an independent subsidiary of BTTG Ltd, formerly the British Textile Technology Group. With more than 80 years experience, Shirley Technologies Ltd provides unrivalled and expert reassurance through its technical services to a global network of clients which include manufacturers, retailers, the legal profession, police, consumers and related interest groups including Trading Standards. Highly qualified and experienced technical staff work directly with clients to ensure that they receive the best advice and service in a wide range of technical areas."

Via M2 PRESSWIRE

Photo Credit

Fake Heparin Kills 19, Is Recalled

Often times, when considering the issue of fake pharmaceuticals, consumers like to believe that their own countries' stringent medical regulatory system prevent fakes from getting in their supply chain. Walt Bogdanich of the New York Times, who broke the 2007 story of counterfeit cough syrup being responsible for the deaths of 120 Panamanians, has broken a new story that should make those in the EU and America sit up straighter.

Counterfeit heparin.

Heparin is a blood thinner often used in surgery and dialysis, and this year, the United States Food and Drug Administration linked contaminated versions of the thinner to 19 deaths. After much testing, the truth came out--the heparin wasn't heparin at all, but a counterfeit attempting to mimic the effects of the real thing, with tragic results.

Bogdanich writes:
"What a difference a year makes.

After many near misses and warning signs, the heparin scare has eliminated any doubt that, here and abroad, regulatory agencies overseeing the safety of medicine are overwhelmed in a global economy where supply chains are long and opaque, and often involve many manufacturers.

“In the 1990s governments were all about trying to maximize the volume of international trade,” said Moisés Naím, editor in chief of Foreign Policy magazine and author of “Illicit: How Smugglers, Traffickers and Copycats Are Hijacking the Global Economy.” “I’m all for that, but I believe this decade is going to be about maximizing the quality of that trade, not quantity.”

Mr. Naím said the heparin scare is already having a “huge” impact, fueling worldwide anxiety over imported medicine and a growing demand for consumer protection."

In addition to the Times article, Sue Hughes of Medscape writes that 350 adverse reactions to Baxter (the company which produces the heparin) products have been reported, with at least 40% considered serious.

Read the full New York Times article here

FDA Recalls Heparin

For questions contact Baxter Inc.

Bad Drugs at a Pharmacy Near You





Photo Credit

Mayor Bloomberg Orders Counterfeit Triangle Closed

Those who believe Canal Street's abundance of counterfeits are a permanent fixture may be surprised to learn that the infamous "Counterfeit Triangle" has been disbanded, as 32 shops were ordered shut last Tuesday in a series of major civil lawsuits. Mayor Michael Bloomberg noted that the operation was one of his "biggest takedowns ever," calling the profits from counterfeiting "easy and sleazy."

After an undercover investigation spanning 40 shopping sprees, over $1 million in counterfeit goods were seized.

“Whoever you are, wherever you are, we are going to shut you down,” Mayor Bloomberg said at a news conference in the main hall of a mall on Canal St which housed some of the alleged offenders. Speaking among clear plastic bags chock full of hundreds of the confiscated counterfeits, Mr. Bloomberg spoke of money laundering and bloody gang wars over prime counterfeiting turf.

"It is organized crime," he said of counterfeiting--which saps $1 billion in taxes from Manhattan per year.

To read more about the takedown, visit the NYT "City Agents Shut Down 32 Vendors of Fake Items."

In the future, UK web pirates may be banned from net

Britons who illegally download mp3s or movies may have their internet rights revoked if legislative proposals introduced this week are passed. The new laws would require ISPs, or Internet Service Providers, to take legal action against any users known to be downloading, The Times of London reports.

The proposed policy follows the "three strikes you're out" mantra; Net users would be given a warning for the initial offense, a suspension of their contract for the second, and a compelet dissolution of their internet contract on the third illegal download. The government is also considering taking legal action against any ISPs who don't adhere to this policy.

With a piracy market reaching over 21.6 Billion GBP per year, talks between ISPs, the government, and the record industry have been ensuing for years.

“We welcome the signal from Government that it values the health of the creative industries and takes seriously the damage caused by widespread online copyright infringement," says
Roz Groome, vice-president of anti piracy for NBC Universal. "We call upon ISPs to take action now. They must play their part in the fight against online piracy and work with rights owners to ensure that ISPs’ customers do not use their services for illegal activity. Piracy stifles innovation and threatens the long term health of our industry.”

Personally, we feel there are so many innovative legal ways to get your music we don't see the point of risking it by going the other way. Free sites like Musicovery or Pandora allow users to create innovative playlists based on mood, song/artist preference, or even tempo. And companies such as eMusic sell records long since out of rotation, many of which are so obscure iTunes doesn't carry them. Even the structure of the record industry is changing, with the guys at Engadget and Downtown records launching Rcrd Lbl, an online resource that gives you the music free while still offering payment to the artists.

Photo Credit

Canadian Authorities Seize Counterfeit Hair Irons

Much is done in the name of beauty. But using counterfeit hair irons to look chic on the cheap? Authorities in the Quebec City region of Canada say some consumers unwittingly did just that; the police announced a seizure of 4,500 fake hair straightening irons last Tuesday. The raid was held on January 15 after a months-long investigation beginning in March 2007.

Click here to read the full story on our Style Blog, and find out why the effects of fakes on the fritz are not so beautiful.

Photo Credit

First Arab Anti-Counterfeiting Consumer Forum

The first Arab Consumer and Brand Protection Forum (ACBPF) has been planned by Saudi Arabian consumer organization Hemaya Universal. It was announced at the opening of the 4th Global Congress on Combating Counterfeiting and Piracy, a summit which will continue until February 5.

The 4th Global Congress on Combating Counterfeiting and Piracy was held by the World Customs Organization and Dubai Customs, and also attended by the International Chamber of Commerce (ICC), INTERPOL, the World Intellectual Property Organization (WIPO), the International Trademarks Association (INTA) and the International Security Management Association (ISMA).

ACBPF will take place in Jeddah on 19-22 of October 2008, with attendance by HRH Prince Khalid Al-Faisal bin Abdul-Aziz Al Saud, the Governor of Makkah. "The Arab League has aligned its efforts with Hemaya Universal to host the conference as a first step towards efforts to combat the epidemic of counterfeiting," said Assistant General Secretary of the Arab League for Economic Affairs Dr. Mohammed Bin Ibrahim Al-Tuwaijri.

"Hemaya has courageously begun to protect consumers from commercial fraud, in addition to helping secure intellectual property rights in the Arab region.” he noted.

Ahmed bin Suleiman Al-Zubeidi, CEO of Hemaya Universal, noted this consumer awareness campaign is unparalleled in the Middle East, and will help raise the alarm on dangerous counterfeit goods. He emphasized that the economies of Arab nations are being threatened by counterfeits, and as this continues, forums like ACBPF are necessary.

For more information on the Forum, visit arabworldprotect.com.

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

New York Times Editorial on Fakes

The New York Times' editorial board has been making a lot of newsworthy decisions lately--most notably their public endorsement of Hillary Clinton. But they took another big stance this month--against counterfeits. Featured as a main editorial on January 20, "The Real Price of Fakes" is a call to arms against an ever-present and expanding counterfeit market.

"With some $200 billion worth of those pirated or counterfeited goods coming into the United States each year, already weak regulatory agencies are overwhelmed. That means that far too often the burden falls on the buyer to avoid getting stuck with, or hurt by, hazardous fakes. That is not always easy, and the horror stories in recent years have included pet food that harmed or killed hundreds of pets in the United States. More recently, counterfeit batteries have been recalled because they tend to overheat and even explode."

Read the full editorial here.

The Twelve (Horribly Fake) Days of Christmas

On the first day of Christmas,
the counterfeiters and pirates gave to me
One bootleg DVD

On the second day of Christmas,
the counterfeiters and pirates gave to me
Two exploding batteries ,
And one bootleg DVD

On the third day of Christmas,
the counterfeiters and pirates gave to me
Three fake Tickle-Me-Elmos,
Two exploding batteries,
And one bootleg DVD

On the fourth day of Christmas,
the counterfeiters and pirates gave to me
Four defective Durex condoms,
Three fake Tickle-Me-Elmos,
Two exploding batteries,
And one bootleg DVD

On the fifth day of Christmas,
the counterfeiters and pirates gave to me
Five sawdust brake pads,
Four defective Durex condoms,
Three fake Tickle-Me-Elmos,
Two exploding batteries,
And one bootleg DVD

On the sixth day of Christmas,
the counterfeiters and pirates gave to me
Six tainted tubes of toothpaste,
Five sawdust brake pads,
Four defective Durex condoms,
Three fake Tickle-Me-Elmos,
Two exploding batteries,
And one bootleg DVD

On the seventh day of Christmas,
the counterfeiters and pirates gave to me
Seven sick senior citizens,
Six tainted tubes of toothpaste,
Five sawdust brake pads,
Four defective Durex condoms,
Three fake Tickle-Me-Elmos,
Two exploding batteries,
And one bootleg DVD

On the eighth day of Christmas,
the counterfeiters and pirates gave to me
Eight children a-choking,
Seven sick senior citizens,
Six tainted tubes of toothpaste,
Five sawdust brake pads,
Four defective Durex condoms,
Three fake Tickle-Me-Elmos,
Two exploding batteries,
And one bootleg DVD

On the ninth day of Christmas,
the counterfeiters and pirates gave to me
Nine computers-a-crashing,
Eight children a-choking,
Seven sick senior citizens,
Six tainted tubes of toothpaste,
Five sawdust brake pads,
Four defective Durex condoms,
Three fake Tickle-Me-Elmos,
Two exploding batteries,
And one bootleg DVD

On the tenth day of Christmas,
the counterfeiters and pirates gave to me
Ten extension cords a-blazing,
Nine computers-a-crashing,
Eight children a-choking,
Seven sick senior citizens,
Six tainted tubes of toothpaste,
Five sawdust brake pads,
Four defective Durex condoms,
Three fake Tickle-Me-Elmos,
Two exploding batteries,
And one bootleg DVD

On the eleventh day of Christmas,
the counterfeiters and pirates gave to me
Eleven erroneous diabetic testing strips,
Ten extension cords a-blazing,
Nine computers-a-crashing,
Eight children a-choking,
Seven sick senior citizens,
Six tainted tubes of toothpaste,
Five sawdust brake pads,
Four defective Durex condoms,
Three fake Tickle-Me-Elmos,
Two exploding batteries,
And one bootleg DVD

On the twelfth day of Christmas,
the counterfeiters and pirates gave to me
Twelve fire extinguishers malfunctioning,
Eleven erroneous diabetic testing strips,
Ten extension cords a-blazing,
Nine computers-a-crashing,
Eight children a-choking,
Seven sick senior citizens,
Six tainted tubes of toothpaste,
Five sawdust brake pads,
Four defective Durex condoms,
Three fake Tickle-Me-Elmos,
Two exploding batteries,
And one bootleg DVD

Brought to you by the U.S. Chamber of Commerce.

Well, ladies and gentleman. It's been a mad, mad year of fakes. Here's hoping you bought authentic this holiday season. You wouldn't want that Christmas tree or Hanukkah bush a-kindling because of cheap lights.

Happy holidays!

Photo credit

PICA Seizes $10 Million in Counterfeits, Linked to Cleveland Drug Trade

The PICA Corporation, along with the FBI and ICE, have closed a one year investigation on Cleveland based retail stores proved to be selling counterfeit goods. On December 3, 2007, search warrants and cease and desist orders were issued to five 360 Clothing Studios and one store named Jazzy Looks.

Among the $10 million dollars of seized counterfeit products were also drugs and stolen property. 200 pounds of marijuana and two kilos of cocaine were found with 25,000 pairs of counterfeit shoes and 40,000 pieces of copycat apparel.

"The 360 Clothing Studios were one of the largest suppliers of counterfeit footwear and apparel in the greater Cleveland area. They attempted to legitimize counterfeit product by introducing it into retail stores in the area," said Tim Richissin, PICA operative.

The crime ring of ten people was charged with drug trafficking, burglary, receiving stolen property, weapons violation, trademark counterfeiting and criminal simulation.

Photo Credit

UN Ties Counterfeits to Organized Criminals

Long have experts been linking the multi-billion dollar counterfeiting enterprise with organized crime across the world. The latest political leader to address this serious concern is Sandro Calvani, director of the U.N. Interregional Crime and Justice Research Institute, who just compiled a report calling counterfeits a "21st century gold mine" for criminals who exploit trade routes also used in the drug trade, gun running and human trafficking.

"It is an immense source of profits which are readily reinvested in other illegal activities or used to launder money derived from other crimes," said Calvani.

The UN report discussed links between counterfeit CDs, DVDs, luxury goods and electronics and gangs including the Camorra in Naples, mafia in Russia, as well as Japanese Yazukas.

Read more about the UN report here.

Fake Contraception Poses Risks, say Authorities

Hundreds of allegedly fake condoms have been found and seized by officials in the United Kingdom this week. The fakes, which fall under the jurisdiction of Lambeth council in South London, are three-packs falsely branded as Durex. They pose a huge risk to consumers, as they are more likely to tear and can otherwise be unreliable.

"These counterfeits cannot be relied upon to protect people against sexually transmitted diseases and unwanted pregnancy," says Lib Peck, cabinet member for environment and culture.

Trading officials have not released a list of where such fakes might be sold, simply saying that shops in Brixton and Herne Hill have been raided. Consumers are urged to check the serial number on the product, and remain aware of the issue.