Kingston MicroSD counterfeit's hard to distinguish

Bunniestudios post:
{It all started back in December of 2009, when chumby was in the midst of production for the chumby One. A call came in from the floor noting that SMT yield had dropped dramatically on one lot, so I drove over to the building to have a look (this is the advantage of being in China during production — you can fix problems like this within the hour, before they become really serious issues). After poking and prodding a bit, I realized that all the units failing had Kingston microSD cards from a particular lot code. I had the factory pull the entire lot of microSD cards from the line and rework all the units that had these cards loaded. Sure enough, after subtracting these cards from the line, yield was back to normal again.

Normally, the story would end there; you’d RMA the material, get an exchange for the lot, and move on. Except there were a couple of problems. First, Kingston wouldn’t take the cards back because we had programmed them. Second, there was a lot of them — about a thousand all together, and chumby was already deeply back-ordered. Also, memory cards aren’t cheap; the spot price on this type of memory card is around $4-5, so it’s a few thousand dollars in scrap if we can’t get them exchanged … and neither chumby nor the CM is large enough to sneeze at a few kilobucks.

So I kicked into forensic mode. The first thing that raised my suspicions is the external markings on the irregular Kingston cards.

On the left is a sample of the irregular card. On the right is a sample of a normal card. I’ve put red arrows on the details that called the most attention to me at first.

The most blatantly strange issue is that the card on the left has its lot code silkscreened using the same stencil as the main logo. Silkscreening a lot code on isn’t that unusual, but typically the silk does not share the same stencil as the logo, so you’ll see some small variance in the coloration, font, or alignment of the lot code from the rest of the text. In fact, across the entire batch of irregular cards, they shared the exact same lot code (N0214-001.A00LF) (typically the lot code will vary every couple hundred cards at least). This is in contrast to the card on the right, which is laser-marked, and has a lot code that varied with every tray of 96 units.}

BunnieStudios goes on to say that when placed into a Linux system there are /sys differences with the real and counterfeit SD cards. The problem is that most people do not have Linux machines to test their SD cards. Without seeing the real and fake sitting side by side one would not know which is real and which is fake.   Unless one placed a covert Authentication marker and read the marker with a reader.(Tony Zafiropoulos)

Tony Zafiropoulos
2/28/2010

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Fake iphones sell for $48 in China

My Beijing Information Resource has a story:
{According to one article released by media in America, Apple worries that China fake iPhone would become a great menace to its sale in China or even in the world. It intends to speed up its launch in this country. Yes, China fake cell phones develop by leaps and bounds. The following 3 features are the main factors that they probably defeat Apple iPhone:

1. Fairly low prices. Comparing to real Apple iPhone, fake iPhones prices are usually much much lower. In China, we could spend only about $48 to buy a counterfeit i9+++ from wholesale cell phones retailers. However, a real Apple cell phone might cost you around $590.

 

2. Incredible functionality. The functionality of Chinese fake mobile phones has made an amazing improvement. Besides supporting the functions of original real phones, these fake products are even made with additional functions. Let’s take Blockberry Storm 9500 for example. This emulational product of Blackberry Storm also supports Windows Mobile operation system besides having the original phone’s usual functions.

 

3. Constantly improving warranty. Product warranty was always the key weak point of fake mobile phones in China. But manufacturers have made a big progress today. Almost all the counterfeit products accept 12-month warranty and their manufacturers hardly show any complaint as they receive the returned goods. Plus, if you buy from China wholesale dropshipper, you could rest assured, as they could directly contact manufacturer and help you deal with the problem.}

Apple is not immune to counterfeiting, especially in China, where everything is copied. When the price of a phone is 10% of the retail price of a real phone one can see that the manufacturer will have problems selling their legitimate product. We need a legitimate method of differentiating the real from the fake. Authentication Markers and detectors are the answer.(Tony Zafiropoulos)

Tony Zafiropoulos
2/27/2010

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Counterfeit drug sales will reach $75 Billion in 2010

Johnson & Johnson counterfeit products position statement:
{At Johnson & Johnson we believe our first responsibility is to the doctors, nurses and patients,
to mothers and fathers and all others who use our products. In today’s global economy, where
patients and consumers may be exposed to counterfeit products of all kinds, we must take
tangible steps to ensure they receive the genuine products of the Johnson & Johnson family of
companies.

Counterfeiting of health care products is a serious and growing concern because it can
undermine confidence in product safety and effectiveness while putting people’s health and
lives at risk. Counterfeiting is a global problem and while difficult to quantify, the World Health
Organization reports the incidence of counterfeiting is growing. Additionally, the United States
based Center for Medicines in the Public Interest predicts that counterfeit drug sales alone will
reach $75 billion globally in 2010, an increase of more than 90% from 2005.

Johnson & Johnson companies take a variety of approaches to identify and mitigate the risks
of counterfeit health care products. They include a range of product and packaging security
measures that help distinguish the authentic product from a counterfeit, and aid in minimizing
the potential for tampering. We are working to make improvements in the supply chain – from
sourcing of ingredients and manufacturing through distribution -- to help minimize the risk of
counterfeit products entering the system.

We monitor markets and investigate counterfeiting activities. We collaborate with regulatory
and law enforcement authorities, as well as our business partners, to locate and remove
counterfeits from the market, seize and destroy the manufacturing equipment, and prosecute or
take civil action against the perpetrators.}

Johnson & Johnson has started to take the counterfeit products problem seriously.(Tony Zafiropoulos)

Tony Zafiropoulos
2/26/2010

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Half a million counterfeit products seized in Chile

IPTango Blog post:
{Today’s front page of the Mercurio newspaper reports that in 2009 more than half a million counterfeit goods were seized in shops and malls.

According to the head of the Brigade of Intellectual Property, Patricio Bascuñán, PlayStation games is at the top of the list with over 100 thousand counterfeit products. They are followed by sportswear bearing marks such as Nike and Adidas.

Following investigations it was found that the goods reach the country from China, through an importer. However, it is also recognised that there were cases in which the store owners bought the products online.

Mr Bascuñán explains that one of the biggest concerns is related to health. He gives an example of cylinders of oxygen which were seized – even though they were bearing the mark Indura, they were filled by another company. That said, he says that it is uncertain if they had the adequate quality and purity for human use.}

Counterfeit products are pervasive in every country due to their high profitability, and difficulty to distinguish real from fake. What companies need to do is to set up Authentication Markers on their products.(Tony Zafiropoulos)

Tony Zafiropoulos
2/25/2010

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Victoria Espinel: appointed Intellectual Property Enforcement Coordinator

Govmonitor.com Story:
{Hi, I am Victoria Espinel, the U.S. Intellectual Property Enforcement Coordinator.

I am honored to have been appointed by President Barack Obama and confirmed by the U.S. Senate to serve in this new position created by Congress in the Prioritizing Resources and Organization for Intellectual Property Act of 2008.

Intellectual property are the ideas behind inventions, the artistry that goes into books and music, and the logos of companies whose brands we have come to trust.   My job is to help protect the ideas and creativity of the American public.  One of the reasons that I care about this is because I believe it is enormously important that the United States remain a global leader in these forms of innovation – and part of how we do that is by appropriately protecting our intellectual property.  Our intellectual property represents the hard work, creativity, resourcefulness, investment and ingenuity of the American public.  Infringement of intellectual property can hurt our economy and can undermine U.S. jobs.  Infringement also reduces our markets overseas and hurts our ability to export our products.  Counterfeit products can pose a significant threat to the health and safety of us all.  Imagine learning that the toothpaste you and your family have used for years contains a dangerous chemical.  U.S. Customs officials have seized several shipments of counterfeit toothpaste containing a dangerous amount of diethylene glycol, a chemical used in brake fluid, and that in sufficient doses is believed to cause kidney failure.  All of these are reasons why your government has renewed its efforts to challenge this illegal activity.

My job is to help coordinate the work of the federal agencies that are involved with stopping this illegal behavior.  We are going to work together to develop a strategy to reduce those risks to the public, the costs to our economy and to help protect the ingenuity and creativity of Americans.  We want to be able to reduce the number of infringing goods in the United States and abroad.

The examples are almost endless: counterfeit car parts, illegal software, pirated video games, knockoff consumer goods, dangerous counterfeit medicines, and many other types of products – including very sophisticated technology.  Our goal is to better use taxpayer dollars and other government resources to be more effective in reducing any threat to our economy and our safety.}

The government is accepting input at this link.(Tony Zafiropoulos)
Tony Zafiropoulos
2/24/2010

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Burlington Coat Factory pays $4.7mil to Fendi

Stylelist.com has the story:
{ After a trademark infringement spat over counterfeit goods was resolved between the two in 1987 -- the court ordered an injunction against Burlington Coat Factory Warehouse Corp. from selling any Fendi-labeled products, the two were at it again in 2006.

Fendi North America Inc. filed suit in the U.S. District Court in Manhattan claiming that Burlington Coat Factory had violated the injunction by continuing to sell counterfeit bags bearing Fendi's logo.

Now the verdict is in and Judge Leonard Sand was all for Fendi, reports WWD. The court found Burlington Coat Factory in contempt of the injunction and ordered the retailer to pay up: as in $4.7 million up! The amount includes the profits the retailer earned plus interest and attorney's fees.

Fendi's CEO Michael Burke was plenty pleased with the outcome and spoke out on the responsibilities of retailers. Burke told the paper, "Retailers have a duty to society and their customers to do a certain amount of due diligence. Clearly Burlington Coat did not.}

Real Fendi Bag selling for $1000 at Overstock.com

Retailers have to be careful and check to see that they are selling the real legitimate products. Differentiating finding the real product versus fake.(Tony Zafiropoulos)

Tony Zafiropoulos
2/23/2010

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Indian exporters can still send their exports to East Africa

Livemint.com has the story:
{Mumbai: In a move that spells relief for Indian generic drug manufacturers, at least five East African countries—Uganda, Tanzania, Rwanda, Burundi and Sudan—have refused to endorse a proposal by the East African Community (EAC) to introduce an anti-counterfeit products law.

The law, which could have potentially blocked exports of generic drugs from India because of a lack of clarity on what is counterfeit, had worried the Indian drug industry ever since the 2007 draft proposal by the EAC. East African countries together contribute almost one-fifth of India’s Rs40,000 core drug exports.

Kenya passed a similar law in 2008 that Uganda had used as a model for its own draft Bill last year, and which was due for implementation this year. The Ugandan Bill has now been sent back for review, George Baguma, a representative of an East African drug industry group, wrote in an email.}

East African countries like the counterfeits and generic drugs, as they are cheaper. Or they do not have the wherewithal to differentiate. If it was easy everyone would do it - use Authentication Markers.(Tony Zafiropoulos)

Tony Zafiropoulos
2/22/2010

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Toyota car parts can be counterfeit on the Internet

Discoveryarticles.com has a counterfeiting story:
{Counterfeit products and goods are everywhere. Just about everyone has encountered counterfeit products in their lifetime. While most people think of counterfeit sunglasses or DVDs, counterfeit car parts can also be a big problem. As a consumer you need to protect yourself by being a wise and observant buyer. There are lots of replicated products that can be bought in various shops today that won’t cause you any harm. Products like sunglasses, bags, and dress are still usable, counterfeit or not. However, buying fake car parts like Toyota parts can create a very big harm not only to yourself, but also to the safety of your family. It can cause a lot of damage to your car and you may even risk your own life.

Counterfeiters are now becoming more and more rampant because of the advancement of technology. They can mimic the entire physical aspect of a product without a single obvious difference to alert you that it is a counterfeit. However, when it comes to creating fake car parts, it’s not so simple. While the parts may look and feel real, in reality they are shoddy replications that use inferior materials and will quickly malfunction.

It is always possible to find genuine car parts online especially Toyota Camry parts. However, you have to examine the prices. Do not be fooled by incredibly low priced car parts because if it’s too good to be true, it probably is. If the parts you are looking to buy are far under priced, that is a good sign that they are counterfeit.
Ordering car parts from China and other faraway places is also risky. While there are certainly quality parts dealers all around the world, the likelihood of getting counterfeit parts is far greater abroad.}

How can one truly know for certain if a car part is genuine or not? An Authentication Marker on every part would allow the viewer to test the part with a reader. (Tony Zafiropoulos)

Tony Zafiropoulos
2/21/2010

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Consumer Brands like Lipton tea being counterfeited

The Peninsula, Qatar's leading daily has a story:
{An exhibition of counterfeit products — among them some basic food items of daily use — held by the Consumer Protection Department here recently left visitors aghast as it showed that even popular tea brands like Red Label and Lipton were not spared by brand counterfeiters.

The exposition was organised on the sidelines of a consumer rights conference at the Sheraton Doha by the Ministry of Business and Trade.

The idea behind displaying the counterfeit items, according to the organisers, was to create awareness among consumers about fake products so they could be avoided.

Visitors said they were shocked by the skill of the counterfeiters, which made it difficult to tell between original Red Label or Lipton tea bags and fake ones.}

I don't think there is a product that cannot be counterfeited, when you don't have to create a product (just copy it). It is easier to just create a knock-off, and not have to spend any money on marketing. (Tony Zafiropoulos)

Tony Zafiropoulos
2/20/2010

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FDA report on anti-counterfeiting best practices

FDA report on anti-counterfeiting:
{Question: Discuss the advantages and disadvantages and the role of track and trace technologies,
in particular bar codes and RFID.

Answer: See 9iii above. Advantages: In addition, bar codes requiring scanning to be
read. Also tracking information cannot be added to bar codes as it can be with RFID.
Track and trace should also provide real time verification of product integrity,

Disadvantages: RFID is only as good as the integrity of the package. Repackaging
will render RFID useless. RFID can be copied, just like any other feature. Unless
RFID is included at the unit of use level, it would be feasible to separate the RFID tag
from the case or pallet and create bogus trails.}

There are many other good points, including the obvious keep covert taggants secret. It is a report from November but has some good coverage of the counterfeit/anti-counterfeit pharmaceutical industry. (Tony Zafiropoulos)

Tony Zafiropoulos
2/19/2010

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Generic drug companies defend drugs like branded co's

Briefandtothepoint blog has a post:
{Giants like Sanofi-Aventis and GlaxoSmithKline are not looking to enter the commodity generics market in the United States, where chain pharmacies often determine which generics they offer based on the lowest available price — and where consumers often view generic makers as interchangeable.

Instead, the big drug makers are pursuing a growing consumer base in emerging markets like Eastern Europe, Asia and Latin America where many people pay out of pocket for their medicines but often cannot afford expensive brand-name drugs.

And, in some emerging markets, where the fear of counterfeit drugs or low-quality medicines runs high, consumers who can afford it are willing to pay a premium for generics from well-known makers, industry analysts said. These products are known as company-branded generics, or branded generics. They carry the name of a trusted local or foreign drug maker stamped on the package, seen as a sign of authenticity and quality control.

“We are able to create different tiers of products at prices they haven’t previously seen with our stamp of approval,” said Andrew P. Witty, the chief executive of GlaxoSmithKline.}

Even generic drug makers are branding their products in non-US markets. So the generics need Authentication Markers as well. (Tony Zafiropoulos)

 

Tony Zafiropoulos
2/18/2010

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1000 surveyed execs believe counterfeits increasing

sdcexec.com has a story:
{Estimates are that up to 10 percent of technology products worldwide are counterfeit, equating to roughly US$100 billion in global product sales throughout the electronics supply chain. In a study published last year by Supply & Demand Chain Executive, nearly two-thirds of 1,000-plus industry professionals surveyed said they believe that the frequency of suspected counterfeit and inferior part activity in the market is increasing.

"Counterfeiting of semiconductors is a growing problem. Electronic equipment manufacturers can combat counterfeiting by purchasing semiconductors only from trusted sources," Scalise concluded.}

Supply & Demand Executive magazine has periodic surveys and apparently a lot of electronics companies have problems with counterfeit products. (Tony Zafiropoulos)

 

Tony Zafiropoulos
2/17/2010

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$4mil of Counterfeits seized - 50% of sales of real drug

Wall Street Journal story:
{Piled up in huge plastic bags, the haul netted millions of dollars worth of breast cancer, leukemia and other medicines, along with tens of thousands of anticoagulant pills that purported to treat heart attacks and other diseases. At least 65 people were detained; it couldn't be learned if they were charged. A trial date hasn't yet been set.

All were fakes with no medicinal value, copies of legitimate medicines made by Novartis AG, Sanofi-Aventis SA, Bristol-Myers Squibb Co., Roche Holding AG and Pfizer Inc.

The bust, which also seized equipment used to make and package fake drugs, stopped one ring's lucrative trade of counterfeits to Iraq, Turkey, Lebanon, Iran and Egypt, according to pharmaceutical-company managers and a Syrian official familiar with the investigation. Pfizer, Bristol-Myers, Novartis and Sanofi-Aventis confirmed the Syrian seizures. A spokeswoman for Roche confirmed cases of counterfeiting in the Middle East but didn't provide further details.

Smuggling of drugs remains a widespread and dangerous problem. Figures from the World Health Organization show it can reach 35% of all drugs in the Middle East, compared to less than 1% in the U.S. and Western Europe. One confiscated shipment by the Syrian ring to Egypt contained counterfeit copies of one brand of a leukemia drugs with a street value of over $4 million -- equivalent to 50% of the annual sales of the brand.}

The counterfeiters are producing so many of their fake products that they are now at 50% of actual drug sales. (Tony Zafiropoulos)

 

Tony Zafiropoulos
2/16/2010

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Ebay to pay Louis Vuitton for bad linking

Webster University Media case Law Blog information:
{A Paris court ordered eBay Inc. to pay Louis Vuitton 200,000 euros ($275,000) in damage Thursday February 11, 2010. The court found that eBay was harming the Louis Vuitton, Moet Hennessy Louis Vuitton (LVMH), brand's image when the site allowed online auctioneers to use the misspelling of the name to be linked to the eBay site. The use of misspelling is sometimes associated with counterfeit items.

Many online businesses pay to have a large number of words call up link to a site, like eBay, when typed in to search engines. The court ‘s ruling reprimanded eBay for buying terms like “Louis Viton” or “Wuiton,” which is associated with selling knockoff LV products. The court said the trading of counterfeit products on eBay damages the Louis Vuitton image. Louis Vuitton will also receive 1,000 euros for every future violation, which will only be applicable in France.}

Now linking as a counterfeit product spelling will get you in trouble. (Tony Zafiropoulos)

 

Tony Zafiropoulos
2/15/2010

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6.9 Billion Euros counterfeit products sold in Italy this year
BBC story:

{Italy has had a series of counterfeit scams in recent years.

It is believed that the items would have been given Italian designer labels and sold in markets and on the streets of Italy's cities, where fake handbags, wallets and belts can be seen around tourist attractions.

It is the latest in a massive haul of counterfeit goods in recent years. Italy's national retailers association say around 6.9bn euros (£6bn) of fake products are sold each year.

Among other elaborate scams in recent years has been the case of two Japanese businessmen who were stopped on a train carrying fake bonds worth 97bn euros.

Then there was the giant counterfeit olive oil deception. The batches were actually concoctions of sunflower oil mixed with industrial chlorophyll.}

If it isn't obvious yet, we need a good quick solution to verify the authenticity of all products. (Tony Zafiropoulos)

 

Tony Zafiropoulos
2/14/2010

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Half of cigarettes are counterfeit in Scunthorpe

Scunthorpe Telegraph tells the story:
{A report from Illegal Tobacco North has stated 34 per cent of smokers in North Lincolnshire have bought tobacco illegally, despite the figures from Cancer Research UK showing illegal tobacco kills four times more people than illegal drugs in the UK.

Trading standards has confirmed almost half of the illegal tobacco seized in the area is counterfeit, with HM Customs confirming ingredients for the tobacco have included insects, lead, and rat droppings.

Malcolm Osborne, trading standards manager for North Lincolnshire Council, said: "The percentage of counterfeit products is increasing, with currently 45 per cent of all goods seized being counterfeit.}

Counterfeit cigarettes seem to be very profitable, as the tax system is shortcut. (Tony Zafiropoulos)

 

Tony Zafiropoulos
2/13/2010

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Hong Kong steps up anti-counterfeit efforts Lunar New year

7th space interactive has a story:
{With the Lunar New Year around the corner, to deter unscrupulous shops selling infringing items, Hong Kong Customs mounted a two-week operation starting from January 25 in various districts and at the control points to combat the sale activities of counterfeit goods. During the operation, Customs officers conducted blitz against the sale of counterfeit goods at hot shopping spots in Tsim Sha Tsui, Yau Ma Tei and Mongkok. Together with trade mark owners, the officers also conducted raids on retailers and wholesalers in various districts.

They found some shops were selling counterfeit items or mixing infringing goods with the genuine ones to confuse customers. As a result, Customs officers raided 25 retail shops, 10 stores and 9 hawker stalls, and seized more than 45,000 counterfeit items, including popular Lunar New Year goods, high-tech electronic products, clothing and shoes, with a total value of over $6 million. Among the 23 men and 32 women aged from 18 to 78 arrested, there were shop proprietors and salespersons.}

Chinese New Year is February 14th, and 2010 is the year of the Tiger. (Tony Zafiropoulos)

 

Tony Zafiropoulos
2/12/2010

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US Department of Commerce Bureau of Industry & Security
ERAI.com has the BIS report - this is an excerpt:

{A total of 387 surveys were received, representing 83 OCMs, 98 parts distributors (including

 

There is a lack of traceability in the supply chain. Procurement organizations at times

cannot trace purchased parts back to their points of origin with any degree of certainty. This is

further compounded by the fact that many components are provided by offshore suppliers,

making verification more difficult.

 

Few are aware of legal requirements and liabilities regarding counterfeits. The majority

of survey participants were not aware of any legal requirements or liabilities related to the

management, distribution, storage, and disposal of counterfeit parts.

 

Stricter testing protocols and quality control practices are needed. There are wide

differences in the levels and quality of testing undertaken by organizations purchasing and

receiving parts. In addition, there are no existing standards for third-party testing facilities.

 

While there are industry standards addressing testing and quality control issues, they have not

been systematically embraced or enforced by the supply chain.

 

Most DOD organizations do not have policies in place to prevent counterfeit parts from

infiltrating their supply chain. DOD organizations tend to rely solely on the Defense Federal

Acquisition Regulations (DFAR) to guide their procurement practices. At the time the survey

was conducted, few had developed additional procurement and testing protocols to address the

problems caused by counterfeit parts.

 

No type of company or organization has been untouched by counterfeit electronic parts.

Even the most reliable of parts sources have discovered counterfeit parts within their}

 

This report conclusively reports that counterfeit products have infiltrated dozens of electronics companies and their products. There is no Authentication system or methodology in place. (Tony Zafiropoulos)

 

Tony Zafiropoulos
2/11/2010

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Michigan State setting up anti-counterfeit program
Freep.com has a story:

"It's not just Louis Vuitton losing money on a handbag," said Jeremy Wilson, an MSU criminal justice professor.

That's why the university has recently unveiled A-CAPPP, the Anti-Counterfeiting and Product Protection Program, which the school is touting as the nation's first comprehensive research and training program designed to address counterfeiting.

MSU officials said they're working with the FBI, Customs and Border Protection, the Department of Homeland Security and the Food and Drug Administration, among other entities, to create a database that will track counterfeiting incidents in the U.S. dating to 2000."

 

Everything will help of course, but companies should not shirk their legal and society obligations by creating a foolproof method of differentiating real from fake products.Use an Authentication Marker and a reader. (Tony Zafiropoulos)

 

Tony Zafiropoulos
2/10/2010

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Visit Las Vegas - get arrested for your counterfeiting
FierceCIO.com story:
"A Chinese businessman who sold phony Cisco computer parts to U.S. buyers was sentenced to two and a half years in federal prison, according to the U.S. attorney's office in Los Angeles. He also was ordered to repay nearly $800,000 to Cisco Systems Inc.

The defendant was identified as Yongcai Li, the owner of a technology company in China.

Li was arrested in January 2009 while visiting Las Vegas and was sent to Los Angeles for prosecution. He pleaded guilty last fall to a count of trafficking in counterfeit goods and was sentenced Jan. 25.

Tony Zafiropoulos

2/9/2010

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Defense lawyer against use of prosecutor to counterfeiters
BuffaloNews has a story:
"The investigation begun by Niagara Falls police led to 25 arrests in several states. Counterfeit Nike sneakers worth an estimated $7 million were found in two New York City warehouses.

The case has drawn accolades from people in the business world who consider counterfeiting a major problem. But one defense lawyer in the case said the feds shouldn’t even be involved.

Mark J. Mahoney sees the sales of knockoff merchandise as a business dispute between Nike and the accused counterfeiters, and he questions using federal prosecutors and agents to help a multibillion- dollar company.

“To me, it’s ridiculous to send poor people to prison and then make them spend the rest of their life trying to repay Nike after they get out,” said Mahoney, who represents a woman charged in the case"

If this line of reasoning starts to take hold, businesses that are being counterfeited need to prosecute the counterfeiters themselves, and have concrete efforts as to how to tell the different products apart. Such as using an authentication marker. (Tony Zafiropoulos)

Tony Zafiropoulos

2/8/2010

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Chinese buy 3Bil items from TV/online, 81 mil MLB jerseys
UGGSaleuk97 Blog has the information:
"TV shopping and online shopping e-commerce development will be integrated into the mainstream. According to Analysys International's latest analysis report showed that domestic B2C market, last year's sales volume of 81.28 million,wholesale mlb jerseys, of which 35.87% of the 3C products to share ranks first, the transaction amount to nearly 3.0 billion. 3C products with the gradual popularity of online shopping, new shopping sites continue to emerge, the Gome and Suning, Dixon pass, in the field of telecommunications, electronics stores and other traditional Buynow formed a certain impact, so some department stores, appliance stores began to test the water of electronic business online shopping, if and TV shopping for the effective integration of the retail industry, business model changes will occur. IResearch Consulting's statistics, last year the second half of the size of the domestic online shopping market transactions reached 75.08 billion yuan more than last year in the first half increased 41.4% year on year growth of 113% in the second half of 2007. Even so, the size of last year's online shopping transactions 突破千亿元 mark to 128.18 billion yuan, with a substantial increase in 2007 compared to 128.5.
non-store sales of the absence of a diversity of going into the store fees, promotional fees, and no shop the huge costs, businesses more willing to purchase the net and on TV shopping platform, with the 3G technology, mobile phone shop the convenience of Wal-Mart and Carrefour will change the one-stop shopping business model, the convenience of staying at home can be achieved only network platform, the development of mobile Internet shopping possible anywhere, anytime, to Wal-Mart, Carrefour, Wangfujing, Gome, Suning, Dixon pass, in the field of telecommunications, as represented by the traditional stores Buynow face enormous challenges.相关的主题文章"

128 Billion Yuan was spent on last years online purchases, which is 18billion dollars. I wonder how much of that was in counterfeit goods?  Even a 10% counterfeit goods business would be approximately 2 Billion dollars. (Tony Zafiropoulos)

Tony Zafiropoulos

2/7/2010

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'Purse party' leads to 1700 counterfeit purses & arrest
leagle.com has a legal case:
"Appellee, Juanita Troisi, hosted a "purse party" in Kirtland, Ohio, where she offered purses and other items for sale. The Kirtland police were informed of this party by an invitee. After determining that "knock-off designer labels" might be sold at the party, Sgt. Jamie Tavano contacted Timothy Richissin for help on the case. Richissin, a sergeant with the Cleveland Police Department, was also employed at the time by the Professional Investigation Consulting Agency, where he specialized in investigating intellectual-property issues. The police conducted a raid of the purse party, seizing over 1,700 allegedly counterfeit purses, wallets, and jewelry pieces. At the scene, the police also obtained a written statement from Troisi in which she admitted knowing that "the purses and wallets were not authentic."

It is amazing - the naivete of some enterprising individuals. (Tony Zafiropoulos)

Tony Zafiropoulos

2/6/2010

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Some developing countries have 50% counterfeit drugs
American Enterprise Institute informational story:
"Estimates of the amount of counterfeit or substandard drugs in some parts of the developing world range from less than one percent to over fifty percent.[1] Poor countries such as India and many African nations are particularly struggling with this problem, as efforts to reform the pharmaceutical industry have focused on counterfeit medicines and ignored substandard drugs. Until governments and industry significantly lowers substandard drugs in developing world markets, a significant health threat remains.

India is an increasingly influential actor in the global pharmaceutical market. Malaria and tuberculosis remain endemic, while heart disease and diabetes cause the country's growing middle class to demand newer and often more expensive medications. India has also emerged as the world's fourth-largest producer of drugs by volume. Together with China, it produces 20 percent of all finished medicines and 40 percent of all active pharmaceutical ingredients used in the United States alone.[3] Politicians and analysts frequently cite India's low-cost generics industry as a way to improve access to medicines, especially in the developing world.

However, although India's generics industry has gained international approval and its best firms produce top quality products, counterfeit and substandard drugs still plague the country. In 2002, the WHO reported that according to Indian pharmaceutical manufacturers, substandard or illegal drugs accounted for 20 percent of medicines available in major Indian-city markets.[4] Research conducted to assess drug quality in two Indian cities, Delhi and Chennai, found that respectively 12 percent and 5 percent of samples bought from pharmacies in those cities failed quality tests.[5]"

India is realizing that the pharmaceutical industry requires reform to produce drugs to the standards of the west. (Tony Zafiropoulos)

Tony Zafiropoulos

2/5/2010

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Hong Kong Commerce and Economic Development info
7thspace.com counterfeit goods story:
"Following is a question by the Hon Vincent Fang and a reply by the Secretary for Commerce and Economic Development, Mrs Rita Lau, in the Legislative Council today (February 3): Question: I have separately received requests for assistance from manufacturers, importers, wholesalers and retailers of various goods, who pointed out that the types and numbers of counterfeit goods sold on the market are on the increase.In this connection, will the Government inform this Council: (a) of the number of cases of counterfeit goods being seized by the Customs and Excise Department in the past three years, the types of counterfeited goods seized, the number of persons convicted, and the maximum penalty imposed on them;

reply is as follows: (a) In the past three years, C&ED has acted on a total of 2 834 cases that are related to counterfeit goods.The counterfeit items seized include clothing, leather goods, watches and parts, pharmaceutical products, and electrical, electronic and computer products, etc.Altogether 1 385 cases have been prosecuted in these three years, involving 1 696 persons.Among the 1 263 convicted cases, 1 398 persons were sentenced.The heaviest fine awarded amounts to $475,000 while the highest sentence is imprisonment for 24 months."

There was no dollar value to items seized, but 2834 cases in the last 3 years is no small amount of counterfeit cases. (Tony Zafiropoulos)

Tony Zafiropoulos

2/4/2010

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$1.08 million counterfeit apparel caught in Singapore
Channelnewsasia.com:

"Counterfeit apparel and sportswear worth $1.08 million were seized in an 18-hour operation conducted by the police from Monday till early Tuesday. "

Yet another counterfeit apparel bust. (Tony Zafiropoulos)

Tony Zafiropoulos

2/3/2010

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Recession hit semiconductor industry with 23% decline
Laptops Accessories blog talks about the downturn and effects on semiconductor industry:

"As a result of the Electronic Part Catalog downturn, it was easier for the manufacturers of substandard and counterfeit parts of its dangerous product on the market and in electronic devices. It has become easier for these illegal manufacturers and suppliers are looking for cheaper products and shorter lead suppliers. This is why many established e-suppliers have a lot of investment and time into their quality control methods and processes to ensure they deliver top-quality products to market and protect their customers from dangerous substandard and counterfeit parts.

Apart With all the economic doom and gloom, there is a light at the end of the tunnel and revenue expectations are expected to improve towards the end of the fourth quarter of 2009 and even more in 2010."


I wanted to focus on the concept of when there is a recession the counterfeiters may have even more incentive since cheaper products are sought after to a higher degree. One potentially thinks there may be a letup in counterfeit activities, but it is not to be. It actually gets worse. There is no substitute for Authentication Markers on your products. (Tony Zafiropoulos)

Tony Zafiropoulos

2/2/2010

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2009 CBP Safety and Security seizures total $32M
2009 CBP(Customs Border Protection report:
The total value of all commodities presenting potential safety or security risks seized in FY 2009
was $32M.

This image is from the CBP report 2009.

The top category seized in the safety and security category was Pharmaceuticals at $11mil.


To me the most interesting item in the graph is the Critical Technology components, as one cannot see components very easily, and thus counterfeit items have likely been inserted into products that the public and companies producing the products do not know about. (Tony Zafiropoulos)

Tony Zafiropoulos

2/1/2010