Swiss Auth Blog Nov 2009

Bali is an interesting vacation - includes Loren counterfeits

"You cannot walk 500 meters without spotting at least three stores with the standard Ralph Lauren Polo boards in blue! Initially, I thought that the area next to our hotel had branded stores but then I could not find anything else, it was either Polo or the local art. Strange, I say.

But soon as we stepped out of Tanjung Benoa (where our hotel was), I realized that the Ralph Lauren phenomena is not limited to the village but is spread island-wide. Definitely, they are fakes, nevertheless my quandary remains why only Ralph Lauren?"

Ralph Loren counterfeits in Asian resort - keep that in mind when shopping while on vacation - many products are likely counterfeits. Why only Ralph Loren? Likely to do with the fascination of that particular brand in that particular locale.(Tony Zafiropoulos)

Tony Zafiropoulos
11/30/2009

Beaverton Police leads to $18mil seizure of fake goods

Beaverton Valley times story about another seizure:

"An investigation into the sale of counterfeit products started by a Beaverton police detective in the summer of 2008 resulted in a massive $18 million seizure of fake designer goods in Los Angeles last week.

The investigation started after Beaverton police received a complaint about someone selling counterfeit merchandise in August 2008. After an investigation, a search warrant was served on a major supplier of counterfeit items – mostly designer handbags – in the Portland area, which led to further investigation into the origin of the fake products in California."

The arrests were made on Nov18, Beaverton is in Oregon. Counterfeiters and their sales agents weave a tangled web of imports into the USA.(Tony Zafiropoulos)

Tony Zafiropoulos
11/29/2009

10 million Counterfeit Football Jerseys found

Soccerlens.com has a story about a very large counterfeit goods bust:

"German magazine Focus reported that customs investigators in Germany have seized almost ten million counterfeit football shirts and scarves of major European clubs.

Wolfgang Schmitz, spokesman of the German customs office said:
" We've never seized goods in these numbers before"

The report said that an Asian organized gang was involved which was making these counterfeit products in sweatshops in China.

Image also from Soccerlens.com.

Some of the shirts looked almost identical to the original (real products). One must have an anti-counterfeit solution.(Tony Zafiropoulos)

Tony Zafiropoulos

11/28/2009

Minnesota seizes $600,000 in Counterfeit Goods

WCCO.com has a report of the seizure:

"Officials with U.S. Immigration and Customs Enforcement seized over 17,000 counterfeit items from Twin Cities-area businesses last week, with an estimated street value of $643,000.

The seizure was announced Wednesday. Claude Arnold, special agent in charge of the ICE Office of Investigations in Bloomington, says it's the largest one his office has done in the three years he's been here"

Minneapolis does not seem to me to be a major port of entry for counterfeit goods, but that might be why it was chosen.(Tony Zafiropoulos)

Tony Zafiropoulos
11/27/2009

Cosmetic and body spray seized from China at Chennai

TimesofIndia.com has a report (Chennai is a port in India):

"While baby products, facial creams and shampoos were seized in the past, this time smugglers have imported spurious body sprays and perfumes. Customs commissioner C Rajan said 1.2 lakh units of fake products various brands Denim (Hindustan Unilever), Charlie and Moon Drops (Modi Revlon), Maxi, Blue Lady, Havoc Silver, Open, Tomy Girl and Nike worth Rs two crore were seized from two containers imported by Chennai-based Limra Import and Export firm.

The first container, sent by Zong Jian Industry Company in Shenzehen, China, arrived on August 25. It contained about 60,000 pieces of Stock lot Denim deodorant', claimed to have been manufactured by Codaa Fragrances, Switzerland AG. The second one with an equal number of perfumes and deodorant bottles from Thailand Nina Trading Company, Guangzhou, China, reached Chennai on November 20."

It is interesting to note that the Chinese counterfeit factories are producing made in Switzerland items.(Tony Zafiropoulos)

Tony Zafiropoulos
11/26/2009

Macedonian customs seize Counterfeit clothing

Petosevic.com website has a story about Macedonian customs seizing counterfeit clothing:

"The goods were found during regular inspections at Macedonia’s border crossings with Bulgaria and Greece.

On October 14, 15, and 17, the officials seized 2,400 different counterfeit products, including trainers bearing the logos of Esprit, Converse, and Puma; socks and underwear bearing the logos of Adidas, Nike, Emporio Armani, Calvin Klein, Puma, and D&G; watches and wallets bearing the logos of Casio, Armani, D&G, Calvin Klein, Hugo Boss, and Gucci; shirts, blouses, jackets, and jeans bearing the logos of Emporio Armani, Armani Jeans, Giorgio Armani, Tommi Hilfiger, Adidas, D&G, Nike, Polo, Cavali, Gucci, and Diesel; and tops and hoodies bearing the logo of G. Armani."

Counterfeit goods show up in many border crossings, including on the borders of an EU nation(Greece). Clothing manufacturers also need to protect their brand names by creating a solution to the counterfeit problem. The covert and overt authentication markers are the key, we have recently put up some pictures of examples.(Tony Zafiropoulos)

Tony Zafiropoulos
11/25/2009

Combat counterfeiters in Global Supply Chain

Industryweek.com has an article about the Global Supply chain and counterfeiters:

"Product counterfeiting is a multi-billion-dollar underground economy that poses a serious threat to the legitimate global economy, including commerce and the public's safety.

Many North American manufacturers have exported the production and assembly of their products to different parts of the world to maximize profits. Consequently, they grapple with long, complex supply chains, which can often be difficult to audit. The products themselves are also becoming more complicated as manufacturers combine components and services from multiple suppliers. As a result, both products as a whole and their individual components are at risk of being counterfeit."

Also, one must create a 100% way to authenticate products as they move through the supply chain. Use anti-counterfeiter covert and overt technologies. (Tony Zafiropoulos)

Tony Zafiropoulos
11/24/2009

RCMP is warning about counterfeit medicines
VancouverSun.com has a short story about the RCMP(Royal Canadian Mounted Police):

"- RCMP and the Canada Border Service Agency are warning Canadians that cheap prescription medication bought online may be illegal counterfeit products manufactured by criminal organizations. And that some of these products could make them sick."

A Vancouversun.com story from the 18th of Nov:

"The people selling these products are often organized crime groups operating internationally," RCMP Sgt. Duncan Pound said, adding it is better for people to steer clear altogether from Internet purchases of prescription drugs even when websites claim to be Canadian.

He said the RCMP is working with its international policing partners to catch those responsible at the source.

Most are really run out of Europe and import the medication from China.

Law enforcement agencies showed off bins containing thousands of illicit products intercepted at the CBSA's international mail centre in downtown Vancouver in recent months."

Viagra was one of the drugs routinely counterfeited, sold over the Internet to unsuspecting consumers. The RCMP has been cracking down on counterfeit medicines for some time, and it does not seem to be stemming the tide at all.(Tony Zafiropoulos) Photo is from Ian Smith, Vancouver Sun

Tony Zafiropoulos
11/23/2009

Counterfeit Hairstyling irons in Regina, Canada
CBCNews' website cbc.ca has a story about fake hairstyling irons in Regina:

'Hundreds of knock-off hairstyling irons were seized Friday morning by RCMP acting on a hot tip.

The items, which looked like the real deal, drew suspicion when they were offered for sale at a fraction of the price for the genuine article. Police were called and officers from the RCMP's border integrity unit moved in.

They reported that around 300 counterfeit hairstyling irons were seized.

The CHI counterfeit products were being offered for sale for between $59.95 and $64.95.

According to the RCMP, the knock-offs have no safety approvals and could be hazardous.

"The public should therefore be aware that the products are a potential fire hazard and could fail, thereby causing serious injury to the user," police said in a news release.'

Counterfeit products can be dangerous, substandard parts in an electrical product can cause problems for the user. The Triad must be taken up by the manufacturers: Overt and covert markers, as well as law enforcement education.
Our specialty is the Authentication covert marker, but we can design a unique overt marker that fits within your marketing images. (Tony Zafiropoulos)

Tony Zafiropoulos
11/22/2009

Interpol targets counterfeit drugs
Washingtonpost.com has an article about the aggressive tactics that Interpol has unveiled:

"The operation, code-named Pangea, was disclosed Friday morning in an effort to put fraudulent businesses on notice that police around the world are fighting back against what has become a $28 million industry in the United States alone.

The crackdown in the United States uncovered more than 700 alleged packages of fake or suspicious prescription drugs including Viagra, Vicodin, and Claritin, and shut down 90 alleged rogue online pharmacies. The international operation took down 72 Web sites, seized nearly 1,000 packages and found more than 167,000 suspected illicent and counterfeit pills. Some may have as much as three times more of an active ingredient than is typically prescribed; others may be placebos. Drywall material, antifreeze and yellow highway paint have been found in counterfeit pills. "

That figures, consumers are trying to save some money and all they get is antifreeze in the pills. Covert Anti-counterfeiting products such as ours have an Authentication marker which is impossible to detect with the naked eye. Since it can be set up as being embedded in the product or in holograms. The triad of covert markers, overt holograms that consumers can see and recognize, and finally law enforcement to catch the criminal enterprises will solve the $260 Billion Dollar counterfeit problems.(Tony Zafiropoulos)

Tony Zafiropoulos
11/21/2009

Seasonal Holiday tips when buying
PRnewswire.com has a story on what you need to look out for when purchasing holiday gifts:

The following tips from CSA International are designed to help ensure that everyone enjoys a happy, healthy holiday season. Also check for the following image:

Avoid counterfeits by picking the nice over the naughty

    -   Avoid electrical products that are missing a certification mark from
        an accredited certification organization, such as CSA International.
        When products don't include brand identifiers or trademarks, return
        addresses, or company contact information, they may be fakes.
    -   A counterfeit product often has packaging with an inferior design or
        partial illustrations. Look for misspellings and unclear print on
        products and labels. Check the heaviness and the "look and feel" of
        products. Fakes are often light and flimsy.
    -   If the price seems too good to be true, it probably is. Be wary of
        extra low bargains on electronics.

This is the UL underwriters Lab mark from the UL Underwriters Mark website:

Keep in mind that when a product has no mark either the proper CSA International or an UL Underwriters mark then there is a good chance it is a fake or counterfeit product. Companies can hire us to provide a covert marker or taggant to definitively show whether it is a fake product or not.(Tony Zafiropoulos)

Tony Zafiropoulos
11/20/2009

Inspection of boat coming in with overseas products
WHDH TV in Boston has an article on an example of an inspection of an incoming boat

Ted Woo, U.S. Customs and Border Protection"So we have to open the container to make sure that we know what it is."Customs agents quickly unpack the boxes to investigate.Ted Woo, "It could be weapons of mass effect, it could be drugs. It could be counterfeit goods."This time, a false alarm, but that's not always the case!

This ship just came in from Panama. It's got 3000 containers, and most of the goods are completely legal. But in early July, a ship came in here to Boston, and on board were two containers full of counterfeit perfume.

"There were some misspellings of words and it said made in Paris, France but the ship was coming in from China." Those perfume importers now face criminal charges.

It's estimated counterfeit goods cost American businesses up to $250 billion a year, and can cost American workers three quarters of a million jobs.

Out of 3000 containers it is hard for Customs Border Protection to check every one for counterfeit goods, although they say they do it in this article, more likely they check a few suspicious ones and leave the rest. Companies know they cannot completely depend on criminal prosecutions from CBP. You have to have an anti-counterfeit protection solution.(Tony Zafiropoulos)

Tony Zafiropoulos
11/19/2009

Counterfeit cosmetics found in Hong Kong
WebNewswire.com has story about Hong Kong counterfeit cosmetics sales on the Internet:

Hong Kong Customs yesterday (November 16) detected a case of selling suspected counterfeit cosmetics, seizing a batch of suspected counterfeit cosmetics and a computer, with a total value of about $29,000. A 21-year-old female student was arrested.

Acting on the information, Customs officers of the Anti-Internet Piracy Team found that some suspected counterfeit cosmetics and make-up tools were being sold on the site with prices 40% to 70% lower than the actual prices of the products.

It is the same everywhere, counterfeit products are significantly less than authentic products. Fortunately the authorities were able to snag this small operation. The full solution is to create an anti-counterfeit products solution, By using an authentication marker that is not reverse engineer - capable, otherwise the sophisticated counterfeiters will make the products look just like the authentic products. (Tony Zafiropoulos)

Tony Zafiropoulos
11/18/2009

Fake Online Tamiflu sales in Britain
PruHealth.co.uk has a story about Russian online Tamiflu sales in Britain :

"Online sales of counterfeit Tamiflu to panicking Britons could have helped Russian crime gangs earn millions, it has been claimed.

Residents who fear they may not get the drug through the NHS could be making overseas criminals richer and also putting themselves at risk of identity fraud, computer security firm Sophos found."

As usual if a deal is too good to be true it usually is. Consumers need to know that the potential is very high that not only are you helping criminals when buying pharmacies online, but the pharmacies may not even be the drug that you need. Once analyzed many online drug sales dispense cheaper pills that do not fulfill the desired effects. (Tony Zafiropoulos)

Tony Zafiropoulos
11/17/2009

Counterfeit Electrical products can kill you
KOMONews.com has a story about electrical counterfeit products and their potential consequences:

"It's a hidden hazard that could set your house on fire or electrocute you. Counterfeit electronics are downright dangerous.

But the people who make these fake electrical products - mainly in China and Mexico - don't really care about your safety."
"These things can kill you," says says Brett Brenner, president of the Electrical Safety Foundation. "A purse or a CD isn't going to hurt you. But a counterfeit electrical product will hurt you. It's pretty scary."

Creating an easy to mark, but impossible to counterfeit Authentication marker should be included in manufacturer marketing and business strategies. (Tony Zafiropoulos)

Tony Zafiropoulos
11/16/2009

Pfizer "Get Real" against counterfeit drugs
YouTube.com video about a graphic representation of what happens when buying drugs from the Internet, as one can buy a drug that sometimes has rat poison in it. (you have to watch the video)

You can also click on the Real DangerPfizer website, the site has many items that discusses counterfeit medicine pitfalls.

This is a great consumer information tool for counterfeit products in the Drug industry.(Tony Zafiropoulos)

Tony Zafiropoulos
11/15/2009

Dubai street vendors caught (287)
GulfNews.com has a story:

"The sweep against the law-breakers had also resulted in the seizure of several low-quality goods and pirated CDs.

A total of 3,011 inspections were made during the month of October, out of which 500 inspections were scheduled and 2,511 were random checks."

It is interesting to note that any person can take up selling counterfeit products. This is a problem, and it is fortunate that Dubai has decided to crack down on the small vendors as well, as it is similar to the broken windows problem in New York in the late 90's(from Rudolph Guliani's book "Leadership"). If there are several broken windows, breaking another one seems like no big deal, but if all of the windows get repaired, then breaking one window is a big deal.
(Tony Zafiropoulos)

Tony Zafiropoulos
11/14/2009

25million handsets may disconnect in India
EconomicTimes.indiatimes.com has a story about the potential handset disruption due to substandard or fake handsets that were sold in the Indian market:

"THIRUVANANTHAPURAM: If a Department of Telecom directive does take its course, mass disconnections will occur in the country on December 1 as the nation attempts to quell a Chinese threat.

The Indian Cellular Association (ICA), apex body of the range of mobile industry players barring the mobile operators, estimates that as many as 25 million handsets, a good number of them of Chinese make, will face disconnection that day for not having the required international
mobile equipment identity(IMEI) number.

Mr Mohindroo says the problem in the mobile hardware market is so widespread that "90 per cent of the accessories market is made up of counterfeit products, designs are blatantly copied, and battery packs are almost always fake ones if not bought from an approved franchisee outlet".

This is going to be a wake-up call to the cell-phone industry in India. The consumer will now have a hard time trusting the industry after this fiasco. We recommend that you stay ahead of the curve by building authentication markers into your product lines.(Tony Zafiropoulos)

Tony Zafiropoulos
11/13/2009

Dubai anti-counterfeit action ineffective

Gulfnews.com has a story where 15% caught are repeat offenders:

Dr Jamal Al Sumaiti, Director General of Dubai Judicial Institute, said: "In cases of repeat offenders, we can consider submitting possible changes to relevant laws to the review committee at the Ministry of Justice to toughen the punishment, especially since such offenders have a negative impact on the economy."

The UAE Trademark Law, passed in 1992, stipulates a jail term and/or a fine of not less than Dh5,000 for a person who infringes a legally registered trademark or imitates a trademark. The fine is doubled to Dh10,000 for repeat offenders.

5000 UAE Dirham's is equivalent to $1361.47.

There are strong incentives to keep making and trafficking in counterfeit products. Companies who wish to protect their products need to have a multi-pronged strategy. Including creating Authentication markers both overt and covert within their products. Then use some marketing muscle to educate consumers, as well as educating law enforcement agencies around the world. (Tony Zafiropoulos)

Tony Zafiropoulos
11/12/2009

Fake condom factory found in China

The UK telegraph newspaper story:

"State media said that the condoms, which are packaged under the brand names of leading manufacturers, would provide little protection for users.

The discovery in Hunan province - where police found workers lubricating the condoms with vegetable oil in unsterilised conditions - led police to warn that they are looking to take about a million of the condoms off the market.

They said that the giveaway clue for consumers is that the counterfeit products have been found on sale cheaper than the legitimate brands."

The story is the same for every product - if the price is too good to be true, there may be consequences for saving a buck(condoms just have a different set of consequences). Of course the only authentication marker that has 100% detection rate is Swiss Authentication Marker. (Tony Zafiropoulos)

Tony Zafiropoulos
11/11/2009

Tanzania pulling fake Nokia phones from markets

Blog and News site TCCIA has a story about government of Tanzania:

"The objective of the crackdown, according to Ooko, is to ensure only genuine Nokia handsets were in the market for loyal customers of the brands to buy products, which had value for their money.

Counterfeit Nokia products were not only reducing her firms’ share in the market, but also were denying the government of revenue, as the majority of the counterfeit products were smuggled into the country, she explained."

A well designed covert and overt insignia (with an Authentication marker that is difficult to see and a hologram that easily distinguishes a product) is the answer to help authorities in cracking down on counterfeit products. (Tony Zafiropoulos)

Tony Zafiropoulos
11/10/2009

QR2.5m counterfeits confiscated this year in Qatar

The Peninsula, the English Daily newspaper in Qatar reports on the number of confiscated DVDs, CDs, computer programs and more:

"The Office of Protection of Copyright and Related Rights, affiliated to the ministry has conducted nearly 90 raids during the last 10 months in the markets where 65 cases of violations were referred to trial and 25 cases were settled, Khalifa Jumaa Al Hitmy, the investigator in the office told Al Sharq.

A total of QR202m worth pirated goods were seized in the year 2008, while QR105m pirated items were seized in 2007. "

2.5mQR = US$686813.27, So this is not a small amount of items. The counterfeiters do not seem like they are slowing down (Tony Zafiropoulos)

Tony Zafiropoulos
11/9/2009

Counterfeit Toothbrushes found in Canada

27000article.cn has an article about Health Canada's advice on purchasing toothbrushes:

"Health Canada is advising Canadian consumers and retailers to exercise caution when purchasing toothbrushes. Counterfeit toothbrushes falsely labelled as Colgate Massager, Colgate Navigator, Oral B Classic 40, Oral B Contura and Colgate 360 have been found on the Canadian market.

Health Canada has received one incident report of the bristles of the Oral B Classic 40 becoming dislodged and caught in the user’s throat. The individual did not require medical care. Toothbrushes with bristles that are insufficiently fastened may present a choking hazard."

It is obvious to those of us in the industry that counterfeit products are bad for you. (Tony Zafiropoulos)

Tony Zafiropoulos
11/8/2009

51 health care workers arrested in Zimbabwe

Theherald.co.zw says:

"Police have launched an operation that has netted 51 people, including six doctors, for allegedly dispensing expired and unregistered drugs.

The blitz, code-named Operation Zambezi, has resulted in some pharmaceutical drugs being confiscated in the city."

In 3rd world countries everyone wants to make more money, and sell counterfeit products. (Tony Zafiropoulos)

Tony Zafiropoulos
11/6/2009

Knock-off Handbags hurt more than Authentic Designer's

CheapDesignerHandbags.com has a blog post about counterfeit versus authentic Hand Bags:

Image from Cheapdesignerhandbags1.com

"Purchasing counterfeit products only drives the authentic pieces’ prices higher and contributes to immoral labor practices and a sagging economy.

18% of counterfeit products seized by US customs in 2002 were fashion related items."

As the Blog post mentions when buying a knock-off(counterfeit Product) it raises the prices of the authentic designer bags as well as losing revenue for government. What is needed is a quick and easy Authentication method which could be built into the product (handbag). (Tony Zafiropoulos)

Tony Zafiropoulos
11/5/2009

Finland has seen more counterfeit products in 2009

Class 46 a European Trade Mark News site:

"According to an article in the Finnish daily financial news paper Kauppalehti, the Finnish Customs has seen more counterfeit action in 2009 than in previous few years.

According to Senior Customs Inspector Mr. Ryyttäri, the Finnish Customs has also witnessed the rise of some new ”hit products”. In addition to the traditionally favoured goods in the counterfeiting business such as clothes, shoes, clothing accessories and cosmetics, the Customs has in a number of instances also come across e.g. jacks used in car repair shops.

Not surprisingly, one of the most counterfeited product groups still seem to be medicines, but the Customs officials regularly also come across counterfeit mobile phones, their chargers and DVD players."

The article goes on to say that Finnish people are actually not buying counterfeit products(not popular). Finland seems to be a transit route to the Russian Federation. There are many ways for counterfeit trade to occur, many ports of entry, unfortunately there are a lot of people in the counterfeit business. We have to combat this phenomena by using anti-counterfeit technologies.(Tony Zafiropoulos)

Tony Zafiropoulos
11/4/2009

Anti-Counterfeiting Trade Agreement(ACTA) draws some fire

Huffingtonpost.com has a story about the issue of the ACTA being discussed and drawn up in secret:

"The letter below concerns the views of several groups and individuals concerning the transparency of the Anti-Counterfeiting Trade Agreement (ACTA). This is something that is so obvious, it should not require comment. It concerns a policy that is on its face, completely indefensible."

The U.S. Government and 39 other countries are negotiating the ACTA trade agreement. The US Chamber of Commerce is also unwilling to make the process transparent.

Part of the problem is, I am sure, that any anti-counterfeit measures should stay secret from the counterfeit product makers. Although I understand the issue of secrecy in trade agreements in a democracy - usually it smells of corruption.This agreement will affect many counterfeit products, as well as the anti-counterfeit industry. (Tony Zafiropoulos)

Tony Zafiropoulos
11/3/2009

Lanthanides also emit light when excited - like Upconversion

Upconversion Phosphorous is very similar to our Lanthanide marker which when excited by light will emit light.

An up-conversion is discussed at made-in-china.com notice that the issue is what and how the light comes back to a detector. We will not discuss those kinds of details (for obvious reasons) unless you have signed a NDA.

The reason our product is not reverse engineer capable, is that you cannot see the whole picture at any time, and the pieces do not get you any closer to reproducing the marker.

Tony Zafiropoulos
11/2/2009

Counterfeit products are entering the supply chain

From Findpharma.com and Doug Kahn, CEO of Ahura Scientific (MA, USA) was interviewed.

"According to the WHO, sales of counterfeit drugs are expected to reach $75 billion in 2010, which is an increase of more than 90% from 2005."

"the greatest weakness in these countries(Europe) is the introduction of counterfeits through so-called internet 'pharmacies'. For instance, a study conducted last year by the European Alliance for Access to Safe Medicines (EAASM) concluded that 62% of drugs ordered from internet pharmacies not requiring prescriptions were counterfeit."

The Doug Kahn goes on to say that the developing world is even weaker in their supply chains, as the wholesaler is the likely weak point. We believe in providing an anti-counterfeit product solution. One with a non-reverse engineer capable Authentication Marker.(Tony Zafiropoulos)

Tony Zafiropoulos
11/1/2009