'World IP Theft Day' Counterfeiting & Piracy Report
Released on = May 1, 2005, 10:01 pm
Press Release Author = Gieschen Consultancy
Industry = International Trade
Press Release Summary = In the first quarter of 2005, 279 incidents of Intellectual
property theft (brands, trademarks and copyrights) accounted for 33% of global
counterfeiting and piracy, valued at $396 Million (USD). More than $141 Million
counterfeit items were seized by customs, law enforcement and brand enforcement
agents, which led to the discovery of an additional $255 Million in losses related
to IP theft. As reported by Gieschen Consultancy, the total value of fake items (IP
and non-IP related) sold and seized was $1.06 Billion from 837 incidents.
Press Release Body = Monday May 2, 2005 -- Calgary, Canada -- In support of World
Intellectual Property Day, Gieschen Consultancy has released intellectual property
theft figures for the first quarter of 2005 indicating the scope and depth of
counterfeiting and piracy activity. Based on global counterfeit enforcement
activity (investigations, raids, seizures, arrests, charges, convictions, sentences,
civil litigation, public announcements), as reported through the DOPIP Security
Counterfeit Intelligence Report, more than 837 incidents were analyzed from 67
The most common intellectual property to counterfeit (based on enforcement incidents):
1. Entertainment & Software, $59.4 Million, 125 incidents (CDs, DVDs, software, games).
2. Clothing & Accessories, $64.7 Million, 50 incidents.
3. Drugs & Medical Supplies, $13.5 Million, 22 incidents (medication, herbal
remedies, vaccines, ointments).
4. Cigarettes, $99.1 Million, 13 incidents.
5. Food & Alcohol, $0.1 Million, 13 incidents (milk drinks, wine, rum, soy sauce).
6. Industrial Goods & Supplies, $2.2 Million, 13 incidents (ball bearings,
insecticides, cards, motors, detergents, automotive parts, adhesives).
7. Electronic Equipment & Supplies, $25.5 Million, 11 incidents (processors, memory
chips, batteries, cameras, electric razors).
8. Other Documents, $3.7 Million, 9 incidents (certificates of authenticity and books).
9. Computer Equipment & Supplies, $0.2 Million, 8 incidents (printer cartridges).
10. Other Goods, $123 Million, 4 incidents (mosquito coils, pottery, golf clubs,
11. Perfume & Cosmetics, $0.1 Million, 4 incidents (lotions, perfume, nail polish,
12. Toys, $4.5 Million, 4 incidents. (scooters, playing cards, dolls).
13. Jewelry & Watches, $0.1 Million, 3 incidents. (pens, bracelets, charms).
For more information: http://www.goldsec.com/Security_Research.htm
The top seizures and losses of counterfeit trademark and pirated copyright works:
1. Marlboro, West, Superkings, Regal, $92 Million.
2. AMD, STMicroelectronics, $25 Million.
3. DirecTV, $21.7 Million.
4. Louis Vuitton, $19.1 Million.
5. Real Madrid, Barcelona, $14.5 Million.
6. Pfizer, $12.8 Million.
7. Nike, Louis Vuitton, Fendi, Burberry, Alviero Martini, $3.9 Million.
8. Microsoft, $3.2 Million.
9. Louis Vuitton, Gucci, Rado, Cartier, $3.2 Million.
10. Yu-Gi-Oh, $3.0 Million.
For more information: http://www.goldsec.com/Counterfeit_Brands_Victims.htm
In summarizing the first quarter of activity, Glen Gieschen, Managing Director of
Gieschen Consultancy stated "The amount of criminal, terrorist, and government
efforts being directed towards counterfeiting trademarks and copyright works has
increased steadily each month. Copyright infringement for the first quarter
totalled $63 Million, while counterfeit trademarks reached $333 Million. In
addition, more than 80 million phony items were seized which, upon further
investigation, led enforcement personnel to the discovery that 800 million items had
Attempts to trace the manufacturing sources were successful in one-third of the
cases which originated with 122 companies, criminal entities and terrorist
organizations. The top 3 countries named as sources for multiple forms of
counterfeit and pirated goods were China, India and Malaysia. In 25% of the cases,
China was identified as the source for entertainment & software, cigarettes,
clothing & accessories, computer equipment & supplies, electronic equipment &
supplies, industrial goods & supplies, documents and toys. India was linked to 16%
of the cases involving clothing & accessories, drugs & medicine, entertainment &
software, food & alcohol, identification, industrial goods & supplies, documents,
and perfume & cosmetics. In third spot, Malaysia was named in 5.4% of the incidents
involving entertainment & software, food & alcohol and documents.
The result of this activity has been to focus efforts on developing intellectual
property and brand protection measures by corporations and governments. In the past
3 months more than 50 news articles were written focusing on various preventative
For more information: http://www.goldsec.com/Alleged_Counterfeit_Suspects_Entities.htm
• 48 Countries reported counterfeit activity in February: Australia, Bangladesh,
Bosnia, Brunei, Bulgaria, Canada, China, Cyprus, Czech Republic, France, Ghana,
Greece, Hong Kong, India, Indonesia, Israel, Italy, Japan, Kenya, Latvia, Lebanon,
Liberia, Malaysia, Malta, Mexico, Nepal, Netherlands, New Zealand, Nigeria,
Pakistan, Philippines, Portugal, Russia, Saudi Arabia, Singapore, South Africa,
South Korea, Spain, Taiwan, Turkey, UAE, Uganda, UK, USA, Vietnam, Yugoslavia.
The current months counterfeit activity: http://www.goldsec.com/
The full report of counterfeit activity for the month can be purchased from Gieschen
About DOPIP SCI Reports
DOPIP is a powerful source of information regarding illegal activities such as
counterfeiting, forgery, product tampering and diversion. It provides current news
reports, information and analysis relating to document, product and intellectual
product security. Security technology providers, enforcement agencies, trade
organizations, and brand owners will find this information indispensable for
detection, deterrence and prevention. Standard or Premium Sources DOPIP SCI Reports
are available as an annual subscription for $295 USD and $835 respectively.
For more information visit http://www.goldsec.com/Security_Updates.htm.
About Gieschen Consultancy
Gieschen Consultancy, provides counterfeit intelligence analysis and security
research relating to documents, products and intellectual property. Gieschen
Consultancy educates clients regarding counterfeiting issues, and assists in
developing anti-counterfeiting, brand protection and enforcement solutions.
Providing the knowledge of the criminal Modus Operandi (methods of operation), legal
and political issues, security technology, industry reports and statistical
information, effective strategies can then be developed, implemented and monitored.
For more information visit http://www.gieschen.com/.
Web Site = http://www.gieschen.com/
Contact Details = Glen Gieschen
Counterfeit Intelligence Analyst
Calgary, Alberta Canada
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