Who's the best counterfeiter! - Report

Released on = January 3, 2005, 6:21 pm

Press Release Author = Gieschen Consultancy

Industry = International Trade

Press Release Summary = During the last quarter of 2004, more than 560 incidents of counterfeit activity worth $1,154,409,448 USD were analyzed by Gieschen Consultancy.
Many of the 52 countries which reported activity have something to brag about.

Press Release Body = Tuesday January 4, 2005 -- Calgary, Canada -- Based on the past 3 months of worldwide counterfeit enforcement activity (investigations, raids, seizures, arrests, charges, convictions, sentences, public announcements), as
reported through the DOPIP Security Counterfeit Intelligence Report, more than 560 incidents were analyzed.

(Note: All figures stated in United States Dollars)

• Canada

o largest seizure value of "other documents".
o largest financial loss as a result of counterfeit "other goods".

• China

o named more than 50% of the time as the country of origin of counterfeit goods. o sentenced individuals to more than 160 years in jail for counterfeiting.
o reported the largest number of incidents of counterfeit "other goods".
o largest seizure value of counterfeit food & alcohol.

• Finland

o reported the most number of incidents of counterfeit toys.
o largest seizure value of counterfeit toys.

• India

o reported the largest number of incidents of counterfeit perfume & cosmetics, industrial goods, food & alcohol.
o largest seizure value of counterfeit industrial goods, other goods, perfume & cosmetics.
o largest financial loss as a result of counterfeit identification.

• Japan

o largest financial loss as a result of counterfeit "other documents".

• Philippines

o the largest seizure value of counterfeit items, $571,062,462.
o averaged $30 Million per raid.
o largest seizure value of counterfeit financial instruments.

• Russia

o identified the largest sales of counterfeit items $202,104,000.
o largest financial loss as a result of counterfeit drugs, and industrial goods.

• South Africa

o tied with the US as being the most diverse dumping ground for counterfeit goods from multiple countries of origin.
o largest seizure value of counterfeit electronic equipment & supplies.

• South Korea

o largest seizure value of counterfeit identification.

• United Kingdom

o reported the largest number of incidents of counterfeit computer equipment & supplies.
o reported the second largest number of incidents of counterfeit digital entertainment & software.
o largest seizure value of counterfeit drugs, jewelry & watches.
o largest financial loss as a result of counterfeit clothing & accessories, computer equipment & supplies, and financial instruments.

• United States

o reported the largest number of counterfeit incidents, 264.
o conducted the largest number of investigations and raids (187), arrests (203), seizures (198), laid the most amount of charges (181), obtained the largest number of convictions (165), sentences (168) and the had the largest number of civil court actions (162).
o named more than 225 individuals and entities that were suspected of counterfeit activity.
o conducted investigations on 1,369 individuals.
o reported the largest number of incidents of counterfeit jewelry & watches, identification, financial instruments, drugs, digital entertainment & software, clothing & accessories, cigarettes, and other documents.
o largest seizure value of counterfeit cigarettes, clothing & accessories, digital entertainment & software.
o largest financial loss as a result of counterfeit cigarettes, digital entertainment & software, electronic equipment & supplies.

The worldwide profile for the average counterfeit operation:

• Involves 4 - 5 people, averaging 32 years old. The youngest person involved was 13, the oldest was 68.
• Sells more than 6,530 counterfeit items valued at $329,238 USD items before being caught.
• When caught, more than 5,396 counterfeit items are seized valued at $147,000.
• The most profitable items to counterfeit (based on seizures and losses) include:

o Financial Instruments, $641,749,568 (currency, checks, money orders).
o Drugs, $214,740,900 (medications)
o Digital Entertainment & Software, $119,366,925 (CDs, DVDs, software, etc.)
o Other Documents, $97,885,435
o Electronic Equipment & Supplies, $25,908,300
o Clothing & Accessories, $21,142,300
o Identification, $15,940,390 (passports, drivers licenses, birth certificates, etc.)
o Cigarettes, $7,885,000
o Industrial Goods, $3,463,400
o Computer Equipment & Supplies, $1,940,000
o Toys, $1,840,000
o Other Goods, $1,807,900
o Food & Alcohol, Jewelry & Watches, Perfume & Cosmetics, $739,330

• More than 153 brand were counterfeited, the most popular were:

o Louis Vuitton, Gucci, Nike, Coach, Microsoft, Burberry, Chanel, Marlboro, Prada, Sony, American Express, Calvin Klein, Dove, Oakley, Armani, Boston Red Sox, Canon, Christian Dior, HP, North Face, Ranger, Rolex, Subway, and Tommy Hilfiger
o Least popular included: Adidas, Bata, Blockbuster, Boston White Socks, Callaway, Cartier, Chrysler, Cimarron Creek, Coca-Cola, Dolce & Gabbana, Duracell, Energizer, Epson, FCUK, Fendi, Flagship, Ford, Gillette, Guess, Henri Lloyd, Hugo Boss, IVY, Jacksonville Jaguars, Kaizer Chiefs, Kate Spade, Kyocera, LaCoste, Lego, Levi, Manchester United, Marks & Spencer, Mastercard, Mount Blanc, Movado, NBA, New York Yankees, NFL, Nintendo, NYPD, Oakland Raiders, Obsession, Old Firm, OMO, Panasonic, Panthers, Parker, Peugeot, Pittsburgh Steelers, Polo, Puma, Ralph Lauren, Ray Ban, Roca Wear, Sean John, Sony, Tide, Timberland, Timotei, Titleist, U-Haul, and Umbo.

• 15% of counterfeiters use false identification to avoid detection and perpetrate their crimes.
• Fake identification is most likely to be involved in financial crimes, such as check and credit card fraud.
• Counterfeiters which focus on producing identification profit the most from reproducing:

o Drivers Licenses (28%)
o Other government issued identification (21%)
o Passports (17%)
o Social Security Cards (11%)
o Birth Certificates (10%)
o Visas (5%)
o Green cards, immigration documents, death certificates and permanent residency cards (8%)

• The most common methods of counterfeiting are:

o Cigarettes, cigarette manufacturing equipment.
o Digital Entertainment, using CD and DVD burners.
o Drugs, repackaging in used medication containers.
o Electronic Equipment, contracting Chinese companies to counterfeit the items.
o Financial Instruments, using computers, printers, and scanners, skimming machines, and software.
o Identification, using computers, printers, digital cameras and laminating machines.
o Other Documents, using computers, scanners, printers and copiers.

• 52 Countries reported counterfeit activity in November: Australia, Bahrain, Bangladesh, Botswana, Brunei, Bulgaria, Canada, China, Columbia, Fiji, Finland, Gambia, Ghana, India, Indonesia, Iran, Iraq, Ireland, Israel, Italy, Jamaica, Japan,
Kenya, Lebanon, Liberia, Lithuania, Macedonia, Malaysia, Mali, Malta, Mexico, Nairobi, New Zealand, Nigeria, Pakistan, Philippines, Russia, Saudi Arabia, Sierra Leone, Singapore, South Africa, South Korea, Sri Lanka, Taiwan, Tanzania, Thailand, UAE, Uganda, UK, USA, Vietnam, and Zambia.

The full report for the last quarter of 2004 can be purchased from Gieschen Consultancy for $695 USD.

About DOPIP SCI Reports

DOPIP is a powerful source of information regarding illegal activities such as counterfeiting, forgery, product tampering and diversion. It provides breaking news reports 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. Daily DOPIP SCI Reports are available as an annual subscription for
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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
Managing Director
Gieschen Consultancy
Glen@Gieschen.com
Phone 403-256-5680
Calgary, Alberta Canada