Counterfeiters beware
The lack of legislation protecting the rights of fashion designers and their designs has long been a point of frustration. Copyright laws for fashion designs simply do not exist as they do for artwork and trademark logos. Members of the US fashion industry have therefore decided to take their case to Capitol Hill, where they lobbied on a bill that may change all that. Designer Nicole Miller, Harpers Bazaar's editor in chief Glenda Bailey, and Valerie Salembier, senior vice president and publisher of Harpers Bazaar went to Washington DC on Wednesday, where they spoke with a number of senators and House members about the problem.
DC lawmakers are currently reintroducing the Design Piracy Prohibition Act, which protects designs for three years from the moment the law is enacted. For Miller and her fellow designers, this means that older designs – which many still use – are not protected from counterfeiters.
There are those, however, that feel that fashion should not be subjected to such laws, as it is a business that thrives on mutual inspiration that often borders on or is outright copying. As David Wolfe, creative director for Doneger Creative Services, told WWD when the bill was first introduced last year: “I think fashion is like a live reef – all creatures feed off of one another and that stimulates growth and movement.”
26 April 2007
Korean counterfeiters prefer Chanel
Chanel was recently distinguished as being the most popular line among counterfeit goods producers. Countries such as China and Korea are the highest producers of fake goods, and The Korea Customs Service announced this week that of USD162.5 million worth of fake products seized last year, those bearing Chanel's logo accounted for USD23.5 million , more than any other brand. The amount was based on the prices for authentic Chanel products. Among other foreign fashion lines, Rolex was a close second, followed by counterfeits of Louis Vuitton and Nike. Those in the fashion industry attributed Chanel's leading position to its line of expensive handbags making them lucrative targets for fake goods makers.
Among different items, watches were the most vulnerable to replication, with approximately USD 50.1 million having been confiscated. The national customs agency said in order to increase efficiency in its investigation of counterfeit goods, it would establish better lines of communications with trademark holders and authentic producers. Also, the Daejeon-based agency said it will regularly host conferences on related issues.
Sale of fake goods may reach $2 trillion
The market in fake goods may reach the $2 trillion mark (£1.146 billion) in 20 years, reports The Times. According to the US Chamber of Commerce, which represents 3 million US businesses, the $500 billion global counterfeit market is growing rapidly as pirates become increasingly skilled at copying branded goods such as designer handbags.
“There was a time when buying counterfeit goods meant getting Nike sneakers with the brand spelt with a Q or something, but not today,” said David Hirschmann, vice-president of the Chamber of Commerce. “I have seen executives of major branded goods companies unable to tell between their products and those seized from counterfeiters.”
Counterfeiting operations in countries like China and Brazil employ tens of thousands of people at manufacturing plants that would rival those of conglomerates like Sony. Their representatives visit trade shows where they acquire samples of the latest models to replicate. Sometimes the fakes therefore hit the stores before the genuine article, writes The Times. “James Kilts, the chief executive of Gilette, once said to me that if you are not constantly worried about counterfeiters, you probably don't have a very good product, that's how bad it is,” Hirschmann said.
13 February 2006
Counterfeiting costs economy billions
The International Chamber of Commerce has published a report in which it states that product piracy and counterfeiting “is growing at a more dangerous rate than ever” and is costing the world economy an estimated $600 billion (£336 billion) a year in lost sales. The Paris-based group, which has affiliates in 140 countries, recommends that governments take action to curb damages. The report further states that small and medium-sized businesses rely on intellectual property rights. “Design rights, copyrights, patents and trademarks are essential for numerous industries…such as textiles, toy, publishing, biotechnology and retail,” said the report.
According to the report India's consumer goods were losing 15 percent of their market share to counterfeiters, while California loses approximately £34.5 billion to counterfeiting and piracy. A recent study mentioned in the report indicated that the European Union had lost about $9.1 billion in tax revenues in the apparel and footwear sector to counterfeiters.
27 October 2005
Fakes put to good use
Victims of Hurricane Katrina can look forward to sporting some knock-off designer duds, which have been seized by federal customs officials. Not that they will be concerned with trivialities such as ‘fake' versus ‘real'. In one of the greatest natural disasters in recent times, hundreds of thousands have been rendered homeless with nothing but the clothes on their backs to call their own.
Survivors in the Houston Astrodome will be allowed to choose from counterfeit and abandoned clothing, toys and even dog food. More than 100,000 items have been retrieved from warehouses, and there are plans for more where they came from.
According to figures released in a Senate hearing, US companies lose up to $250 billion from counterfeit goods. Last year federal officials seized $138 million knockoffs, as opposed to $94 million in 2003. According to reports counterfeit clothing accounts for 18 percent of all confiscated items. Most counterfeit goods come from China , the United Arab Emirates , Pakistan and Russia , say US Customs officials.
8 September 2005
Buyers of fakes are fined
Purchasers of counterfeit designer goods are now being given on-the-spot fines of € 10,000 (GBP 6,624) on the Italian riviera. Three tourists were handed the fines as part of a crack-down on illegal street trading in the seaside resort of Ventimigila.
According to the Telegraph, the tourists included a 60-year-old Dane, Kirsten Lorsen, who bought a pair of fake Dior sunglasses, a 27-year-old Frenchwoman who bought a phony Louis Vuitton handbag and another Frenchwoman who had bought large quantities of T-shirts and sunglasses, perhaps with the goal of reselling them at home. The vendor has not been caught by the police.
The new decree against illegal street trading, known as "abusivismo", maintains that both the buyer and seller of forged goods be fined. The buyer is fined on the grounds that he or she is an accomplice to a crime. The fine is to be paid within 60 days. If not, interest is simply added for as long as it takes the perpetrator to pay up. Should he or she not do so, chosing instead to flee the country, he or she may then be faced with the risk of becoming a fugitive. A fake Gucci really does not appear to be worth this hassle.
27 June 2005
Cartier files counterfeit lawsuit
The
fine jeweller Cartier International B.V. has filed a counterfeit and trademark
infringement suit against online retailer Silverspot. Cartier alleges that Silverspot
has been selling counterfeit jewellery. Cartier filed the suit in the Southern
District of New York against Harish Vohra, Benson Rajan, Ramesh Vohra, Shoba
Vohra and a number of 'John Does' who are also involved with silverspot.com.
Cartier's complaint is that silverspot sold counterfeit Cartier jewellery online. The company's attorney, Harley Lewin, chairman of trademarks and global brand strategies for Greenberg Traurig LLP, says that the complaint centres on a counterfeit Cartier screw bracelet and screw necklace and love necklace design.
Cartier alleges trademark counterfeiting, trademark infringement, trademark dilution, trade dress infringement and unfair competition. According to Lewin, Cartier has been discreetly approaching businesses that feature of advertise counterfeit goods on their websites and "giving them an opportunity to negotiate a good faith resolution.
Cartier wants Silverspot to hand in the goods for destruction and wants the company to be banned from using the Cartier trademarks or passing off counterfeit goods as its own. The company is also asking Silverspot for a list of manufacturers who produced the products and requests $4 million for damages and legal fees.
15 June 2005
Global Fight Against Counterfeit Goods
Ever since international governments have realised the billions lost in tax revenues due to counterfeiting, new laws and agreements are being designed faster than one can say 'Gucci.'
Counterfeiting, according to WWD, has become pandemic, accounting for an estimated $456 billion, or 7 percent of global trade, in 2003, according to the World Trade Organization. It is well know that the most counterfeit goods originate from China, but even that is changing. Russia is next on the list, producing an estimated 5 per cent of the total of black market goods.
Although the battlefield in the war against counterfeits has expanded, enlisting the help of local governments is slowly paying off. For example, Beijing's infamous Silk Alley - China's best-known counterfeiting spot - was shut down in early January with the Chinese government citing it as a fire hazard. A new mall opened in March, called Silk Street market, located near the old Silk Alley. According to a March 31 report from the newspaper China Daily, more than 300 items were seized there by municipal investigators. About 80 handbags and 220 garments with Boss, Gucci and Chanel logos were taken by officers from the Chaoyang District Branch of the Beijing Municipal Administration for Industry and Commerce.
Penalties for counterfeiting in most countries usually consist of suspended sentences and/or fines. Jail sentences are rare, as are very high fines. Concerns are not so much the level of penalties, but the amount of police resources that governments are willing to invest to deal with counterfeiting cases. Manufacturers are reluctant to reveal how much capital is invested in fighting counterfeiting, but intellectual property lawyers believe some of the larger companies, such as LVMH or Nike, could spend up to $10 million a year.
Burberry, for example, has a global intellectual property department made up of 15 full-time staff members that works with lawyers, investigators and law enforcement to prosecute counterfeiters whenever possible. "In China, we frequently see counterfeit goods being manufactured through the night by a different workforce from the daytime shift," said Stuart Lockyear, Burberry Group's director of intellectual property. "But in China and elsewhere, we also frequently find goods being made in small sweatshops with no regulation on working conditions to prevent child labour."
According to information technology and consulting firm Unisys, global tracking
solutions are vital. According to the company, international shipping containers
change hands an average 17 times during a journey that can take more than two
months. By comparison, domestic containers change hands only eight times on
average. And, believe it or not, modern-day pirates still troll the high seas
and are getting increasingly active. According to Unisys, 445 "seaborne
piracy attacks" occurred in 2003, up more than 56 percent from the 285
reported in 1999.
Customs officials at domestic ports would also be hard-pressed to catch a majority
of counterfeit goods. Of the 15 million containers flooding U.S. ports, only
5 percent, or 750,000 containers, undergo a physical inspection.
www.wwd.com
11 April 2005
Fake Shoppers
Around one-third of consumers admit they would knowingly buy a fake product if it was inexpensive enough, according to a new survey.
While two-thirds say they are against counterfeiting, authorities say there remains a percentage who fail to be convinced. Counterfeiting is estimated to cost trademark owners around GBP 9 billion a year.
Trading standards officials admit they are struggling to cope with the amount of fake goods flooding Britain, ranging from clothing and jewellery to perfume and computer software.
Convincing consumers that it is wrong to buy a counterfeit is vital in combating the crime. It remains enticing for many, on trips abroad to the Far East or even Italy, to return with this season's identical Burberry or Louis Vuitton handbag.
In the Mori survey of 2,000 people, 66 per cent said they were against any form of counterfeiting but a third would knowingly buy a fake item if the price and quality was right. A further 29 per cent stated they saw no harm in fake goods as long as it did not put them at risk.
26 June 2003
Fashion behind bars
Italian prisoners are behind a fashionable new range of clothing being marketed under the label, Made in Jail. T-shirts, trousers and shoes, all sporting the Made in Jail brand, are selling very well in Milan and other fashionable Italian cities. Besides clothing, the convicts also design and make other Made in Jail products including lampshades, wallets and dolls.
The articles are sold at reasonable prices in shops around Italy, and are also available over the internet from the Made in Jail website. The venture was set up by a co-operative which aims to help rehabilitate prisoners by teaching them new skills to help them find work once they are released.
The prisoners get a small share of the profits, while the rest is ploughed back into the scheme to pay for materials and to run workshops in a number of prisons around the country.
March 6, 2003
Fake Zegna-producers arrested
Police have raided a network of seven manufacturers and retail shops in popular Bangkok tourist areas for openly selling counterfeit fabrics bearing the famous Italian fashion name Zegna. Raid teams led by ten officers, private investigators and lawyers for the Ermenegildo Zegna Group seized thousands of yards of unauthorized Ermenegildo Zegna fabrics.
The managers of the businesses were arrested and charged with trademark infringement offences. The maximum criminal penalty is four years' imprisonment and/or a fine. The Ermenegildo Zegna Group has also begun civil actions against the criminals for compensatory damages, according to the company's lawyers, Tilleke & Gibbins International Ltd.
Zegna representatives expressed fulfillment with the result of the police action, and promised forceful action in the future in an effort to rid the market of fakes.
January 24, 2002
Counterfeit clothing worth $553,614 seized
Police of the American town West Haven, Conneticut have seized more than a half million dollars (UKP 349,254,-) worth of fake designer label clothing and arrested eight suspects this weekend.
The counterfeit clothing turned up after a search warrant was issued to check out a public storage facility as part of a probation investigation. Police seized a tractor-trailer load of fake designer goods valued at $553,614. In New York eight people were arrested as well, none of them American, for allegedly selling counterfeit goods that they kept at a self-storage facility.
A bag of brand-name tags was also seized. Police believes they were being sewn into the clothes locally.
09-25-02