what are counterfeits

It’s a fake world

Overview

Counterfeiting in generalKaterina

Action and effectsMaxim

ReasonsRinata

Music industryBenoît

Counterfeit productsBart

Counterfeit?

What are counterfeits? Why do people buy

counterfeit goods? Why do people sell

counterfeit goods? Expansion/globalisation Cause of globalisation

What are counterfeits?

= ‘knockoffs’

Imitation, forgery Currency, documents Art, clothing,

pharmaceuticals,…

Why do people buy counterfeit goods? (1)Primar

y market

Secondary market

Why do people buy counterfeit goods? (2)

Secondary market

Low prices Status Weak or no penalties Depends on characteristics

of the product and the consumer

Why do people sell counterfeit goods?

Profits Large market size Brand power Weak or no penalties

Expansion

products

More: USD 200 billion !

Range :Luxury to

common goods

globalisation

All economies

Asia

Globalisation (1)

0

10

20

30

40

50

60

70

number of source economies

seizures (% of total)

Globalisation (2)

Consumption patterns vary

Automotive parts: Middle East, N-America

Tobacco: Widespread, developing economies in Latin America, Africa

Piracy of music, movies: all economies

Cause of globalisation (1)

Internet

Free trade zones

Cause of globalisation (2)

Free trade zones= crossing international

borders with minimal regulation

→ less control→ disguise point of

manufacture

Cause of globalisation (3)

Internet Anonymity Flexibility Market size Market reach Deception

Action & effects

Action Ip Interpol BASCAP Costs

effects

ACTION

Intellectual property (IP)

Term IP Intellectual property

law The agreement on

trade related aspects of intellectual property rights (TRIPS)

Interpol

Created an intellectual crime action group

July 2002

BASCAP

The business alliance to stop counterfeiting and privacy

Launched in early 2005 More recent and

comprehensive global initiatives

Costs related to combating counterfeiting

and privacy

Production protection Packazing special Litigiation Investigations and

research …

EFFECTS

Economy wide effects

Innovation and growth Criminal activities Environment Employment

Overview

Counterfeiting in generalKaterina

Action and effectsMaxim

ReasonsRinata

Music industryBenoît

Counterfeit productsBart

Globalisation of deceit

• Counterfeiting:the oldest crime in history

• Number 1 crime of the 21st century

What are the reasons for counterfeiting?

1) Does globalisation have an impact on counterfeiting?

2) What have World Bank(WB) and International Monetair Fonds (IMF) to do with it?

3) Greg Palast ”Democracy for sale”4) Ecuador-example5) Higher life standard?6) Anti-Counterfeiting Trade

Agreement(ACTA)

1)Does globalisation have an impact on counterfeiting?

Due to certain circumstances, created by globalisation, a lot of people were pushed in a certain position

2)What have World Bank(WB) and International Monetair Fonds (IMF) to do

with it?

Many specific, destructive conditions for developing countries for lending the money

”3) progressive investigative

journalist

4)Ecuador-example

Few conditions to loan the money from WB- Increase the price of natural gas with 80%!-fire 26 000 people!- cut the salary of lasting people with 50%!-hand over the largest waternetwork of the country to foreign companies

5)Higher life standard?

South-Africa : since 1980 the income per capita decreased with 23% !!!

6)Anti-Counterfeiting Trade Agreement(ACTA)

Agreement for the purpose of establishing international standards on intellectual property

Why do people buy conterfeiting products?

Deceptive conterfeiting

Non-deceptive conterfeiting

The consumer doesn’t know that he has purchased a conterfeit product

Consumer is aware of the fact that he bought a conterfeit product

Types of people who may be more willing to buy counterfeit brands

1. have relatively little regard for the law2. have negative attitudes towards big

business3. want to demonstrate their status,but

don’t have the funds4. are curious and want to experiment5. like taking risks

People who :

Attitude and function of counterfeiting

SOCIAL-ADJUSTIVE ATTITUDE

VALUE-EXPRESSIVE FUNCTION

To gain approval in social situations

Helps people to communicate their central beliefs ,attitudes and values

Self-expression Combination of the two: example : a louis vuitton bag

Overview

Counterfeiting in generalKaterina

Action and effectsMaxim

ReasonsRinata

Music industryBenoît

Counterfeit productsBart

Music industry

Figures Legal downloading RIAA SABAM

http://www.youtube.com/watch?v=oD3VTMASdpA&feature=related

Figures 2010

7.7 million 1.2 billion tracks 219 million pound or €

248 496 539 Still on the rise

Legal downloading iTunes Store Napster Zune Marketplace Amazon MP3 Nokia Music Store TuneTribe Kazaa eMusic

RIAA The Recording Industry

Association of America 2003: first lawsuits Purpose: respect the

copyrights+ minimize the number of illegal downloads

SABAM

Fines Music in public Amounts of money to

high

Counterfeit products

Fake shoes Costs Fake vs. Authentic Tips

Fake shoes? Many different names Production & export = illegal Infringing upon Copyright

laws Cheap imitations

How? Employee steels the design Sells it to a random factory Produces in mass amount Don’t use high quality material Never the same as the original

Cost?

Who you deal with; How many are purchased; Customs makes it

harder to import; Costs to import are high.

Differences between fakes and autheticsFakeAuthentic

Website Tips Read the Policy Verify the sizes Check the sizes again Check the price Check their stock See where they come from Check the quantity Check the pictures Check the pictures again

Overview

Counterfeiting in generalKaterina

Action and effectsMaxim

ReasonsRinata

Music industryBenoît

Counterfeit productsBart

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