Recently, the counterfeit currency problem is again on the rise due to new technologies in printing and design software but now it seems more and more counterfeit products are being produced. Counterfeiting destroys economies, puts lives and jobs in jeopardy and funds organized crime around the globe. According to CNBC the top ten list of counterfeit products seized by US customs includes jewellery, watches, cigarettes, computers, pharmaceuticals, phones, CD's and DVD's, handbags, clothing, consumer electronic goods with shoes being the number one and most of these are made in China. The products seized in the US every year are worth $millions and globally the counterfeit industry (if we can call it that) is worth $billions However, let us not be fooled in thinking the problem only exists in China. In the UK last year 25,000 litres of fake vodka was discovered in an illegal factory and other counterfeit clothing operations exist. In fact counterfeiting is predominant in many Eastern European countries and in Turkey as well where it is considered to be worth $388m. I accept that in all these countries there are strong legitimate businesses producing good quality products for sale around the world but given the potential rewards, counterfeiting is big business nearly everywhere.
 
'Genuine Fake'

Whilst I am sure none of us wants to knowingly buy counterfeit goods, if they look good, are 25% of the price of the genuine article and will make us feel a bit more "fashionable", quite a few of us cannot resist the temptation of buying the odd bargain. The fact that the designer branded T-shirt might fall apart after a few washes or the fake watch might stop after a month or two, does not deter us but when it happens, we just shrug our shoulders and say "Oh well it was cheap". I once heard somebody in London selling their goods in the street saying "Genuine fake Chanel No 5" which did make me laugh.

Thirty years ago I bought a fake Rolex in Hawaii for $5. It looked great but after a few weeks the gold coating began to flake, the bracelet became loose and I stopped wearing it. But I still have it and keep it in a draw in my bedroom. However, what really annoys me is that it keeps perfect time. Every 2/3 years it stops and I replace the battery, reset it and put it back in the draw. Every six months or so I will come across it, check the time and find that it is right to the second. The genuine Rolex watches must be really fantastic and it would be great to have one but they could not keep better time than my $5 bargain.

But reverting back to China, one has to hand it to the Chinese for their ability and sheer cheek in counterfeiting on such a mammoth scale. MacDonalds, Starbucks, Disney theme parks (yes theme parks), Harry Potter, IKEA, KFC and Nike all appear to be victims of counterfeiting of their brands in China, but as you may have read this week, possibly the most unbelievable copying was of the Apple brand.

In the city of Kunming – population of 6.5 million people - the authorities found not one but 22 fake Apple stores. The investigation into unauthorised Apple stores in Kunming was brought about when an American living in the city published a blog post describing a visit to one such shop.

'Beautiful Rip-off'

Describing it as a "beautiful rip-off", she revealed how far the owners had gone to copy the decor and ambience of a real Apple store even down to the staff wearing the same colour T-shirts complete with Apple logo.

The blog post was widely shared around the world and prompted Chinese trade officials in Kunming to take action. Quickly following the uproar—which included angry customers apparently storming the stores in question demanding refunds—several of the stores were closed, not for their fraudulent use of the Apple brand, but for the lack of proper business licenses. The Administration for Industry and Commerce in Kunming said its investigation had "unveiled a slew of stores violating Apple's registered trademarks".

 

Amazingly it seems that staff working in the first fake store believed they were working in a real Apple store!

 

Although there are numerous ways in which brands can try to combat counterfeiting including RFID, 2D bar codes to name but two, how do you stop somebody building a replica of your store and passing off as your company? I assume the people behind these stores assumed that nobody would notice and hadn't bargained for the intrepid investigator. Had she not alerted Apple to this, how long would it have continued to hoodwink and cheat customers? I suppose it is possible that whilst the store was fake, since so many phones and computers are manufactured in China, the goods being sold could have been genuine. Maybe vast quantities of merchandise being produced for Apple was disappearing out of the back door before reaching any export consignments and rerouted to the fake stores.

 

'Problem for decades...'

 

As stated above, counterfeiting has been a problem for decades (if not centuries). It is our problem — whether you produce goods worth copying or you buy such an item (sorry about my fake Rolex but I was a lot younger and far less wiser then). It's also the problem of governments that should be protecting the public and enforcing anti-counterfeiting laws. We all know that black and grey markets exist and of course, our own industry will have a major part in enabling such goods to come to market, but I wonder how many printers around the world are engaged in production of fake apparel, other screen or digitally printed goods and all the packaging related thereto. In 2005, the OECD estimated international trade in counterfeit goods at $200 billion dollars so it really is BIG business. However, with the technology we have today, if there is a coordinated global approach, it should be possible to track all shipments and do a far better job of preventing criminals using legitimate supply chains to sell their fake goods. That's what we should be trying to do and everyone would benefit.