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Counterfeit Molly Tomlinson Beth Jenkins Gabby Morton Jess Martin Demi Holmes Abi Haigh Iram Kayani Aleisha Jackson


What Are Counterfeit Goods? Counterfeit goods are fake items deliberately made to look genuine. These can range from clothes, accessories, perfume, cosmetics, pharmaceuticals and electrical items as well as pirate computer software and games.


Politics and Counterfeit Goods “In light of all this its clear that no matter how much action we take and progress we make, the USTR is not actually interested in seeing tangible results.” Credit: taobao.com

Alibaba Group President, Michael Evans

June, 2014

“The gov. is committed to supporting the industries and making sure that intellectual property rights are understood and respected. Working together is the best way to tackle this issue.” IP Minister Lord Younger


“This has come from Mumbai, the release note is Air India but there’s not a lot of information about where it’s going. Why would a company or individual in India be selling 50 Hugo Boss wallets in the UK?” Herron, Border Force senior officer

“UK authorities are not interested at all in cooperating in this field, probably because the phenomenon does not directly affect them.” Bruno Collin, at the French National Directorate of Intelligence and Customs Investigation

“The UK border force is asleep at the wheel and it’s going to cost the taxpayer billions.” Alistair Carmichael, a Liberal Democrat MP.


ECONOMICAL

How much is the counterfeit industry worth?   •Counterfeit goods have expanded into an industry worth as much as £334 billion a year, almost the same as the drug trade industry according to a new report from the Organisation for Economic Cooperation and Development.  •Chinese counterfeiting now costs foreign firms an estimated £14 billion a year in lost profits. "In the case of one consumer goods manufacturer, as much as 70 percent of the goods on the market are counterfeits," said Scholz. 

How much money does counterfeits take away from the fashion industry?  •Counterfeits cost European brands the value of 9.7% of their total sales every year, £23 billion according to a new report by Europe’s Office for Harmonization in the Internal Market (OHIM).  


ECONOMICAL How does it create and takeaway jobs? •Approximately 363,000 lost jobs across the manufacturing, retail, and wholesale sectors of Europe’s fashion industries.  •Products gain a reputation of being of poor quality, this will cause export losses which in turn implies both job losses and loss of foreign exchange.

Who benefits from counterfeit profits?  •Counterfeiting attracts organised criminals who derive huge profits from this trade.

•Costs to countries where counterfeiting takes place suffer both tangible and intangible losses. Loosing out on direct foreign investment and long term trade partnerships.


Social Why do we buy counterfeit goods? •social emulation •negative opinion big business. •Cheating at the luxury lifestyle. •People can also buy counterfeits by accident. •self-fulfilment.


Social WHY DO PEOPLE CHOOSE NOT TO BUY COUNTERFEITS?

TEST ON FAKES- HOW IT MAKES US FEEL Fails to boost our self image like we had hoped. • Only cheating ourselves when we buy fakes. • • Its proven how purchasing counterfeit leads to cheating and cynicism in the real world.

“German consumers want high-quality goods, and they worry that counterfeits won’t have the quality they desire. Korean consumers are more concerned about social perceptions and making a good impression on others. They worry that people will think less of them if they are known to buy counterfeits.”

Manser. A, Cross-cultural counterfeits, 2015 [Article] retrieved from, http:// www1.udel.edu/udaily/2015/may/counterfeit-luxury-goods-051815.html


Social

Is it morally right to buy counterfeit goods? “Is it really stealing revenue from a company if I would never buy a genuine Gucci bag?”Steven Brown to the BBC. People who buy fakes would never would never pay for the real thing- counterfeit sales are not stealing customers.

YES: • • • • •

(Gabby)

Access to luxury lifestyle no moral obligation to brands profit damage is considered extremely minimal by customers It create jobs

NO: • takes the exclusivity away from the brand. • genuine manufacturers are deprived of profit • encourages and funds organised crime • Businesses feel that counterfeits • damage their reputation


Social CELEBRITY INFLUENCE “30%

admit they have bought a celebrity-endorsed product with women twice as likely to be swayed by famous faces than men.” Kirkova. D. ’Are YOU swayed by a famous face? Women buy twice as many celebrityendorsed products as men’,2014, [Article] retrieved from, http://www.dailymail.co.uk/femail/ article-2641476/Susceptible-women-buy-twice-celebrity-endorsed-products-men.html

CONCLUSION: This all leads to people buying counterfeits

in order to try to be like their favourite celebrity or socialite. For example, Kylie Jenner Lipkits are so highly sought after by fans that it is more accessible now to buy a fake on the internet than to buy the real thing.


Technological Impacts On Counterfeit Goods

“One in six products found online is identified as a counterfeit�

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The Internet has enabled legitimate brands to build professional marketplaces that can reach a wide customer base.

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The fake brands spend large amounts of money on developing fake websites to attract customers and they also use social media as a form of promotion.

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The fake websites mimic the looks of the authentic third-party sites such as MyTheresa and Net-Porter.


Legal Issues • It’s a criminal offence to financially gain by using someone else’s trademark. • ILLEGAL to knowingly sell counterfeit goods. • LEGAL to purchase counterfeit goods for personal use. • Multiple offenders can receive up to 20 years in prison along with a fine.

• Online sites such as Depop and eBay have rules and regulations against selling counterfeit goods. • You can report items you believe to be fake.


Environmental Issues With Counterfeit Goods “Over 77% of seized goods in Europe are destroyed using one of the of following methods: Recycling, Open Air Burning, Shredding, Crushing, Landfills and Charity Donations” Judith Soentgen, 2012

"Safe, secure disposal and storage of these goods is critical to ensure t h e e n v i ro n m e n t a l r i s k s a re mitigated and that harmful goods are disposed of in a manner that prevents diversion”. David Blackmore, IP Rights

In the UK “His Church” is a charity who collect counterfeit goods and alter them by de- branding them with “His”.

95% of counterfeit goods seized in the Netherlands are recycled by the European anti- counterfeiting network: REACT


Environmental Issues With Counterfeit Goods Bleaching agents used on materials damage the environment and also risk consumer health as the types used in counterfeit goods are often not safe for human use. Due to the quality of counterfeit goods, many are thrown away faster than would happen with a real version. This means that more products end in landfills, which let off more greenhouse gases and take up more room on the planet.

The machinery used to create counterfeit products also causes environmental issues as many cause sound and air pollution, this is on top of the existing pollution caused by non - counterfeit factories.


Examples Of Counterfeit Goods I had a look on eBay to see if I could find a very popular. eBay is one of the top most popular platforms to access fake products whether that be beauty products, clothing, accessories etc. Today it is so easy to create replicas and copies of brands and I decided to look at a few different brands such as Kylie’s cosmetics. 

The main reason that there are so many copies of Kylie a lipsticks and lip liners I'd because the products it's self are at a reasonable price but to get them anywhere else other than the US it's extremely hard as shopping alone is double the price but the transfer at boarders has become very expensive therefor you could be spending over £100 for 1 lipstick and lip liner.  

Trading Standards officers have seized 70 fake handbags being sold for an estimated £35,000 in Sheffield over the past three years. the Bags had labels and branding claiming they were Mulberry, DKNY, Prada, Moschino and Louis Vuitton. A counterfeit  goods dealer from Sheffield has failed to pay back a penny of the £2.75m she made from her crimes. Now Lily Lee,  must pay millions of fake goods from China into the UK and selling them on internet auction sites.


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