Couterfiet Product Essay

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8 COUNTERFEIT PRODUCTS 8 COUNTERFEIT PRODUCTS Product counterfeiting is a form of consumer fraud: a product is sold, purporting to be something that it is not. This is different from the crime of copyright violation, which involves the unauthorized transfer of licensed material, such as the sharing of music or video files electronically.1 Product counterfeiting is typically an organized group activity, because the manufacturing of goods takes people and time, and the goal is invariably profit. Many jurisdictions take the offence quite seriously, for reasons described below. As a result, most product counterfeiting would be considered organized crime under the Convention. Lesser goods have been passed off as high-quality merchandise since the dawn of organized commerce, but the practice has taken on new meaning and proportions in the latest wave of globalization. With the advent of “outsourcing”, companies in developed countries are responsible for the research, design and marketing of products, while the actual manufacturing of the goods takes place in countries with a productive, yet cheaper, workforce. These manufacturing countries are also generally poorer, and so have lower capacity for oversight. This is usually not a problem, because the licensing company provides quality control – shoddy workmanship or substandard materials mean loss of contracts and possibly legal action. But this same lack of regulatory capacity makes unauthorized production possible. Products in high demand can be manufactured based on the same or similar designs, often packaged and branded in ways to make them indistinguishable from the original. The counterfeit goods can then be sold through parallel markets, or even introduced into the licit supply chain. Without the overheads of the licit products, these counterfeits can be priced extremely competitively while remaining vastly

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