Counterfeit Trade Research Articles

Digital piracy and counterfeiting in the conditions of digital transformation: analysis of the situation, trends, defense mechanisms

In the work, based on the analysis of statistical data, the study of international sources, the economic and legal problems of digital piracy and counterfeiting in the world, the EU and Ukraine in the conditions of digital transformation are investigated:state and dynamics, impact on business and economy, causes and main factors, problematic issues that arise in connection with this phenomenon, the practice and the organizational and economic mechanism of countermeasures in this area. The sale of counterfeit goods causes millions of jobs and lost profits and is currently the world's largest criminal enterprise. It is expected that by 2024, in the US alone, the volume of sales of counterfeit goods in electronic commerce will increase to 6 trillion dollars. The rating of the most active pirate countries is given, Ukraine is the place. Criminal networks take advantage of the lack of law enforcement in some states and adapt the distribution of their products using new means of communication (Internet, social networks, etc.), distribution channels (transit, free zones, small parcels) and consumer requests. In addition, the return on investment is high, and the imposed fines are low and do not have a deterrent effect on counterfeiters and sellers. It is concluded that counterfeiting and piracy are global problems that know no borders. They are too big to be solved by individual companies, sectors of the economy or governments. Therefore, it is important to develop and strengthen cooperation between these subjects. To ensure a successful fight against digital piracy, counterfeiting and money laundering, coordination between governments at the international, national and regional levels is essential. The private and public sectors should join forces in the fight against the trade in counterfeit and pirated products by organizing special cooperation units that will be responsible for collecting information on the movement of funds obtained from criminal activities and for exchanging information in the field of combating money laundering. The protection of IP rights in the conditions of martial law is extremely important, as these are Ukraine's international obligations regarding EU accession and the vital need to protect Ukraine's economic interests.

Con Air: exploring the trade in counterfeit and unapproved aircraft parts

AbstractCounterfeit aircraft parts are among the most well-known counterfeits and pose a significant risk to public safety. It is estimated that as much as 10% of the legal market for aircraft parts are counterfeits and the presence of these parts on commercial aircraft are more commonplace than many people realise. Yet, criminological research on this pressing issue is remarkably scarce. Informed by accounts from specialised and highly knowledgeable actors embedded in the aviation industry, this paper aims to explore how counterfeit and unapproved parts enter the legitimate supply chain and what factors drive or motivate their circulation and use.

The role of hope and attitude in luxury counterfeit purchase intention

Purpose – This study aims to investigate the emotion hope for social status and attitude toward counterfeit goods as predictors of consumers’ intention to purchase counterfeit products.. Design/methodology/approach – We conduct an experiment with 45 undergraduates (51% female) from different universities, which design was a 2 (hope for social status; hopeful vs non-hope) x 2 (attitude towards counterfeit goods; positive vs negative) full factorial, between-subjects. Findings – Results confirmed that people felt hopeful after manipulation; however, future steps of this investigation should consider the use of another instrument of manipulation even more effective. However, respondents also pointed out they felt happiness, which makes us believe that it is important to use an instrument of manipulation even more effectively to guarantee the achievement of the real manipulation, without the interference from extraneous variables. Theoretical/methodological contributions – Although originated in categories such as apparel and luxury accessories, counterfeiting now affects a wide range of industries, representing a major economic threat. This great amount of counterfeit trade worldwide is shocking, and leads us to argue: what are the factors that influence the intention to purchase these products, especially regarding the consumption of luxury counterfeit brands? We believe that emotion may represent an important role in people’s intention to purchase counterfeit goods. Besides, the attitude towards counterfeit goods may also imply variations of intention to purchase, playing a moderator role. The inclusion of emotion in consumer behavior studies presents a significant opportunity to develop theory and practice in this area of study. Originality/value – The explanations of whether emotions may represent antecedents of the purchasing of counterfeits are quite limited, and the understanding of the motivations behind the purchase of such products remains undefined in the marketing literature. Analysis of the study shows that hope and attitude can simultaneously offer opportunities for consumer behavior research.

Russian Market of Confectionery Products (Study of the Feasibility of Introducing Mandatory Control and Accounting Marking of the “Honest Sign” System)

The article presents the results of approbation of the Methodological recommendations of the Ministry of Industry and Trade of Russia on the preparation of proposals for the Government of Russia on the inclusion of certain goods in the list of goods subject to mandatory labeling by means of identifi cation (Order of the Ministry of Industry and Trade of Russia dated February 25th, 2021, No. 626).According to the results of approbation of Guidelines No. 626, the share of illegal trade in chocolate and chocolates in Russia in 2019 (on the eve of the COVID-19 pandemic) was estimated at 2% of the volume of the corresponding market; sugar confectionery products — in 6% (3.6% on average for the indicated groups of confectionery products).Based on a preliminary assessment of the state of the Russian confectionery market in 2021, this assessment should be maintained. This conclusion generally agrees with the results of studies on the quality of certain types of confectionery products commissioned by ANO “Roskachestvo “ in 2017—2020, as well as global studies on counterfeit trade initiated by the OECD and the European Union Intellectual Property Offi ce in 2017— 2019 and posted on the OECD website on June 22, 2021.The fi ndings of the study diff er signifi cantly from estimates of the level of fakes among individual subgroups of confectionery products that are currently common on the Internet. The article provides predictive estimates of the cost of codes for the purposes of introducing labeling of confectionery products and a likely increase in the amount of additional tax revenues as a result of the introduction of control and accounting marking of the national digital marking system of the “Honest Sign” system.The shortcomings of Methodological recommendations № 626 were identifi ed and considered, proposals for their elimination were formulated.

NEW AGE TUSSLE WITH THE LEGAL MEASURES IN CONTROLLING THE COUNTERFEITING PRACTICES: A SPECIFIC STUDY ON IP SEGMENT

Globalisation, trade facilitation, and the expanding economic significance of intellectual property are all drivers of economic enlargement. However, they have also led to different ways for illicit networks to expand the span and scale of their operations, free-riding on intellectual property and polluting trade routes with counterfeit goods. Leading to the serious outcome for both the economy and the citizens. Trade in counterfeit goods not only damages economic growth but also undermines good governance, the rule of law and citizens’ trust in government, and can ultimately threaten political stability. Tracing back to the history of counterfeiting from 1925, we have seen a huge rise over the time. And India is not new to counterfeiting. It costs the Indian economy INR 1 trillion every year. In fact, one in three Indian adults have been victims of fake products from one or the other e-commerce websites, making online counterfeiting the fastest growing crime. In addition, in some cases, such as that of fake pharmaceuticals, counterfeit goods can have serious health and safety implications for citizens. The legal structure intends to protect the enthusiasm of clients and partners and reasonable come back to the correct holders is the core of IPR insurance and requirement by the Legislature to guarantee IP security of right holders and battle the rotting impact of forging in India. Aside from the legal arrangements, the legal choices and perceptions in setting of disallowing forging in India merit referencing. We are confident that this article will make a major contribution to the understanding of the volume, magnitude and harmful societal effects of illicit trade in counterfeit and will urge policy makers to shape effective solutions to combat and deter this scourge.

КИТАЙ – ЮВА: ОСОБЕННОСТИ ТРАНСГРАНИЧНОЙ ТОРГОВЛИ КОНТРАФАКТНЫМИ ТОВАРАМИ

Over the past five years, economic cooperation between China and Southeast Asia has continued to show steady growth. In 2020, the region became China's largest trading partner, surpassing the EU for the first time. In 2021, it retained its leadership in terms of trade operations with China. The growth of Internet penetration and e-commerce has led to a significant increase in the share of counterfeit trade between the PRC and the countries of the region the volume of the flow of counterfeit goods from China to Southeast Asia is now approximately $35 billion. This causes significant damage to Southeast Asian countries, where local enterprises and investors bear considerable losses from this activity.

Baby, Bye, Bye, Bye

Christian Louboutin. Manchester United. Agent Provocateur. In a world where trademarks have become more than brand identifiers, counterfeit versions of brands should be easily identifiable. Yet counterfeiting regimes from Asian countries continue to funnel counterfeit goods through the United States and European Union borders. Both regions continue to impose stricter anti-counterfeiting laws and regulations. Nevertheless, companies in the United States, Italy, and France are drastically affected by counterfeiting, losing billions per year in revenue. The International Chamber of Commerce’s (“ICC”) Business Action to Stop Counterfeiting and Piracy (“BASCAP”) and the International Trademark Association (“INTA”) estimate that the value of international and domestic trade in counterfeit and pirated goods in 2013 ranged from $710–$917 billion. BASCAP and INTA predict that by 2022, the value of business in counterfeit and pirated goods could reach $991 billion. Asian countries produce more than 70% of all counterfeit goods with the People’s Republic of China (“PRC”) and Hong Kong as the leading provenance economies for counterfeiting. China’s proliferation of counterfeit goods stems from economic, social, and political forces that influence China’s socialist market economy. On average, 20% of consumer products in the Chinese market are counterfeit goods. The counterfeiting industry continues to cripple various countries including the United States, Italy, and France, costing corporations billions in revenue and placing consumers in significant financial and health risk. The substantial impact of counterfeiting on the global economy has spurred the United States, Italy, and France to impose strict anti-counterfeiting laws and regulations. The United States anti-counterfeiting arsenal to protect trademark owners includes civil enforcement under the Lanham Act 15 U.S.C. § 1051 and criminal enforcement under 18 U.S.C. § 2320. Italy and France impose similar laws and regulations but also take their anti-counterfeiting mechanism further by seeking stricter criminal penalties for manufacturers, distributors, and consumers. This Article explains the regulatory and legal anti-counterfeiting mechanisms adopted by the United States and the European Union, specifically Italy and France, to illustrate the international legal and regulatory tools used to reduce the economic hardships of counterfeiting.

Rapid and accurate verification of drug identity, purity and quality by 1H-NMR using similarity calculations and differential NMR

The illegal trade in counterfeit and fake drugs is a worldwide multi-billion dollar industry, not only generating enormous economic losses, but health problems for the general population, through direct toxicity, treatment failure and the increased generation of antibiotic resistance. Techniques for high-throughput testing of suspect medicines are needed to face the challenges of the problem. In this study we show that with nuclear magnetic resonance spectroscopy (NMR) drug compliance can be verified in a few minutes, providing data on drug identity, purity and quality without the necessity to develop a specific methodology and using a direct extraction with deuterated solvent. The evaluation of the data is facilitated by similarity calculations and differential NMR spectroscopy. The viability and limitations of this method were assessed, with the application on five different drugs, namely sertraline hydrochloride, alprazolam, vitamin D3, enalapril maleate and paracetamol, in which the individual dosage quantity of the active ingredient ranged from 750 mg down to 0.25 mg. The appropriate sample weight, solvent and internal standard were determined for each drug and quantification was carried out by choosing the most adequate NMR signals for each compound and the internal standard. With the method the accuracy of the quantification is somewhat sacrificed for increased speed in the analysis, but the measurements offer excellent precision and offer the possibility of external calibration. Spectral similarity calculations and differential NMR spectroscopy were used to compare different generic brands and detect eventual undeclared constituents and contaminants. In one brand of alprazolam tablets the undeclared constituent tristearin was found, while in paracetamol tablets the contaminant para-aminophenol was found at a level above the allowed by the legislation. The applicability and limitations of the method are discussed.

МІЖНАРОДНА ТОРГІВЛЯ КОНТРАФАКТНОЮ ПРОДУКЦІЄЮ: СТРУКТУРА ТА МЕТОДИ МИТНОГО РЕГУЛЮВАННЯ

International trade in counterfeit products has become a real global epidemic, causing significant damage to business and the global economy. The widespread spread of this problem undermines the foundations of economic development, a stable economic system, free trade and investment. The article examines the essence of the concept of «counterfeit products» and «counterfeit products», which is a type of counterfeit. Сounterfeit products are products that contain objects of intellectual property rights, the import of which into the customs territory of Ukraine or export from this territory leads to a violation of the rights of the owner and which are protected in accordance with current legislation of Ukraine and international treaties of Ukraine. The classification of counterfeit products is offered, which will give the chance to specify the analysis on the corresponding kinds and to choose effectively methods of regulation. The reasons for the active growth of international trade in counterfeits have been studied аmong the main ones are: dissatisfaction with people's needs, the desire of the population to receive high incomes, the complexity of original production, shortage of certain consumer products, low incomes, the need for large-scale investment, long production cycle, low production mobility, inability to purchase branded goods. The structure and dynamics of international trade in counterfeit by geographical and commodity characteristics are analyzed. The consequences of international trade in counterfeit goods for countries are highlighted аmong the main ones are: reduction of budget revenues, threat to the image of the right holder, which may provoke a devaluation of the brand price, threat to the country's image, which will negatively affect investment and innovation, risks to consumer health and safety, market destabilization, threat to economic and technical development, loss of profit, threat to the environment, sponsorship of terrorism and organized crime, reduction of demand for the products of the right holder, which leads to the liquidation of production, reducing the competitiveness of rights holders in the domestic market, rising unemployment. Methods of customs regulation of international trade in counterfeit goods are considered, and their efficiency is analyzed in Ukraine and in the world. Proposals for improving customs regulation methods have been developed.

IoT in medical & pharmaceutical: Designing lightweight RFID security protocols for ensuring supply chain integrity

Nowadays the sharing of trade in counterfeit and pirated goods is constantly growing and fake products are found in a large number of industries – particularly pharmaceuticals, food, and medical equipment – that can pose serious health and safety risks. With the intention of avoiding any loss of client confidence and any disclosure of sensitive information, Internet of Things (IoT) solutions are increasingly used to fulfill this need for a reliable and secure infrastructure in medical & pharmaceutical industry. When looking at the technologies used to identify products and packaging, balancing security and hardware limitations is often a difficult task and using cost-effective techniques such as bit-oriented lightweight functions is a challenge. In this study, we first assess the security level of a recently proposed protocol and prove its vulnerabilities, due to a lack of complexity in bit-oriented functions. Then, to address these exposed flaws, a lightweight improved protocol based on Authenticated Encryption (AE) cryptosystems is presented. Security analysis results demonstrate that weaknesses of previous efforts have all been adequately addressed; additionally, the improved protocol has a robust security posture in terms of confidentiality and integrity. Moreover, FPGA and ASIC simulations are carried out using five different AE schemes from CAESAR competition to develop three use-cases, in whose best scenario the proposed tag has 731 LUT and needs 3335 gates for the security module.

What Defines Counterfeiting? A Timeline Analysis of the Definition

Though addressed widely by academicians and researchers across the globe, the subject of counterfeiting dates back to historical times of 27BC. In academic literature, the discussion on counterfeit(ing) began a century back when researchers started to define its boundaries through their understanding. Ranging from the classical descriptions on counterfeit, counterfeiting, counterfeit trade and counterfeit product(s), this article intends to use text analysis technique to provide the reader with a summary of the existing academic literature on the aforementioned subjects. It summarizes key definitions from the respective area with a broader aim to bridge the gap in the existing counterfeiting and counterfeit product-related literature by providing a brief (yet ample) list on counterfeit(ing). Moreover, it also identifies the key similarities exiting in the definition set. The article concludes with authors own definition of counterfeiting and counterfeit product(s) based on the conceptualization developed through the understanding of combined definitions from the literature.

U.S. Intellectual Property and Counterfeit Goods—Landscape Review of Existing/Emerging Research

This report provides an overview of the international market for counterfeit goods. Specifically, the report details the overall magnitude of international counterfeit trade, and explains how counterfeit goods affect the U.S. economy. It highlights the role of the private sector in combatting counterfeits, and the rising trend of counterfeit trade via small parcels. Last, it reviews trends in consumer attitudes towards counterfeit goods, and assesses the facilitating role of social media.

Protection of intellectual property rights in the European Union: The role of customs authorities on the example of Poland

Objective: The aim of the article is to measure and analyze the scale of trade in counterfeit and pirated goods in the European Union in order to provide decision-makers with solid empirical evidence about this threat. The specific objective is to show the role of customs authorities in preventing infringements of intellectual property rights. Research Design & Methods: The research methods include the critical review of existing literature, analysis of relevant legal and official documents of the European Union and the case study of the role of the Polish customs authorities in preventing infringements of intellectual property rights. Findings: The infringement of IPR is no longer limited to branded products such as clothes, luxurious watches, brand-name sunglasses, handbags, but it also concerns more and more popular foodstuffs, pharmaceuticals, chemicals, electronic items and household appliances. Contribution & Value Added: This paper provides a description of copyright protection, counterfeiting and piracy, but also contains a reference to legal regulations applicable within the European Union and relating to this area, changes to such regulations, as well as the scope of activity, working procedures (and their consequences) of EU Member States’ customs authorities, with special attention given to Polish customs.

A Curious Case of Cryptokick

Crypto-kick is a patented technology by Nike to primarily combat counterfeiting of footwear using block-chain, which got granted within 196 days from being filed. This case study starts by reviewing the counterfeit trade market of consumer goods. Then the concept of non fungible token has been discussed and how it forms the core concept of the footwear’s patent that aims in blurring the realms between physical and digital assets. Finally, the fast track patent process Track One has been explored which are available for such rapidly evolving technology space.

Воздействие контрафактной торговли на экономику Италии

Воздействие контрафактной торговли на экономику Италии

Implicit and explicit identification of counterfeit brand logos based on logotype transposition

PurposeWith trade amounting to more than US$400bn, counterfeiting is already affecting many successful brands. Often, consumers are deceived into buying fake products due to the visual similarity between fake and original brand logos. This paper aims to explore the varying forms of fraudulent imitation of original brand logotypes (operationalized at the level of logotype transposition), which can aid in the detection of a counterfeit brand.Design/methodology/approachAcross two studies, this research tested how well consumers can differentiate counterfeit from original logos of well-known brands both explicitly and implicitly. Seven popular brand logos were altered to create different levels of visual dissimilarity and participants were required to discriminate the logos as fake or genuine.FindingsResults demonstrate that although consumers can explicitly discriminate fake logos with a high degree of accuracy, the same is not true under conditions in which logos are presented very briefly (tapping participants’ implicit or automatic logo recognition capabilities), except when the first and last letters of the logotype are substituted.Originality/valueA large body of research on counterfeit trade focuses on the individual or cross-cultural differences behind the prevalence of counterfeit trade. There is limited research exploring the ability of a consumer to correctly identify a fake logo, based on its varying similarity with the original logotype; this paper addresses this gap. Given that many of the purchase decisions are often made automatically, identifying key implicit differentiators that can help a consumer recognize a fake logo should be informative to both practitioners and academics.

Irregularidades dos medicamentos comercializados no Brasil: uma análise das notificações e das medidas sanitárias de 2012 a 2017

Introduction: The drugs available for consumption must have efficacy, safety and quality, being essential their monitoring after registration. Objective: This study analyzed the main irregularities of the medicines, their characteristics, types of sanitary measures, means of verification and therapeutic classes (Anatomical Therapeutic Chemical) that have risks of causing damages to the health of the population. Method: Descriptive and quantitative study using data from the National Product Notification System (Notivisa), Specific Resolutions in the Official Gazette of the Federal Executive and, in addition, data presented in the Management and Activity Reports of the Brazilian Health Regulatory Agency, with retrospective analysis of the notifications and precautionary measures of drugs that presented irregularities in the period from 2012 to 2017. Results: There was a progressive increase in notifications for all products, from 37,419 in 2012 to 54,545 in 2017, and medicines accounted for 38.5% of total notifications. 807 sanitary measures were analyzed, comprising 1,149 drugs and 254 companies. In this universe, 55.9% were medicines that presented quality deviations, evidenced mainly by laboratory analysis (48.9%) or by on-site verification during sanitary inspection (13.3%) and in only 30.6% of the measures, there was voluntary withdrawal by the company. The most frequent therapeutic classes were antibacterial, analgesic and antiviral drugs with 13.2% of the irregular drugs, and the herbal products led the list of unregistered or companies in irregular situation. Conclusions: Data pointed to the need for a redesign of the post-market surveillance model and for the implementation of a traceability system, so that there is greater responsibility for marketed pharmaceutical products, and an inhibition of counterfeit trade.

An introduction to the special issue on ‘counterfeiting’

This paper provides an introduction to the articles and report excerpts included in the special issue of Trends in Organized Crime on ‘Counterfeiting’. The aim of this special issue is to add to the relatively sparse literature currently available that addresses this expansive and complex criminological phenomenon. In particular, the special issue draws together empirical research findings and theoretical accounts on the organization of the counterfeit trade across a broad spectrum of goods, and highlights a number of issues associated with researching counterfeiting.

Trade in counterfeit and pirated goods: Mapping the economic impact

Trade in counterfeit and pirated goods: Mapping the economic impact

The Weight of Necessity: Counterfeit Coins in the British Atlantic World, circa 1760–1800

Though ubiquitous in the eighteenth-century British Atlantic world, counterfeit coins have received little scholarly attention. This article reconstructs the imperial trade in counterfeit foreign coin in the latter half of the eighteenth century, a time when British and American merchants, ship captains, and even officials strategically exported bad coin to the Caribbean, profiting from the region's heterogeneous money supply and rapidly shifting economic and political conditions. Examining the counterfeit trade from Rhode Island to Jamaica in the 1770s and then from Birmingham to the eastern Caribbean in the 1790s highlights the trade's size, persistence, complexity, and eventual expansion from a colonial commerce to a metropolitan industry. Colonial governors', the Board of Trade's, and eventually Parliament's fraught attempts to demonetize bad coin reveal how embedded counterfeits were in economic life. Caribbean residents used bad coins in ways that best suited local circumstances, sometimes in implicit and sometimes in outright violation of metropolitan policy and the king's prerogative to regulate coin. Decades before the official rejection of commodity coin, people on the fringes of empire insisted that money's value came from ease of use and widespread acceptability, rather than metallic content. Debates about counterfeits thus became important sites for questioning the limits of metropolitan authority and the very definition of money itself.