Countereits & Terrorism: Is It That Simple?

Added: (Mon Jul 23 2007)

Pressbox (Press Release) - The recent survey by law firm Davenport Lyons reckons that 80% of people who buy counterfeits would stop doing it if they realised that their money was supporting terrorism. Writer, Sarah McCartney, who researched the subject for her book, The Fake Factor, disagrees.

�I�m sure they would agree in theory,� Sarah said, �but when faced with a mock Gucci handbag at one tenth the price of a real one, their principles fly out of the window.

�People�s ethics are strictly tested when they spot what they see as a bargain. For example, grocery shoppers say they�d prefer to buy free range eggs and prevent cruelty to battery hens, but when faced with the price difference, the free range eggs stay on the shelf.

Interpol estimates that counterfeits represent around 10% of world trade - more than cars � and while many are smuggled around the world by criminal and terrorist organisations, for others it�s just a simple matter of making and selling products legally, then adding someone else�s intellectual property � a logo or a design. In Mauritius, for example, there is a huge trade in selling counterfeit Ralph Lauren goods to tourists, manufactured by otherwise legitimate companies who pay their taxes like everyone else.

Wherever you find a high volume of counterfeiting you will also find organised crime and terrorism. In the UK, Northern Ireland is the counterfeiting capital; there�s also a strong trade in Italy; counterfeiters use the same illegal trade routes to import their goods as drug and arms dealers and people traffickers. China is now the biggest source of fakes, helped by so many manufacturers taking their bases there to reduce costs. However, counterfeiting has been found in every single EU country, Switzerland, Canada and the US, as well as the traditional far eastern specialists.

�If you really want to stop the trade, it is important to look at all the factors that influence what people buy,� McCartney says. �A shopper�s inner bargain hunter tends to win out over their inner intellectual property lawyer and as long as the person they are buying from is plausible and approachable, it�s easy to convince yourself that there�s nothing really wrong with the transaction.

�It�s also down to what is fashionable amongst the group you hang around with. From teenagers, to anti-capitalists to US desperate housewives, it�s not only acceptable but a matter of pride to hunt down a counterfeit at a fraction of a the price of the genuine article. �

McCartney also believes that manufacturers also have to accept some of the responsibility.

�If you cover a handbag with logos, sell it at �5000 then publicise it throughout the celerity gossip magazines of the world, it becomes a desirable object. Putting aside the intellectual property considerations, it is actually very good � if unethical - business sense to copy that bag and sell a good quality fake for �500 and a cheap one for �50 to women who are desperate to own one just like the real thing. By creating a demand they have no intention of fulfilling, luxury branded goods companies are playing into the counterfeiters and terrorists hands.�

What can we do to avoid supporting terrorists?
Only buy branded goods from legitimate shops; a wallet that looks like Louis Vuitton on a market stall is always fake and a pretty boxed perfume is coloured water � or worse.. And just because they�re in the right box, it doesn�t mean that the Nikes you see piled up in a discount shop are actually real.

If you smoke or drink, never buy cigarettes or alcohol from an unlicensed outlet. Over 1million counterfeit cigarettes are sold in the UK every day, perfectly packaged but containing up to 100x the toxin levels of real cigarettes. Trading Standards have even found mouse droppings in counterfeit tobacco.

As long as shoppers think of fakes as bargains, the counterfeiters will win out. If we�re to help Interpol stop the criminals behind the operations, the answer is to stop buying from their outlets. Consumers have to put their money where they say their mouth is � and keep their cash in their wallets when they are offered a temptingly priced fake.


The Fake Factor is published by Cyan & Marshall Cavendish Business, price �9.99, ISBN 190487942X.

�Sarah McCartney brings a refreshingly clear approach to a complex subject, in particular the role of brands in creating demand for fakes. Essential reading for those charged with understanding and managing counterfeiting issues. The principles extend well beyond the luxury goods focus and apply to almost all sectors beset by counterfeit contamination.� Richard Merrick, CEO Eatonbank

�The Fake Factor is the real thing! A wise, witty, and well-written insight into the weird and wonderful world of fakes, forgeries, rip-offs, pass-offs and needless to say, authentic replicas.� Stephen Brown, Professor of Marketing Research, University of Ulster.

Sarah McCartney is the founder of Little Max.
sarah@littlemax.co.uk
07850671512