what are counterfeits

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It’s a fake world

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1 BEM 10groepswerk Engelscounterfeiting and piracy

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Page 2: What are counterfeits

Overview

Counterfeiting in generalKaterina

Action and effectsMaxim

ReasonsRinata

Music industryBenoît

Counterfeit productsBart

Page 3: What are counterfeits

Counterfeit?

What are counterfeits? Why do people buy

counterfeit goods? Why do people sell

counterfeit goods? Expansion/globalisation Cause of globalisation

Page 4: What are counterfeits

What are counterfeits?

= ‘knockoffs’

Imitation, forgery Currency, documents Art, clothing,

pharmaceuticals,…

Page 5: What are counterfeits

Why do people buy counterfeit goods? (1)Primar

y market

Secondary market

Page 6: What are counterfeits

Why do people buy counterfeit goods? (2)

Secondary market

Low prices Status Weak or no penalties Depends on characteristics

of the product and the consumer

Page 7: What are counterfeits

Why do people sell counterfeit goods?

Profits Large market size Brand power Weak or no penalties

Page 8: What are counterfeits

Expansion

products

More: USD 200 billion !

Range :Luxury to

common goods

globalisation

All economies

Asia

Page 9: What are counterfeits

Globalisation (1)

0

10

20

30

40

50

60

70

number of source economies

seizures (% of total)

Page 10: What are counterfeits

Globalisation (2)

Consumption patterns vary

Automotive parts: Middle East, N-America

Tobacco: Widespread, developing economies in Latin America, Africa

Piracy of music, movies: all economies

Page 11: What are counterfeits

Cause of globalisation (1)

Internet

Free trade zones

Page 12: What are counterfeits

Cause of globalisation (2)

Free trade zones= crossing international

borders with minimal regulation

→ less control→ disguise point of

manufacture

Page 13: What are counterfeits

Cause of globalisation (3)

Internet Anonymity Flexibility Market size Market reach Deception

Page 14: What are counterfeits

Action & effects

Action Ip Interpol BASCAP Costs

effects

Page 15: What are counterfeits

ACTION

Page 16: What are counterfeits

Intellectual property (IP)

Term IP Intellectual property

law The agreement on

trade related aspects of intellectual property rights (TRIPS)

Page 17: What are counterfeits

Interpol

Created an intellectual crime action group

July 2002

Page 18: What are counterfeits

BASCAP

The business alliance to stop counterfeiting and privacy

Launched in early 2005 More recent and

comprehensive global initiatives

Page 19: What are counterfeits

Costs related to combating counterfeiting

and privacy

Production protection Packazing special Litigiation Investigations and

research …

Page 20: What are counterfeits

EFFECTS

Page 21: What are counterfeits

Economy wide effects

Innovation and growth Criminal activities Environment Employment

Page 22: What are counterfeits

Overview

Counterfeiting in generalKaterina

Action and effectsMaxim

ReasonsRinata

Music industryBenoît

Counterfeit productsBart

Page 23: What are counterfeits

Globalisation of deceit

• Counterfeiting:the oldest crime in history

• Number 1 crime of the 21st century

Page 24: What are counterfeits

What are the reasons for counterfeiting?

1) Does globalisation have an impact on counterfeiting?

2) What have World Bank(WB) and International Monetair Fonds (IMF) to do with it?

3) Greg Palast ”Democracy for sale”4) Ecuador-example5) Higher life standard?6) Anti-Counterfeiting Trade

Agreement(ACTA)

Page 25: What are counterfeits

1)Does globalisation have an impact on counterfeiting?

Due to certain circumstances, created by globalisation, a lot of people were pushed in a certain position

Page 26: What are counterfeits

2)What have World Bank(WB) and International Monetair Fonds (IMF) to do

with it?

Many specific, destructive conditions for developing countries for lending the money

Page 27: What are counterfeits

”3) progressive investigative

journalist

Page 28: What are counterfeits

4)Ecuador-example

Few conditions to loan the money from WB- Increase the price of natural gas with 80%!-fire 26 000 people!- cut the salary of lasting people with 50%!-hand over the largest waternetwork of the country to foreign companies

Page 29: What are counterfeits

5)Higher life standard?

South-Africa : since 1980 the income per capita decreased with 23% !!!

Page 30: What are counterfeits

6)Anti-Counterfeiting Trade Agreement(ACTA)

Agreement for the purpose of establishing international standards on intellectual property

Page 31: What are counterfeits

Why do people buy conterfeiting products?

Deceptive conterfeiting

Non-deceptive conterfeiting

The consumer doesn’t know that he has purchased a conterfeit product

Consumer is aware of the fact that he bought a conterfeit product

Page 32: What are counterfeits

Types of people who may be more willing to buy counterfeit brands

1. have relatively little regard for the law2. have negative attitudes towards big

business3. want to demonstrate their status,but

don’t have the funds4. are curious and want to experiment5. like taking risks

People who :

Page 33: What are counterfeits

Attitude and function of counterfeiting

SOCIAL-ADJUSTIVE ATTITUDE

VALUE-EXPRESSIVE FUNCTION

To gain approval in social situations

Helps people to communicate their central beliefs ,attitudes and values

Self-expression Combination of the two: example : a louis vuitton bag

Page 34: What are counterfeits

Overview

Counterfeiting in generalKaterina

Action and effectsMaxim

ReasonsRinata

Music industryBenoît

Counterfeit productsBart

Page 35: What are counterfeits

Music industry

Figures Legal downloading RIAA SABAM

Page 37: What are counterfeits

Figures 2010

7.7 million 1.2 billion tracks 219 million pound or €

248 496 539 Still on the rise

Page 38: What are counterfeits

Legal downloading iTunes Store Napster Zune Marketplace Amazon MP3 Nokia Music Store TuneTribe Kazaa eMusic

Page 39: What are counterfeits

RIAA The Recording Industry

Association of America 2003: first lawsuits Purpose: respect the

copyrights+ minimize the number of illegal downloads

Page 40: What are counterfeits

SABAM

Fines Music in public Amounts of money to

high

Page 41: What are counterfeits

Counterfeit products

Fake shoes Costs Fake vs. Authentic Tips

Page 42: What are counterfeits

Fake shoes? Many different names Production & export = illegal Infringing upon Copyright

laws Cheap imitations

Page 43: What are counterfeits

How? Employee steels the design Sells it to a random factory Produces in mass amount Don’t use high quality material Never the same as the original

Page 44: What are counterfeits

Cost?

Who you deal with; How many are purchased; Customs makes it

harder to import; Costs to import are high.

Page 45: What are counterfeits

Differences between fakes and autheticsFakeAuthentic

Page 46: What are counterfeits

Website Tips Read the Policy Verify the sizes Check the sizes again Check the price Check their stock See where they come from Check the quantity Check the pictures Check the pictures again

Page 47: What are counterfeits

Overview

Counterfeiting in generalKaterina

Action and effectsMaxim

ReasonsRinata

Music industryBenoît

Counterfeit productsBart

Page 48: What are counterfeits

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