Counterfeits and Fakes Counterfeits, Fakes,

Counterfeits and Fakes

Counterfeits, Fakes, and the World Economy

Gucci bag for only $40.00, a Rolex Oyster for only $299.00, Ray-Ban Sunglasses for only $19.99...if it sounds too good to be true, you are probably right. The world of fashion is plagued by the introduction of fakes and counterfeits, totaling nearly $600 million a year (Goodwin, p. 314). What could it hurt? Who will know the difference? Why should I care? The answers to these questions may shock you.

Counterfeits and fakes often originate in developing nations that often employ child labor, subjecting them to less than human working conditions. The world of counterfeits and fakes feeds this plague upon these children. As one of the largest economies in the world, the United States supports these inhumane working conditions by allowing the unrestricted flow of fakes and counterfeits into its borders. This research will support the thesis that legislation is needed to help prevent the flow of fakes and counterfeits in the United States.

The flow of counterfeits and fakes into the United States is detrimental to the economy. Currently, major producers of exclusive goods are involved in lawsuits in an attempt to limit the flow of fakes into the competitive marketplace (Goodwin, p. 314). The entrance of counterfeits and fakes into marketplace takes a bite out of the customer base for these goods. This causes financial harm to the company that planned to net big bucks for their designer originals. This slice of the marketshare means major consequences for designers who lose sales to dupes. Counterfeit goods reduce the taxable income received by major manufacturers, which harms the nation as a whole.

The legal ramifications of counterfeits and fakes have a detrimental affect on the brand image of major designers. The interdiction of fakes into the marketplace makes it difficult for legitimate high-end designers to retain their credibility. Common knowledge that fakes exist makes the purchase of one of these items a risky affair for consumers, who may exercise caution in fear of being duped. Some fakes are very good and it is difficult to tell the fake from the real item. Fear of being taken advantage of by counterfeiters further reduces the number of sales that a retailer will receive.

Counterfeits and fakes represent stolen intellectual property, which has a real value on the open marketplace (Goodwin, p. 315). When a counterfeiter copies a designer original, they have committed corporate theft. They may have obtained the "sample" legitimately, but when they start manufacturing that design, they are committing theft of the original idea or concept. The designer made the brand famous and the design that made the designer famous. The concept behind a product has the greatest impact on the company's rise to fame. It is not about merchandise, it is about image and reputation.

Purchasing counterfeits and fakes supports deplorable sweatshop conditions. The use of child labor in Chinese sweatshops that produce fakes and counterfeits is a well-documented occurrence (Law, p. 328). Child labor targets the country's poor, exposing them to dangerous conditions so that the sweatshop owner can live a life of luxury. Children in these shops must often work very long hours in places that do not meet basic health and safety requirements by any standard.

Not everyone agrees that the practice of producing counterfeits and fakes is bad. Owners of sweatshops see their businesses as legitimate. The business of counterfeits and fakes fuels the economies of the country of origin, often providing a substantial tax base. It is big business with a ready and willing customer base, who often cannot afford to buy the designer originals. Shop owners consider their products to be the fulfillment of a legitimate market niche (Murphy).

Current laws to stop the sale of counterfeits and fakes are inadequate and do not accomplish their intended purpose. In November of 2005, hundreds of thousands of counterfeit goods were confiscated from a Chelsea home (Murphy). The items were being sold through parties where suburban housewives would go crazy over them. Currently, in the United States, it is not illegal to own a fake, but it is illegal to sell them (Murphy). This law was designed to punish the supplier, not attack the unsuspecting victim of the crime. However, the size of this seizure of merchandise is evidence that these measures simply do not work. Despite existing laws, consumer demand for these products remains high.

The ultimate solution to the counterfeit and fakes problem is to convince people to stop buying them. This seems to be a reasonable approach, but the volumes reported in counterfeit products indicate that this is not likely to happen on a voluntary basis. There is already a considerable amount of press regarding how to spot a fake and the dark side of the business, but consumers still continue to purchase fakes. Sometimes they make the purchase by accident, but many times, they intentionally seek out these cheap imposters.

Stronger measures are needed to bring the black market to a halt. If consumers are not willing to do it themselves, then laws need to include the consumer as a target for potential legal ramifications for possession of a fake. If people could face legal recourse, it would significantly curb those that intentionally seek out fakes through dealers.

Of course, the down side is that it may punish unsuspecting victims of fraud, but the law would also make people more wary and careful in their purchases. There are those who may oppose such a drastic measure for fear that it punishes the victim instead of the criminal. However, if counterfeit products are made completely illegal, possession would be similar to possession of illegal drugs. People know that it is illegal, so they simply choose not to do it. The same type of thought process could also work for the possession of counterfeits and fakes. Public awareness campaigns have been ineffective and have done little to curb the sale of counterfeits and fakes. More drastic measures are needed to stop the sale of fakes and counterfeits.

The market for fakes and counterfeits continues to feed an unscrupulous side of the global economy. The only way to end sweatshops is to take away their market. If there were no market, they would have no incentive to continue to produce fake merchandise. They would have to find something else to do with their day. It is apparent that extreme counter measures are needed to help curb the growth of the counterfeit industry. Current measures are not enough and more must be done to disrupt the market cycle.