Counterfeit Enterprise

China has long been known as the counterfeiting capital of the world.

In November, 2011, the National Intellectual Property Rights Coordination Center issued “Intellectual Property Rights Violations: A Report on Threats to United States Interests at Home and Abroad”

Key Items from the report:

  • Offenders are creating websites that appear legitimate, deceiving consumers into purchasing infringing goods.
  • Offenders in China pose the greatest threat to US interests in terms of the variety of products infringed, the types of threats posed (economic, health and safety, and national security), and the volume of infringing goods produced there.
  • The Majority of infringing goods seized by CBP and ICE originated in China, as a result, they continued to be placed on the US Trade Representative’s Priority Watch list (including 2011 and 2012)

The report also highlighted the widespread availability of the Internet and how it’s contributed to the increased threat directed at the US.

“…Offenders are creating websites that appear legitimate, deceiving consumers into purchasing infringing goods. Because of the anonymity of the Internet and the ability of counterfeiters to disguise the true nature of the goods they offer online, consumers are hampered in their ability to make rational choices. The Internet also has made pirated content, specifically music, movies, and software, widely and easily available.”

Further within, the details and specific nature of the threat from Chinese counterfeiters was highlighted:

“ Offenders in China pose an evolving, large scale threat to the United States IP interests. The USTR noted that although the China-based IPR threat was originally “a localized industry concentrated on copying high-end designer goods” it has become a “sophisticated global business involving the mass production and sale of a vast array of fake goods…”

Source: United States. US Department of Homeland Security. National Intellectual Property Rights Coordination Center. IPRCenter.gov. Nov. 2011. Web. 05 May 2012. http://www.iprcenter.gov/reports/ipr-center-reports/IPR Center Threat Report and Survey.pdf/view.