Presentation is loading. Please wait.

Presentation is loading. Please wait.

Putting the Pieces of the Puzzle Together Counterfeit Busting 101 CSA 2012 Annual Conference Monday, June 11, 2012 Quebec City, Quebec 1 Presented by Lorne.

Similar presentations


Presentation on theme: "Putting the Pieces of the Puzzle Together Counterfeit Busting 101 CSA 2012 Annual Conference Monday, June 11, 2012 Quebec City, Quebec 1 Presented by Lorne."— Presentation transcript:

1 Putting the Pieces of the Puzzle Together Counterfeit Busting 101 CSA 2012 Annual Conference Monday, June 11, 2012 Quebec City, Quebec 1 Presented by Lorne M. Lipkus of Kestenberg Siegal Lipkus LLP Barristers & Solicitors 65 Granby Street, Toronto, Ontario, M5B 1H8 Tel: Fax:

2 2 What is being Counterfeited?

3 Answer 1.ANYTHING & 2. EVERYTHING 3

4 Alcohol 4 4

5 Apparel & Accessories 5 5

6 Copyright Kestenberg Siegal Lipkus LLP6 Automotive

7 Batteries 7 7

8 Belts & Buckles 8

9 Cell Phones & Accessories 9 9

10 Designer Bags 10

11 DVD’s 11

12 Electrical 12

13 Electronics 13

14 Food & Beverages 14

15 Health & Beauty 15

16 Household Items 16

17 Ink Cartridges 17

18 Pharmaceuticals 18

19 Tools 19

20 Shoes & Boots 20

21 Software 21

22 Sunglasses 22

23 Toys 23

24 Watches 24

25 … and 25

26 26

27 27 Fake Wine Discovered At LCBO Prompts Police Probe -The Toronto Star, March 18, 2011 “It was awful. It tasted like homemade wine,” said Campbell, who wasn’t surprised that fraudsters targeted the Negrar, which retails for $ “They’ve been in business for decades, and Schiralli has represented them for 40 years. They were hurt, puzzled, devastated. They couldn’t believe that someone had done this,” said Campbell. A staff member of Campbell’s tried the fake stuff after buying it at an LCBO store and immediately noticed something was wrong. At left is a fake bottle of 2006 Negrar Amarone Classico. The legitimate one is on the right.

28 The Sharjah Economic Development Department Destroys 21,000 Fake Sanitary Napkins © The Gulf Today, April 22, 2011

29 Fitness Equipment October 19, 2009 – 32,000 pieces – 2 dozen seizures – Maliby Pilates Chair – Bow Flex Home Gym 29

30 Blackberry Handsets 30 © Report on Business Magazine, The Globe and Mail, May 2010 Edition Don’t be fooled by the name on the to the untrained eye, the keyboard, splash screen, convenience keys and trackball all mimic the BlackBerry 8900 Drawbacks? There are a few: The BlueBerry does not feature RIM’s world-class operating system; it has no push (it checks for messages on a set schedule); no specialized encryption (BlackBerry’s Enterprise Server is famed for its security); no ability to install third-party apps (like you might find on BlackBerry’s App World). All that, and it’s buggier than a Winnipeg outhouse.

31 Copyright Kestenberg Siegal Lipkus LLP31 43,600 Counterfeit Circuit Breakers Recalled Occupational Health & Safety Online – March 2010

32 © May 17, 2012http://www.ksdk.com Electronic items are now the number one category of knockoffs seized by agents at O'Hare International Airport Experts caution that counterfeit electronics rarely perform as advertised and can be dangerous. It can look very similar to the actual, authentic product but be much different internally and therefore, potentially, be much dangerous Counterfeit electronics bust at O'Hare International Airport

33 Phony smoke detectors given out by Atlanta Fire Department The Atlanta Fire Rescue Department recalled more than 18,000 smoke detectors it distributed after discovering they were counterfeit 33 © Consumer Reports, May 31, 2011 Smoke detectors bore a counterfeit certification hologram Analysis deemed the circuit board incomplete

34 34 © The Fiscal Times, May 22, 2012 U.S. Military Equipment Built with Counterfeit Parts Counterfeit parts have been incorporated into the Air Force’s largest cargo plane, into helicopters and into a Navy surveillance plane 84,000 counterfeit electronic parts supplied for a collision avoidance system used in the C- 12 and Global Hawk aircraft.

35 Pitfalls of Counterfeit- Part Epidemic Exposed Homeland Security Today reported that the number of counterfeit parts that are vital to the computer industry is expected to reach record high levels as the semiconductor industry enters “a phase of accelerating growth,” according to an analysis of trends conducted by IHS. “The scale of the counterfeit problem has grown dramatically in recent years, with reports of counterfeit parts quadrupling from 2009 to 2011,” IHS said. “Supply chain participants in 2011 reported 1,363 separate verified counterfeit-part incidents worldwide, a fourfold increase from 324 in 2009.” 35 © Homeland Security Today – May 23, 2012

36 36 “UN ties counterfeits to organized crime” Copyright © 2007 USA Today Dec 14, TURIN, Italy - “Counterfeiting is a dangerous and growing enterprise controlled by organized criminals who are exploiting the same trade routes used for trafficking drugs, arms and human beings, the United Nations said in a report released Friday.” “The report said counterfeiting carries far lighter penalties than traditional crime syndicate activities, such as trafficking drugs. But it provides much higher profits. The most well-known criminal organizations involved in counterfeiting are the Chinese triads, the Japanese Yakuza, the Neapolitan Camorra and the Russian Mafia, the report said.” “Italian anti-Mafia prosecutor Franco Zuccarelli, who attended the release of the report, said a Camorra turncoat bragged, as recently as 2003, of the "impressive" profits from counterfeiting. Investigators in Indonesia have said the Calabria-based 'Ndrangheta are trafficking in counterfeit CDs and DVDs in Asia, he said.”

37 37 “UN ties counterfeits to organized crime” (CONTINUED…) Copyright © 2007 USA Today Dec 14, “Because entrepreneurs lose profits and states lose tax revenue, counterfeiting slows economic growth and costs an estimated 100,000 jobs in the European Union alone” Fake baby formula caused the deaths of at least 13 babies in China in 2004 and fake raki, a Turkish alcoholic beverage, killed 23 people in "We need to make citizens of the world aware that counterfeit products can damage consumers' health and economies, while reinforcing organized crime," Zuccarelli said

38 38 Counterfeit Goods and Their Potential Financing of International Terrorism Zachary A. Pollinger Harvard University 38 “An example of one such statistic [links between counterfeiting and terrorism] is Interpol’s 2004 seizure of $1.2 million worth of counterfeit German brake pads. Later investigations of the products revealed that their proceeds were earmarked for supporters of the Lebanese terror organization Hizbollah. According to Interpol Secretary General Ronald K. Noble, “Linking the Hizbollah to counterfeit brake parts shows not only the link between terrorist financing and intellectual property crime, but also how intellectual property crime is not a victimless one – the potential danger to the public from this sort of criminal activity is too serious for governments and law enforcement to ignore.” “More specious connections to Hizbollah have been reported with counterfeiters based in Los Angeles County. Authorities have found case specific evidence of these connections (in the form of Hizbollah flags, tattoos, and pamphlets) in the homes and on the persons of numerous convicted counterfeiters.”

39 39 Counterfeit Goods and Their Potential Financing of International Terrorism (continued) Zachary A. Pollinger Harvard University 39 “Interpol has found that Chechen rebels fund their operations through the sale of pirated CDs and that paramilitary groups in Northern Ireland fund their operations by counterfeiting DVDs. Even Al Qaeda has been linked to the counterfeit industry through the sales of fake perfumes and shampoos.” “Finally, according to New York City police commissioner Raymond Kelly, the sale of pirated CDs was responsible for funding the 2004 bombing of a Madrid train – an incident that resulted in the deaths of 191 people.” “The reason that terrorist organizations would fund themselves through counterfeiting is simple: fast, easy, plentiful cash. Counterfeiting and piracy are extremely easy industries to enter and would help terrorists maintain a certain level of anonymity. In addition, the profits from counterfeit sales significantly outweigh those of other illegal products. While the sales of cocaine might yield an entrepreneurial criminal a 100% profit margin, sales of pirated Windows software would earn a savvy counterfeiter profits of up to 900%”

40 Copyright Kestenberg Siegal Lipkus LLP40 Anti-Counterfeiting Organizations National & International

41 41 The Certification Industry Against Counterfeiting (CIAC) is an international network of certification organizations committed to stopping the worldwide proliferation of products bearing counterfeit certification marks that may endanger public health and safety. In addition to essential enforcement, CIAC and INTERPOL recognize the need for a strong educational program related to anti-counterfeiting and the importance of third party independent certification. CIAC's mission will include a comprehensive focus on education programs for the public, manufacturers, distributors, retailers, law enforcement and other government agencies.

42 CIPC Canadian Intellectual Property Council is a Canadian business coalition designed to provide a central voice to press for stronger intellectual property protection both in Canada and worldwide. CIPC’s main objectives are to ensure that the Canadian government provides the necessary resources to create the right environment for an innovative economy to flourish in Canada and fight the rampant counterfeiting and piracy of intellectual property. CIPC will lobby the government and push for these changes, together with our international counterparts, to fight for intellectual property protection worldwide and produce comprehensive reports on IP trends, and better measure the impacts of counterfeiting and piracy 42

43 Copyright Kestenberg Siegal Lipkus LLP43 Canadian Anti-Counterfeiting Network Mission Statement: To dramatically reduce the manufacture, importation, distribution and sale of counterfeit and pirated products in Canada through public education, training of law enforcement and lobbying for legislative change and increased financial and human resources to combat the problem.

44 IACC The IACC is the largest multinational organization representing exclusively the interests of companies concerned with product counterfeiting and copyright piracy. 44

45 What do we do with the Counterfeits? 45

46 Questions or Comments ? 46 Lorne M. Lipkus Kestenberg Siegal Lipkus LLP Telephone: (Mobile) Office Direct: Office: Ext. 112 E-Fax: Website:

47 Thank You Lorne M. Lipkus


Download ppt "Putting the Pieces of the Puzzle Together Counterfeit Busting 101 CSA 2012 Annual Conference Monday, June 11, 2012 Quebec City, Quebec 1 Presented by Lorne."

Similar presentations


Ads by Google