1 The Illicit Traffi cking of Counterfeit Goods and Transnational Organized Crime
2 licit trafficking of counterfeit goods is often perceived as a ‘lesser The Illicit Trafficking of Counterfeit Goods and crime’, the consequences can be quite serious, with the costs go- Transnational Organized Crime ing far beyond just the illegal copying of products. As a global, multibillion dollar crime, organized criminal groups Financial flows: The illicit trafficking have not hesitated to cash in on the trade in counterfeit goods. In of counterfeit goods and the link to many parts of the world, international, regional and national law money laundering enforcement authorities have uncovered intricate links between this crime and other serious offences including illicit drugs, money 1 The illicit trafficking of counterfeit goods offers criminals a com- laundering and corruption. Some estimates put the counterfeit plementary source of income and a way through which they can business at well in excess of $250 billion a year and hundreds of 9 launder money. Additionally, monies received from the sale of billions more, if pirated digital products and domestic counterfeit 2 counterfeit products can be channelled towards the further pro- sales are included. duction of fake goods or other illicit activities. Criminals also feed fake goods into the legitimate supply chain which provides them The involvement of organized criminal groups in the production with ‘clean’ money. Not only does this present a challenge to anti- and distribution of counterfeit goods has been documented by money laundering efforts, but also endangers users who may not both national and international authorities. Groups such as the 10 be receiving quality goods. Mafia and Camorra in Europe and the Americas, and the Triads and Yakuza in Asia have diversified into the illicit trafficking of In a survey conducted by the UK IP Crime Group, 49 per cent of counterfeit goods, while at the same time being involved in crimes respondents to the country’s annual trading standards survey in- varying from drug and human trafficking, to extortion and money 3;4;5 dicated that they had worked on cases which involved both coun- UNODC’s own research reports have recognized the laundering. 11 terfeiting and money laundering. strategic and operational criminal link between counterfeiting and 6 activities such as drug trafficking. The link between counterfeiting There is an additional societal impact caused by counterfeiting. and other crimes The trade in counterfeit products can result in increased corrup- tion and law enforcement costs, have a serious impact on public The illicit trafficking of counterfeit goods is often linked to other health and safety, lead to social and environmental concerns, and serious crimes. Europol has warned that counterfeiting is an in- result in the infringement of other criminal and administrative creasingly attractive avenue for organized crime to “diversify their 12 laws such as tax and customs evasion as well as fraud. Evidence suggests that criminal networks use product range”. similar routes and modus operandi to move counterfeit goods as 13 they do to smuggle drugs, firearms and people. The illicit trafficking of counterfeit goods: A criminal act Proceeds from other crimes also feed into the production and dis- tribution of counterfeit goods. There have been reports of authori- With the combination of high profits and low penalties resulting ties uncovering operations where proceeds from drug trafficking from a greater social tolerance compared to other crimes, the illicit were channelled into counterfeiting, and where profits from the trafficking of counterfeit goods is an attractive money-making av- sale of counterfeit goods were used to further criminal’s other il- enue for organized criminal groups. 14;15 licit operations. In some instances, the illicit trafficking of counterfeit goods is 7 The trading of illicit goods for other illicit items is another such as the trafficking more profitable than other illegal activities, 16 8 Whereas in the past, il- trend which is seemingly intensifying. Yet while the il- and sale of narcotic drugs, people and weapons.
3 licit commodities were bought with cash, organized crime groups increased costs for law-abiding consumers who have to pay more are increasingly exchanging goods, such as swapping drugs for to cover the additional costs for producers related to security and counterfeit items and vice-versa. By using counterfeit goods as tracing systems, litigation and civil enforcement. commodities for full or part payment between organized criminal networks, these groups reduce the amount of capital they need to The growing trend in online sales: transfer thereby reducing their exposure and risk. an opportunity for organized crime Evidence gathered from the results of the joint UNODC / World Just as the licit market for online sales of goods is increasing, so is Customs Organization Container Control Programme (CCP) also the opportunity for the online sale of counterfeit goods by organ- highlights the extent of illicit traffi cking of counterfeit goods by ized crime groups. The full extent of the role of organized crime sea. While initially established to assist authorities intercept drugs groups in selling such products online is yet to be determined. being traffi cked in shipping containers, the targeting skills devel- However, they have proven to be extremely versatile and oppor- oped through participation in the CCP has seen the type of of- tunistic when it comes to new avenues of illicit profi t generation. fences detected by authorities rapidly diversify. Between January This is coupled with the added challenge of digital piracy of fi lm, and November 2013, more than one-third of containers stopped games, music and other digital products as the internet evolves as for inspection by CCP teams worldwide, and subsequently seized, a platform that is abused by criminal groups for illicit operations. 17 have involved counterfeit goods. With this comes not just the opportunities for more digital sales of physical counterfeit goods but also possibly a greater shift toward Meanwhile a survey conducted by the UK IP Crime Group showed illegal selling of digital products. that 40 per cent of respondents had worked on cases where coun- terfeiting was linked to drug crime, while 29 per cent stated that The value of counterfeiting as they had found a connection between counterfeiting and overall an illicit activity 18 organized crime. Counterfeiting is a hugely profi table business, with criminals rely- Coercion, corruption and criminal gangs ing on the continued high demand for cheap goods coupled with low production costs. By nature of this being an illicit business, There has long been involvement by traditional organized criminal the extent of counterfeiting is diffi cult to calculate and estima- groups in the illicit traffi cking of counterfeit goods: the Neapoli- tions can vary signifi cantly. One widely used fi gure from the OECD tan Camorra, for example, has a history of selling designer knock- places the value of counterfeiting in the region of $250 billion per offs manufactured by the same people who produce the originals. year. This fi gure, however, includes neither domestically produced Nowadays, the Camorra increasingly sells counterfeit products and consumed counterfeit products nor the signifi cant volume of 19 , while manufactured in Asia, using the same marketing channels pirated digital products being distributed via the Internet which others, such as the ‘Ndrangheta, have established extensive con- would lead the fi gure of worldwide counterfeiting to be “several 20 tacts with Chinese groups to import counterfeits. 23 hundred billion dollars more”. This points to the opportunistic nature of organized criminal groups: where there is money to be made through illicit means, criminals will be attracted to it. In part, this explains the grow- Counterfeit seizures made at the European borders by product ing relationship between the illicit traffi cking of counterfeit goods type (number of incidents), 2008 operations and organized crime, and as a result these groups are UNODC: The Globalization of Crime: A Transnational Organized Crime increasingly moving towards activities that have traditionally been Threat Assessment (2010), p. 178 21 regarded as economic crimes. Corruption and bribery are inher- ently linked to the illicit traffi cking of counterfeit goods, particu- larly when these are shipped internationally. Coercion and rack- eteering are similarly associated with organized crime’s role in counterfeiting. Shopkeepers for instance have been forced to sell 22 counterfeit products in amongst their legitimate stock. Fraud, tax, customs evasion and the breaking of civil and administrative laws The Illicit traffi cking of counterfeit goods negatively impacts Gov- ernment revenues through lost taxes and customs duties if smug- gled into a country. Even in countries traditionally considered as production hubs, there can be a loss of corporate taxes and VAT paid over to the Government. Counterfeiting also costs society more as a result of additional law enforcement and policing expenses, through higher medical and social security costs owing to injuries and illness, and through
4 of these markets are controlled by organized crime groups. Illegal Social, ethical and health consequences immigrants, often from Africa or Asia, are known to have been 25 coerced by their facilitators distributing counterfeits”. The costs attached to counterfeiting go beyond manufacturer’s monetary losses, the theft of other people’s ideas and inventions Given the illegal nature of counterfeiting, labour conditions could and the overall impact on taxes and customs duties. With signifi- be far worse than those seen in legitimate companies where, de- cant social, ethical and health consequences, the illicit trafficking spite regulations, mistreatment can happen. Severe labour abuses of counterfeit goods is a crime which touches virtually everyone in in the supply chains of even some of the world’s major brands one way or another. 26;27 , with instances such as threats have been well documented of violence, exposure to hazardous materials, and deadly work- Environmental impact ing conditions all having been noted. If this can happen in global companies whose supply-chain practices are at least open to some The environmental costs of counterfeiting for example are of- degree of scrutiny, then the situation would be much worse for ten understated. With no regulation, the production of counter- workers in a clandestine setting. feit goods can present particular challenges to the environment. Toxic dyes and chemicals disposed of unlawfully, and unregulated The European Commission notes that while legitimate companies air pollution are just some of the ways that counterfeiting could have a reputation to uphold (aside from an obligation to respect contribute to environmental harm. The lack of known producers laws on labour and other rights), counterfeiters do not share these means that legal recourse or consumer rights are virtually non- 28 concerns resulting in the mistreatment of workers. existent as is a clear understanding of who is responsible for any clean-up or impact. Similarly, the disposal of counterfeits is a wor- The International Labour Organization has similarly discussed the rying issue. Seized counterfeit electronic goods for instance, with connection between counterfeiting and labour exploitation. As their unknown components, can be very difficult to dispose of in far back as 1996, the ILO reported on labour and the clothing an environmentally friendly manner as can the disposal of coun- 24 industry noting, “few (clandestine workshops) pay any respect to terfeit chemicals used in the production of fake goods. - labour legislation and many hire illegal migrants. Many are in 29 volved in counterfeiting products from famous trade marks”. In Labour exploitation a subsequent report from 2000, the ILO stated that clandestine Employment rights, decent pay and working conditions can also workshops which “employ large numbers of illegal immigrants, be affected. As jobs in the production of counterfeit goods can have specialized in copying and pirating well-established brand be unregulated and low paid, workers are placed in a vulnerable - names”. Furthermore, these are generally marked by “labour prac position and are not granted the same form of protection as in the - tices that are contrary to the most rudimentary principles of re more regulated employment market. Safety and security concerns spect for human rights at work”, including “confiscation of im - for example are ignored, while benefits are non-existent. migrant workers’ identity papers” and “housing illegal workers in 30 hazardous and unhealthy dormitories”. Other accounts of coun - It has been documented that migrants who have been smuggled terfeiting and labour exploitation also exist. One investigative re - into a country are coerced into selling counterfeit goods while porter whose writing on the fashion industry includes first-hand irregular labour, including children, can be used in the produc- experiences with counterfeiting workshops discusses the presence tion of counterfeit items. Europol has observed the link between of exploited labour – in particular situations involving the ex - migrants who have been smuggled across borders and organized cessively cruel and criminal treatment of children as young as criminal groups: “The majority of counterfeit products are dis- six – in various countries where workers are forced to assemble 31 tributed by means of unlicensed markets and street sales. Many counterfeit goods.
5 feiting of civil and military aeroplane parts have been reported Threat to public health and safety over the years, while increasing reports of electrical and other 32;33 items being copied highlight a signifi cant public health risk. Counterfeit goods and fraudulent medicines pose a serious risk to public health and safety. With no legal regulation and very Faulty counterfeited products can lead directly to injury and death. little recourse, consumers are at risk from unsafe and ineffec- The vast range of items which are illegally copied can have serious tive products. health and safety consequences and have been raised in various parts of the world, including in developing countries. With criminals operating in any and all areas where there is a profi t to be made, the extent of the crime is far wider than copying de- Table 1, developed by the OECD, shows just how diverse this list of signer handbags and DVDs. From children’s toys to car parts, alco- products can be and highlights those counterfeit or fraudulently hol to agricultural tools, clothes to cosmetics – the list is extensive produced goods which can cause serious harm to consumers: and diverse, with few ‘opportunities’ left out. Even the counter- Table 1: The diverse nature of illicitly produced goods (select categories) Scooters, engines, engine parts, body panels, air bags, windscreens, tires, bearings, shock absorbers, suspension and steering components, automatic belt tensioners, spark plugs, disc brake pads, clutch plates, oil, fi lters, oil pumps, water pumps, chassis parts, engine components, lighting products, belts, hoses, wiper Automotive blades, grilles, gasket materials, rings, interior trim, brake fl uid, sealing products, wheels, hubs, anti-freeze, windshield wiper fl uid Chemicals/pesticides Insecticides, herbicides, fungicides, non-stick coatings Computer components (monitors, casing, hard drives), computer equipment, webcams, remote control devices, Consumer electronics mobile phones, TVs, CD and DVD players, loudspeakers, cameras, headsets, USB adaptors, shavers, hair dryers, irons, mixers, blenders, pressure cookers, kettles, deep fryers, lighting appliances, smoke detectors, clocks Components used in power distribution and transformers, switchgears, motors and generators, gas, and hydrau- lic turbines and turbine generator sets, relays, contacts, timers, circuit breakers, fuses, distribution boards and Electrical components wiring accessories, batteries Fruit (kiwis), conserved vegetables, milk powder, butter, ghee, baby food, instant coffee, alcohol, drinks, Food, drink and candy/sweets, hi-breed corn seeds agricultural products Medicines used for treating cancer, HIV, malaria, osteoporosis, diabetes, hypertension, cholesterol, cardiovas- cular disease, obesity, infectious diseases, Alzheimer’s disease, prostate disease, erectile dysfunction, asthma Pharmaceuticals and fungal infections; antibiotics, anti psychotic products, steroids, anti infl ammatory tablets, pain killers, cough medicines, hormones, and vitamins; treatments for hair and weight loss. Tobacco Cigarettes, cigars, and snuff Home and personal care products, including shampoos, detergents, fi ne fragrances, perfumes, feminine protec- Toiletry and other tion products, skin care products, deodorants, toothpaste, dental care products, shaving systems, razor blades; household products shoe polish; non-prescription medicine Among the many illicit products which can be harmful to consum- Incorrectly manufactured medicines present particular dangers. ers, three such examples have been seen in the form of fraudulent These types of medicines are found either to contain the wrong dose of active ingredients, or none at all, or to have a completely medicines, counterfeit food products and electrical consumer goods. different ingredient included. In some cases, fraudulent medicines have been found to contain highly toxic substances such as rat Fraudulent Medicines 38 poison. Fraudulent medicines also deprive sick people of treat- Fraudulent medicines are one of the most harmful forms of illicit ment, leaving them vulnerable to the disease they are meant to activity with the manufacturing, trade and consumption of these be fi ghting. They also make some of the world’s most dangerous products posing a particularly dangerous threat to people’s health. diseases diffi cult to treat by contributing to the development of Criminal activity in this area is big business: the sale of fraudulent drug-resistant strains. medicines from East Asia and the Pacifi c to South-East Asia and 35 – a sizeable Africa alone amounts to some $5 billion per year All kinds of medicines — both branded and generic — can be made amount of money being fed into the illicit economy. fraudulently, ranging from ordinary painkillers and antihista- mines, to “lifestyle” medicines, such as those taken for weight The World Health Organization has previously estimated that up to loss and sexual dysfunction, to life-saving medicines including 1 per cent of medicines available in the developed world are likely those for the treatment of cancer and heart disease. Among the to be fraudulent. This fi gure rises to 10 per cent in various devel- most commonly produced fraudulent medicines are those for oping countries, and in parts of Asia, Africa and Latin America, treating depression, schizophrenia, diabetes, blood pressure and fraudulent pharmaceuticals could amount to as much as 30 per cholesterol. In West Africa there has been a marked increase in 36 cent of the market. In an article in the medical journal The Lan- fraudulent medicines, including antibiotics, antiretroviral drugs cet in mid-2012, it was noted that one third of malaria medicines and medicines to fi ght life-threatening diseases such as malaria 37 used in East Asia and sub-Saharan Africa are fraudulent. and tuberculosis.
6 products may have reached other parts of the world. There have In October 2011, a survey by Gallup, polled around 1,000 people in also been cases where dangerous chemicals have been found to be sub-Saharan Africa which gauged their experience with fraudulent 39 present in fraudulent food in place of other more expensive and Around one in fi ve adults across all surveyed coun- medicines. legitimate additives. tries said that either they or members of their household had been “victims” of fraudulent medicines. In 2012, counterfeit alcohol killed at least 20 people in the Czech Republic, with many others suffering from serious illnesses and Some medicines are known to have a significant- 42 The concoctions, which were bottled and la- even blindness. ly higher mark-up per kilogram than certain illicit belled to look like genuine brands, were laced with industrial drugs. In one study by the Italian Ministry of Eco- chemical methanol which was believed to have come from wind- 43 nomic Development, it was shown that organized screen wiper fl uid. crime groups made several times more from the pro- duction and sale of fraudulent medicines than they did from illicit drugs such as cocaine, heroin and Electrical consumer goods 40 opium. Consumer electronics can also be counterfeited, with similar dangerous or deadly results. From beauty products, to kitch- en goods, to entertainment electronics – this extensive area presents a threat to unsuspecting consumers. What is particu- Counterfeit food and beverages larly worrying are the diverse avenues that counterfeit elec- tronics can reach consumers: sometimes counterfeits are in the Another area that continues to be exploited by counterfeit- form of entire products, sometimes they enter the supply chain ers — and one that is often not considered in the public mind when as fraudulently produced parts and are inadvertently used in discussing fake products — is foodstuffs. Every year consumers 44 throughout the world are deceived into buying expensive counter- legitimate goods. feit foodstuffs. A ploy favoured by criminals is to intentionally mis- Counterfeit batteries, for example, which are used extensively in label and misrepresent foods as luxury items or as originating in consumer goods, can contain volatile chemicals which may ex- certain countries, allowing them to raise prices. A recent estimate 41 based on data from the United Kingdom Food Standards Agency plode; counterfeit cabling and other components inside household products meanwhile might lack correct insulation and melt during suggested that fraud could affect as much as 10 per cent of all the food bought in that country. One such example is that of “wild” use and catch fi re. salmon, which, it is estimated, is in fact farmed fi sh in one out of While instances concerning the dangers of counterfeit electron- every seven cases. ics abound, the following two examples present an idea of just But it is not simply a matter of people being conned into believ- how dangerous these can be to a person’s health and safety. ing that they are eating superior food. In just one example of the In the fi rst example, it was reported that a 17-year old girl in the UK had severe burns to her head after a counterfeit hair life-threatening potential of the trade in counterfeit foodstuffs, thousands of Chinese babies became sick in 2008 after drinking straightener heated up far beyond what is considered safe for 45 contaminated milk formula containing melamine, a chemical nor- In the second, a woman was killed when she answered a use. mally used in plastics. While the chemical is banned from use in call while her cell phone was charging. The counterfeit charger food, it is added to watered-down milk in order to make the liquid which was to blame was thought to lack basic safety compo- appear higher in protein when tested. The ripples of this food nents which prevented the direct electrical current going into 46 scare were felt internationally, with fears that the contaminated the phone.
7 are affected. As a result, bilateral and multilateral cross-border What can be, and is being, done? investigations are highly important. Equipping officials with tools to identify counterfeit goods is one way to curb this crime. Given the evident connection between transnational organized The mentioned UNODC/World Customs Organization Container — and the rec- crime and the illicit trafficking of counterfeit goods Control Programme is one method that is helping train officials ognition of this link at national and international levels — there are to confiscate counterfeits as well as other illicit goods before several ways in which this can be, and is being, tackled. This spans they reach consumers. UNODC’s regional cooperation networks a number of areas and actions on the part of both authorities and - for prosecutors, working with INTERPOL and others, could po consumers. tentially provide the ideal platform to trace back such seizures through the supply chain and track down and investigate crimi - Legislative actions nal networks involved in this illicit trade. This type of ‘back- tracking’ investigation could help in dismantling criminal net - Adopting and fully implementing the United Nations Convention works engaged both in the illicit trafficking of drugs and other against Transnational Organized Crime: The counterfeit busi - illicit products. ness is a global operation spread across numerous countries and organized by cross-border criminal networks. As a result, there Consumer actions is an ever-growing need for action at both local and interna - - tional levels. The United Nations Convention against Transna 47 One way in which coun- Developing and utilizing innovative tools: is the world’s most inclusive platform tional Organized Crime terfeiting can be tackled is through empowering consumers to for cooperation in tackling organized crime. 179 countries are 48 make more informed decisions. The UNODC campaign ‘Coun- - and have committed them currently Parties to the Convention 50 is one example of the terfeit: Don’t Buy into Organized Crime’ selves to fighting organized crime locally and internationally by type of awareness initiatives which should be pursued with add- such means as collaboration and ensuring that domestic laws are ed vigour in order to mobilize the full force of consumer power suitably structured. against such criminal business and deprive organized crime of one of its most profitable and low-risk money sources. Surveys have As an important instrument in tackling transnational organized shown that the public agree that counterfeit goods assist organ- crime, the Convention fosters international cooperation and, aside 51; ized crime and pose a threat to consumer health and safety. from encouraging the adoption of measures such as the estab- 52 By extension therefore, consumers should be provided with lishment of domestic criminal offences, urges countries to put in tools to make decisions on their purchasing choices. One product place frameworks for extradition, mutual legal assistance and law that is aimed specifically at consumers is the ‘INTERPOL-Checkit’ enforcement cooperation. Within the Convention’s framework, (I-Checkit) which provides the general public with a product verifi- States Parties could decide to adopt tougher laws in order to tackle 53 cation tool to check if products are real or counterfeit. the illicit trafficking of counterfeit goods, particularly in the case of public health and safety threats. Capacity-building : With the illicit traf- Strengthening money laundering legislation Training: Competencies in tracking and combating current and ficking of counterfeit goods and money laundering intrinsically emerging counterfeit threats can vary dramatically from country to linked, there is a profound importance in ensuring national laws country. Given this, there is a need for coordinated training which are securely in place to counter all forms of money laundering. will help streamline approaches. The ‘International IP Crime Inves- Given the danger of re-investment into other forms of organ- tigators College’ (IIPCIC) – run by INTERPOL and the Underwriters ized crime, tracking and confiscating illicit funds is critical. The Laboratories’ UL University – is one such offering and is aimed at United Nations Interregional Crime and Justice Research Institute law enforcement, regulatory authorities and private sector IP crime (UNICRI) and the International Chamber of Commerce’s (ICC) 54 investigators through online courses. Business Action to Stop Counterfeiting and Piracy (BASCAP) re- cently presented a comprehensive argument on this issue. Ad- Technical tools vocating for the confiscation of the proceeds of crime, the two organizations called on Governments to seize profits made by or- Testing: There are a number of national and international product ganized criminal networks from counterfeiting as a more effective 49 control organizations that have a role to play in the health and response than just imprisonment. safety side of counterfeiting. There are also specific tools which are becoming available to assist in detecting counterfeit goods before Operational actions they reach consumers. The development of one such device by the US Food and Drug Administration in the form of a handheld Cross-border/multi-sector partnerships: The illicit trafficking of device has been used to screen products to identify counterfeit counterfeit goods is evidently not an internal issue and in the 55 goods across a range of areas. production, trafficking and sale of these items multiple countries
8 Disclaimer This fact sheet has not been formally edited. The content of this fact sheet does not necessarily reflect the views or policies of UNODC or contributory organiza- tions and neither does it imply any endorsement. The designations employed and the presentation of material in this fact sheet does not imply the expression of any opinion whatsoever on the part of UNODC concerning the legal status of any country, territory or city or its authorities, or concerning the delimitation of its frontiers and boundaries. 1 INTERPOL, Europol and several national law enforcement entities have Available from http://www.ipo.gov.uk/ipcreport11.pdf. 12 Europol, “Serious and Organised Crime Threat Assessment (Public Version) highlighted a link to organized crime. The United Kingdom’s Annual “, p.22, March 2013. Available from https://www.europol.europa.eu/sites/ Report for 2011/12 on intellectual property crime argues that there is a default/files/publications/europol_socta_2013_report.pdf. definitive link between counterfeiting and organized crime: “IP crime 13 United Nations Interregional Crime and Justice Research Institute has to be organized as it involves so many different stages usually across (UNICRI) / Ministero dello Sviluppo Economico (Italia), “La contraffazione international boundaries. There are numerous examples of investigations come attività gestita dalla criminalità organizzata Transnazionale: Il caso into other types of serious and organized crime uncovering a link to IP Italiano”, p.12, 2012. Available from http://www.unicri.it/in_focus/files/ crime and vice versa”. (UK IP Crime Group, ‘IP Crime: Annual Report 2011- contraf_unicr2.pdf. 2012’, p.14, 2012. Available from http://www.ipo.gov.uk/ipcreport11.pdf) 14 2 Organization for Economic Cooperation and Development, “Magnitude United Nations Interregional Crime and Justice Research Institute (UNICRI) / International Chamber of Commerce ‘Business Action to Stop of counterfeiting and piracy of tangible products: an update”, November Counterfeiting and Piracy’ (ICC BASCAP), “Confiscation of the Proceeds 2009. Available from www.oecd.org/dataoecd/57/27/44088872.pdf. 3 of Crime: a Modern Tool for Deterring Counterfeiting and Piracy”, p.13, Organization for Economic Cooperation and Development (OECD), 2013. Available from http://www.iccwbo.org/Data/Documents/Bascap/ “The Economic Impact of Counterfeiting and Piracy: Executive Why-enforce/Links-to-organized-crime/Proceeds-of-Crime. Summary”, p.12, 2007, OECD Publishing. Available from http://dx.doi. 15 org/10.1787/9789264037274-en. United Nations Interregional Crime and Justice Research Institute 4 UNICRI, “Illicit trafficking of counterfeit goods, a Global Spread, a (UNICRI) / Ministero dello Sviluppo Economico (Italy), “La Contraffazione come attività gestita dalla criminalità organizzata transnazionale: Il Global Threat”, p.118, 2008. Available from http://www.unicri.it/news/ files/2007-12-01_ctf_2k8_final.zip. caso Italiano”, p.85, 2012. Available from http://www.unicri.it/topics/ 5 counterfeiting/organized_crime/mapping/contraf_unicr2%281%29.pdf United Nations Interregional Crime and Justice Research Institute 16 (UNICRI) / Ministero dello Sviluppo Economico (Italy), “La Contraffazione Europol, “OCTA 2011: EU Organised Crime Threat Assessment”, p.8, come attività gestita dalla criminalità organizzata transnazionale: Il 2011. Available from https://www.europol.europa.eu/sites/default/files/ caso Italiano”, p.184, 2012. Available from http://www.unicri.it/topics/ publications/octa2011.pdf. 17 counterfeiting/organized_crime/mapping/contraf_unicr2%281%29.pdf Out of a total of 220 container seizures, 78 containers were seized with 6 UNODC, “Transnational Organized Crime in East Asia and the Pacific: A IPR goods inside. 18 Threat Assessment”, p.127, April 2013. Available from http://www.unodc. UK IP Crime Group, “IP Crime: Annual Report 2011-2012”, p.70, 2012. org/toc/en/reports/TOCTA-EA-Pacific.html. Available from http://www.ipo.gov.uk/ipcreport11.pdf. 7 19 United Nations Office on Drugs and Crime, “The Globalization of Crime: A Europol, “OCTA 2011: EU Organised Crime Threat Assessment”, p.48, Transnational Organized Crime Threat Assessment”, p.180, 2010. Available 2011. Available from https://www.europol.europa.eu/sites/default/files/ from http://www.unodc.org/documents/data-and-analysis/tocta/TOCTA_ publications/octa2011.pdf. 8 Report_2010_low_res.pdf. Organization for Economic Cooperation and Development (OECD), 20 Europol, “OCTA 2011: EU Organised Crime Threat Assessment”, p.36, “The Economic Impact of Counterfeiting and Piracy: Executive 2011. Available from https://www.europol.europa.eu/sites/default/files/ Summary”, p.12, 2007, OECD Publishing. Available from http://dx.doi. publications/octa2011.pdf. org/10.1787/9789264037274-en. 21 9 UNICRI, “Illicit trafficking of counterfeit goods, a Global Spread, a Global United Nations Interregional Crime and Justice Research Institute (UNICRI) / International Chamber of Commerce ‘Business Action to Stop Threat”, p.103, 2008. Available from http://illicit trafficking of counterfeit Counterfeiting and Piracy’ (ICC BASCAP), “Confiscation of the Proceeds goods.unicri.it/report2008.php. 22 of Crime: a Modern Tool for Deterring Counterfeiting and Piracy”, p.13, United Nations Interregional Crime and Justice Research Institute 2013. Available from http://www.iccwbo.org/Data/Documents/Bascap/ (UNICRI) / Ministero dello Sviluppo Economico (Italy), “La Contraffazione Why-enforce/Links-to-organized-crime/Proceeds-of-Crime. come attività gestita dalla criminalità organizzata transnazionale: Il 10 caso Italiano”, p.81, 2012. Available from http://www.unicri.it/topics/ Council of Europe, “MONEYVAL: Committee of experts on the evaluation counterfeiting/organized_crime/mapping/contraf_unicr2%281%29.pdf of anti-money laundering measures and the financing of terrorism”, p.10, 23 Organization for Economic Cooperation and Development, “Magnitude 2008. Available from http://www.coe.int/t/dghl/monitoring/moneyval/ of counterfeiting and piracy of tangible products: an update”, November typologies/MONEYVAL%282008%2922RRepTyp_counterfeiting.pdf. 11 UK IP Crime Group, “IP Crime: Annual Report 2011-2012”, p.70, 2012. 2009. Available from www.oecd.org/dataoecd/57/27/44088872.pdf.
9 24 41 Kate Ravilious, “Buyer beware”, New Scientist, vol. 192, No. 2577 Soentgen, Judith. “Disposing of counterfeit goods: unseen challenges”, (November 2006), pp. 40-43. WIPO Magazine, November 2012. Available from: http://www.wipo.int/ 42 BBC News: “Czechs ban spirits after bootleg alcohol poisoning”, 15 wipo_magazine/en/2012/06/article_0007.html. 25 September 2012. Available from: http://www.bbc.co.uk/news/world- Europol, “OCTA 2011: EU Organised Crime Threat Assessment”, p.36, europe-19608461. 2011. Available from https://www.europol.europa.eu/sites/default/files/ 43 The Economist: “Czech Methanol”, 17 September 2012. Available from: publications/octa2011.pdf. 26 http://www.economist.com/blogs/easternapproaches/2012/09/czech- http://www.oxfam.org/en/news/pressreleases2006/pr060524_labor 27 methanol. http://www.cleanclothes.org/ 44 28 http://ec.europa.eu/enterprise/newsroom/cf/itemdetail.cfm?item_id=6589. UK IP Crime Group, “IP Crime: Annual Report 2011-2012”, p.25-26, 2012. 29 http://www.ilo.org/global/about-the-ilo/media-centre/press-releases/ Available from http://www.ipo.gov.uk/ipcreport11.pdf. 45 BBC News: “Leicestershire warning after fake straightener burns”, 10 WCMS_008075/lang--en/index.htm. 30 September 2010. Available from: http://www.bbc.co.uk/news/uk-england- http://www.coc-runder-tisch.de/inhalte/texte_grundlagen/labour_ leicestershire-11260351 practices_footwear_ilo.pdf. 31 46 South China Morning Post: “‘Fake’ iPhone charger cited in electrocution Thomas, D. (2007) Deluxe: How Luxury Lost Its Lustre. London: Penguin death probe”, 20 July 2013. Available from: http://www.scmp.com/news/ Books. 32 UNICRI, “Illicit trafficking of counterfeit goods, a Global Spread, a Global china/article/1283818/woman-electrocuted-while-answering-iphone-may- Threat”, pp.5/7/15/55, 2008. Available from http://illicit trafficking of have-been-using-fake?page=all 47 http://www.unodc.org/documents/treaties/UNTOC/Publications/TOC%20 counterfeit goods.unicri.it/report2008.php. 33 Convention/TOCebook-e.pdf. International Ant-Counterfeiting Coalition, “White Paper - The Negative 48 See: http://treaties.un.org/Pages/ViewDetails.aspx?src=TREATY&mtdsg_ Consequences of International Intellectual Property Theft: Economic no=XVIII-12&chapter=18&lang=en. Harm, Threats to the Public Health and Safety, and Links to Organized 49 United Nations Interregional Crime and Justice Research Institute Crime and Terrorist Organizations”, pp.9-11, 2005. Available from: http:// (UNICRI) / International Chamber of Commerce ‘Business Action to Stop counterfeiting.unicri.it/docs/International%20AntiCounterfeiting%20 Counterfeiting and Piracy’ (ICC BASCAP), “Confiscation of the Proceeds Coalition.White%20Paper.pdf. 34 Organization for Economic Cooperation and Development (OECD), of Crime: a Modern Tool for Deterring Counterfeiting and Piracy”, 2013. “The Economic Impact of Counterfeiting and Piracy: Executive Available from http://www.iccwbo.org/Data/Documents/Bascap/Why- Summary”, p.10, 2007, OECD Publishing. Available from http://dx.doi. enforce/Links-to-organized-crime/Proceeds-of-Crime. 50 See http://www.unodc.org/counterfeit. org/10.1787/9789264037274-en. 35 51 United Nations Office on Drugs and Crime, “Transnational Organized Eurobarometer, “Internal Market: Awareness, Perceptions and Impacts”, Crime in East Asia and the Pacific: A Threat Assessment”, p.129, 2013. Special Eurobarometer 363, September 2011, pp.97-98. Available from http://ec.europa.eu/public_opinion/archives/ebs/ebs_363_en.pdf. Available from http://www.unodc.org/documents/southeastasiaandpacific// 52 Office for Harmonization in the Internal Market (Trademarks and Designs), Publications/2013/TOCTA_EAP_web.pdf. 36 “The European Citizens and Intellectual Property: Perceptions, Awareness World Health Organization, “Counterfeit medicines: an update on and Behaviour”, November 2013, p.50. Available from http://oami.europa. estimates”, 15 November 2006. Available from www.who.int/medicines/ services/counterfeit/impact/TheNewEstimatesCounterfeit.pdf. Accessed 14 eu/ows/rw/resource/documents/observatory/IPPerception/european_ public_opinion_study_web.pdf. November 2013. 53 37 INTERPOL Media Release, “Empowering consumers essential to combat The Lancet. 2012. www.thelancet.com. 38 INTERPOL, “Pharmaceutical Crime”. Available from: http://www.interpol. illicit trade and counterfeiting, says INTERPOL Chief”, 24 April 2013. int/Crime-areas/Pharmaceutical-crime/The-dangers . Available from http://www.interpol.int/News-and-media/News-media- 39 releases/2013/PR053. Gallup. 5 October 2011. “Fake Medicine Common in Many Sub-Saharan 54 African Countries”. Available from: http://www.gallup.com/poll/149942/ See http://www.iipcic.org. 55 US Food and Drug Administration News Release, “FDA launches fake-medicine-common-sub-saharan-african-countries.aspx. 40 partnership to protect against counterfeit anti-malarial medicines with United Nations Interregional Crime and Justice Research Institute FDA-developed handheld detection tool”, 24 April 2013. Available (UNICRI) / Ministero dello Sviluppo Economico (Italia), “La contraffazione come attività gestita dalla criminalità organizzata Transnazionale: Il caso from http://www.fda.gov/NewsEvents/Newsroom/PressAnnouncements/ Italiano”, p.55, 2012. Available from http://www.unicri.it/in_focus/files/ ucm349195.htm. contraf_unicr2.pdf.
10 Counterfeit goods generate over $250 billion a year for criminal enterprises, and their purchase could be funding other more sinister organized criminal activities. Not only do counterfeit goods raise sev - eral ethical concerns such as labour exploitation and environmental impact, but they can be harmful and potentially dangerous to consumers. UNODC’s new campaign highlights the often unfore - seen consequences from the consump - tion of fake goods. www.unodc.org/counterfeit United Nations Office on Drugs and Crime, PO Box 500, 1400 Vienna, Austria