Buying cheaper counterfeit products for holidays can have high costs Federal agents have come across fake contact lenses, counterfeit prescription pills and software that can steal your identity
Buying knockoff purses or piratedDVDsmay seem harmless for some holiday shoppers, but money spent on counterfeit items can end up funding organized crime in the U.S. and around the world. And the products themselves can mess up your computers and steal your identity.TheUnited Nationscalls counterfeiting and piracy of intellectual property a “plague” that has exploded globally in the past few years, and federal agencies are stepping up their efforts to combat it because of the threats it poses to consumers, domestic security and the nation’s economy.The U.N. estimates counterfeit goods generate $250 billion annually for criminal organizations.Locally, the Orlando office ofU.S. Immigration and Customs Enforcementoffice has targeted flea markets and mail facilities to intercept everything from fake contact lenses to software that can wipe your hard drive clean, according to Homeland Security officials.”You are taking a real risk when you buy these items,” said ICE Special Agent in Charge Mark Garrand. “It’s beyond purses and scarves. We want consumers to be aware when they shop online that if it seems to good to be true, it probably is.” Nationally, the number of counterfeiting-related arrests and seizures has quadrupled since 2009, data from the government’s Intellectual Property Rights Coordination Center show.
Federal officials seized more than 130 website domains during a coordinated enforcement operation before Cyber Mondaythis year because they were selling pirated goods, said Carissa Cutrell, an ICE spokeswoman. Orlando businessman Dale Borders’ website was one of several targeted because it offers the “most sought after items at the lowest possible prices.”Borders sold counterfeit copies of Beach body’s “P90X” exercise DVDs he imported from overseas, complete with a forgery of the company’s trademark on the box, federal documents allege. Counterfeit items like these have been known to destroy personal computers and send personal information to remote computers that record online activity. Beach body shut down Borders’ website three times, but it reappeared, said Jonathan Gelfand, chief legal officer and senior vice president of business development for Beach body.”It’s a big cat-and-mouse game,” Gelfand, adding that the company found evidence factories in China were buying the exercise program and producing duplicates in bulk. “Unfortunately a lot of people think [piracy] is a victimless crime, but it directly impacts how we hire, our creativity and our charity work.”In 2011, Customs and Border Patrol agents in Cleveland seized scores of parcels addressed to Borders that contained P90X, Zumba and Disney DVDs. Borders surrendered the merchandise to authorities and said he had no other orders pending when they confronted him at his Central Florida home. But three days after the interview, agents seized two more boxes destined for Borders’ home that were labeled “Teaching materials” and “Learning materials.””Honestly, they know what they’re doing,” Garrand said of counterfeit sellers. “They have huge profit margin, and they don’t hide it.”Borders was found to have more than 2,200 boxed sets of the DVDs. Beach body charges about $120 to $330 in separate payments per boxed set, depending on the type of kit.Gelfand said companies such as his spend a fortune in court and investigative costs to stop criminals, and it cuts deeply into Beachbody’s profits — about $80 million in losses, he said. Borders pleaded guilty to trafficking counterfeit merchandise in November and faces a maximum of 10 years and $2 million in fines when sentenced.Gelfand said he and his counterparts are lobbying Congressto increase penalties for counterfeiters, but they have little power in foreign countries where the products originate.
Lear MoreBar coding on pharma items packaging may be postponed
Industry seeks more time to implement govt directive on bar coding The government is set to postpone compulsory bar coding on secondary packaging of pharmaceutical products to April 1 next year, as against an initial preposition of January 1, 2013 deadline.Bar coding medicines meant for export has been postponed given the stringent opposition by industry bodies representing the pharma sector. Industry has conveyed that it needs more time to be able to implement bar coding.To prevent menace of spurious, sub-standard and counterfeit drugs passed off in the international markets as Indian made medicines, commerce ministry has mooted use of technology to trace pharma products from their point of origin. Bar codes on pharmaceutical exports at all levels of packaging will reduce chances of counterfeit drugs being exported from India.For bar coding, exporters will have to register their products with the importing country and take necessary approvals from their regulators and comply with the norms. Implementation of bar code will require them to make changes in their registration that will involve committing a time line of at least a year.“We have received requests from the industry for more time in order to adapt to new rules. We have decided to make it compulsory beginning April 1,” said an official involved with pharmaceutical exports.Pharmaceutical Export Promotion Council of India (Pharmexcil) had also written to commerce ministry seeking an extension. After several meetings at inter-ministerial level, it has been decided to give further time to industry to adapt to new rules.As per the commerce ministry’s earlier notification, bar coding on secondary level packaging was to be implemented in the country for the exporters with effect from January 1, 2013.The commerce ministry has already implemented the first phase of bar coding on pharma exports under which the trace and track technology has been made compulsory for tertiary level packaging from October 1 last year. Tertiary level of packaging is when packed products are put into bigger cases and cartons. Secondary level is at which primary packages such as tablet strips are packed. Government is looking at implementing bar coding on primary packaging from July 1 next year.“The industry will need more time, specially small and medium enterprises. We also have to see requirements of importing country. The packaging and labelling will have to be changed accordingly,” said an official of Indian Drug Manufacturers Association (IDMA).
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FDA Warns Doctors of Counterfeit Botox
WASHINGTON (AP) – Federal regulators have warned more than 350 medical practices that Botox they may have received from a Canadian supplier is unapproved and could be counterfeit or unsafe.The Food and Drug Administration said in a letter sent last month, a letter released publicly last week, that batches of the wrinkle treatment shipped by suppliers owned by pharmacy Canada Drugs have not been approved by the FDA and that the agency cannot assure their effectiveness or their safety.The FDA said Canada Drugs was previously tied to shipping unapproved and counterfeit cancer drugs.The agency warned doctors about buying drugs from sources other than licensed U.S. pharmacies. It is the fifth warning the agency has made this year about foreign suppliers providing unapproved drugs.In February, the agency warned 19 medical practices that they had received a counterfeit version of the cancer drug Avastin. On three more occasions the FDA issued similar warnings about counterfeit Avastin and Altuzan, another brand name for the same drug. The alerts were also primarily targeted at drugs distributed by Canada Drugs.A request for comment from the drug distributor was not immediately returned.Drug shortages increased the financial incentives for some pharmacies to provide counterfeit or illegally imported drugs. The drugs subject to warnings have all been injectable treatments typically distributed through medical practices and not directly to patients.In October, the FDA ordered operators of about 4,100 websites to immediately stop selling unapproved medications to U.S. consumers. The vast majority of those sites were operated by Canada Drugs. The site was still operating Friday.Genuine Botox is made by Allergan Inc., based in Irvine, Calif. Avastin is made by Roche Holding AG’s Genentech unit.
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Counterfeit medicine from Asia threatens lives in Africa
International health experts are warning of a mounting health crisis in parts ofAfricabecause of an influx of counterfeit medicine from Asia that is playing havoc with the treatment of diseases such as malaria. Porous borders in Africa coupled with indifferent oversight inChinaare combining to turn the continent and its pressing health problems into a free-for-all for maverick manufacturers, some of whom are producing pills with no active ingredients at all.Precise data is hard to track down because of the informal nature of African health systems. But several recentstudieswarnthat as many as one-third of malaria drugs inUgandaandTanzaniaare fake or substandard, with most believed to originate in China orIndia.Apart from the lives lost, there are additional concerns about drug resistance building in east Africa, experts say. “It’s a crisis any time someone dies,” Nick White, who chairs the Wellcome Trust’s south-east Asia major overseas programmes and the WorldWide Antimalarial Resistance Network (Wwarn). “It’s a massive problem that people have simply ignored. It’s not like a boil that’s beginning to burst because it’s been a problem for a long time. What has happened is we are beginning to recognise it more.”Laurie Garett, senior fellow for global health at the US Council on Foreign Relations, said: “Nobody has a head count – or a body count – on numbers of Africans that have died as a result. But China’s role certainly has been dreadful.”David Nahamya, chief drug inspector for the Ugandan national drug authority, said: “What we are told is this, if someone wants to counterfeit a drug, they just take the package to China and they can make it in thousands. You have seen how they make it there. They can copy anything.”· An increasing list of studies and surveys about fake, counterfeit and substandard drugs has emerged in recent years, but because of deeply entrenched interests from all sides – governments, NGOs and pharmaceutical companies – there has been great reluctance to call the scourge of killer medications in Africa and elsewhere a crisis.This is despite the fact that everything from life-saving Aids medication to emergency contraception are being copied, faked and made with shoddy components on a huge scale.Patrick Lukulay, vice president of the US Pharmacopeial Convention’s global health impact programmes, said it was no secret that the majority of dangerous medications came from China and India, as those countries had the world’s largest production bases for both active ingredients and finished drugs.While India has stepped up oversight, “China is only now just catching on”, he added.Though it may seem like an immense amount of trouble to counterfeit a £3 packet of malaria pills, Lulukay noted that the global trade was estimated at £46bn a year. Counterfeiters know their markets well and target medications accordingly. Efforts to combat the activity are in their infancy.”If you want to be efficient in fighting it, you have to have a very strong regulatory authority, very strong collaborations, very good distribution networks and good co-operation between governments,” said Sabine Kopp, who manages the anti-counterfeiting and medicines quality assurance programmes at theWorld Health Organisation.As yet, none of those components are in place and counterfeiters, apparently unconcerned with harming sick people in developing countries, continue making huge profits.It is a loss to global aid organisations, as well, said Dr Nick White. “Think of the hundreds of millions, if not billions, you spend on pills to help people in poor countries,” he said. “It’s bonkers not to make sure they’re authentic and instead people are ending up with shoddy pills from China.”
http://www.guardian.co.uk/world/2012/dec/23/africa-counterfeit-medicines-trade
Lear MoreTanzania Bureau of Standards seizes 330 boxes of counterfeit condoms
Tanzania Bureau of Standards established in a prompt inspection in various parts ofDar es Salaamthat the 138,815 million US Dollars (about 220m/-) condoms branded ‘Melt Me’ from India are already on the market. During the inspection one pharmacy at Manzese was found selling the substandard condoms. They were also on sell at the Mabibo Hostel in Kinondoni District where some people admitted to have been using the brand for some time now. According to TBS, the consignment arrived in the country in August this year. Destination Inspection (DI) for the said load was conducted at theDar es SalaamPort and samples taken to TBS Laboratories for testing as importation procedures require. Speaking to reporters, TBS Acting Director General Leandri Kinabo, said the condoms consisting of four different lots failed the lab tests and that procedures were underway to re-export the haul to the country of origin. He said TBS inspectors established during the market surveillance which was conducted shortly after the seizure of the consignment, that there were other four different substandard lots of ‘Melt Me’ condoms already supplied in the market. He alerted the general public not to use ‘Melt Me’ condoms since they are sub standard thus can’t serve the intended purpose of protecting users against sexually transmitted diseases including HIV/AIDS. Mr Kinabo said TBS was working with the police to establish how such consignments reached the market and those found selling them would be taken to task. He urged the public to only use four certified condoms — Salama Condoms, Salama bomba Condoms, Dume Condom and Blue Denin Condoms. TBS Acting Director of Quality Management, Mr Lazaro Msasalaga, told the ‘Daily News on Saturday’ that the ‘Melt Me’ condoms failed lab water test, package seal and air inflation. “Dealers and suppliers are to make sure they sell products certified by TBS short of that not only they sabotage the country’s economy, but they also endanger the lives of their customers,” he stressed.
Lear MoreSix people were arrested and fake goods worth £250,000 were seized as police swooped on a Glasgow market on Saturday
Officers from London Road police station led the joint operation targeting sellers of counterfeit goods at the Barras market in the city’s east end.Among the items seized were clothing and bags bearing brand names including Adidas, Armani, Calvin Klein, Jimmy Choo and Louis Vuitton, police said. DVDs, cigarettes, perfumes and jewellery were also taken in evidence.Five men and one woman have been arrested in connection with alleged offences under the Copyright, Designs and Patents Act. Police will now pursue restraining their assets under the Proceeds of Crime Act.Detective Inspector Allan Burton said: “The sale of counterfeit goods is estimated to cost the economy over £10m a year in Scotland.”Strathclyde Police actively target those involved in serious and organised crime and by working together with our partner agencies, we can successfully disrupt those involved in illegal activities. Selling counterfeit goods is not only a crime, but often controlled by organised crime networks as a means of funding their activities.”We will continue to focus on such groups and would urge anyone with information on those involved in the counterfeit trade to contact their local police office or Crimestoppers in the strictest confidence.”
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Counterfeit booze seized in Wycombe
Trading standards officers swooped on 18 shops across Buckinghamshire and seized counterfeit and ‘grey import’ alcohol from four of them. Their action was part of a joint operation with 10 other local authorities in south east England, that targeted 246 shops. Seizures were made at 19 shops overall. One of the shops where the booze was seized was in High Wycombe. Officers have this week issued a warning to festive season shoppers to be alert to counterfeit alcohol on the market. Gina Green, Buckinghamshire County Council Trading Standards Team Leader, said: “Bootleg booze makers usually add methanol because it’s clear and odourless. But after a few hours it can induce severe stomach ache, dizziness, blurred vision, breathing difficulties, and coma. What’s more, these concoctions are often created in very unhygienic conditions.”Gina said that although it is not easy for people to identify counterfeits on the shelves, once opened the smell or taste could give it away. With ‘grey imports’, customers should look for wonky labels and tell-tale excess glue, and also compare the fill levels of bottles on the shelf.Martin Phillips, cabinet member for community engagement, said: “We need to be particularly vigilant around the festive season and I have the greatest confidence in our Trading Standards teams who act speedily in their fight against counterfeits that could be dangerous to our residents.”Shops from which the bottles of counterfeit Champagne, vodka and wine were seized were in Denham, High Wycombe and Buckingham. Gina said her team was advising traders to ensure they ordered stock from trustworthy sources.
http://www.bucksfreepress.co.uk/news/10123092.Counterfeit_booze_seized_in_Wycombe/?ref=rss
Lear MoreSuspected fake designer goods seized
A haul of suspected fake designer accessories has been removed from sale from two premises in Chelmsley Wood thanks to a joint operation between Solihull Council’s Trading Standards and the Police.More than 100 items including Dr Dre branded headphones, Gucci watches, Louis Vuitton belts, iPhone and iPad covers and Ugg hat and scarf sets were confiscated onThursday 20 December following complaints from the public.A sample of the goods will now go to each trademark holder to confirm whether they are counterfeit.Leader of the Council, Councillor Ken Meeson said: “It may be easy to think that selling counterfeit goods is a victimless crime that only affects big global companies. This is not the case. Local jobs and businesses rely on selling genuine products. Not only that, but the people who buy counterfeit goods normally find that the product is substandard and they may also be unwittingly helping to finance wider organised crime.”Acting Sergeant Steph Rolfe added: “We hope this operation reassures shoppers and legitimate traders that we are working to protect them by disrupting people who trade illegally.”We’d like to thank the public who originally raised these concerns and encourage people to continue to contact us with information about those involved in criminal activity.”
Lear MoreNCIPR Lauds Customs Feat On Pirated And Counterfeit Catch
For the period from January 1 to November 30, 2012, the Bureau of Customs seized pirated and counterfeit goods amounting to P1,100,000,000.00 which is considered as one of the highest amount of seized bogus items.This was declared by Atty. Ricardo R. Blancaflor, Director General for the National Committee on Intellectual Property Rights (NCIPR), as he congratulated Customs Commissioner Ruffy Biazon in a letter dated December 13, 2012.Blancaflor stated in his letter that “the performance of BOC as of November 30, 2012 is 22.05% of the total confiscation of the NCIPR (P4,988,645,292.00). In this regard, we would like to commend the officials and personnel of the Intellectual Property Unit of the Bureau of Customs (IPU-BOC) for this excellent performance.”The Bureau of Customs according to Blancaflor has one of the highest seizures of pirated and counterfeit goods among the law enforcement agencies under the NCIPR.“We believe that their performance should merit a distinction from the Bureau,” the NCIPR Director General added.Customs Commissioner Ruffy Biazon is elated by the performance of the IPU-BOC headed by Atty. Zsae de Guzman, but at the same time cautioning them to double their efforts in their vigilant watch as counterfeiters double their momentum on pirated goods even for a slight observance in a lull in the enforcement operations.Biazon also stated that this performance was the result of strengthening its border control as well as the operation conducted on warehouses that are known to store high-end counterfeit goods such as Louie Vuitton, Gucci, Prada and the luxury brands.
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Fake phones getting less popular in China
Cheap mobile phones that closely resemble high-end globally-recognised devices are slowly fading out from markets across China, and are being replaced by brands looking to break into the budget phone market.In south China’s Shenzhen city, known as the “birthplace of counterfeit phones”, shops with “for rent” signs can be seen everywhere, the China Daily reported Monday.Although the city has long been known as one of the country’s top sellers of electronic products, government data indicates that more than 3,500 shops, most of which were mobile phone dealers, have closed and retreated from the market.This year’s Canton Fair, the country’s largest small commodities expo held in Guangzhou, featured a small number of counterfeit phones, an “unthinkable occurrence in previous years”.Industry experts said manufacturers of counterfeit phone do not have the technological know-how to compete with global brands like Apple and amsung.However, domestic brands have made breakthroughs that have allowed them to offer inexpensive smartphones, thus cutting into the counterfeit phone market.Among the 10 biggest phone manufacturers in China last year, domestic brands ZTE, Huawei and TCL were ranked third, fifth and ninth respectively, in terms of smartphone ales.Domestic smartphones cost less than 1,000 yuan ($160).Tang Ruijin, director of the Shenzhen Federation of Mobile Communication, said counterfeit manufacturers have retreated to underdeveloped overseas markets like southeast Asia, Latin America and Africa.At this year’s Mobile World Congress, Huawei unveiled a quad-core mobile phone processor. Huawei is one of few companies that develops its own computer chips, while many foreign brands still use Intel chips.
http://gadgets.ndtv.com/mobiles/news/fake-phones-getting-less-popular-in-china-306373
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