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Internet boosts counterfeit market

Staff Writer
By Staff Writer, ITWeb
Johannesburg, 26 Jul 2005

The Internet is helping to grow the market for fake goods, says a Canadian counterfeit intelligence analysis firm, Gieschen Consultancy.

Commenting on the monthly DOPIP Security Counterfeit Intelligence Report on the global piracy situation, the consultancy says the Internet accounted for 13% of the $623 million in counterfeit and piracy seizures and losses worldwide in June.

"Nearly 13% of all enforcement activity for June was directed towards spam, Internet auctions, retail sites and other Internet activities which sell or distribute counterfeit and pirated items," says Gieschen Consultancy MD Glen Gieschen.

"P2P services such as eDonkey and BitTorrent play a significant role in copyright infringement as music, films, software and books are distributed freely or at a fraction of the cost.

"Other venues such as Internet chat rooms and private forums are also being used by criminals and terrorists to provide information regarding manufacturing techniques and to distribute high value items such as fake ID (passports, drivers licences and birth certificates). With an increase in Internet users in both developed and developing regions, in particular the Middle East and Asia, the potential market for these items is expanding rapidly."

Gieschen also notes that intellectual property theft incidents (trademark infringement and copyright violations) reached their highest level so far this year, at 42% of all counterfeiting activity.

The most popular items to counterfeit last month were financial instruments - with 118 incidents worth $509 million, followed by entertainment and software - with 66 incidents worth $91 million.

Related story:
Counterfeiting surges past $3 trillion

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