Counterfeiting

The post below by benji_t reminded me of an article I read recently regarding counterfeit goods. Although we typically associate this illegal activity with luxury goods (such as Rolex) it is a huge problem for many other "mundane" goods.

The article I read (in a manufacturing magazine) stated that the World Customs Organization (WCO) information reveals that counterfeiting goods is one of the fastest growth "industries" out there. Current estimates peg the value of counterfeit goods sold equates to 7% of worldwide trade. Back in 1982, they estimated the value of these goods to be something in the area of $5.5 billion US. By 1996, it had grown to $200 billion US, and today is estimated at $450 billion US.

Some people think that counterfeit goods are doing "no harm" and are simply a cheap alternative to the real thing. The fact is that these inferior goods cost governments tax revenue, companies profits (possibly leading to lost jobs), and generally drive up the cost of goods for those who purchase the real thing.

In addition, these goods might not always be safe. For instance, do you really think that counterfeit electronic items are really put through the safety tests that are done on the real items? One California boy found out last year when a counterfeit cell phone battery blew up his phone while he had it against his ear. He suffered cuts and burns as a result. Recently the RCMP (the Mounties) seized counterfeit electrical power bars and heavy duty extension cords in a Toronto warehouse. The items had forged safety certifications on them, and when tested the extension cords melted in a matter of seconds. The power bars had undersized wiring, so they overheated and ignited the plastic casing, which should have been made from fire resistant materials.

Until I read this article I had never really considered that small, inexpensive items would be counterfeited. Reading it has certainly opened my eyes to what is out there.

Thanks, Al