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Phoney War 08/04/2010

Not-for-profit organisations such as the UK-based Anti-Counterfeiting Group (ACG) are leading the fight against the growing global threat of intellectual property crime by uniting rights holders, law enforcement and government bodies, as director general Ruth Orchard explains.

The internet has triggered counterfeiting activities that were unimaginable five years ago, making it the largest problem for brand owners and law enforcement in 2010. EU customs statistics released in 2009 reveal that, between 2007 and 2008, the counterfeiting of electrical equipment, medicines and personal care products increased by 58%, 57% and 42% respectively, while MarkMonitor, an online brand protection provider, estimates that $133bn in legitimate revenue was lost in 2009 solely due to the sale of counterfeit goods on the internet. But several other factors contribute to the problem, such as consumer attitudes.

A survey commissioned by the International Chamber of Commerce in December 2009 showed that 80% of consumers regularly purchase counterfeit products with little remorse. The frequency of purchases increased with income, suggesting that the economic downturn has led to a boost in affluent consumers’ interest in fakes – 41% of the low-income group admitted to buying counterfeit products but this increased to 50% for high-income shoppers.

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Elly Earls, Packaging Gateway, 08 April 2010