What is counterfeiting?

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LE05 Presentation
Yi Yang
Jérôme Saint-michel
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28/10/2016
University of Technology of Belfort-Montbéliard
LE05
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Can We Stop the Trade of Couterfeiting?
28/10/2016
University of Technology of Belfort-Montbéliard
LE05

• Introduction         
• Counterfeits in China
• The counterfeit industry
• Baneful effects of purchasing counterfeits
• Counterfeits and its influence in France
• Can we kick out counterfeit products from our
  life? 
• Conclusion

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What is counterfeiting?
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University of Technology of Belfort-Montbéliard
LE05

• Definition
• from The World Intellectual Property Organization
  
• First of all the imitation of a product. The
  counterfeit is not only identical in the generic
  sense of the term. It also gives the impression
  of being the genuine productoriginating from
  the genuine manufacturer or trader
• A counterfeit is
• An unauthorized copy
• Not conforming to the original manufacturers
  design, model, and/or performance standards
• Not produced by the stated manufacturer or
  produced by unauthorized contractors
• An off-specification, defective or used product
  sold as new or working
• Has incorrect or false markings and/or
  documentation

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The different counterfeit consumer goods
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• Designer labeled clothes, watches, handbags
  perfume and cosmetics
• (Burberry, Lacoste,  LOreal, Rolex, Nike,
   Luis Vuitton, Gucci)
• Consumer electronics
• (Breaker, cameras, hair dryers, smoke
  detectors,)
• CDs, DVDs, video and audio tapes
• (burned copies of original CDs)
• Jewelries and sunglasses
• (Chanel, Cartier, David Yurman)

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The different counterfeit consumer goods
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• Toys and game
• Vehicle parts
• (brake pads, engine parts, windscreens)
• Alcohol and tobacco
• ( Phillip Morris International brands
  Malboro , or Vins)
• Pharmaceuticals
•  (treating cancer, HIV, malaria, diabete or
  viagra)

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Counterfeits in China
28/10/2016
University of Technology of Belfort-Montbéliard
LE05
Not difficult to be found in some bussiness
streets
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Counterfeiting everything, every brand
28/10/2016
University of Technology of Belfort-Montbéliard
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Iphone
Fake Beats
LV
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Counterfeit Physical Stores
28/10/2016
University of Technology of Belfort-Montbéliard
LE05
A fake luxury shopping street in a northern city
of China...
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Counterfeit Physical Stores
28/10/2016
University of Technology of Belfort-Montbéliard
LE05
Hermès vs. Herwès
Starbucks vs. Starbocks
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Countries of Origin
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What is Being Made?
28/10/2016
University of Technology of Belfort-Montbéliard
LE05

• Counterfeit factories produce items such as
• Clothing
• DVD's and CD's
• Apple Products
• Watches
• Shoes
• Prescription over the counter Drugs
• Auto Parts
• Children's Toys

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Sale Methods
28/10/2016
University of Technology of Belfort-Montbéliard
LE05

• With the development of Internet the counterfeit
• industry grow exponentially in recent years.
• Online trade
• there are multiple websites where you can
  purchase jerseys, pills and auto parts for
  roughly one-tenth of the price.
• Street trade
• packmen sell counterfeit goods, fake bags
  mainly, around the famous tourist attractions.

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Where Do the Products Go?
28/10/2016
University of Technology of Belfort-Montbéliard
LE05

• According to the World Customs Organization
• Counterfeit products have been destined for over
  140 countries.
• A large amount of counterfeit goods are sent to
  the United States.
• Rescently, the counterfeit problem in Europe is
  growing at a much faster rate then that in the
  United States.

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Its more than just a fake product the
negative effects of counterfeit
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• IT'S DANGEROUS  Cheap, substandard, and
  dangerous components
• IT COULD COST YOU Risks for identity theft
  and credit card fraud
• IT'S ILLEGAL Counterfeiting and purchasing
  counterfeit products are illegal activities.
• IT COSTS YOUR CITY No taxes, less money for
  city's schools, hospitals, other social programs.
• IT SUPPORTS CHILD LABOR No fair wages or
  benefits, poor working conditions, use forced
•  IT SUPPORTS ORGANIZED CRIME  funding organized
  crime, drug trafficking and even terrorist
  activity.
•  IT HURTS LEGITIMATE COMPANIES Lost sales and
  profits gt lower wages and lost jobs( 200,000 ),
  higher prices for consumers

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How is The counterfeit market?
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• 10 of worlwide trade
• - 12 of toys market
• -10 of cosmetics perfumes
• More than 1000 billions of dollars /year loss
• 500 billion of dollars (World Customs
  Organization) and has been growing
• Top Comodities seized
• (USA ,2009)

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Counterfeits in France
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• History
• The concept of counterfeiting is concomitant with
  the French Revolution
• From the 1980s, the increasing globalization
  promotes counterfeiting
• From the 2000s, the increasing counterfeiting
  with the rise of countries BRICS
• Some datas
• In 2013, Customs seized 7.6 million items
• (Pharmaceuticals (1,3M), Clothing(1,075 M) ,
  personal accessories( 0,445M) ,shoes (0,369M)
• Asia remains the largest importer of counterfeit
  (80)
• E-commerce remains the first supply route(1.5
  million seizures)
• Removing 30,000 jobs in France and 5 billions
  per year loss

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Counterfeiting
28/10/2016
University of Technology of Belfort-Montbéliard
LE05

• James Moody, former chief of the FBI organized
• crime division, claims that counterfeiting will
  be a
• worldwide crime in the 21st century.
• Some part of counterfeiting is counducted in the
  decentralized manufacturing model.
• Authorized factories have also been known to
  produce the counterfeit products.
• Counterfeited goods are graded on a scale
  Grade-A product, a perfect copy of the genuine
  one.

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Can we kick out counterfeit products from our
life?
28/10/2016
University of Technology of Belfort-Montbéliard
LE05

• Driven by the huge interest, traffickers are
  eager
• to conduct this illegal business. Only when
• customers stop purchasing counterfeit products,
• will the counterfeit market go to its end
• Thus, enhance the legal consciousness of the
  public
• Government should tighten up the laws on
  intellectual property and printing of logos in
  factories

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Conclusion
28/10/2016
University of Technology of Belfort-Montbéliard
LE05

• Although counterfeit has built a big industrial
• chain which concerns thousands of peoples
• interest and provides many a job, its still
  illegal.
• We dont see the possibility to stop this trade
  now
• because it is keeping booming!
• But we believe with the development and
  improvement of living standard, people will
  eventually give up purchasing counterfeits and be
  able to afford the genuine products.

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Thank you for your attention !
28/10/2016
University of Technology of Belfort-Montbéliard
LE05
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Questions
28/10/2016
University of Technology of Belfort-Montbéliard
LE05

• Have you ever bought any counterfeit product?
  When/where?
• Do you think purchasing conterfeits will bring
  you any inconvenience?
• Would you mind if your friend buy the counterfeit
  product(like the grade A product)?