COUNTERFEIT GOODSDefinition:•A counterfeit is an imitation, usually one that is made with the intent of fraudulently passing it off as genuine.•Counterfeit products are often produced with the intent to take advantage of the superior value of the imitated product.

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•According to the World Customs Organization, the international sales of counterfeit goods comprise a $600 billion industry representingbetween 5-7% of total world trade.

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•Most counterfeit goods are produced in China, making it the counterfeit capital of the world. In fact, the counterfeiting industry accounts for 8% of China's GDP.

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•Some counterfeits are produced in the same factory that produces the original, authentic product, using inferior materials.

COUNTERFEIT GOODS•Los Angeles County Sheriff's Lieutenant John Stedman told the Senate Homeland Security Committee that terrorist organizations are dealing in counterfeit merchandise and suggested that groups have raised as much as $30 million a year.

COUNTERFEIT GOODSIn 2004, Interpol seized $1.2 million worth of counterfeit German brake pads. Investigations of the products revealed that their proceeds were earmarked for supporters of the Lebanese terror organization Hezbollah.

•Hezbollah has been reported with counterfeiters based in Los Angeles County. Authorities have found evidence of these connections (in the form of flags, tattoos, and pamphlets) in the homes and on the persons of numerous convicted counterfeiters.

COUNTERFEIT GOODS•In another incident, a woman found to be a retailer of counterfeit cigarettes was arrested in an airport en route to Lebanon with $230,000 cash strapped to her body. While the reported reason for her trip was “vacation,” authorities believed her to be funneling money to Hezbollah.

COUNTERFEIT GOODS•The FBI compiled evidence that the terrorists who bombed the World Trade Center in 1993 financed their activities with counterfeit textile sales from a store located on Broadway in New York City. The FBI confiscated 100,000 counterfeit products manufactured for sale at the summer Olympics. •This operation funded an organization run by Sheik Omar Abdel Rahman, who was later sentenced to 240 years in prison for plotting to bomb historic landmarks in New York.

COUNTERFEIT GOODS•Chechen rebels fund their operations through thesale of pirated CDs.•Paramilitary groups in Northern Ireland fund their operations by counterfeiting DVDs.•Al Qaeda fund their operations by through the sales of fake perfumes and shampoos.•The sale of pirated CDs was responsible for funding the 2004 Madrid train bombing– an incident that resulted in the deaths of 191 people

COUNTERFEIT GOODS•The profits from counterfeit sales significantly outweigh those of other illegal products. While the sales of cocaine might yield an entrepreneurial criminal a 100% profit margin, sales of pirated Windows software would earn a savvy counterfeiter profits of up to 900%.

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Encountering counterfeit goods in Southern Europe and Italian cities.

COUNTERFEIT GOODS•In Italian cities, you're likely to encounter street vendors, most of them from Senegal or Bangladesh, who hawk counterfeit designer purses, bags, belts and sunglasses at bargain prices.

COUNTERFEIT GOODS•Selling and buying counterfeit goods are illegal, and you could be fined up to 10,000 Euros ($ 13,569) if the police conduct a sweep and you're caught with a knock-off.

COUNTERFEIT GOODS•Street vendors obtain their bags through middlemen, and there's no way of knowing who those middleman are (e.g., the Mafia).•When you purchase a fake from a street vendor, you're contributing to trademark infringement and tax evasion.

COUNTERFEIT GOODS•Counterfeit products vary in quality. If you can't tell the difference between leather and plastic, for example, you may discover that your bargain knock-off was a rip-off.

COUNTERFEIT GOODS•How to spot the fakes:•Examine the overall condition of the item. Does it look and feel like a high-end manufacturer made it and does it look and feel like a $1,000 bag?

COUNTERFEIT GOODS•How to spot the fakes:•Examine the hardware. High-end manufacturers , like Louis Vuitton for example, use the best materials available. The hardware and fixtures are all brass. •Counterfeiters will cut corners to keep costs down, so they use aluminum and a technique called "brassing". This is similar to electroplating jewelry and you can scratch it off.

COUNTERFEIT GOODS•How to spot the fakes:•Pay attention to the logo's. They are crisp, straight, not cut off, etc; a high-end retailers' logos will be crisp and well made. •Pay particularly close attention to the stitching. The stitches should be straight and uniform. No errant stitches, no weaving line, etc. And many brands, if you examine them, use a set number of stitches for each part.

COUNTERFEIT GOODS•How to spot the fakes:•Logo’s

COUNTERFEIT GOODS•How to spot the fakes:•Missing serial numbers.

COUNTERFEIT GOODS•How to spot the fakes:•Misspelled brand names.

COUNTERFEIT GOODS•How to spot the fakes:•Misspelled brand names.

COUNTERFEIT GOODS•Look out for deals that are too good to be true.•Inspect the packaging carefully. Reputable businesses typically take great care in packaging their products. •Make sure everything that should be there is there. Counterfeit products often don't include supplementary materials such an owner's manual or a product registration card.

COUNTERFEIT GOODS•Check the manufacturer's website. Many large companies now have information on their websites to alert customers to possible counterfeit products and to help them detect fakes.