The companies (LV, Dior, etc.) calculate their losses annually by multiplying the number of fake bags sold under their label by the actual retail value of the bag. I never agreed with that because I really do believe that a woman who pays $90 for a fake will not pay $1600 for a real one, but here is an example of where those companies do make a valid argument:
eBay: CHRISTIAN DIOR GAUCHO SADDLE BLACK TOTE BAG (item 250026761873 end time Sep-10-06 10:30:00 PDT)
This Gaucho is fake, and sold for over $1100 USD. For a few hundred dollars more and the buyer can buy the real one. Some Dior boutiques are offering sales on all handbags, so this price may actually get the buyer a real black Gaucho, so here is where Dior may have lost $1100 of its income.
This is just something I find upsetting. Dior pays for all the designing and advertising, and the counterfeiter gets money. This is just not fair (not only for Dior, but also for the buyers who practically get their money stolen from them beacuse they never actually agreed to pay for fake bags at that price).