Post links/research about counterfeits here

Fake luxury goods seized http://www.bangkokpost.com/breakingnews/297169/fake-luxury-goods-seized

The Department of Special Investigation (DSI) on Friday confiscated counterfeit brandname products - mainly handbags and watches - worth more than 10 million baht in Bangkok...
People were arrested in Lyon (France), yesterday.
Those people were making fake Hermès bags which they sold everywhere in the world, through organizations based in Hong Kong and Cyprus.
They sold for 18 million euros!
The counterfeit was close to perfection: The leather was very good quality...the prices the same as for the genuine items....
It seems there are lots of victims everywhere......
 
People were arrested in Lyon (France), yesterday.
Those people were making fake Hermès bags which they sold everywhere in the world, through organizations based in Hong Kong and Cyprus.
They sold for 18 million euros!
The counterfeit was close to perfection: The leather was very good quality...the prices the same as for the genuine items....
It seems there are lots of victims everywhere......
Two of the employees of the "factory" had worked for Hermès, that explains why it was so difficult for people to see they were buying fakes....
 
DSI busts online piracy ring
The Department of Special Investigation has arrested the operator of online stores selling knock-off brand products and seized illegal goods worth more than three million baht.

...The DSI also raided a house in Bangkok's Tungkru district and seized more than 500 fake Patek Philippe, Omega, Tag Heuer and Rolex wristwatches worth more 2.5 million baht.

...The team then searched another house in Bangkok's Bangkhen district and seized over 360 item of apparel and accessories labeled Louis Vuitton, Prada, Chanel and Hermes with a total value of over one million baht.

Mr Tarit said these sites had been operating since 2008, had more than three million visitors and generated monthly revenues of 800,000 to one million baht.

http://www.bangkokpost.com/news/crimes/317425/dsi-busts-online-piracy-rings-fake-luxury-products-brand-goods (pics)
 
Birkin ring revealed to be run by Hermes STAFF as police bust global knock-off operation
Daily Mail (UK daily) 15 June 2012

Luxury design house, Hermès has finally caught the people responsible for peddling imitation bags - and some of them work at the company.
Using internal monitoring systems, Hermès along with the French national police, spent a year watching out for clues and any abnormal behaviour.
Two individuals have now been fired though several others who remain working for the design house are suspected to be involved.
The surveillance was part of an investigation into the international crime ring that robs the brand of millions of dollars every year.
During the raid, police found clandestine workshops bursting at the seams with precious leather skins for making the counterfeit accessories.
The ring that has distribution outlets in Europe, the U.S. and Asia, is thought to be able to generate $22million through one branch alone.
The Paris public prosecutor told WWD: 'Hermès is very satisfied with the efficient and diligent collaboration established with the national gendarmerie in this case and reiterates its relentless commitment to fighting counterfeiting.
'This action puts an end to the fraudulent project in progress.'
According to the French National Anti-Counterfeiting Committee, Hermès is not the only victim of such a racket which costs France $7.5billion in lost revenue annually.
In response to the threat, French luxury goods association Comitè Colbert has already taken action to raise awareness of the issue by launching a campaign with playful slogans such as: 'Buy a fake Cartier, get a genuine criminal record' and 'Real ladies don't like fake.'
The ads are to remind travellers passing through the country's airports of the zero-tolerance approach the police has towards the buying and selling of fake luxury products.
With its iconic Birkin bag and extravagant silk scarves, Hermès is a popular brand name for counterfeiters.
Hermès CEO Patrick Thomas' attempts to have internet providers, search engines and social media sites held accountable for facilitating the sale of fake goods seems to be paying off however, even if slowly.
A U.S. court recently ordered 34 websites offering imitation Hermès items to pay the company $100million in compensation.
'Eighty percent of objects sold on the Internet under the Hermès name are fakes,' he fumed. 'It's an absolute disgrace.'
 
DSI seizes knock-offs worth millions
Published: 2/11/2012 at 03:10 PM

The Department of Special Investigation has seized counterfeit goods worth millions of baht from markets in Don Muang and Khlong Thom, DSI chief Tarit Pengdit said on Friday.

Many offenders had been arrested in the process.

Pol Lt Col Chinchote Daengsurasri, chief of the DSI's Intellectual Property Department, said the new Don Muang market has been designated a red zone for intellectual property violation as there were many fake Louis Vuitton, Prada and Chanel products for sale.

Those arrested included Siriwan Chanplaisri and Rattnaporn Saejieow, who were in possession of about 1,000 fake brandname items with an estimated value of six million baht, he said.

Pol Lt Col Chinchote admitted that it is difficult to catch violators. Most customers were screened before being allowed to enter the shops, which have electric gates installed. This made it hard for the authorities to make raids.

The DSI also seized about 40,000 pirated CDs worth about four million baht in another raid at a building in Khlong Thom area in Pom Prap Sattru Phai district.

He said these sellers also monitored customers at all times and during raids the DSI officers were obstructed by a large mob. As a consequence, the raiding team had to be armed.

http://www.bangkokpost.com/breakingnews/319266/dsi-seizes-knock-offs-worth-millions
 
Birkin ring revealed to be run by Hermes STAFF as police bust global knock-off operation
Daily Mail (UK daily) 15 June 2012

Luxury design house, Hermès has finally caught the people responsible for peddling imitation bags - and some of them work at the company.
Using internal monitoring systems, Hermès along with the French national police, spent a year watching out for clues and any abnormal behaviour.
Two individuals have now been fired though several others who remain working for the design house are suspected to be involved.
The surveillance was part of an investigation into the international crime ring that robs the brand of millions of dollars every year.
During the raid, police found clandestine workshops bursting at the seams with precious leather skins for making the counterfeit accessories.
The ring that has distribution outlets in Europe, the U.S. and Asia, is thought to be able to generate $22million through one branch alone.
The Paris public prosecutor told WWD: 'Hermès is very satisfied with the efficient and diligent collaboration established with the national gendarmerie in this case and reiterates its relentless commitment to fighting counterfeiting.
'This action puts an end to the fraudulent project in progress.'
According to the French National Anti-Counterfeiting Committee, Hermès is not the only victim of such a racket which costs France $7.5billion in lost revenue annually.
In response to the threat, French luxury goods association Comitè Colbert has already taken action to raise awareness of the issue by launching a campaign with playful slogans such as: 'Buy a fake Cartier, get a genuine criminal record' and 'Real ladies don't like fake.'
The ads are to remind travellers passing through the country's airports of the zero-tolerance approach the police has towards the buying and selling of fake luxury products.
With its iconic Birkin bag and extravagant silk scarves, Hermès is a popular brand name for counterfeiters.
Hermès CEO Patrick Thomas' attempts to have internet providers, search engines and social media sites held accountable for facilitating the sale of fake goods seems to be paying off however, even if slowly.
A U.S. court recently ordered 34 websites offering imitation Hermès items to pay the company $100million in compensation.
'Eighty percent of objects sold on the Internet under the Hermès name are fakes,' he fumed. 'It's an absolute disgrace.'

WOW...that is frightening to anyone who buys the brand online...
 
Really great and timely thread. I don't have an article to contribute but I will share that I just closed my account on Poshmark.com due to the excessive and brazen exchanges of counterfeit bags. It's a serious matter and businesses like PM must implement stronger policies on knock offs. One of the primary reasons I joined this forum is so I can learn and benefit from the expertise of this community. My goal is to slowly build a resale business and need to educate myself on what tips off s fraudulent bag.
 
B30m in fake cosmetics seized

Published: 17/12/2012 at 05:57 PM
Online news:

PATHUM THANI: The Department of Special Investigation (DSI) on Monday seized more than 30,000 items of fake cosmetics worth an estimated 30 million baht.

Police arrested Somoh Goonsongkram for licence infringement and selling fake cosmetic products.

Investigators said the man told them he sold his merchandise through two websites, bevershop.com and sumpang.com. The sites reportedly had a combined 4-5 million browsers. Products were delivered to buyers by mail.

DSI chief Tarit Pengdit said that illegal merchants often avoided arrest by selling their products online.

Police said that aside from brand-name products, goods produced by well-known Thai cosmetic centres were also illegally copied.

Lee Boo Yong, director of the Department of Intellectual Property of South Korea, warned that fake cosmetic products can harm the health of users. He asked for cooperation from Thais to stop illegal cosmetic trading activities. Korean cosmetic items are on the rise in popularity among Thai consumers.

http://www.bangkokpost.com/breakingnews/326616/b30m-in-fake-cosmetics-seized
 
News > Investigative Report
The knock-on effect for Bangkok's knock-offs
One long-time vendor of counterfeit goods reveals that times have become hard since Lady Gaga's infamous 'Rolex Tweet' last year _ which inspired a short-lived crackdown _ but that continued encouragement of the counterfeit industry by officials who profit from it means that everything is still for sale

Published: 20 Jan 2013 at 00.00
Newspaper section: Spectrum

Last week, a man came to tell Jasmine, a vendor in the Nana area, that the Department of Special Investigation would be conducting a raid. He took the unusual step of telling her not only to temporarily close down, but to move all of her counterfeit goods back home for two days.

While it was another setback in a series dating back to Lady Gaga's visit to Bangkok eight months ago _ when Jasmine was caught in a DSI raid following the furore caused by a message by the singer on Twitter _ this time it was a necessary safety measure. Jasmine said she had recently paid a 400,000 baht bribe to a high-ranking police official in order to receive such early warnings.

Her 20-year business selling high quality copies to predominantly Middle Eastern tourists once brought profits of up to 10 million baht a year. Times are harder now, she said, due to rising demands for bribes, increasing competition and savvier tourists _ but the goods are still available at various shops and markets around town, often sold quite openly.

Spectrum followed Jasmine's story and took a look at where the business of counterfeit goods in Bangkok now stands.

THE TWEET

Jasmine, whose name and some details have been changed to protect her identity, sold knock-off designer bags, handbags, wallets, watches and pens, among other goods. She said she used to net around 10 million baht in her best years _ up to 60,000 baht a day on a good day. Even after paying bribes, overheads and trips to China to make purchases _ it was a lucrative business.

Over two decades she has seen a lot of police rotation in and out of Nana, she said; each new team has had to negotiate new terms with Jasmine.

Those new to the game or unaware of how much their predecessors were making often asked for relatively little, but it never took them long to wise up, she added.

Meanwhile, she said, the shippers and manufacturers in China were generous in offering credit, and because of payments to facilitate shipments, Thai Customs hasn't been a big problem.

Problems for Jasmine _ whose school-learned Arabic has been an invaluable asset in her dealings with Middle Eastern customers _ began at the end of May last year, when Lady Gaga arrived.

"I just landed in Bangkok baby! Ready for 50,000 screaming Thai monsters. I wanna get lost in a lady market and buy fake Rolex."

The tweet caused considerable protest. Confusing Bangkok with Hong Kong's Ladies' Market was not the offensive part; rather, it was the notion that Bangkok has fake watches readily for sale _ which any visit to a touristy night market area will testify to.

It was considered a slight on Thailand, as thousands vented on social media and the Intellectual Property Department made a formal complaint to the US embassy. The DSI and police made several arrests in subsequent weeks, with the names of vendors and photos of confiscated goods released to the media.

Jasmine claims she was never arrested, only held temporarily, and all of the seized items were later returned to her. One Indian vendor had his pirated goods returned but, shocked by his arrest, he sold his inventory and returned to his homeland.

Jasmine had her court case postponed several times, and she said she was asked to pay a 200,000 baht fine to clear the case. When she told them she didn't have the money, a stalemate of a few weeks ensued. Eventually she was asked to pay a 16,000 baht fine, she said, reduced to 8,000 baht because it was a first-time offence.

Of greater aggravation to Jasmine was the tens of millions of baht in police bribes she said she had paid over the years. The aim of the payments had been not only to allow her to operate but also to avoid such unpleasantries.

After the case was cleared by the court, going back to business was more difficult than she'd imagined. She had lost some regular customers during her absence, and rents in the area had gone up. And, she said, the local police had become more demanding in requesting payments.

GOING CLEAN

Her next step, she said, shocked the police. Still furious at the bribes she'd paid that hadn't protected her from the DSI, Jasmine gave away all of her counterfeit goods. She told police they'd received her final pay-off, and she was going into legitimate business.

A buying trip to China landed her new items to sell that weren't high quality forgeries. The police, she said, were flabbergasted, but left her alone. The problem was the income disparity; she was making only a fraction of what she had before, and her past customers had little interest in legitimate goods. It became hard to meet the cost of overheads, wages and rent. Whereas she once operated a large shop and several street stalls, the operation was scaled down considerably. Missing their payments, she said, police came by and suggested she return to her former trade. She could make big profits again, they said, and this time they would protect her from arrest.

She fought the idea for a while, but eventually decided to return to the business, saying she paid a 400,000 baht bribe to a high-ranking police officer to ensure she wasn't bothered again. She thinks it was this payment that most likely saved her from last week's crackdown.

The problem with re-entering the knock-off trade, Jasmine said, was that the landscape had changed. Where previously the police had only allowed three or four big vendors to sell fake high-end bags and watches in her area, now several others have also been allowed to operate. Counterfeit bags, watches, scarves and pens are more readily available than before the crackdown. During the months she had sold legitimate goods, her regular customers disappeared. The word that she was back in business was slow to reach buyers.

Another problem is that there are more frequent flights and more convenient connections from the Middle East to Phuket, Koh Samui and Chiang Mai. Visitors flying from Dubai, Doha or Bahrain are more likely to bypass Bangkok, and sellers in Phuket and other holiday destinations have been quick to meet the growing demand for fake goods.

Also worrying for her is the new breed of customer. The few buyers still coming now have photographs of what they want, along with a set price. They no longer seem willing to bargain; if she doesn't have what they want at the right price they walk out.

Meanwhile, she said, police have been coming regularly, pressuring her to deliver regular pay-offs. For the time being she has been able to hold them off by saying her business is close to bankrupt. Although this is true, she knows she won't be able to ward them off much longer.

When asked for comment, Pol Gen Chiroj Chaichit, an adviser for the Legal Affairs and Litigation Department 1 of the Royal Thai Police, told Spectrum, ''Such accusations have to be looked at on a case by case basis. Often it's the mafia demanding payments rather than police, or of individuals posing as police officers. Similar to accusations by motorcycle taxi drivers that they have to pay police bribes in order to operate, when in fact it is the military mafia, or individuals unrelated to the police. Anyone with specific evidence should make a complaint, but we haven't found concrete evidence of wrongdoing by police in such cases.''

Meanwhile, those dealing in pirated goods stand to face additional obstacles. On Friday, Deputy Commerce Minister Nattawut Saikuar announced that the National Intellectual Property Bureau would set up an operations centre for the suppression of intellectual infringement, which would seek to prosecute pirates.

continues..
 
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Pirated goods at every turn

Although vendors are extremely sensitive to anyone taking snapshots of counterfeit goods, they are openly sold throughout the capital. What is curious is that some items seem to be allowed to be sold at some markets but not others, so a buyer seeking a specific type of knock-off has to know where to look.

At central shopping centres such as Mahboonkrong (MBK), Fortune Town and Pantip Plaza, copied software, DVDs and CDs are readily available. Quality varies wildly and some software lacks security codes that allow for updates or renewals, but prices are low and the selection is impressive. Counterfeit bags and watches are not on open display, but at MBK some copied designer clothes, such as underwear and dress shirts, are sold. One vendor showed us a legitimate Louis Vuitton catalogue and said that for almost every item a copy was available _ with prices from 1,000 baht _ that he could retrieve from the car park. Such items were kept hidden in cars, he said, to evade police oversight.

Patpong Night Market is a hot spot for fake goods. On Patpong Road and adjacent sections of Silom and Surawong roads a vast number of brand name copies are openly sold. Our clandestine photography attempts were quickly pounced upon by nervous or angry vendors, but there were otherwise no attempts to disguise the nature of what was being sold. Watches included Rolex, Rado, Breitling, Tag Heuer, Casio and other brands _ with prices usually beginning at 1,800 baht and falling to 1,000 baht or less after negotiation. Bags included Prada, Chanel and a Louis Vuitton imitation called Joe Louis. Proper Louis Vuitton copies were available, vendors told us, but had to be retrieved from secret stashes nearby as the police cracked down on these sales. Some famous names are notably absent, so it seems that some brands are more stringent with attempts at enforcing intellectual property laws than others.

The majority of bag vendors we spoke to in the area had moved from Myanmar in recent months, although they said that the owners of the shops and inventory were Chinese-Thai. They said business was good but that police payments had to be made weekly or sometimes daily to ensure that the goods weren't seized. They claimed that many of the bags were shipped in from Korea rather than China.

Pratunam market also sells high-quality knock-offs, more often aimed at bulk purchases by middlemen from west and south Asia and central Africa.

The Nana area of Sukhumvit Road, especially between Sukhumvit Sois 3 to 7, is another zone where knock-offs are frequently sold. Fake Mont Blanc pens and real and repackaged generic sexual enhancement pills are readily available, while counterfeit watches and handbags are harder to find than at Patpong, Buyers here are more likely to be in-the-know tourists than at Patpong, seeking out individual traders they found out about from friends.

As at Patpong, other popular knock-offs on sale included Nike and other trainers, Beats by Dr Dre headphones, sex toys and pharmaceuticals such as Viagra and Valium, and Calvin Klein underwear.

INTELLECTUAL PROPERTY IN THAILAND

Copyright infringement is big business. From digital copies of the latest CDs and DVDs to mass-produced or hand-crafted replicas of designer handbags, watches and accessories _ Thailand has it all. Even pirated Ferraris have been sold here, as the Italian marque found out in 2008.

The Kingdom is a perennial offender on the US Trade Representative (USTR) Office's priority watch list, making the list for the fourth consecutive time last year in the office's ''Special 301 Report''. The USTR praised some progress in Thailand's efforts to battle copyright infringement, while admitting that ''piracy and counterfeiting remain widespread''. Thailand was placed alongside a dozen other serial offenders _ China, Russia, Argentina, Canada, India, Algeria, Chile, Indonesia, Israel, Pakistan, Ukraine and Venezuela _ while a number of areas were singled out as ''notorious markets'', including the Khlong Thom, Saphan Lek and Ban Mor shopping areas; the MBK, Pantip Plaza, Fortune Town and Fashion Island shopping centres; and the commercial districts of Silom and Sukhumvit.

In response to Spectrum's request for comment, the US embassy provided some information on anti-piracy efforts being taken locally.

''For the sake of artists _ whether they be Thai, American, or from anywhere else _ and to encourage creativity and innovation by all, the protection of intellectual property rights is very important to Thailand and the United States,'' said embassy spokesman Walter Braunohler. ''US trade law requires an annual report of all countries in regards to intellectual property rights, and we continue to work with the Thai government at all levels to work on the challenge of protecting these rights.

''If you ride the BTS, you will see our latest collaboration with the Thai Ministry of Commerce. Together, we teamed up with several prominent Thai artists to produce posters for the BTS highlighting the importance to artists of buying real, not fake, products.''

It remains to be seen whether the latest campaign will have an effect. High-ranking officials at the DSI have told Spectrum in the past that they only handle big players in cases of piracy, such as ''factories, storage places, distributors or big retailers where the value of goods seized exceeds 500,000 baht'', and that street stalls and small shops won't be raided, ''as this is the duty of other agencies''.

We asked one artistic director of a luxury leather brand made in Thailand whether he was also affected by piracy.

''Unfortunately,'' he said, ''we are also victims of people who copy models, packaging, even our web texts! Unfortunately all brands struggle here and copyright laws cannot be enforced in any way so it's better to forget about them.''

The Intellectual Property Department has said it is doing its best to control the proliferation of pirated goods in this country. Key to efforts by the DSI and DIP, however, may be cooperation of individuals overseeing street sales in local police districts, for whom such sales remain extremely lucrative.

http://www.bangkokpost.com/news/investigation/331682/the-knock-on-effect-for-bangkok-knock-offs
 
Cops filmed 'extorting cashier'
Published: 25 Jan 2013 at 17.18
Online news: Local News

Police were caught on video apparently extorting a woman cashier, demanding she post 50,000 baht bail for allegedly conspiring to sell counterfeit goods - a charge she says she vigorously denied.

The clip was uploaded to YouTube on Thursday by a user who went by the name Mild Pond, and was shared throughout the web.

The reputed victim posted on her Facebook page under the username Mild Love Jrt , saying that she worked as a cashier at a shopping mall in Bangkok. A copyright owner came to investigate the stall where she was working and found that it was distributing counterfeit products.

Police then took her to the station for further investigation.

When she arrived, an officer she identified as Pol Lt Col Choosak Chankwarng told her that she was under arrest for conspiring to sell counterfeit goods and must pay at least 50,000 baht bail to go home, she said.

The product distributor later arrived at the station and explained to the officers that the counterfeiting issue was already settled but the company was unable to collect all the fake goods from the different branches of the mall in such a short time.

The victim said the distributor and the mall management also insisted that she was not involved.

She said that after the discussion Pol Lt Col Choosak brought out a document for her to sign, but she refused and said that she would wait for the mall's supervisor and her lawyer to arrive.

Pol Lt Col Choosak later threatened that if she did not give her fingerprints she would be put in jail, according to the post.

Mild Love Jrt ended her post saying the police eventually asked her to wait for her lawyer in a cell. Her lawyer then had to bail her out, because the police would not let her leave otherwise.

Netizens on YouTube and Thai webboards denounced the police for "extorting" money from the cashier.

One commenter posted, "The shopping mall was wrong to be selling fake products, but the cashier was definitely not at fault. The police were trying to impose penalties on her. If this is not extortion then I don't know what is."

"I never want to be a police officer. My family is in the army and I won't degrade myself so others can insult me," another poster said.

"True love is like a good cop because you'll never find one," another netizen posted.

http://www.bangkokpost.com/news/local/332635/cops-extorting-cashier-caught-on-video
 
Business > Economics
PIRACY

Ministry to seize assets of IP flouters
Published: 29 Jan 2013 at 00.00
Newspaper section: Business

Vendors who sell pirated and counterfeit products worth over 500,000 baht may see their assets seized in the future, warns the Commerce Ministry.

The plan is part of the ministry's commitment this year to tighten its efforts to tackle intellectual property violations, said Deputy Minister Natthawut Saikua.

The draft amendment to the 1999 Anti-Money Laundering Act, which includes intellectual property infringements as a predicate money-laundering offence, has already sailed through parliament and is awaiting royal endorsement.

The new law will be effective once it is published in the Royal Gazette.

According to Mr Natthawut, the ministry will later propose the criteria of penalties against intellectual property violators covering confiscation of assets or property.

In any case, the ministry will try to track down prime offenders or masterminds, he added.

"We're ready to use the new law to confiscate assets of anybody who is found to have over 500,000 baht worth of pirated and counterfeited products," he said.

The Intellectual Property Department plans to call a meeting next week with owners of rental space both at department stores and state-owned buildings as well as internet service providers, asking them for cooperation to help tackle IP violations.

The department's chief will fly to the United States in mid-February to provide updated information and negotiate on the IP issue.

"We still hope that the US will remove Thailand from its Priority Watch List to Watch List, which is due to be reviewed in April," said Mr Natthawut.

Thailand has been on the Priority Watch List since 2007.

The list carries no threat of sanctions but rather is aimed at shaming governments.

The US Trade Representative (USTR) last year added eight red zones to its list of areas under scrutiny in Thailand.

They are MBK Centre, Chatuchak Market, Siam Square, Sukhumvit Road and Patpong night markets in Bangkok; Karon and Patong beaches in Phuket; IT City in Pattaya; and Rong Klua market at the Aranyaprathet border crossing with Cambodia.

http://www.bangkokpost.com/business/economics/333099/ministry-to-seize-assets-of-ip-flouters