Product counterfeiting is a global criminal activity that moves billions of dollars each year, and organized criminal groups have taken advantage of it precisely because it is so lucrative.
According to data revealed by the United Nations Office on Drugs and Crime, it is evident that there are deep links between this crime and other serious crimes, such as the production and trafficking of illicit drugs, money laundering, and corruption.
The counterfeit business is estimated to be worth more than $250,000 (two hundred and fifty million dollars) annually, plus hundreds of billions in counterfeit digital goods and domestic sales. Although legitimate brands and designers are directly affected by the counterfeiting of their products and the theft of their intellectual and industrial property, they are perhaps just the tip of the iceberg.
The additional social impact derived from counterfeiting is undeniable. Trading in counterfeit goods increases corruption levels and necessarily requires increased budgets allocated to citizen security. In addition, it violates criminal and administrative law regarding tax, customs, or fraud evasion.
On the other hand, counterfeiting discourages innovation and development in various industries. When brands face unfair competition, they may be less likely to continue investing in research and development of new products. Brands and designers lose revenue due to lost sales and face reputational damage because of their brands, which could be associated with lower-quality products. Purchasing a counterfeit bag may seem harmless, but it is not.
And no, counterfeiting affects big fashion brands and small businesses. These businesses, lacking the economic resources to defend their intellectual property, suffer even more violently from the effects of counterfeiting—the illegal reproduction of their designs.
In 2021, an American design brand whose name will not be mentioned plagiarized and reproduced the designs of María del Pilar González Torres, a Mexican woman who owns the MARIMBA jewelry brand. His designs were sold massively on a platform for over a year, earning millions of dollars from their reproduction and sale. María del Pilar not only had against her the lack of economic resources to defend herself legally but also a geographical and language barrier, leaving her hands tied in the face of injustice.
Of course, consumers are also negatively affected by purchasing counterfeit, replica, triple-A, or 5G products, as they have recently chosen to call them. Counterfeit products are often of inferior quality and can pose health and safety risks, especially for products such as medicines or cosmetics. Consumers usually buy counterfeit products, believing that they are authentic pieces.
Counterfeiting products will never be legal; therefore, their production will also affect employees and workers. The counterfeiting industry undermines jobs in the legitimate economy. Legally established brands that operate legally may have to reduce their workforce or close their factories, workshops, or maquilas due to decreased sales caused by unfair competition. Counterfeiting represents a negative impact on local communities and the economy in general.
Buying counterfeits also affects governments and taxpayers, as their sale often involves tax evasion and money laundering. These activities reduce tax revenue and can increase the tax burden for other taxpayers.
Additionally, governments must allocate resources to combat counterfeiting, which increases administrative and law enforcement costs. When you feel that buying a counterfeit product does not harm anyone, think that its production involves disrespect for labor rights, smuggling of raw materials, low-quality materials, and investment in research and development. Additionally, someone else must approach the marketing investment to create authentic products. They invest and have ideas but are still waiting to receive a return on their invested capital. Why would something that affects so many people do not affect you?
For those of us who love the fashion and design industry and who are committed to its development, it is essential to take a firm stance against the purchase and promotion of counterfeit items, not only because it harms legitimate brands and designers but also violates the principles of authenticity, quality, and creativity that are fundamental in our industry.
By preferring counterfeit products, you compromise the market's integrity and discourage innovation and progress in this field. We must support and promote authenticity and originality in fashion, defend design and intellectual property, and actively reject any form of counterfeiting, leaning towards products that genuinely reflect the talent and dedication of the creators.
If this topic interests you, I will leave you some with data, statistics, and other panoramas.
Counterfeits and illicit trade: a blow for all industries, Forbes Mexico: https://www.forbes.com.mx/ad-falsificaciones-y-comercio-ilicito-un-golpe-para-las-industrias/
Counterfeit products: don't support organized crime, United Nations Office on Drugs and Crime (UNODC): https://www.unodc.org/counterfeit/es/index.html
Illegal products – problematic, INTERPOL: https://www.interpol.int/es/Delitos/Productos-ilegales/Productos-ilegales-problematica#:~:text=Los%20productos%20il%C3%ADcitos%20no%20solamente,pueden%20ser%20causa%20de%20accidentes.
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