Characteristics Of Product Counterfeiting

Nowadays, a global trend is the production, distribution and consumption of counterfeit goods that has been increasing at an alarming rate (Norum and Cuno 2011, 27). As an example, there is a huge amount of cheap copies of luxury clothing and accessories, such as fake Louis Vuitton and Burberry luggage, Rolex watches and Polo by Ralph Lauren apparel goods (Alcock et al. 2003, 133; Green and Smith 2002, 90). Product counterfeiting is not a new phenomenon, manufacturing unauthorized copies of a product exploded dramatically in the 1970s (Harvey and Ronkainen 1985, 37; Bian and Veloutsou 2007, 212). The most outstanding characteristics of counterfeiting are firstly its overwhelming financial significance, and secondly the international scope of the problem (Bamossy and Scammon 1985, 334).

Counterfeiting is regarded as a serious economic, social and political problem (e.g. Bian and Veloutsou 2007, sivu; Chaudhry and Stumpf 2011, 147). Prior studies indicate the negative sides of purchase fake goods. To name only a few, lost jobs, taxes and sales, increase in the trade deficit, and crime are serious problem (McDonald and Roberts 1994, Cordell et al. 1996, Green and Smith 2002, 91). Nevertheless, there is not only concerns about where the money is coming from but also where it is going. Many purchasers of counterfeit goods do not feel that they are doing any harm by purchasing fake products but consumers of fake products may fund counterfeiters to do illicit activities and