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16 Trends Org. Crime 114 (2013)
Counterfeit Products

handle is hein.journals/trndorgc16 and id is 114 raw text is: Trends Organ Crim (2013) 16:114-124 DOI 10.1007/s12117-012-9153-5 I Ci R 1 1S Counterfeit Products Published online: 20 April 2012 C Springer Science+Business Media, LLC 2012 United Nations Office on Drugs and Crime, Vienna, 2010 http://www.unodc. org/documents/data-and-analysis/tocta/TOCTAReport_ 2010_lowres.pdf This is an excerpt from the 303-page report The Globalization of Crime: A Transnational Organized Crime Threat Assessment. This report was prepared by the Studies and Threat Analysis Section, Policy Analysis and Research Branch, Division for Policy Analysis and Public Affairs at UNODC. The report was under- taken in the context of the work on Threat and Risk Analysis mandated to UNODC by Member States under theme 2 (Policy and Trend Analysis) of the UNODC strategy for 2008-2011 (E/CN.7/2007/14). The excerpt contains the sections that deal with the smuggling of counterfeit consumer goods and counterfeit pharmaceuticals from China. Graphs and tables have been omitted. Counterfeit consumer goods from East Asia to Europe What is the nature of this market? The massive growth of Chinese manufacturing has been one of the key drivers of the twenty-first century global economy. Much of this growth is the result of outsourcing by overseas companies, looking to take advantage of China's high productivity and low costs. Most of the retail value of these products accrues to the companies doing the outsourcing, while the Chinese manufacturing firms retain a relatively small share. This mutually beneficial arrangement is only possible because most Chinese firms respect the intellectual property rights of the outsourcing companies. Unfortunately, this situation - in which the design- ers and manufacturers of a product often live on different continents - has fostered the growth of counterfeiting. Counterfeiting is an attractive alternative to licit commerce because costs are reduced to manufacturing, transport and distribution. The costs involved in research, design and marketing are all avoided. Because counterfeiters are 41 Springer

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