False Profits: Why Product Counterfeiting is Increasing

Product counterfeiting has grown in scope, scale and complexity in the last two decades, and now affects many areas of manufacturing and retailing from clothes and CDs to items such as shampoo and vehicle components. Based on a wide range of interviews in the UK, this article argues that despite recent legislative change and increased criminal penalties for counterfeiters, enforcement is haphazard, resource problems often dictate that no criminal prosecution is undertaken, and actual penalties remain low. Moreover, questions of whether or not a particular item is counterfeit have become greatly complicated by the development of outsourcing and the rise of parallel trading. These points suggest that counterfeiting is likely to grow in the future.