From luxury bags and top-notch sports cars to milk products and even drugs - if you can think of it, it probably can be counterfeited.
Even though the consequence of buying counterfeit items like a luxury handbag can range the gamut from wasting money on goods of inferior quality and even the risk of illness or death when buying foodstuff that contain ingredients that are potentially hazardous, counterfeiters don't stop because of a guilty conscience. They just get more daring.
At the recently concluded "Global Forum on Intellectual Property 2009" held in Singapore, Mr Dixon Zhang, a trained practitioner in intellectual property law from Chinese firm Fangda Partners, said that the trend of online counterfeiting has exploded over the past few years, with the phenomenon most rampant in China.
In a report by SC Magazine, the International Anti-Counterfeiting Coalition estimates that counterfeiting is a US$600 billion-a-year problem for companies worldwide - and about 14 percent of that takes place online.
In these days of recession when even the fashion-conscious become budget-conscious, more consumers will be tempted to consider alternative ways of getting their hands on a desired bag or accessory, and these include buying a second-hand item from an online auction, or going to a second-hand store to buy a used item.
It is both easy - and tempting - for an unwary consumer to start bidding for a luxury handbag that looks real enough in a picture posted on auction websites, with an irresistible
starting bid of $1.
Working online is just as easy for the seller, since selling counterfeit goods online requires much less ground work than working the streets. The infringer only needs to sign up for an account with an online auction site or a registered domain name, and an online funds transfer account to start business.
Unfortunately, trying to verify the authenticity of your purchase from the pictures posted by the seller is a different ballgame.
Ms Madeleine Ho, spokesperson for Hermes Singapore, said Hermes has encountered many incidents of customers buying fakes unknowingly. This is "even when it was from a trusted source like a friend or a secondhand consignment shop that is supposedly well-trained to distinguish between real and fake merchandise."
French fashion house Chanel tries to combat piracy of their goods over the Internet by continuously monitoring auction sites to take down such items before they are sold.
Staff will also conduct sample purchases from regularly.
It is little wonder why this has become a priority. Simply type in "fake Chanel" into a search engine, and you get thousands of results. In the United States alone, the company has managed to successfully remove about 50,000 postings over the last seven years.
But that number makes for only a small percentage of counterfeit goods sold online. The sheer volume of posts that engage in selling "Chanel" products make it virtually impossible to verify the authenticity of every seller. And legal costs involved in taking action against such infringement is too massive to implement practically.
So luxury companies now try to shift the responsibility of monitoring such items for sale to the host sites. If that is successful, online auction sites such as eBay and Taobao have to verify the authencity of each item before it can be sold online.
For now, luxury companies have to bear the burden of protecting their trademark themselves and rely on educating consumers not to be taken for a ride by scam artists.
Others, such as luxury brand Salvatore Ferragamo say that purchasing an item from the brand is akin to an experience.
Regional CEO of the SF, Mr Paul Cadman, said: "Customers are encouraged to buy the products and enjoy the service, the brand and the heritage for the full range of choice in comfortable surroundings.
"The purchase should be a complete experience, which we will follow up on, with registration of our client and then start a direct relationship, supporting needs and requirements for the future."
On the other hand, Italian bags and shoes luxury brand Salvatore Ferragamo (SF) does not face such a rampant piracy problem as their French counterpart. In an email
interview, Regional CEO of the SF, Mr Paul Cadman, said "It is rare to find SF counterfeit proucts, due to the high technical and cost issues associated with copying leather goods made by artisans, often shoes where size and comfort is the issue.
However, the company still takes precautions with an active trademark license legal team and global network.
It remains to be seen if that can be successfully implemented worldwide. For now, luxury companies have to bear the burden of protecting their trademark themselves.
Another company has also set up a website to educate consumers on why they should not purchase counterfeit goods.
When carrying a counterfeit can land you in prison
In some countries, simply carrying counterfeit bags can get you into trouble with the law.
An article in the Daily Xpress reported that travellers spotted carrying fake luxury goods in France could be imprisoned and fined up to 300,000 euros (about $589,000).
If anyone is found buying counterfeit goods in the French resort of Cannes, he is guilty of possession. The offence is punishable with a fine of up to 375,000 euros (about $731,000) and a five-year prison term.
France is said to have the most strictest intellectual property (IP) laws, probably because it serves as the headquarters for all haute couture brands and many other established luxury brands.
Offenders in Italy, the country with the next most severe laws, will face a maximum fine of 10,000 euros (about $19,500).
Outside of Europe, the laws governing possesion of counterfeit bags are more lax. In most other countries, including United States, Hong Kong and Singapore, only sellers of counterfeit bags are liable to be charged in court.
In countries where pirated goods can be found just as easily on the streets as online however, usually manufacturers of pirated goods are targeted. These countries include
Thailand, China and India.
