The OECD (Organization for Economic Cooperation and Development) estimates that the global trade in counterfeit goods is $250 billion annually. Other estimates put the figure closer to $600 billion. Whatever the number, it is a massive problem for both government and the brand owners whose products are being copied.
Problem for Governments
It is widely recognized that much of the trade in counterfeit goods involves organized crime and the criminal element in general. Profits generated fund criminal activity at home and abroad. It has also been traced to funding terrorist organizations. All of which puts an increased burden on law enforcement and the justice system as a whole.
Counterfeit pharmaceuticals, auto parts and even tobacco products have an increased risk to the health and safety of citizens, and no doubt increase the burden of cost on national healthcare programs.
Problem for Brand Owners
Every dollar spent on a counterfeit product is a dollar taken out of the legitimate supply chain: from manufacturer through to the retailer. Most of the loss can be attributable to the brand owner, both in loss of revenue, but also image due to shoddy and sub-standard quality of fake merchandise bearing their brand name.
Helping to Solve the Problem
Customs which employ sophisticated risk assessment and targeting analytics are able to identify many shipments of counterfeit goods. Using C-Hawk, customs are able to take an additional step to help identify shipments of fakes.
SecureBorders works directly with brand owners to help increase the effectiveness of the automated risk assessment process. This provides a unique link between industry and customs and works constantly in real-time, 24/7.