The Washington Post reports on the battle by Chinese authorities against unauthorized Olympic Merchandise.

From the Washington Post:

The furtive trade in the five official, adorable Olympics figures — including Huanhuan, Jingjing the Panda and others — is part of an Olympic-size battle that has erupted between the keepers of the Games’ lucrative symbols and an army of Chinese citizens who traffic in counterfeit versions of the world’s most coveted brands.

For years, China has been known as the leading exporter of fake goods, from Louis Vuitton handbags and Patek Philippe watches to auto and jet engine parts. The underground economy, which according to U.S. trade officials costs American companies $3 billion to $4 billion annually, has been allowed to flourish by a Chinese government that seldom prosecutes intellectual property violations.

But the Olympics have mobilized China’s piracy police like never before. Beijing, the host city, stands to receive up to 15 percent of all revenue from Olympic merchandise, a figure expected to easily top the $62 million raised in Athens four years ago. Aside from the mascots, China is also reportedly collecting up to $120 million each from Coca-Cola, McDonald’s, Adidas and other companies that have qualified as the highest-level Olympic sponsors.