Counterfeit Goods

Information and statistics about counterfeiting and the sale of counterfeit goods. Estimated losses from counterfeits, markets where fake goods are sold, and other piracy statistics are collected from criminal justice programs and public information sources.

Experts in China estimate that up to 70 percent of Chateau Lafite Rothschild Red Wine sold in China are counterfeit bottles.

The wine is considered to be one of the world’s most expensive wine, and is very popular in China. 50,000 bottles are imported in to the country each year.

In a single raid, police found 10,000 fake bottles of wine with the Chateau Lafite label in a deserted house guarded by dogs.

(See all China crime statistics.)

Source:  “‘Fine wine’ hoard highlights China’s problem with fakes,” BBC News, November 9, 2012.

According to a study by a supply chain management consultancy, the number of suppliers to the United States Government that are considered “high-risk” has increased by 63 percent over a ten year period.

In 2011, investigators found 9,539 companies that were banned from doing business with the federal government had sold technology to federal agencies. Roughly 10 percent of these incidents involved counterfeit parts or equipment.

The report by IHS stated that the number of counterfeit technology parts in the market quadrupled between 2009 and 2011.

(See our ranking of counterfeit goods.)

Source:  David Goldman, “Fake tech gear has infiltrated the U.S. government,” CNN Money, November 8, 2012.

According to a research report by Yankee Group, app piracy causes developers to lose between 20 to 50 percent.

The sale of apps for mobile devices is expected to generate $10.1 Billion in 2012.

Source:  Olga Kharif, “Piracy Cuts Into Paid App Sales,” Bloomberg Businessweek, November 1, 2012.

Up to 40 million prescriptions in the United States are filled with counterfeit drugs each year, according to a white paper by Create.org.

In FY2011, counterfeit drugs consisted of 9 percent of all counterfeit goods seized by US Customs.

Source:  “Health and Safety Risks From Counterfeits in the Supply Chain,” Create.Org, October 25, 2012.

In 2011, the city of New Orleans had the most counterfeit NFL products seized during the year with over 7,100 counterfeit items. The value of the fake goods was worth over $1 Million.

As the site of the 2013 Superbowl, law enforcement agencies conducted raids in order to clean up the city of counterfeit merchandise. Nearly 800 fake items worth $29,630 were seized in the months leading up to the Superbowl by US Immigration and Custom Enforcement.

Source:  “800 counterfeit sports hats, jerseys confiscated in New Orleans,” Fox 8 New Orleans, October 25, 2012.

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According to media reports, a pirated copy of Microsoft Office Software is available for purchase on the streets of Bangkok, Thailand for about $9.70 (300 Thai Baht). A legitimate version of Microsoft Office would cost $200.

Software piracy in Thailand is estimated to cause losses of $852 Million a year.

(Software piracy losses by country.)

Source:  Patrick Winn, “Running bootleg software in Asia? Beware U.S. lawsuits,” Global Post, October 23, 2012.

In 2010, up to $1.4 Billion (1.1 Billion Euros) worth of counterfeit foods were sold in Italy, according to a think-tank based in the country. Counterfeited items included fake Parmesan cheese and spaghetti.

The total counterfeit goods market in Italy was worth $9 Billion in 2010, causing a loss of $2.2 Billion (1.7 Billion Euros) in tax revenue.

Source:  Antonella Ciancio, “”Fake in Italy” branches out into toothpaste, soaps-reports,” Reuters, October 22, 2012.

From 2011 to October 2012, authorities in the United Arab Emirates has seized over 2 million counterfeit HP supplies in the country.

Across the entire Europe, Middle East and Africa region, HP has seized nearly 8 million counterfeit products and supplies.

Source:  “UAE raises pressure on counterfeiters, apprehends repeat offender of fake supplies for HP printers,” AMEinfo.com, October 17, 2012.

Drug maker Pfizer found 20 counterfeit versions of their drugs in 81 countries in January 2009.

By July 2012, the company reported finding 60 of their drugs being counterfeited in 106 countries.

Source:  “Fake pharmaceuticals: Bad medicine,” Economist, October 13, 2012.

According to the sole license holder of underwear brand Jockey in South Africa, the company lost $2.2 Million (20 Million South African Rand) in sales to counterfeit underwear between 2007 and 2012.

A pair of fake Jockey underwear is sold for $0.50 (5 R) in the country, while the legitimate version costs $2.6 (22.95 R) in retail stores.

(All replica clothing losses and statistics.)

Source:  Nompumelelo Magwaza, “Clothing sector fights surge in counterfeit products entering SA,” Independent Online, October 13, 2012.