Editing Counterfeit (section)

==Counterfeit goods==
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{{Main|Counterfeit consumer good}}Counterfeit goods are products that illegally use a registered [[trademark]] on items identical or similar to the original, designed to mislead buyers into thinking they are purchasing authentic products.<ref name=":0" /><ref name=":1" /> Similarly, pirated goods [[Copyright infringement|infringe copyright]],<ref>{{cite report |url=https://www.oecd.org/content/dam/oecd/en/publications/reports/2021/06/global-trade-in-fakes_f64665b3/74c81154-en.pdf |title=Global Trade in Fakes: A Worrying Threat |date=June 2021 |publisher=Organisation for Economic Co-operation and Development (OECD) |quote="...and the term pirated describes tangible goods that infringe copyright." |access-date=12 October 2024}}</ref> typically involving unauthorized reproductions or distributions of copyrighted works,<ref>{{Cite web |title=WTO {{!}} intellectual property (TRIPS) - agreement text - enforcement |url=https://www.wto.org/english/docs_e/legal_e/27-trips_05_e.htm#fnt-14 |access-date=2024-10-12 |website=www.wto.org |quote="(b) 'pirated copyright goods' shall mean any goods which are copies made without the consent of the right holder or person duly authorized by the right holder in the country of production and which are made directly or indirectly from an article where the making of that copy would have constituted an infringement of a copyright or a related right under the law of the country of importation."}}</ref> such as movies, music, or software. The exact definitions of both counterfeit and pirated goods can vary by country, depending on local [[intellectual property]] laws.

[[File:CBP with bag of seized counterfeit Viagra.jpg|thumb|upright|Bulk bag of counterfeit [[sildenafil|Viagra]]]]

The colloquial terms "dupe''"'' (short for "duplicate") or "knockoff''"'' are often used interchangeably with "counterfeit," though they have different meanings.<ref>{{Cite news |last=Judkis |first=Maura |date=2023-03-23 |title=In Gen Z's world of 'dupes,' fake is fabulous — until you try it on |url=https://www.washingtonpost.com/lifestyle/2023/03/22/dupes-shopping-trend-gen-z/ |access-date=2024-10-13 |newspaper=Washington Post |language=en-US |issn=0190-8286 |quote="Such items used to be called knockoffs...But now they’re dupes, a Gen Z rebranding of fashion and beauty products that are cheaper versions of the real thing — duplicate, but also duplicity, since the wearer might trick someone into believing they bought designer."}}</ref> Dupes and knockoffs generally mimic the physical look of other products without copying the brand name or logo of a trademarked item, unlike counterfeits.<ref>{{Cite web |last=Lee |first=Medora |date=2023-06-14 |title=Who needs pricey lululemon leggings or Dyson Airwrap when you can get affordable dupes? |url=https://www.usatoday.com/story/money/personalfinance/2023/06/12/dupes-surge-ways-to-stay-trendy-amid-inflation/70290991007/ |access-date=2024-10-13 |website=USA TODAY |language=en-US |quote="...Counterfeits and dupes aren’t technically the same. Dupes copy or imitate the physical appearance of other products but don’t copy the brand name or logo of a trademarked item the way a counterfeit, or fake, does."}}</ref><ref>{{Cite web |title=Counterfeiting (Intended for a non-legal audience) |url=https://www.inta.org/fact-sheets/counterfeiting-intended-for-a-non-legal-audience/ |access-date=2024-10-12 |website=International Trademark Association |language=en |quote="Knock-offs, on the other hand, are designed to look like authentic products, but they are not exact replicas and may differ in some ways. Knock-offs also don’t feature the trademark or logo of another brand, but will usually have the brand of the company that made them."}}</ref> Despite this distinction, counterfeits are frequently misleadingly marketed as dupes.<ref>{{Cite web |last=Shamsian |first=Nicolette |date=2023-12-07 |title=Fashion Victims: Dupes Are A Serious Problem - Above the Law |url=https://abovethelaw.com/2023/12/fashion-victims-dupes-are-a-serious-problem/ |access-date=2024-10-13 |website=abovethelaw.com |language=en-US}}</ref>

According to the Organisation for Economic Co-operation and Development ([[OECD]]), the presence of counterfeit goods in global trade has grown substantially. In 2005, counterfeit and illegally copied products accounted for up to $200 billion in international trade.<ref>{{cite web |year=2007 |title=The Economic Effect of Counterfeiting and Piracy, Executive Summary |url=http://www.oecd.org/dataoecd/13/12/38707619.pdf |url-status=live |archive-url=https://web.archive.org/web/20151112004447/http://www.oecd.org/dataoecd/13/12/38707619.pdf |archive-date=12 November 2015 |access-date=15 November 2016 |publisher=OECD, Paris}}</ref> This figure rose to $250 billion by 2007, representing 1.95% of world trade, up from 1.85% in 2000.<ref>{{cite web |year=2009 |title=Magnitude of counterfeiting and piracy of tangible products – November 2009 update |url=http://www.oecd.org/dataoecd/57/27/44088872.pdf |url-status=live |archive-url=https://web.archive.org/web/20150925164615/http://www.oecd.org/dataoecd/57/27/44088872.pdf |archive-date=25 September 2015 |access-date=15 November 2016 |publisher=OECD, Paris}}</ref> By 2019, counterfeit and pirated goods made up approximately 2.5% of global trade, valued at an estimated $464 billion.<ref name=":2">{{Cite web |date=2021-06-21 |title=Global Trade in Fakes |url=https://www.oecd.org/en/publications/global-trade-in-fakes_74c81154-en.html |access-date=2024-10-11 |website=OECD |language=en}}</ref> In the EU, imports of counterfeit and pirated products reached as high as €119 billion (approximately $134 billion), accounting for up to 5.8% of total imports that year.<ref name=":2" />[[Image:SharpieVsShoupie.JPG|thumb|A [[Sharpie (marker)|Sharpie]] marker, next to a counterfeit "Shoupie" marker]]The increase in counterfeit goods sales, driven by the rise of globalized supply chains and e-commerce, is enabled through the use of small packages, sometimes referred to as [[De minimis#Imports|de minimis shipments]].<ref name=":4" /><ref>{{Cite book |last=OECD |url=https://www.oecd-ilibrary.org/governance/trade-in-counterfeit-and-pirated-goods_9789264252653-en |title=Trade in Counterfeit and Pirated Goods: Mapping the Economic Impact |date=2016-04-18 |publisher=Organisation for Economic Co-operation and Development |location=Paris |language=en |quote="Counterfeit and pirated trade is a global and dynamic phenomenon. Recently, markets for IP-infringing products have become increasingly globalized and are affected by global trends. The post-crisis revival of trade, including growing market openings in many regions, the emergence and globalization of value chains, and booming e-commerce in global trade, underpin global market dynamics for both legitimate and counterfeit goods."}}</ref> Counterfeit goods purchased from e-commerce websites or social media apps are shipped in small packages to bypass [[Customs|customs inspections]] and exploit de minimis benefits, such as duty-free imports and expedited customs processing, allowing them to reach buyers directly.<ref>{{Cite web |last=McDaniel |first=Christine |date=2023-07-05 |title=Solving The Big Problems That Come In Small Parcels |url=https://www.forbes.com/sites/christinemcdaniel/2023/07/05/solving-the-big-problems-that-come-in-small-parcels/ |access-date=2024-10-12 |website=Forbes |language=en}}</ref><ref>{{Cite web |date=2021 |title=The Sociotechnical Evolution of Product Counterfeiting: How Social Media, Social Networks, and Social Commerce are "E-Socializing" Product Counterfeiting – Center for Anti-Counterfeiting and Product Protection |url=https://a-capp.msu.edu/article/the-sociotechnical-evolution-of-product-counterfeiting-how-social-media-social-networks-and-social-commerce-are-e-socializing-product-counterfeiting/ |access-date=2024-10-12 |language=en-US}}</ref><ref>{{Cite web |date=2023-08-09 |title=New research exposes the dark side of social media influencers: facilitating counterfeit trade |url=https://www.port.ac.uk/news-events-and-blogs/news/new-research-exposes-the-dark-side-of-social-media-influencers-facilitating-counterfeit-trade |access-date=2024-10-12 |website=University of Portsmouth |language=en}}</ref> In 2023, 92% of counterfeit seizures in the U.S. involved small packages.<ref>{{Cite web |last=Nishimura |first=Kate |date=2024-10-10 |title=De Minimis Package Volume Hit 4 Million Per Day in 2024, CBP Says |url=https://sourcingjournal.com/topics/business-news/de-minimis-trade-law-wita-ncto-cbp-china-enforcement-regulation-531373/ |access-date=2024-10-12 |website=Sourcing Journal |language=en-US}}</ref>[[Image:LG전자, '독한 짝퉁 대응' 나섰다.jpg|thumb|Counterfeit [[LG]] brand and products, such as televisions, monitors, air conditioners, etc.]]China (including Hong Kong) is a major source of counterfeit goods, responsible for an estimated 80% of the world’s counterfeits,<ref>{{Cite web |title=China: Multi-pronged approach proves best fit to tackle rise in counterfeits |url=https://www.worldtrademarkreview.com/guide/anti-counterfeiting-and-online-brand-enforcement/2024/article/china-multi-pronged-approach-proves-best-fit-tackle-rise-in-counterfeits |access-date=2024-10-12 |website=www.worldtrademarkreview.com |language=en}}</ref> contributing over 1.5% to its GDP,<ref>{{Cite web |last=Redfearn |first=Nick |title=Cross-border trade in counterfeit goods |url=https://rouse.com/insights/news/2021/cross-border-trade-in-counterfeit-goods |access-date=2024-10-12 |website=rouse.com |quote="China’s role in counterfeit trade cannot be overstated. Counterfeit goods from China are estimated to make up approximately 12.5 % of China’s total exports and over 1.5 % of its GDP..."}}</ref><ref>{{cite report |url=https://www.uschamber.com/assets/archived/images/documents/files/measuringthemagnitudeofglobalcounterfeiting.pdf |title=Measuring the Magnitude of Global Counterfeiting: Creation of a Contemporary Global Measure of Physical Counterfeiting |date=February 2016 |publisher=U.S. Chamber of Commerce Global Intellectual Property Center |access-date=12 October 2024}}</ref> and accounting for 84% of all counterfeit items seized by [[U.S. Customs and Border Protection]] in 2023.<ref name=":3">{{cite report |url=https://www.cbp.gov/sites/default/files/2024-06/ipr-seizure-stats-fy23-508.pdf |title=Intellectual Property Rights Seizure Statistics: Fiscal Year 2023 |date=June 2024 |publisher=U.S. Customs and Border Protection |access-date=12 October 2024}}</ref> Other significant sources include India, Thailand, the Philippines, Turkey, Vietnam, Colombia, Mexico, and the United Arab Emirates.<ref name=":3" />    

The most frequently seized counterfeit items are footwear, clothing, leather goods, and electrical machinery and electronic equipment.<ref name=":2" /> In 2023, apparel and accessories made up 26.2% of the counterfeit goods seized by U.S. Customs and Border Protection.<ref>{{Cite web |title=Intellectual Property Rights {{!}} U.S. Customs and Border Protection |url=https://www.cbp.gov/trade/priority-issues/ipr |access-date=2024-10-12 |website=www.cbp.gov |language=en |quote="Wearing Apparel/Accessories topped the list for number of seizure lines with 26,891 products, representing 26.2% of all IPR seizures in FY 2023. Watches/Jewelry were among the top products seized in terms of total MSRP value with seizures valued at over $1 billion (USD), representing 38.4% of the total value of goods seized in FY 2023. Handbags/Wallets came in second with an estimated value of over $658 million (USD), corresponding to approximately 23.9% of the total value of goods seized due to intellectual property rights violations."}}</ref>  [[File:An authentic flash memory IC and its counterfeit replica.png|thumb|An authentic [[Intel]] flash memory IC (right) and a counterfeit [[replica]] (left); although the packaging of these ICs is the same, the [[radiography|X-ray image]]s reveal that the inside structure of the fake one is different<ref name="Terahertz characterization of electronic components and comparison of terahertz imaging with X-ray imaging techniques">{{cite journal|last1=Ahi|first1=Kiarash|editor-first1=Mehdi F |editor-first2=Thomas W |editor-first3=Tariq |editor-last1=Anwar |editor-last2=Crowe |editor-last3=Manzur |title=Terahertz characterization of electronic components and comparison of terahertz imaging with X-ray imaging techniques|journal=SPIE Sensing Technology+ Applications|series=Terahertz Physics, Devices, and Systems IX: Advanced Applications in Industry and Defense |date=13 May 2015|volume=9483 |page=94830K-94830K-15|doi=10.1117/12.2183128|bibcode=2015SPIE.9483E..0KA |s2cid=118178651 |url=https://www.researchgate.net/publication/278034592}}</ref>]]
Counterfeit components are also present in the military supply chain.<ref>{{Cite web |last=Wagner |first=Paul |date=2019-11-02 |title=Combating Counterfeit Components in the DoD Supply Chain – DSIAC |url=https://dsiac.org/articles/combating-counterfeit-components-in-the-dod-supply-chain/ |access-date=2024-10-13 |language=en-US}}</ref> A report from an investigation initiated by the [[United States Senate Committee on Armed Services]] in March 2011 revealed over 1,800 cases of suspected counterfeit electronic parts within more than 1 million defense-related products.<ref>Senate Armed Services Committee, [https://www.armed-services.senate.gov/press-releases/senate-armed-services-committee-announces-investigation-into-counterfeit-electronic-parts-in-dod-supply-chain Senate Armed Services Committee Announces Investigation into Counterfeit Electronic Parts in DOD Supply Chain] {{Webarchive|url=https://web.archive.org/web/20220408155315/https://www.armed-services.senate.gov/press-releases/senate-armed-services-committee-announces-investigation-into-counterfeit-electronic-parts-in-dod-supply-chain|date=8 April 2022}}, published 9 March 2011, accessed 2 January 2022</ref><ref>Trace Laboratories, Inc., [https://smtnet.com/library/files/upload/Counterfeit-Electronic-Components.pdf Counterfeit Electronic Components: Understanding the Risk] {{Webarchive|url=https://web.archive.org/web/20220104121438/https://smtnet.com/library/files/upload/Counterfeit-Electronic-Components.pdf|date=2022-01-04}}, accessed 4 January 2022</ref> A follow-up report in 2012 found that counterfeit parts came "overwhelmingly from China."<ref>{{cite web |date=2012-05-21 |title=Senate Armed Services Committee Releases Report on Counterfeit Electronic Parts |url=https://www.armed-services.senate.gov/press-releases/senate-armed-services-committee-releases-report-on-counterfeit-electronic-parts |access-date=13 October 2024 |website=U.S. Senate Committee on Armed Services |publisher=U.S. Government}}</ref><ref>Nash-Hoff, M. [https://www.industryweek.com/the-economy/article/21957101/senate-report-reveals-extent-of-chinese-counterfeit-parts-in-defense-industry Senate Report Reveals Extent of Chinese Counterfeit Parts in Defense Industry] {{Webarchive|url=https://web.archive.org/web/20220408155314/https://www.industryweek.com/the-economy/article/21957101/senate-report-reveals-extent-of-chinese-counterfeit-parts-in-defense-industry |date=8 April 2022 }}, published 31 May 2012, accessed 12 March 2022</ref> By 2022, concerns over counterfeit components in the supply chain persisted, notably affecting the [[Lockheed Martin F-35 Lightning II|F-35 fighter jets]].<ref>{{Cite web |last1=Losey |first1=Stephen |last2=Gould |first2=Joe |date=2022-12-05 |title=Fake parts: A Pentagon supply chain problem hiding in plain sight |url=https://www.defensenews.com/pentagon/2022/12/06/fake-parts-a-pentagon-supply-chain-problem-hiding-in-plain-sight/ |access-date=2024-10-13 |website=Defense News |language=en}}</ref> In 2023, Forbes reported that Chinese materials, components, and software were still present in the [[United States Department of Defense|Department of Defense]]'s supply chain.<ref>{{Cite web |last=Tegler |first=Eric |date=2023-08-23 |title=China Was a Key DoD Supplier A Decade Ago - It Still Is |url=https://www.forbes.com/sites/erictegler/2023/08/23/china-was-a-key-dod-supplier-a-decade-agoit-still-is/ |access-date=2024-10-13 |website=Forbes |language=en}}</ref>