Counterfeit consumer goods

Counterfeit consumer goods are goods, often of inferior quality, made or sold under another's brand name without the brand owner’s authorization. Sellers of such goods may infringe on either the trade mark, patent or copyright of the brand owner by passing off its goods as made by the brand owner.

The term knockoff is often used interchangeably with "counterfeit," although their legal meanings are not identical. A "knockoff" is a colloquial term which describes products that copy or imitate the physical appearance of other products, but which do not copy the brand name or logo of a trademark. They may, or may not, be illegal under trademark laws. Such products are considered illegal when they are intended to confuse consumers. And someone can be a counterfeiter even if he doesn’t make the products, but knowingly sells them to others. Another overlapping term is pirated goods, which generally refers to copying copyrighted products without permission, such as music, movies and software. Exact definitions are determined by the laws of various countries.

Counterfeit products exist in virtually every area, including food, beverages, clothes, shoes, pharmaceuticals, electronics, auto parts, toys, and currency. The spread of counterfeit goods is worldwide, and in 2008 a study by the International Chamber of Commerce (ICC) estimated the global value of all counterfeit goods reached $650 billion every year. The same study projected that in 2015 the upper bound of the global value of counterfeit and pirated goods could be $1.77 trillion. Counterfeit products make up 5 to 7% of world trade and have cost an estimated 2.5 million jobs worldwide, with 750,000 jobs lost in the U.S. alone. However, the Government Accountability Office found that many estimated figures were unreliable.

According to the OECD, counterfeit products encompass all products made to closely imitate the appearance of the product of another as to mislead consumers. Those can include the unauthorised production and distribution of products that are protected by intellectual property rights, such as copyright, trade marks and trade names. Counterfeiters illegally copy trademarks, which manufacturers have built up based on marketing investments and the recognized quality of their products, in order to fool consumers.

In many cases, different types of infringements overlap: unauthorized music copying mostly infringes copyright as well as trade marks; fake toys infringe design protection. The term "counterfeiting" therefore addresses the related issues of copying packaging, labelling, or any other significant features of the goods.

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