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Venue
and Type of Experience:
Although over the years we
have handled investigations regarding the loss of business secrets,
improper disclosure of proprietary information and cases involving
infringements and industrial espionage, it is only in the last three
years we began handling operations related to the problems of
counterfeit products. While other types of intellectual
property investigations usually involve surveillance and other
standard investigative techniques, product counterfeiting work has
required that we learn a completely new subject. While much of
this training has been provided by clients, we owe a lot to the
experienced professionals at Edward R. Kirby & Associates.
Steve and Jim Kirby, second generation Chicago area private
investigators, who are recognized as experts in this field, not only
provided initial basic training to us, but continue to share their
expertise when we run into new situations. Unlike most other
types of investigation work conducted by Loss prevention Concepts,
Ltd., our work on counterfeit product cases has been restricted to
Michigan.
Problems Caused by
Counterfeit Products:
The loss to U.S. business
from the counterfeiting of trademarked consumer products is
estimated at $200 billion a year according to the Department of
Commerce. Counterfeit goods include auto parts, aircraft
parts, baby formula, apparel, purses, jewelry, shampoo, cosmetics,
sunglasses, software, birth control pills medical devices, consumer
drugs and medicines and food products. . . and more. Most
counterfeit or "replica" products are substandard in
quality. Use of counterfeit products has caused problems for
consumers ranging from unwanted pregnancies and hair loss to ulcers
and skin problems. Counterfeit sunglasses, apparel and toys
often present other hazards involving ultraviolet protection, fire
retardant and unsafe design. Replica auto and aircraft parts
have caused deaths. Organized crime and terrorist groups are
often involved in these criminal enterprise. The F.B.I
believes the New York Trade Center Bombing was financed by
counterfeit T-shirts and sports apparel; and product counterfeiting
frequently plays a part in the laundering of drug money. Many
drug dealers also deal in knock-offs.
Our Legislative
Activism:
Until recently, Michigan's
anti-counterfeiting statue was outdated and provided little real
deterrent to those selling counterfeit goods. Our frustration
resulted in L.P.C., Ltd.'s president preparing a draft of an updated
statute, then working with State Senator Mike Rogers to streamline
the terminology and introduce it as a bill. While it was
actually a State House version, which passed, it contained all the
basics recommended and Michigan now has a realistic and enforceable
statute, where large volume dealers and repeat offenders are charged
with felonies--and there is no longer confusion regarding
confiscation of counterfeit goods.
Our investigative
Methodology:
Initially when we began
working in this field, we conducted a basic statewide survey to
locate where the worst offenders were operating. Clients, of
course, differ in their desires, but in most cases, first-time
counterfeiters are given one chance to cooperate, before being
prosecuted. In these cases, we serve cease & desist
notices and request voluntary surrender of the counterfeit
goods. We then monitor the vendor to insure the activity does
not continue. When we commenced activity in this field, many
counterfeiters were operating out of reputable trade centers and |
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