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flea
markets. Management at these operations were cooperative
with our investigators and police and we provided them with basic
tips to identify counterfeit goods, state and federal statute copies
and even anti-counterfeiting posters. Today most of the
exposure has been eliminated in these markets, thanks to
management's efforts. Additionally legal action has been taken
against those who have been less than cooperative.
Interfacing with Law
Enforcement:
When a low key approach
doesn't work, or in cases involving distributors, large quantity
dealers, or unethical trade centers which sanction such sales on
their property, we work with law enforcement to handle the
problem. We have attended raids by federal agencies, such as
U.S. Customs and have had the opportunity to work with the FBI on
these cases. Additionally, we have worked with local law
enforcement on many occasions. Since this activity is usually
a first for most local police agencies, we have prepared an
informational package geared for police, recapping the problems
created by counterfeit products and the applicable statutes.
Often, smaller police agencies do not have the facilities for
transporting or storing seized products, and L.P.C., Ltd. handles
this responsibility. In many cases, police officers involved
with these raids have later called us with tips, and at other times
we have been asked to identify counterfeit goods found during
unrelated arrests.
Cost Effectiveness:
In most cases, where vendors
are selling counterfeit products of one brand, they additionally are
selling other counterfeit brands. The anti-counterfeiting
circle is a fairly closed group, and those most active are usually
members of the IACC--the International Anti-Counterfeiting
Coalition. When we come upon a location displaying and selling
large quantities of counterfeit goods, we contact our clients to see
if they are interested in participating with others on a shared cost
basis. This, of course, often delays the action, but allows
clients to eliminate the problems at a fraction of the cost of going
it alone. In some cases, we have represented up to fifteen
separate brands during a raid, with each client being billed a few
hundred dollars rather than thousands.
Sources of Leads:
Since we are the only
investigation service in Michigan handling a volume of this type of
work, leads come from law enforcement, retailers who are losing
business to counterfeiters and often from vendors who previously
voluntarily surrendered counterfeit goods to us. The
motivation for this latter group ranges from appreciation of not
being prosecuted for a first offense to other folks who feel if they
can't sell counterfeits, they don't want their competitors to
either. In some cases, bystanders at a raid have asked for a
phone number so they can call us with information on other problems
later--or have given our investigators their phone numbers or
quality leads right on the spot. Additionally, from time to
time, on a gratis basis our investigators check out possible
counterfeit problems they hear about and other Michigan
investigative agencies which know of our interest, pass on leads to
us.
Profitability:
Counterfeit product work is
our least profitable activity. In fact, often we do little
more than break even, considering the amount of gratis time involved
in checking out leads and the unusual amount of paperwork involved
in separate invoicing and reports on shared operations.
However, we enjoy this work and it is a rewarding activity since we
can see that our past activity has substantially reduced the
availability of counterfeit goods in Michigan in a relatively short
time period.
For
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