LE05 Presentation Yi Yang Jérôme Saint-michel

08/06/2016University of Technology of Belfort-Montbéliard LE05

08/06/2016University of Technology of Belfort-Montbéliard LE05 Can We Stop the Trade of Couterfeiting?  Introduction  Counterfeits in China  The counterfeit industry  Baneful effects of purchasing counterfeits  Counterfeits and its influence in France  Can we kick out counterfeit products from our life?  Conclusion

University of Technology of Belfort-Montbéliard LE05 What is counterfeiting? 4 Definition from The World Intellectual Property Organization : “First of all the imitation of a product. The counterfeit is not only identical in the generic sense of the term. It also gives the impression of being the genuine product……originating from the genuine manufacturer or trader” A counterfeit is: An unauthorized copy Not conforming to the original manufacturer’s design, model, and/or performance standards Not produced by the stated manufacturer or produced by unauthorized contractors An off-specification, defective or used product sold as “new” or working Has incorrect or false markings and/or documentation

The different counterfeit consumer goods Designer labeled clothes, watches, handbags perfume and cosmetics (Burberry, Lacoste, L’Oreal, Rolex, Nike, Luis Vuitton, Gucci…) Consumer electronics (Breaker, cameras, hair dryers, smoke detectors,…) CDs, DVDs, video and audio tapes (burned copies of original CDs) Jewelries and sunglasses (Chanel, Cartier, David Yurman…) 5

The different counterfeit consumer goods Toys and game Vehicle parts (brake pads, engine parts, windscreens) Alcohol and tobacco ( Phillip Morris International brands: Malboro…, or Vins) Pharmaceuticals (treating cancer, HIV, malaria, diabete or viagra) 6

08/06/2016University of Technology of Belfort-Montbéliard LE05 Counterfeits in China Not difficult to be found in some bussiness streets

08/06/2016University of Technology of Belfort-Montbéliard LE05 Counterfeiting everything, every brand Fake Beats Iphone LV

08/06/2016University of Technology of Belfort-Montbéliard LE05 Counterfeit Physical Stores A fake luxury shopping street in a northern city of China...

08/06/2016University of Technology of Belfort-Montbéliard LE05 Counterfeit Physical Stores Hermès vs. HerwèsStarbucks vs. Starbocks

08/06/2016University of Technology of Belfort-Montbéliard LE05 Countries of Origin

08/06/2016University of Technology of Belfort-Montbéliard LE05 What is Being Made? Counterfeit factories produce items such as: Clothing DVD's and CD's Apple Products Watches Shoes Prescription & over the counter Drugs Auto Parts Children's Toys

08/06/2016University of Technology of Belfort-Montbéliard LE05 Sale Methods With the development of Internet the counterfeit industry grow exponentially in recent years. Online trade: there are multiple websites where you can purchase jerseys, pills and auto parts for roughly one-tenth of the price. Street trade: packmen sell counterfeit goods, fake bags mainly, around the famous tourist attractions.

08/06/2016University of Technology of Belfort-Montbéliard LE05 Where Do the Products Go? According to the World Customs Organization: Counterfeit products have been destined for over 140 countries. A large amount of counterfeit goods are sent to the United States. Rescently, the counterfeit problem in Europe is growing at a much faster rate then that in the United States.

It’s more than just a fake product: the negative effects of counterfeit IT'S DANGEROUS: Cheap, substandard, and dangerous components IT COULD COST YOU : Risks for identity theft and credit card fraud IT'S ILLEGAL: Counterfeiting and purchasing counterfeit products are illegal activities. IT COSTS YOUR CITY: No taxes, less money for city's schools, hospitals, other social programs. IT SUPPORTS CHILD LABOR: No fair wages or benefits, poor working conditions, use forced IT SUPPORTS ORGANIZED CRIME: funding organized crime, drug trafficking and even terrorist activity. IT HURTS LEGITIMATE COMPANIES: Lost sales and profits => lower wages and lost jobs( 200,000 ), higher prices for consumers 15

How is The counterfeit market? 16  10 % of worlwide trade: - 12% of toys market -10% of cosmetics & perfumes  More than 1000 billions of dollars /year loss  500 billion of dollars (World Customs Organization) and has been growing  Top Comodities seized (USA,2009)

Counterfeits in France History: - The concept of counterfeiting is concomitant with the French Revolution - From the 1980s, the increasing globalization promotes counterfeiting - From the 2000s, the increasing counterfeiting with the rise of countries BRICS Some datas: In 2013, Customs seized 7.6 million items (Pharmaceuticals (1,3M), Clothing(1,075 M), personal accessories( 0,445M),shoes (0,369M) Asia remains the largest importer of counterfeit (80%) E-commerce remains the first supply route(1.5 million seizures) Removing 30,000 jobs in France and 5 billions € per year loss 17

08/06/2016University of Technology of Belfort-Montbéliard LE05 Counterfeiting James Moody, former chief of the FBI organized crime division, claims that counterfeiting will be a worldwide crime in the 21st century. Some part of counterfeiting is counducted in the decentralized manufacturing model. Authorized factories have also been known to produce the counterfeit products. Counterfeited goods are graded on a scale: Grade-A product, a perfect copy of the genuine one.

08/06/2016University of Technology of Belfort-Montbéliard LE05 Can we kick out counterfeit products from our life? Driven by the huge interest, traffickers are eager to conduct this illegal business. Only when customers stop purchasing counterfeit products, will the counterfeit market go to its end Thus, enhance the legal consciousness of the public Government should tighten up the laws on intellectual property and printing of logos in factories

08/06/2016University of Technology of Belfort-Montbéliard LE05 Conclusion Although counterfeit has built a big industrial chain which concerns thousands of people’s interest and provides many a job, it’s still illegal. We don’t see the possibility to stop this trade now because it is keeping booming! But we believe with the development and improvement of living standard, people will eventually give up purchasing counterfeits and be able to afford the genuine products.

Thank you for your attention ! 08/06/2016University of Technology of Belfort-Montbéliard LE05

Questions: Have you ever bought any counterfeit product? When/where? Do you think purchasing conterfeits will bring you any inconvenience? Would you mind if your friend buy the counterfeit product(like the grade A product)? 08/06/2016University of Technology of Belfort-Montbéliard LE05