It is too hot for my white Dolce & Gabbana palazzo pants, so I choose a short black Roberto Cavalli skirt. The dilemma now is whether to team it with a loose-fitting, white Chanel T shirt with a hint of gold or opt for a fitted, black Gucci blouse. I choose the blouse and team it up with silver accessories including the classic silver Gucci bracelet watch. Now for shoes. Why is this always the hardest choice of all? Probably because I own twenty pairs of sandals alone, I grab a pair of silver Armani ballet shoes and a Mulberry purse, a squirt of Ghost, et voila, my outfit is complete and at a cost of just under 500 leva, I am happy. If I were to buy a genuine version of this outfit it would have cost me somewhere in the region of ?1000. The Gucci watch alone costs over 1200 leva. Of course, I could have designer chic for even less money than this, but many items on sale are poor imitations and the danger is looking like a walking billboard. I hate those over-logoed T-shirts, the bejewelled Chanels;,the diamond encrusted Victoria Beckhams that just scream, “Fake”. Many stylish, well-made and well-copied pieces lie tucked away amongst the racks of blatant counterfeits.
“Are you ready?” I call to my sons, who are both co-ordinated in contrasting outfits from Diesel and Quicksilver. “No, we’re still watching Pirates of the Caribbean.” In our household, we watch all of the latest movies, long before they are officially released on DVD. My husband, dressed from head to toe in Ralph Lauren, stubs out his cigarette, Benson & Hedges, which would have cost him around 16 leva a packet in England, but only cost him 5 leva from his “supplier” in Varna and we all make our designer exit to head off into the city to celebrate our wedding anniversary.
The EU Taxation and Customs Commissioner, Laszlo Kovacs, would not condone our behaviour. Recently he said, “The public has a responsibility here by not being tempted by the cheap fake holiday bargains.” My reply, “Get real!” When branded goods are available at a fraction of their real price, it would take a will of steel to resist. Overlooking the fact that they are counterfeit is easy when you consider the phenomenal profits made by the original brand owners. In addition, let us not forget how they favour a class distinction between the haves and have-nots, by trying to make a simple article of clothing, jewellery or perfume a privileged item. I accept that the original is of superior quality and that they have invested a great deal in the marketing of the brand, but I do object to the elitist role they perpetuate. If the EU and Bulgaria are serious about tackling counterfeit crimes, then why do we see an increase in copies offered year after year in the resorts?
Why do we never see police raids and arrests, when the sellers of these goods are clearly violating the law?
Counterfeit goods are big business in Bulgaria and it is not just the tourist resorts that are full of them. You can buy anything from watches and handbags to football strips, pirate DVD’s and sports bags in most towns. The choice is endless and for most, it is designer heaven. Some chain stores and most independent store-holders alike, would struggle to earn a living without the inclusion of counterfeit goods in their range. Counterfeiting is not just limited to clothing and media either. Fake watches, toys, bags, cigarettes, cosmetics, jewellery, pharmaceuticals and banknotes are common, with Bulgaria being one of the largest counterfeiters of currency.
A counterfeit is an imitation of a prestigious product, that is made usually with the intent to deceive the consumer into thinking that they are getting the original brand at a fraction of the real cost. In Bulgaria however, there is little attempt to deceive the consumer; most people are aware that they are buying a fake. Ask most of the retailers there, they will openly admit that their items are counterfeit.
In addition to outright counterfeits, there is a wealth of “knock off” items. These items imitate a well-known brand, sell for a lower price, and may be of inferior quality and contain a brand name similar but not identical to the product it aims to mimic. An example of a knock off item is Dynacell batteries.
The spread of counterfeit goods has become global in recent years. Currently, estimates show that counterfeit goods consist of five to seven per cent of World Trade, ranging in losses between $500 - $600 billion. According to the Organisation for Economic Co-operation and Development as well as the European Commission, counterfeit goods are responsible for the loss of 100 000 jobs in Europe each year. [1]
Certain consumer goods, especially very expensive or desirable brands or those which are easy to reproduce cheaply, have become frequent counterfeit targets. .
Counterfeit clothes, shoes and handbags from designer brands such as Louis Vuitton, Chanel and Gucci are made in varying quality; sometimes the intent is only to fool the gullible buyer who only looks at the label and doesn’t know what the real thing looks like, while others put some serious effort into mimicking fashion details. The popularity of Victoria Beckham’s designer jeans range for Rock and Republic last year spurred a flood of fakes. Factories that manufacture counterfeit designer brand garments and watches usually originate from developing countries. Bulgarian retailers often purchase these items in Turkey and bring them across the border in massive quantities.
Expensive timepieces such as Rolex are frequently subject to counterfeiting. In Golden Sands you can purchase a good replica Rolex Oyster Perpetual for around 150 leva, you can’t swim in it and its expected lifespan according to one watch retailer is about two years, but who will really know the difference when you get back home? Eighty percent of all EU counterfeits originate from China. EU figures show that 54 per cent of fakes seized in 2004 originated in here [2]. At the BaselWorld watch trade show paparazzi from China take photos of new watch models presented by prestigious brands. As a result, a counterfeit version of a new or prototypical watch sometimes launches on the market in advance of the authentic timepiece.
The allure of counterfeiting is obvious. If you could do it without being caught, you would be able to print your own money and buy whatever you want with it. Counterfeiting is the ultimate technology for people who want to get something for nothing and it is not a minor offence, like running a red light, or even shoplifting. “Counterfeiting continues to constitute a dangerous threat for our health, safety and the economy,” warns EU Taxation and Customs Commissioner Laszlo Kovacs.
Statistics just published by the European Commission show a significant increase in the amount of counterfeit and pirated articles seized at the EU’s external borders in 2006. Customs officials seized more than 250 million of such articles in 2006 compared with 75 million in 2005. Changes in the routes used by criminals to trade in fake goods, the use of the internet and the transport of small quantities by air or postal traffic make customs’ job even more challenging. Yet, customs officers broke previous records by increasing the total seizures by 40 per cent in 2006 compared with 2005.
A major success in the fight against counterfeiting was Operation DAN. In September 2006, thirteen EU member states cooperated, when 92 containers were seized carrying a wide range of products, largely from China, including cigarettes, medicine, fake toys, sunglasses, shoes and imitation car parts.
In the medicines sector, India is the number one source, followed by the United Arab Emirates and China. Together these three sources are responsible for more than 80 per cent of all counterfeit medicines. In other cases, other countries predominate; in the food sector, Turkey remains the main source and in the electrical equipment sector, it is Malaysia. However, new countries of origin have figured in the statistics (such as Algeria, Egypt, Turkey and the United Arab Emirates). It is possible that these countries are the source country due to a significant numbers of transshipment operations carried out there, rather than the actual manufacturing of the fake goods themselves.
In most EU member states, law enforcement authorities other than customs are assigned to control and seize counterfeit goods within their territories, for example at open markets or where production of such goods is discovered on their territory.
The problem of counterfeit within the internal market is covered by the so-called “Enforcement Directive”, which was adopted in 2004. Its implementation is supported by the recent Commission proposal introducing penal sanctions for a more efficient enforcement of intellectual property rights within the internal market. The European Commission maintains, “We are further strengthening our co-operation with Chinese counterparts through various activities. EU customs’ experts have been to China, have worked together with Chinese customs in several Chinese ports and airports, and have exchanged experience on risk analysis techniques.
“We are also working on a specific supply chain security pilot project with the aim of tightening and securing ‘end-to-end’ supply chains between Asia and Europe. Particular emphasis will be laid on having ‘secure lanes’ for sea containers moving from China to main European maritime ports.” As far as Bulgaria is concerned, I would say that their efforts have been useless.
The internet is a common source for the sale of counterfeit goods purchased in Bulgaria. Originally, eBay, the leading internet auction house, was an ideal marketplace for the trade of replica goods. A few years ago it was common to see descriptions such as “Chanel-like” or Gucci replica, but eBay have clamped down heavily on this illegal practice with the launch of their verified rights owner (VeRO) Programme. “As part of our mission, we are committed to help protecting the intellectual property rights of rights owners and to providing our users with a safe and enjoyable place to trade.” eBay encourage any person or company who holds intellectual property rights (such as a copyright, trademark or patent) which may be infringed by listings or items sold on eBay to participate in the VeRO Programme. A host of brand owners have web pages on the “About Me” section of the site. Here consumers can learn about the authenticity of an item. Chanel actually provides a list of items that they have never manufactured, but are in circulation and this includes clothing for dogs. Most brand owners state that the only way to ensure that you are purchasing authentic merchandise is to purchase the goods directly from an authorised retailer (e.g., a major department store or the brand owner’s own store) or from the brand owner’s website. All state that it is illegal to sell counterfeit and/or infringing merchandise on eBay. The manufacture, distribution and/or sale of counterfeit goods carry stiff criminal penalties. Louis Vuitton, one of the most copied brands worldwide, said, “The Louis Vuitton Company is firmly committed to the struggle against counterfeiting. To combat this scourge, a special team has been set up in Paris, with offices abroad. Louis Vuitton works with various French and international professional associations to make consumers aware of the risks inherent to the purchase of counterfeits. More than 13 000 counterfeiting proceedings and 6000 raids were launched last year, leading to the arrest of almost 1000 counterfeiters. Authentic Louis Vuitton products are sold exclusively in Louis Vuitton stores, through the Customer Department and through the website louisvuitton.com…”
Where does Bulgaria draw the line with counterfeiting? I recently spotted a “must-have” Coach handbag in the new Denyl store beneath Admiral Apartments in Golden Sands. Denyl, founded in Sofia in 1991, now has several stores all over the country. Coach is only sold in authorised outlets and I was surprised to see it here, yet so much of Denyl’s merchandise is what I believe to be authentic designer labels. A close inspection of the bag revealed that it was not leather (Coach fans will know that all of their bags are made from quality leather hide or signature canvas). Inside it contained an identification number, but the lining was plain, low quality and poorly sewn. A trip to the Coach website revealed my concerns. The design is a loose copy of the Coach Legacy Leather Satchel, but the tag inside does not contain the same wording as the original bag and Denyl is not listed as an official retailer, in fact there is no official retailer listed for Bulgaria on the website. I contacted Denyl, but in true Bulgarian style, I am still waiting for an answer. I find it sad that a chain such as Denyl includes merchandise such as this and it has made me doubt the authenticity of all of their other designer fashion, because they undoubtedly pass off their items as genuine and each one has a high-ticket price.
Top 10 brands counterfeited:
1. Microsoft
2. Nike
3. Adidas
4. Burberry
5. Louis Vuitton
6. Sony
7. Lacoste
8. Reebok
9. Viagra
10. Benson & Hedges
Top 10 items counterfeited:
1. Currency
2. Films
3. Software (business)
4. Cheques
5. Medicines
6. Music
7. Passports
8. Software (games)
9. Drivers licenses
10. Cigarettes
Source: www.goldsec.com
Notes
1. First Global Congress on Combating Counterfeiting
2. www.counterfeitaware.org
