Counterfeit City: Illegal Knockoffs Easy To Find On Canal Street

Dec 7, 2005 On NY1 Now: News All Morn Weather: Cold Winds, High 37
Counterfeit City: Illegal Knockoffs Easy To Find On Canal Street
Some of the hottest items for sale this holiday season aren't exactly
flying off store shelves, more like flying out of the back of vans.
That's because the goods are counterfeit. In a special expose, NY1's
Solana Pyne goes undercover for a closer look. This is part one of her
series "Counterfeit City"
They're hidden, but they're not secret.
"We just know that if you come to New York you can easily find fake
Rolex, Louis Vuitton," says Rhonda Andrews, a tourist from Alabama.
The market for counterfeit versions of brand–name products is booming,
even though just about every law enforcement agency has been cracking
down. This year alone, the NYPD has seized about $8 million in fake
gear.
"NBA products, Major League Baseball products, Timberland boots, Nike
sneakers, just about any product with a name brand," says NYPD Deputy
Inspector Brian O'Neill.
But even police admit the raids have just made dealers more creative.
"They used to be very open on Canal Street," says O'Neill.
"They would have the counterfeit products right out in front of the
stores, whether it was bags or hats or what have you. Now, a lot of the
counterfeit stuff is at least not so obvious."
Canal Street is one of the main retail spots for knockoffs. While the
goods aren't right out front, they're not hard to find.
NY1 took a hidden camera to Canal Street and went shopping. Within
minutes we came across a steerer – a woman who called out name brands
as we passed.
The woman led us to an unmarked doorway. A dark flight of stairs led to
two windowless rooms; secret stores lined with purses and wallets, all
imitations like Chanel, Hermes, Louis Vuitton, Coach, Gucci, Prada,
Burberry and Christian Dior.
Authorities say shops like these exist all over Chinatown. Some even
hide the knockoffs right in the main store, or just in the back.
"They had a little door. You're up front and then they say 'Louis
Vuitton,' and when they say Louis Vuitton they take you into the
little back room," says Andrews.
Another woman led us into a room in the back of a phone store on
Lafayette Street packed with purses and wallets.
For shoppers we spoke with, the secrecy makes it more of a thrill.
"It was exciting!" says one member of a family visiting the city from
Las Vegas. "That's the whole fun of buying purses in the back room is
because you're in the room."
But harmless it's not. Counterfeits are a multi–billion dollar illegal
business, and that business is run by criminal organizations that do
much more unsavory things.
"There's been assaults, robberies, extortions, because those groups
are also involved in the traditional crimes of extortion, gambling,
narcotics and alien smuggling," says O'Neill.
And that's probably more than you're bargaining for.
– Solana Pyne

ounterfeit City: Are Cheap Designer Knockoffs Funding Illegal Activity?
December 06, 2005
Forking over $40 for a designer knockoff may seem harmless enough, even
thrifty. But would you still do it if you knew that your money was
going to support illegal drug trade or terrorism? In part two of her
three part series "Counterfeit City" NY1's Solana Pyne takes a look at
the dark side of the counterfeit trade.
The holiday shopping season is in full swing. In Chinatown, that means
lots of black plastic bags filled with Louis Vuitton, Coach, Chanel,
and Gucci bags– fake ones.
Fake designer bags are easy to find, especially in Chinatown. It's
something that makes designers furious, but most shoppers that we spoke
to blame it on the designers themselves.
"They should lower their prices," says shopper Karen DiPietro. "Then
people wouldn't do this."
But would people still buy counterfeit bags if they knew who's cashing
in on the fakes?
Private investigator Shawn Lewis is paid by name brand companies to
investigate counterfeiters. He says buying a knockoff bag is like
giving money to someone asking a much more disturbing question.
"Please make donations for child labor, organized crime and terrorism,"
says Lewis. "Nobody is going to put any money into that kettle. But
when they buy a handbag for $35 that's a fake, that's exactly what
they're doing."
The FBI says that it is concerned that cash from the counterfeit trade
could fund terrorism. But, as of yet, there is no evidence directly
linking these sales to terrorist acts.
What has been documented, however, is that counterfeits are cash cows
for organized crime. A group of gang members were indicted in November
2004 for attempted murder, conspiracy to commit murder, extortion,
alien smuggling, and conspiracy to take hostages, as well as
trafficking in counterfeit goods.
Authorities often liken counterfeits to a less risky version of the
drug trade.
"It's low risk breaking of the law because it happens so much, it's so
voluminous all over the country and there are very few criminal cases
where people go to jail over this," says U.S. Customs officer John
Pfeifer.
Investigator Lewis put us in touch with an informant– a man who works
for counterfeiters of designer bags and clothing. He described the
conditions where bags like these are made. The informant asked to
remain anonymous, saying he feared for his life.
"There's a lot the mistreating of the workers. There's a lot of sexual
harassment toward them, because there's a lot of immigrants," says the
informant.
"I seen them beat people to the point where they're completely, like,
knocked out, with bats and stuff like that."
In this case, crime pays. Authorities say that the counterfeit trade
has exploded in the last five years.
The International Chamber of Commerce estimates that counterfeit goods
make up 6 percent of gross world trade with the bulk of the fakes
coming to the United States.
– Solana Pyne

Our NYC friend told us that she was shopping Canal Street once with her
mother and teh police apparently launched a raid on the other end of the
street. Given that many/most of teh shops on Canal are in what look to be
self–storage lockers with garage doors on eth front, she said the store
they were in just lowered the door and the shop owners told everyone to be
quiet until the police left. She said they had to spend nearly an hour in
the small shop before the shop owners would let them leave.
––
use...@yahoo.com
http://www.gopchoice.org/

Some other places in New York City besides Canal Street.
Howver, the NYPD headquarter buiilding is clearly visible from part of
the Canal Street..
goodgut...@yahoo.com wrote:

goodgut...@yahoo.com wrote in
news:1133963197.273715.320...@g49g2000cwa.googlegroups.com:
When DW and I visited New York this summer, our local friends took us down
to Canal street. I've personally got a pretty big problem with piracy and
counterfeiting, but it was certainly a sight to see. We also saw a couple
of undercover cops tucking badges under shirts and getting ready to stroll
the street.
––
use...@yahoo.com
http://www.gopchoice.org/

Userb3 wrote:
http://groups.google.com/group/soc.culture.china/msg/7214a3772d7e7e53?dmode=source&hl=en

Real manufactures do not loose money from counterfeits. People who buy
counterfeits would never buy the real stuff. Those who buy real stuff
wouldn't be caught dead with fakes.

"James" <j0069b...@hotmail.com> wrote in news:1133973572.226963.24653...@o13g2000cwo.googlegroups.com:
Stealing is stealing. Its is wrong. How complicated can that be?
And, of course, there's the simple fact that countrefeiting DOES cost
manyfacturers $$$.
––
use...@yahoo.com
http://www.gopchoice.org/

"Userb3" <use...@yahoo.com> wrote in message
news:Xns9725715FA542AElvisisal...@207.14.113.17...
There are lots of reason that manufacturers object ot knockoffs. Among
them: lots of people can't tell a knockoff from the real thing. If they
see a falling–apart knockoff, they may infer that the real thing is poorly
made––even if it isn't.
cofarb

In theory, I suppose you're right, but I've got friends who mix it up a
bit. Some fakes are really good and I have to do a double–take. The
Canal Street knock–offs are kind of obvious. There are some you can
get in Mexico that make it difficult to tell the authentic from the
fake. When I was in Europe this September I saw fakes obviously layed
out on the ground for sale just outside Vatican City and some were
pretty good. In short, I think even the most snooty would buy a fake
if the quality was good enough and the price was right. In the watch
market there are different classifications of fake, believe it or not.
There are replicas (quality fakes) and there are obvious fakes. They
are priced accordingly and people will spend upwards of $1,000 for a
replica, knowingly.
I like the good stuff like most women, but seriously thought of
counting the Euros in my pocket once I saw a Murakami LV Speedy bag I
liked. I didn't buy it because of a number of reasons, piracy being
one of them. I had to keep on walking and popped into a side street
restaurant for a Cocco Gelato and flipped through my new book on
Vatican art to get my mind off of the sin I had just contemplated.
Mills

"Mills" <MissMills...@gmail.com> wrote in news:1133993753.657147.26369...@o13g2000cwo.googlegroups.com:
That's a fine moral exercise!
BB
––
use...@yahoo.com
http://www.gopchoice.org/

Userb3 wrote:
Doesn't seem to bother the Americans. Even the Canadians are giving
land back to the First Nations.
I know. I'm going off on a tangent.

In article <1133963197.273715.320...@g49g2000cwa.googlegroups.com>,
goodgut...@yahoo.com wrote:
Just how crappy does a reporter need to be to have to go and
"investigate" the sale of counterfeit bags on Canal St. yet AGAIN? I
don't think there was a single factoid in there that I haven't seen
many, many times before in other regurgitations of the same story.
Stacy

Stacy Ferguson wrote:
At least they don't end up in the East River wearing cement shoes.

December 9, 2005 KST 00:14 (GMT+9)
Zoom InZoom OutPrintPrint
In Korea, fake goods are often true originals
December 09, 2005 =E3=85=A1 Few, if any, customers would pick up a Louis
Vuitton purse from a sidewalk stall and pride themselves on having
landed an original. But an original is precisely what they may have, as
many local companies are copyrighting the slight "refinements" they
make to branded goods.
Since 1998, the Korean Intellectual Property Office has reviewed 306
cases of copyrighted logos with an uncanny resemblance to well–known
brands, of which 226 were struck off the agency's trademark registry.
A counterfeit muffler from Fendi paints a telling picture. The original
logo of the Italian brand features two "F" letters side by side, with
the one on the right upside down. The fake, on the other hand, shows
the same pattern, but the "F" on the left is missing, thus resembling a
reverse "L."
The majority of the victims were foreign–based brands. In most cases,
the agency said, the brands' logos underwent only slight changes
largely undetectable to the untrained eye.
France's Louis Vuitton was the most frequently copied brand with 66
cases. Its original logo of a "V" superimposed on an "L" was inverted
on some occasions, and on others background patterns were altered.
Gucci was next with 14 cases.
Among products, handbag logos were the most vulnerable with 157 cases,
followed by gift–wrapping papers with 39.
Those who pirate logos have abused a loophole in the intellectual
property office's system that means just applying for a trademark often
guarantees receiving one. For products such as clothes and shoes that
have a relatively short shelf life due to constantly changing fashion
trends, the agency says it grants trademarks without a formal review
process.
It is not until it receives complaints from other manufacturers that
the agency takes a second look at counterfeit logos and decides whether
or not to revoke their registration.
"There are always pirating companies who try to escape our attention
and have their fake logos registered," said Lee Dae–seob, a senior
member of the trademark and design examination bureau at the agency.
"The original brands should examine the market regularly for any
counterfeits in circulation."
by Kim Pil–kyu <je...@joongang.co.kr>

Stacy, I think the same thing. A year or two ago, some stupid local
news did a "big undercover sting" on suburban mothers selling fake
handbags at purse parties. It made me so mad, because there is actual
news that they totally ignore!
Of course, they tried to make a bog deal about how the (insert
bone–chilling music here) "money actually goes to terrorists" dun dun
dun...
As far as buying fake handbags, I would rather put a little effort into
it, and buy something decent on sale at TJ Maxx or Saks Off 5th with my
50 bucks.
NM
Stacy Ferguson wrote:

Thursday, December 8, 2005
WTO IN HK
HK tries to stop the sale of counterfeit fashions during WTO summit
ASSOCIATED PRESS
Next Story
Updated at 12.51pm:
As Hong Kong prepares for a global summit about free trade next week,
it has starting to worry that commerce is a little too free in this
bustling city of skyscrapers and shopping malls.
The government is cracking down on vendors selling fake goods at
markets where shoppers can pick up Louis Vuitton handbags, Rolex
watches and silky Hermes ties – all for just a fraction of what the
real ones cost.
A special action team of 108 people has already begun sweeping the
markets ahead of the World Trade Organisation summit on December 13–18,
said Samson Chiu, a divisional commander of the intellectual property
investigation bureau of in the Customs Department.
Authorities seem to be making a special push during the WTO summit and
year–end holidays.
"We are anticipating, during this period until the end of the year,
normally there will be more tourists and people coming to Hong Kong,"
Mr Chiu said. "So we have to step up our enforcement measures.
Customs officials recently raided six storerooms for counterfeit goods
in Mongkok, a popular shopping area, and seized around 9,000 items,
including fake Gucci, Chanel and Fendi items, Mr Chiu said.
Officials here want to show they are serious about piracy. Hong Kong
calls itself "Asia's World City" – a cosmopolitan place with a strong
rule of law. It sets the territory apart from cities in the mainland,
where counterfeiting is rampant.
Hong Kong recently enlisted two of the world's biggest action film
stars in its campaign against fakes.
Arnold Schwarzenegger and Jackie Chan are appearing in a 30–second
public service announcement on Hong Kong television.
As the men rumble down a highway together on motorcycles dodging
explosions, Chan says, "When you buy pirated movies and music, you
support criminals!"
Schwarzenegger chips in: "Let's terminate it!"
The action hero turned California governor introduced the ad recently
while in Hong Kong during a recent trade tour. He acknowledged it's
tough to stop the counterfeit industry because there are so many
willing buyers.
"I know that even from our own trade mission, people have been
traveling in the various different cities and going into those shops
and buying those goods," he said.
Chiu, the customs official, said the vendors have elaborate systems
that help them avoid arrest. They employ lookouts and frequently
relocate storerooms. In some markets, the goods are displayed on the
street. Customers pick out what they want from catalogues and the goods
are later delivered. Sometimes, shoppers are led to back alley
showrooms full of fakes.
Hong Kong has tried to dissuade people from buying fakes by branding
them as uncool.
"We're hoping to create a sort of peer pressure where people don't
think it's necessarily right to show off about buying fakes," said
Stephen Selby director of Hong Kong's Intellectual Property Department.
One TV campaign features a glamorous woman flaunting flamboyant
designer clothes in a subway car. Then a man's voice says, "Hey baby,
think you can fool us with all those things? Come on. Get real. You are
what you wear."
Most of the goods seized from the custom's recent raid originated in
mainland China, Mr Chiu said.
Just over the border, only an hour train–ride away from central Hong
Kong, is a mega–mall of fakes in the boomtown of Shenzhen. Floor after
floor is shoved full of narrow shops selling faux Coach, Chloe,
Balenciaga, Gucci, Diesel and more.
Saleswomen call out, "Hello, missy," and DVD salesmen whisper about
their wares. And if shoppers can't find the fake they are looking for,
they can have it made by tailors who readily copy clothing designs.
With one of the world's biggest factories for fakes next door, it could
be hard for Hong Kong to control the flow until China does a better job
clamping down.
Chiu said authorities will review the effectiveness of the crackdown
after the holidays. If counterfeit sales are deemed to have been dealt
a significant blow, the special action team might be disbanded.
Laszlo Kovacs, the EU commissioner for taxation and customs, said
during a recent stop in Hong Kong that the fakes have to be stopped at
their source.
He said, "Only by cutting off the production of counterfeits can we
expect to successfully combat this global plague."