Showing posts with label fakes. Show all posts
Showing posts with label fakes. Show all posts

Nov 30, 2011

Black Friday to Counterfeit Monday

Wednesday, November 30, 2011
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Black Friday, the day after Thanksgiving, marks the beginning of the Christmas shopping season, when Americans hit the streets, stores and shopping malls in a materialistic frenzy. A more recent term, Cyber Monday, has also been coined by online marketers for the Monday following Black Friday to encourage people to buy even more online. After reading a news article entitled 150 Counterfeit Websites Shut Down by Feds, I wonder if Cyber Monday might also be referred to as Counterfeit Monday - the day greatest number of fake goods are purchased online.

According to the article, the Feds used Cyber Monday to announce that they've shut down 150 websites selling knock-off or pirated merchandise to bargain-seeking e-shoppers. The sites sold a wide variety of merchandise including movie DVDs, NBA jerseys and Louis Vuitton handbags, two of the most popular pirated brand items worldwide. From the list of domain names seized in this investigation, it seems that any domain name with the word jersey in it is likely to be selling counterfeit NBA and other sports league jerseys.

Fake v. Authentic Louis Vuitton bags: Can you tell the difference? This website tells you how.
Interestingly, while the domain names of the websites were registered in the United States, most were operated abroad and mostly from here in China. No individuals have been charged so far, but law enforcement authorities are still investigating and may bring charges if they can identify and obtain personal jurisdiction over people running the websites selling the counterfeit goods. Being that most of the people involved in running the websites are located in countries outside the United States, this will be a long and complicated procedure and relatively few are likely to be ultimately convicted of any crimes (unless they're also prosecuted in their countries of residence).

Oct 27, 2011

Fake DVDs in China

Thursday, October 27, 2011
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China is a country full of fakes - not necessarily fake people although those can be found in China as well as just about every country. Instead, I'm talking about fake goods of almost any kind imaginable. From trademark counterfeiting of famous brands to copyright piracy of music, movies and computer software, fakes are ubiquitous in China. Sometimes you can't help wondering if anything is really authentic. 


An article from eChinacities entitled Pirate Pictures: China’s Fake DVD Pandemic discusses the prevalence of fake DVDs all over China. The article mentions an estimate that 93% of all movies sold in China are pirated copies which seems like an underestimate to me. Anyone who has visited China is almost sure to have experienced this as the fake DVD vendors are usually out in the open, especially in crowded shopping areas. For example, last year when I worked at a university in Zhengzhou 郑县, there were several stores that sold nothing but fake DVDs within a block of the campus.

Fake DVD Store

Somewhat to my surprise, I found that here in Xiamen 厦门, fake DVD stores are a bit hidden. Generally, they seem to be in the backroom or upstairs in some other type of store. For example, there are several conveniently located, but not outwardly visible, in the popular Zhongshan Road shopping area. My guess is that there must have been some enforcement in the recent past that forced vendors to be less conspicious.

Fake DVDs are so common in China that most Chinese people probably don't even know they are illegal since they have probably never seen the legal variety. Actually, most Chinese college students don't bother buying even the fake DVDs. They tend to think its ridiculous to pay anything for movies (not to mention music) and download it illegally from the Internet instead.

The major movie companies have tried to develop a legitimate market by reducing their prices in China, but there's no way they can compete with the DVD pirates, who commonly sell DVDs of popular movies for around 10 RMB (about U.S. $1.50). 

The article says there's not much that can be done about the fake problem in China, quoting Shaun Rein of Forbes, who states that "China's piracy problem is not a matter of morality," he says "More than anything, it is a matter of poverty." I agree partly, but also disagree in part and believe this is an oversimplification. While its true that much of China's population can't afford to buy legitimate DVDs, the very poor also can't afford the fakes ones (not to mention DVD players to play them on). On the other hand, there's a large and growing percentage of the Chinese population that spend significant amounts of money on much more expensive goods than DVDs and certainly could afford to buy legal copies. 

I do agree with the article's assertion that China might pay dearly in the longer term for its inability or unwillingness to deal with intellectual property infringement. If China's economy is to continue the high rate of growth its experienced over the past few decades, it will have to start relying much more on creation and innovation rather than mere copying of Western products and technology. China may be able to successfully innovate, but figuring out how to effectively incentivize and protect such innovation could be a much more challenging problem.

Sep 6, 2007

iPhones in China

Thursday, September 06, 2007
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Apple's iPhone (a combination cellphone/music/video player) is off to a mixed start. The iPhone apparently has not been selling up to the company's expectations in the United States so Apple reduced the initially inflated price by about $200. However, this angered people who had already bought iPods. Apple CEO Steve Jobs's initial response was basically tough luck, but after this further angered purchasers, he must have realized that pissing off your most loyal customers probably isn't the best public relations strategy and Apple announced today that it will offer $100 credits to people who bought iPhones at the initial $599 price (see Jobs Apologizes: Gives $100 Credit).

Ironically, while American consumers are griping about the iPhone price, some eager consumers in China have been paying about 3 times the U.S. price for iPhones that don't even work fully (Chinese are paying up to U.S. $1170 for phones that can make, but not receive calls). More ironically, Apple is not selling the iPhone in China yet and does not plan to introduce iPhones to Asia until 2008. The phones being sold are either counterfeits or legitimate copies being illegally sold in China (See Unauthorized iPhones on Sale in China). Here's a video showing one of the fake Chinese iPhones:



Apple's decision to release the iPhone only in the U.S. initially seems to me like a big mistake, reflecting a company that is ignorant of the Asian market and the reality of globalization. By ignoring Asia, Apple is passing up the chance to sell iPhones to the vast majority of potential customers for the device. Mobile phone use is extremely prevalent all over Asia, from highly developed countries such as Japan and South Korea to lesser developed countries including the India and the Philippines (see Cellphone Users by Country). China has the world's largest number of mobile phone users (around 500 million) and the number of Chinese mobile phone users is likely to keep growing substantially due the increasing middle class with disposable income.

Now I realize that Steve Jobs has a lot more money than I do, but being the profit-hungry, capitalist he is, I'd think he'd be working frantically to secure deals with Chinese (and other Asian nations) wireless service providers to offer the iPhone (which may admittedly not be easy). Consumers in Asia that want iPhones and can afford to pay for them are going to get them, whether they're legally available or not. Not having them available legally gives more time for fakes to take over and dominate the market. With the high prevalency of counterfeiting in China and other countries, businesses must figure out how to make their products legally available in all markets for their products in order to have a chance. Ignoring the majority of your customer base which results in buying imperfect, illegitimate copies just doesn't seem like good business sense to me. C'mon Steve, get on the ball or at least on the iPhone.