Why Do People Buy Counterfeit Products?

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Why do people buy counterfeit products? 1

Running head: Why do people buy counterfeit products?

Why people by counterfeit products? Monica Rodriguez American Intercontinental University Dr. Yamil Guevara

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ABSTRACT The elaboration and commercialization of counterfeit products is an issue that has been growing prominently within the last 20 years. There is no place in the world free with this type of products. The modernization and the globalization make the counterfeiting process more difficult to control, affecting not only the countries economy, but also its safety and the citizens’ general integrity. Knowing the
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They can also be found in almost every type of legitimate retail or wholesale location, including large chain department stores, malls, gift shops, pharmacies, supermarkets and flee markets (Lewis, 2009). According to the studies of the Counterfeit Intelligence Bureau of the International Chamber of Commerce, counterfeit goods make up 5% to 7% of world trade. China is the leader for intellectual property rights (IPR)

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seizures, with an alarming 80% of the total valued sized; it makes China the greatest counterfeiting country in the world. India is the second source for IPR seizure, with its main trading product, the imitation of pharmaceutical goods (Maxwell, 2009) (Lewis, 2011). There are many adverse effects that counterfeit trade involves. From the business perspective, the most common effect are the loss of credibility of the company’s name, the loss of money and time invested in research and development and of course the profits that companies lose due to counterfeit product (Lewis, 2011). To the country economic area represents an annual loss of millions of dollars (250 billions per year in USA) and loss of jobs (750,000 in the last year)(Lewis, 2011). To the countries safety, counterfeit trade is the perfect scenario for laundering money, funding terrorists and organized crime groups and to creating methods of terrorist attacks.
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