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Fight Against Counterfeiting Crime
1. E
-‐
CONSTRUCTION
MATERIALS:
A
NEW
THREAT
“Fake
goods
worth
more
than
USD
200
million
have
been
seized
and
nearly
1,000
people
arrested
in
a
series
of
operations
co-‐ordinated
by
INTERPOL
across
South
America
targeting
organized
criminal
counterfeiting
networks.”
Organized
under
the
auspices
of
Operation
Jupiter,
in
partnership
with
the
World
Customs
Organization
(WCO),
this
yearlong
operation,
throughout
2010,
led
to
a
series
of
interventions
across
13
countries
in
the
region
and
the
seizure
of
nearly
eight
million
counterfeit
products.
The
products
seized
included
construction
materials.
These
goods
(equipment
and
materials)
were
recovered
from
a
range
of
locations
including
markets,
commercial
shopping
centres,
and
street
vendors.
In
various
cases,
it
was
found
that
social
networking
sites
had
been
used
as
distribution
channels
for
these
counterfeits.
A
key
element
in
the
success
of
Operation
Jupiter
V-‐
the
fifth
such
operation
co-‐
ordinated
by
INTERPOL
in
the
region
-‐
was
the
increased
awareness
and
allocation
of
resources
to
tackle
the
dangers
posed
by
counterfeit
and
pirated
products
including
the
creation
of
dedicated
Intellectual
Property
crime
units
in
Chile
and
Peru.
“The
volume
and
range
of
goods
recovered
are
clear
evidence
of
the
value
that
Operation
Jupiter
brings
in
identifying
and
dismantling
organized
crime
networks
behind
these
counterfeits
and
also
demonstrates
the
massive
scale
of
this
type
of
crime
not
just
in
South
America,
but
globally,”
said
INTERPOL
Secretary
General
Ronald
K.
Noble.
In
recent
years,
the
global
boom
in
construction
and
the
growth
of
emerging
countries
has
caused
shortages
in
a
range
of
construction
materials
and
equipment
used
in
the
construction
and
public
works
sector.
In
this
context,
globalization
is
both
a
source
of
hope
and
danger.
There
is
an
ideal
kind
of
globalization
where
each
person’s
progress
contributes
to
the
progress
of
society
as
a
whole;
but
there
is
also
a
bad
kind
of
globalization
with
unfair
competition,
dumping
and
aggravated
deception,
endangering
the
economy
and
construction
and
public
works
companies,
and
above
all,
the
final
users
and
consumers.
Construction
and
public
works
companies
are
increasingly
exposed
to
major
criminal
charges
for
the
use
and/or
purchase
of
irregular
products
that
can
cause
accidents
endangering
people’s
safety.
Although
safety
regulations
have
become
stricter,
there
is
no
way
of
identifying
where
a
product
was
manufactured,
whether
it
meets
technical
requirements,
let
alone
cases
of
fraud.
In
the
event
of
an
accident,
insurance
companies,
often
forget
these
things,
which
are
essential
in
the
demonstration
of
proof,
establishing
facts,
assessing
the
damages
suffered,
reimbursing
such
damages
and
producing
reliable
statistics.
Recently
in
China,
a
general
audit
of
nuclear
power
stations
revealed
the
presence
of
non-‐compliant
materials,
counterfeit
or
other,
inside
cooling
pools.
While
such
alarming
information
from
emerging
countries
is
becoming
increasingly
common,
European
and
2. French
companies,
in
particular,
prefer
to
remain
silent
for
fear
of
destabilizing
the
market.
A
survey
carried
out
in
2010
by
a
large
professional
association
in
the
construction
sector,
revealed
that
counterfeiting
continues
to
be
seen
as
a
“shameful
disease”
in
the
sector.
The
large
majority
of
companies
approached
for
the
survey
either
refused
to
reply
or
wished
to
remain
anonymous.
This
points
to
a
real
conspiracy
of
silence.
Secondly,
the
survey
confirmed
the
interdisciplinary
nature
of
counterfeit
products,
including
construction
(compressors
and
machinery)
and
safety
devices
(footwear,
equipment,
lifting
hooks),
fences,
circuit
breakers,
fireproof
glazing,
building
applications,
taps
and
insulating.
This
is
becoming
a
prime
target
for
counterfeiters.
It
would
be
impossible
to
put
a
figure
on
the
scale
of
counterfeiting
in
this
sector,
but
for
electrical
equipment
alone
global
damages
are
estimated
at
more
than
1
billion
US$
a
year.
This
is
becoming
a
major
problem,
in
terms
of
safety,
for
both
final
users
and
construction
workers.
Lifting
hooks
can
be
taken
as
an
example
of
the
disastrous
consequences
of
using
non-‐compliant
products.
Copies
can
be
identical
to
the
original,
but
in
terms
of
quality,
they
may
lift
40%
less
weight.
Likewise,
in
terms
of
the
final
use
of
a
counterfeit
product,
analyses
of
customs
seizures
of
taps
have
shown
that
copies
release
more
metals,
including
copper,
into
drinking
water1.
There
are
obvious
reasons
for
counterfeiters’
keen
interest
in
construction
equipment
and
materials.
On
a
global
level
the
construction
market
is
worth
hundreds
of
billions
of
US$.
New
construction
and
renovation
work
provides
a
major
pool
of
easy
money
for
counterfeiters;
this
has
led
them
to
invest
more
and
more
in
this
sector.
The
new
technologies
that
have
been
made
available
to
counterfeiters,
in
particular
through
the
investment
of
drug
trafficking
proceeds,
the
opening
of
the
market
to
“DIY”
through
wholesale
and
the
internet
and
new
professional
distribution
systems,
have
resulted
in
major
changes
in
counterfeiting
practices
and
their
impact.
This
is
a
structured,
highly
organized
and
aggressive
form
of
counterfeiting.
1
Hansgrohe
(October
2009).
Press
release,
www.hansgrohe.be