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COUNTERFEIT HARMS

Counterfeiting products are regarded as the world's public hazard second only to the drug smuggling. Below are some extracted facts:

- US customs reported that the number of seizures for counterfeiting products in 2003 increased by 12% over the prior year.

- In the EU, the number of fake toys intercepted by customs in the first half of 2003 was already 56% higher than the total for 2002.

- Customs seized almost 85 million counterfeit or pirated articles at the EU's external border in 2002 and 50 million in the first half of 2003. - European Commission Nov 2003.

- Counterfeit goods were responsible for the loss of 100,000 jobs in Europe each year. - European Commission 1998, Organization for Economic Co-operation and Development 1998, ICC Counterfeiting Intelligence Bureau 1997.

- In US, FBI estimated losses to counterfeiting at US$200-250 billion in 2003.

- In 2003, the city of New York estimated it annually loses US$500 million in state sales taxes due to the sale of counterfeit goods.

- In 2003, the World Health Organization estimated that counterfeit drugs accounted for 10% of all pharmaceuticals, with the number rising to as high as 60% in developing countries.

- Annual losses caused by counterfeiting of European cosmetics were estimated to exceed US$3 billion. - Study by the Centre for Economic Business Research, mentioned in Global Cosmetic Industry, November 1, 2003.

- It is estimated that clothing and footwear companies lose EUR7.5 billion per year to counterfeiting, and software companies lose EUR3.8 billion per year in Western Europe alone. - World Customs Organization IPR Strategic Group, 2001.

- The tobacco industry estimates that counterfeit cigarettes currently occupy 10% of global trade in their products, with the total number of fake cigarettes produced and sold each year being approximately 750 billion sticks.

- As much as 20% of the clothes bought in Italy are fakes. Fake shoes and clothes reached EUR3.13 billion in 2002, and accounted for nearly 21% of all counterfeits produced and marketed in Italy in the same period. - Italian consumers association Intesa dei Consumatori in April 2004.

- France's anti-counterfeit agency estimated that up to 10% car parts sold in Europe were fake in 2003.

- In 2003, 10% of gasoline sold in Bulgaria was counterfeit.

- The global automotive industry loses US$12 billion to counterfeiting, thereby resulting in the loss of 750,000 jobs. - The Motor & Equipment Manufacturers Association (MEMA) conducted a survey. Automotive News, November 24, 2003.

- Spurious car parts took up an estimated 37% of the market in India.

- In 2003, counterfeit car parts cost automobile makers around US$12 billion annually in lost sales, enough for the industry to take on an additional 200,000 workers.

- In 2003, The Federal Aviation Authority estimated that 2% of the 26 million airline parts installed each year are counterfeit.

- And, etc.