PROTECTION FROM BRAND INFECTION

COUNTERFEIT FACTS & STATS

• Law enforcement officials estimates that the counterfeit goods account for 15 to 17 percent of the Russian market. Source: "Import of counterfeit goods up four-fold in Russia in 2006," RIA Novosti, April 25, 2007
• The New York City comptroller estimated, in a 2004 report, that the city lost more than $1 billion in tax revenue due to the illegal exchange of a variety of counterfeit goods.
• Counterfeiting cost the world economy around $650 Million annually
• In 2000 the FDA opened six counterfeit drug cases and in 2004 they opened 58 cases- a 960% increase in investigations in four years.
• In the United Kingdom in 2004, seventeen incidents were reported and in 2005, forty-six; a 270% increase in counterfeiting incidents in one year.
• In June 2005, following the discovery that an accredited pharmacy in Canada had dispensed counterfeit Norvasc, eleven reported deaths were examined for a link to the fakes. The regional coroner reported that of the eleven deaths, the counterfeit medicine could not be ruled out as a cause for four of them.
• In 2005, the United Kingdom saw the recall of medicines from the legitimate supply chain when a counterfeit version Lipitor was found. The resulting nationwide recall of 120,000 packs of the 20 mg Lipitor involved 240 pharmacists. After analysis it was found that approximately 60% of all packs returned were counterfeit.
• In 2003, 18 million repackaged Lipitor tablets - a mix of counterfeit tablets and authentic tablets intended for non-US markets - were recalled from the legitimate supply chain. According to authorities, it was the largest recall of a prescription medicine in the U.S.
• Counterfeiters have soaked the labels off vials of a low-strength version of Johnson & Johnson's anemia drug Procrit, used for treating cancer patients and replaced them with forged labels for the highest strength.
• In 2006, Pfizer reported more than 8.1 million counterfeit doses of their branded medicines were found and seized within these nations pharmaceutical supply chain. Unfortunately, most experts agree that those 8.1 million doses seized represent only a small fraction of those introduced into the entire global supply chain.
• Counterfeit vials of the human growth hormone Serostim used to treat severe symptoms of AIDS, have been discovered in New Jersey, Texas and Hawaii.
• In Ecuador, after an investigation of counterfeit Dayamineral being sold in the marketplace, nine raids took place, resulting in the seizure of 626 bottles of product and 5,000 counterfeit labels.
• Working in concert, U.S., U.K. and Hong Kong law enforcement authorities arrested a Shanghai based wholesaler of counterfeit Reductil and other products.
• With Americans purchasing 44% of all pharmaceuticals sold worldwide last year, if only 1% of the US drug supply was tainted it would equal 34.2 million prescriptions that are potentially life threatening. This equates to approximately one counterfeit prescription for every nine American citizens in 2006 alone.
• The World Health Organization says up to 10% of medicines worldwide are counterfeited—a deadly hazard that could be costing the pharmaceutical industry $46 billion a year.
• The International AntiCounterfeiting Coalition puts revenue loss to U.S. trademark holders at $200 billion per year.
• According to the Federal Trade Commission, counterfeiting costs the global automotive parts industry $12 billion a year; $3 billion of that total is in the United States resulting in the loss of 750,000 jobs Source: Motor & Equipment Manufacturers Association (MEMA)
• The FTC also estimates that the auto industry could hire 250,000 additional American workers if the sale of counterfeit parts were eliminated.
• According to the U.S. chamber of Commerce Ford loses $1 billion annually
• According to the Havoscope Data Center, Hyundai loses $200 million in lost sales for Hyundai due to counterfeit parts from China
• According to Interpol, the Counterfeit Investigation Bureau in London, and the International AntiCounterfeiting Coalition (IACC) estimate that world trade of fakes is worth $120 billion
• The Automobile Manufactures Association says counterfeit auto parts is a $3 billion problem in the United States
• 50 percent of the $1 billion sports memorabilia industry is counterfeited.
• A report by the U.S. Chamber of Commerce stated that "counterfeiting and piracy cost the U.S. economy between $200 billion and $250 billion per year and a total of 750,000 American jobs."

Examples of Counterfeit Product That Have Harmed Consumers

• As many as 11,000 boxes of counterfeit Procrit, a well-known cancer drug, were sold to wholesalers nationwide before investigators foiled a phony prescription drug ring that made $28 million.
• In May 2003, the FDA recalled 16.5 million doses of Lipitor, the popular cholesterol drug, due to counterfeit replications being sold in drug stores across the country. However, top FDA officials admit that what they catch is only a fraction of the total of counterfeit drugs.
• In August 2004, a 13-year-old boy in Oceanside, California sustained severe injuries from an explosion caused by his cell phone. Over the past two years, federal safety officials have received 83 reports of cell phones exploding or catching fire due to counterfeit batteries.
• In August 2006, the U.S. Consumer Product Safety Commission recalled about 600,000 counterfeit extension cords because of a shock hazard. The extension cords, which had counterfeit Underwriters Laboratories (UL) safety labels, were made of undersized wire and substandard insulation. These can cause overheating, resulting in a possible shock to users
• The Federal Aviation Administration estimates that 2% of the 26 million airplane parts installed each year are counterfeit, which equals approximately 520,000 parts. A BusinessWeek investigation found that bogus airplane parts played a role in at least 166 U.S.-based incidents and malfunctions during a recent 20-year period.
• The Motor and Equipment Manufacturers Association cites safety violations due to counterfeit auto parts: brake linings made of compressed grass sawdust or cardboard; transmission fluid made of cheap oil that is dyed; and oil filters that use rags for the filter element.
• In July 2006, the Cook County, Illinois sheriff's office confiscated 585 bottles of contaminated, counterfeit Head & Shoulders shampoo. The shampoo tested positive for Gram-negative bacteria, which an infectious disease specialist described as "poop."