In South Africa, counterfeiting is often perceived to be a victimless crime, one that is viewed as an open opportunity for the public to buy a coveted "brand".
The reality, however, is completely the opposite, says Paul Ramara, partner with intellectual property specialists and legal firm, Spoor & Fisher.
He points out that SA's Counterfeit Goods Act specifically defines the dealing in counterfeit goods as a criminal offence. "The crime itself is in fact far from victimless," he says, "and the tax revenue that is lost due to counterfeit goods being imported, incorrectly declared and sold is estimated to be in excess of R2,5bn in excise and VAT annually for counterfeit cigarettes alone.
"The loss of jobs due to counterfeiting is astounding. During 2010 it was estimated by the South African Clothing and Textile Workers Union that 14400 jobs were lost in the textile industry due to counterfeit garments being imported and sold. This does not take into consideration potential jobs lost as a result of this crime in all the other industries."
He says that counterfeiting is not only limited to DVDs, clothing and cigarettes, but affects every industry and every type of product.
A few examples include circuit breakers, brake pads, sweets, shoe polish and even life saving medicine, all of which are regularly counterfeited.
"Possibly the saddest part of all of this is that most people are not aware of the consequences."
He says that through the cooperative efforts of the police, the Department of Trade and Industry, SARS, and the relevant brand holders and their attorneys, numerous search and seizure operations and border stops take place every day in an attempt to minimise the number of victims of this illicit activity.
"However, due to the sheer volumes of counterfeit goods being imported and traded, the only way to truly address this issue is to alert the public to the dangers and the true costs associated with this crime. The public needs to acknowledge the risks associated with this crime and stop supporting these criminals," says Ramara.
"The scourge of counterfeiting is far reaching and has the potential to put people's lives at risk.
"The financial harm alone that is done to the South African economy by this 'victimless crime' is almost impossible to quantify," he says.
Source: Business Day
