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newsThe Cost of Counterfeit Products

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"The question is- once the Chinese know how to make an American product, what's to stop them from copying it? The answer? Nothing at all," reports correspondent Bob Simon from 60 Minutes II

China is now what some would call the counterfeit capital of the world. For years Americans and other companies around the world have sent their businesses and production facilities overseas so that they too could tap into the enormous cost benefits of cheap labor and essentially lower overhead costs.

"We have never seen a problem of this size and magnitude in world history. There's more counterfeiting going on in China now than we've ever seen anywhere," says Dan Chow a law professor at Ohio State University who specializes in Chinese counterfeiting.

"When you teach the production line here how to make your product, if it's a mold, that mold will find its way down the street," says attorney Harley Lewin.

Counterfeiting in China is an industry in it's self that supports entire towns and keeps poor people employed. The workers in these counterfeit factories are mostly from rural providences and make only a few dollars a day. These factory workers do not realize what they are doing is illegal, it's simply a job to put food on the table. Although what they are doing is illegal, it's difficult for these individuals to understand the implications of what they are doing when the Chinese authorities will do just about anything to avoid social unrest and actually have good working relations with the counterfeiters. The bottom line is that these counterfeit operations cost Americans and other companies around the world tens of billions of dollars each year.

So when a company considers a Chinese supplier, what guarantee do they have that their product isn't being copied, or that the less costly product they are receiving isn't a counterfeit? Simply put, there are no guarantees.


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12/12/18 04:58