The act of producing illegal goods is certainly not new to the fashion industry as crooks have been conducting the illicit production and selling of counterfeit goods for many years.
Just earlier this month news was released on a Queens sibling duo, Chee Kwan Yim and sister Chee Kuen Yim, who built an empire based on luxury-good knockoffs. The Chinese immigrants were at the heart of a US$10 million counterfeiting ring; enter “Superfakes.”
These next generation knock-off designer handbags pose the biggest threat ever seen to the fashion industry. Superfakes, almost an exact clone of the authentic merchandise ranging from Chanel to Michael Kors among others, are produced in an assembly line of sketchy activity.
“A superfake comes from a factory either at midnight with it vanished when no one’s looking,” Mark Ellwood, author of Bargain Fever, says. “It was supposed to be damaged and someone can slip it in their bag and take it home.”
The illegal activity surrounding superfakes are further investigated to reveal that the bootlegged bags are hidden by salesmen in back rooms rather than out for the public to see in brick-and-mortar retail stores. Some salesmen use their smartphones to showcase the products.
Retailers know of the ramifications surrounding the trade of illegal goods, so why do they risk their business for a little extra dough? The cash gained from the selling of superfakes, and any other counterfeit goods, are often used to fund even more criminal activity and terrorism.
There are much broader implications involved in this unlawful ring than just copyright infringements; the selling and buying of these goods is not a victimless crime. The trafficking and peddling of forged stock is illegal under the Trademark Counterfeiting Act, which states that any individual or company that knowingly sells, or attempts to sell, a counterfeit product is in violation and will face substantial fine(s) and prison time.
News reference via Daily Mail UK and image via SpotbagsCN