The lead paragraph introduces that counterfeiting has reached epidemic proportions globally, estimated at 7-10% of world trade. In South Africa, counterfeiting is a relatively new problem that has grown due to increased availability of international brands and more porous borders after apartheid. Most counterfeit goods come from China, where brand protection is new and factories produce genuine goods, making copying easier. Increased digital access has also fueled the spread of counterfeits to all consumer product categories. While some argue that counterfeiting does not hurt wealthy brands, the real effects are job losses - Mexico lost 480,000 footwear industry jobs due to counterfeits. The counterfeiting industry is also linked to organized crime

1. The lead
The ‘FAKE’ epidemic
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t’s the world’s fastest growing and most profitable industry coming into the country, meaning that only a small proportion of counterfeit
and it’s reaching epidemic proportions, estimated to be goods are seized or even known about.
between 7% and 10% of the world’s total trade. And the
counterfeiting industry is growing at just as fast a pace in But looking beyond the figures, it is the impact the counterfeiting
South Africa. industry has on brand owners and, subsequently, their employees
that hits home. While one might argue that luxury brands don’t feel
Partner at Adams & Adams Attorneys, Mariette du Plessis, says the effect of counterfeiting because they’re so wealthy as it is, figures
counterfeiting is a relatively new problem in South Africa, most such as 70% of the footwear industry in Mexico closing down as a
likely because of our previous political isolation and the fact that result of the influx of fake products – and the subsequent loss of
20 years ago luxury goods, which were predominantly what 480 000 jobs – shows the real effect of this illegal trade. And the
the counterfeiters copied, were viewed as being only available same could happen in South Africa, notes Du Plessis. At an even
to wealthy people who could afford to travel. Post apartheid, more real level for consumers is the fact that counterfeiters don’t pay
many famous international brands have become available in income tax, while the counterfeit industry is also linked to organised
the country, making the consumer more brand-conscious. In crime, including drug trafficking and terrorism, as a means to finance
addition, our borders became more porous and trade relations these practices, not to mention that counterfeit products are often
were established, opening the doors to foreign traders selling manufactured in sweat shops.
cheap imitations.
Despite this, it’s no real surprise that the illegal industry is growing so fast.
Most of these cheap imitations come from China, explains Du Counterfeiters don’t have to spend money on researching and developing
Plessis. This is because all the major international corporations products, or on advertising and promoting these products, nor do they
have factories there that produce genuine goods, and brand provide guarantees or after-sales service. “For counterfeiters, stealing
protection is a relatively new concept in China. Add to this the fact brands has resulted in a very profitable business,” says Du Plessis. It
that accessibility to famous brands has become easier, thanks to doesn’t hurt that consumers are willing to purchase these products, which
digital technology and the global village that is the Internet, and it’s no Du Plessis feels stems from a lack of knowledge on the consumers’ part
wonder that virtually every consumer product category in the world is
affected – with the quality of counterfeit products improving all
the time, and counterfeiting no longer restricted to the luxury
goods market.
It’s also no longer exclusive to clothing and
accessories, but has grown to include high-tech
products, every day essentials, parts for cars
and planes, pirated music, software and films
and even pharmaceutical products. Worldwide,
the counterfeit products that are perceived to
be valuable and attractive to consumers fall
in every category and include most famous
brands. The more popular the brand, the
higher the risk of counterfeit products being
produced, explains Du Plessis.
With the prevalence of such a wide array
of counterfeit goods, it is estimated that the
counterfeiting industry in South Africa alone is
worth R3.62-billion – although, because it is a
clandestine trade, Du Plessis points out that it
could be more. This is especially because customs
only inspects between 5% and 10% of containers
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