In South Africa counterfeiting is perceived to be a victimless
crime, one that is viewed as an open opportunity for the public to
get a hold of a brand, be it adidas, PUMA, D&G or any other
name brand or product at a cheap price.
The reality however is completely the opposite, counterfeiting is
a crime, the Counterfeit Goods Act 37 of 1997, specifically defines
the dealing in counterfeit goods as a criminal offence. The crime
itself is in fact far from victimless, the TAX revenue that is lost
due to counterfeits being imported ,incorrectly declared and sold
is estimated to be in excess of R2.5 billion 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 14,400 jobs
were lost in the textile industry alone due to counterfeit garments
being imported and sold. This does not even take into consideration
the potential jobs lost as a result of this crime in all the other
industries.
Counterfeiting is not only limited to DVD's, clothing and
cigarettes, but in fact affects every industry and every type of
product. A few examples are circuit breakers, brake pads, sweets,
shoe polish and even lifesaving medicines, which all are regularly
counterfeited by these unscrupulous individuals. The victims of
this crime are everyday people who are ignorant or unaware of the
potential harm that they are exposing themselves to. Some of these
"cheap" sweets contain substances that are far in excess
of the government agreed levels which could result in physical harm
to unknowing children. When one contemplates the potential
disasters that could occur when an unsuspecting "victim"
falls foul to a deceitful supplier of a counterfeit circuit breaker
one has to ask if this victimless crime is in fact victimless at
all.
Possibly the saddest part of all of this is that most people are
not aware of these consequences. The allure of a cheap brand name
is too much for some. The behind the scene occurrences are easily
forgotten and justified. Everyone has seen, read or heard of a
story where the international corporation is bullying the little
guy, however what about the international corporations, they have
invested copious amounts of time and money into developing their
brands and products. The brand itself is a promise to the consumer;
a promise of quality and an assurance of peace of mind. The
counterfeiters do not have the same regard for the quality or the
assurance that a certain brand provides and as a result the product
that is produced is done at the cheapest cost possible. Often this
is done through the use of inferior quality materials, lack of
proper testing and in most cases a disregard for the consumer after
the sale. Yet the general public is still inclined to take the side
of the "little guy".
In most cases the trading in counterfeit goods is in fact done by
or at least controlled by foreigners, who are in South Africa on
asylum or student visas and in a number of cases without any
official capacity. The "little guy" is not really that
little. The consignments of counterfeit goods that enter South
Africa on a daily basis are worth millions of Rands, yet the little
guy is victimised by the international corporation protecting their
brand.
Entertain the scenario of a taxi driver that in order to cut costs
buys a set of brake pads from a back street mechanic for a much
cheaper price than at a reputable mechanic or trader. This taxi
driver now continues to convey passengers from point to point
however the brake pads that he has fitted are counterfeit; they do
not meet the required standard set by the automotive industry and
fail as he is transporting a capacity fare. What are the potential
dangers of these counterfeit goods now? Who are the victims in this
scenario?
Through the cooperative efforts of the South African Police
Service, The Department of Trade and Industry, The South African
Revenue Service and the relevant brand holders and their attorneys,
numerous search and seizure operations and border stops take place
on a daily basis in an attempt to minimise the impact and the
number of victims of this illicit activity. However due to the
sheer volumes of counterfeit goods being imported and traded in on
a daily basis the only way to truly address this issue is to alert
the general public to the dangers and the true costs associated
with this crime. The public in general need to acknowledge the
risks associated with this crime and stop supporting these
criminals.
The possible reasons that counterfeiting is perceived to be
victimless is in part due to the misperception of the general
public and the lack of awareness of this crime. People in general
perceive counterfeiting only to affect the clothing and
entertainment industries; however the scourge of counterfeiting is
far further 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 in fact almost impossible
to quantify. It can however easily be pictured. Consider for a
moment the number of low cost homes that could be built, the number
of additional Police officials that could be employed, and the
amount of additional services that could be provided such as health
care or even the contribution that could be made to fund the new
roads in Gauteng, if indeed these counterfeits were stopped and the
actual finances declared and paid to the state.
Is it really a victimless crime or are the consequences of
counterfeiting far more?
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.