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COUNTERFEITING
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May 23, 2015 by: Content Team
Counterfeiting is a criminal Contents
offense that involves fraudulently
Definition of Counterfeiting
manufacturing and distributing an What is Counterfeiting
item of lesser value than the Counterfeiting Money
genuine product, usually for the Software Counterfeiting
purpose of monetary gain. Trademark Counterfeiting
Counterfeiting is commonly seen Related Legal Terms and
in the form of counterfeiting I
money, including currency and
coins, but also involves the fraudulent production of copies of valuable
digital media, such as CDs and DVDs, as well as designer clothing,
jewelry, and accessories. The production, distribution, and sale of
counterfeit items not only defrauds those buying the items, but also
steals profits from the owners and distributors of the genuine articles. To
explore this concept, consider the following counterfeiting definition.
Definition of Counterfeiting
1. verb. The act of making something in an imitation so good as to
be fraudulently or deceptively put forth as the genuine article.
Origin 1250-1300 Middle English countrefet (false, or forged)
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What is Counterfeiting
Counterfeiting is the practice of manufacturing items that look like, but
are substantially inferior to, a brand name or genuine item. Counterfeit
goods are commonly marketed with a brand or trade name without
consent by the brand’s owner. These goods usually bear a trademark
that is identical, or “forged,” or that is so similar as to make it nearly
impossible to tell it from the real thing. The manufacturing of counterfeit
goods has become commonplace in many developing countries that
have a large, underpaid workforce. The goods, however, are shipped
and sold worldwide.
Counterfeiting is considered a crime in almost all countries around the
globe, with penalties ranging anywhere from injunctions and fines, to big
money damages and imprisonment. Counterfeiting, in all of its forms, is
considered theft, and nations around the world cooperate together in the
attempt to put a stop to it.
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Counterfeiting Money
The idea of counterfeiting money is as old as the use of currency itself,
though modern technology has made the process seemingly easier for
tech-savvy entrepreneurs. The temptation of being able to print money
and buy anything the heart desires is irresistible for some people, who
never consider the fact that the U.S. economy might be vulnerable to
collapse under a deluge of counterfeit bills.
The increase in numbers of people trying their hands at counterfeiting
money has sent the U.S. Treasury into making a flurry of anti-
counterfeiting changes to the nation’s currency. Such anti-counterfeiting
technology includes the production of multi-colored bills printed on
special fabric-based paper, holograms, embedded magnetic strips,
micro printing, watermarks, and the inclusion of the “EURion
constellation,” also called “Omron rings,” which prevent color
photocopiers from printing banknotes.
While counterfeiting expands its scope from printing money, to
manufacturing counterfeit clothing and other apparel, to electronics, and
even medications, anti-counterfeiting technology strains to keep up with
its pace.
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Software Counterfeiting
Software counterfeiting involves the sale of illegally made copies of
computer software programs. These copies are usually made to appear
as an original, but there are definitely differences in how the
counterfeited software will function. To combat the widespread problem
of software counterfeiting, manufacturers of popular programs and
operating systems have started relying on live internet registration and
updates. During this process, the individual installing the program must
log onto the internet and enter a validation code, which is paired with
the computer’s ID, and kept on file. If, at any time, someone tries to
register the software on a different computer using the same validation
code, access will be denied unless the software on the original
computer is first disabled, once again, online.
Trademark Counterfeiting
Trademark counterfeiting refers to the placing of a company’s actual
registered trademark on a product or service that is not legitimate, and
without the permission of the trademark owner. One example is the
placement of a Louis Vuitton or Gucci trademarked logo on knock-off
handbags, and selling them for substantially less than the genuine
items. Trademark counterfeiting strikes a blow to companies the world
over to the tune of millions of dollars every year, and, while anti-
counterfeiting technology is widely used to prevent manufacture of
counterfeit money and software, trademark counterfeiting remains more
difficult to prevent.
In the United States, trademark counterfeiting is specifically prohibited
by the Trademark Counterfeiting Act of 1984, which makes it a federal
offense to intentionally use a counterfeit trademark. The Act also
establishes tougher penalties in the form of fines up to $1 million, and
imprisonment of up to five years for selling, or even attempting to sell,
counterfeit goods or services.
Related Legal Terms and Issues
Criminal Offense – An act in violation of the law which causes,
or has the potential to cause, injury to the public, or a member of
the public, and for which a fine and/or imprisonment are possible
penalties.
Registered Trademark – A distinctive symbol or mark to which
an individual or entity has claimed ownership by registering the
trademark with the U.S. Patent and Trademark Office.
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