A recent article in Harper’s Bazaar featured a quote from Baker Hostetler New York partner Heather J. McDonald. According to the article, The International Chamber of Commerce estimates that seven percent of our annual world trade—more than $600 billion—is in counterfeit or pirated goods. Experts believe this costs legitimate businesses $250 billion in lost revenue every year in the U.S. alone, and luxury brands are the fastest growing targets for counterfeiting. In 2009, the luxury-goods industry saw a 23 percent increase in online abuse. Very often these counterfeiters operate outside of the U.S., in places where copyright laws are lenient and manufacturing is cheap.
“Enforcement of the Web is frustratingly slow,” said McDonald, who focuses on intellectual property enforcement and anti-counterfeiting litigation of behalf of luxury brands. “If a designer wants to go after a fake site and file a proceeding, they’ll win their case but it will take time ... In the meantime, counterfeit sites often stay up and running.”
She added, “The Internet is a huge buyer-beware forum. If you’re not purchasing a luxury brand from its official website or an authorized online retailer, it’s highly likely you’re buying a fake.”