fakes

7000 Fake Rolex Watches Crushed By US Law Enforcement

If there is anything that watch brands hate more than a bad economy, it is fake watches. Asia pumps out fake watches faster than ever, and Swiss watch brands have been lobbying lawmakers and law enforcement all over the world to help out. First of all, fake watches are illegal. As far as watch brands are concerned, they are as bad as hard drug trafficking. While replica watches (and other luxury goods) don't represent a violent crime, they are very damaging to the luxury goods economy, and are severe infringements of intellectual property rights. For a long time many Asian countries (especially China) have a bad reputation for utterly disregarding intellectual property rights. It is hard enough to enforce such laws in those countries, but when the goods travel here, the US is pissed off.

A major dealer of fake luxury goods including Rolex watches who was arrested last year had his good endure a unique public spectacle. The take down was operated by the US Immigration and Customs Enforcement agency (ICE), who apparently worked closely with Rolex. The arrest last year was after years of investigation and gathering evidence. The culprit was one Binh Cam Tran of Pennsylvania. After importing the parts for the fake watches, the replica timepieces were assembled in his home outside of Philadelphia. Tran is currently serving 6 years in jail and has been ordered to pay over $2 million dollars to Rolex USA.

Tags: 7000, counterfeit, destroyed, fakes, ICE, replicas, Rolex, watch

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Cuban Cigar Knock-Off Manufacturers Face Prison Terms

by Tom Johansmeyer (RSS feed) —

Filed under: Cigars

Illegal cigar factories, called "chinchals," have been among the few alternatives for Cubans looking for work in the midst of this global economic crisis. Risking time in prison, employees roll counterfeit Havana cigars in order to make a living. The risk may be worth the return, but it's hard to say.

One roller refused to reveal the extent of his pay raise when moving from state factories to the black market ... but "raise" was implied. Working in the legit world, this employee earned $17 a month. Counterfeit cigars tend to sell for $30 to $40 per box of 25, a price that's up to five times lower than the official price set by the Cuban government.

The price competition is only one reason for the government's distaste for the counterfeit cigar business, but it's a powerful one. Cuba's official cigar company, Habanos S.A., saw a 3 percent drop in sales last year. The government also cites the need to protect the image of the brand and fight corruption on the island. Authorities confiscate 1,500 to 1,700 boxes of illegally manufactured cigars every month.

It could be a losing fight, however. Barriers to entry are low, as supplies are easy to secure. And, desperation plays a role. When you need to put food on the table, risks become more realistic.

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Tags: cigar, cigars, counterfeit, cuba, cuban, cuban cigar, cuban cigars, CubanCigar, CubanCigars, fake, fakes, havana, tobacco, tobacco industry, TobaccoIndustry

Classes in Counterfeiting Cause Controversy

by Deidre Woollard (RSS feed) —

Filed under: Apparel

We all know that counterfeit goods cost luxury companies a fortune but Forbes reports that companies such as Coach and Louis Vuitton have taken a new course of action, funding college classes on counterfeits. The International Anticounterfeiting Coalition which includes companies such as Cartier, Chanel, Calvin Klein and Tiffany gave from $5,000 to $10,000 to seven colleges for a course that instructed students in the negative effects of counterfeit goods. Colleges such as Hunter College in New York, California State University, Sacramento and the University of Miami took the money which was given for course materials. Things didn't turn out so well at Hunter College last year. Once professors found out about the class which co-taught by public relations rep., there was a bit of a protest. Check out the the article on Inside Higher Ed which details the class, including the fact that students were asked to create a fake blog that told a story about counterfeiting as seen through the eyes of a fictional college student. While it is not unheard of for corporations to sponsor certain classes or research, the particular nature of this class, which was taught by a professor with limited knowledge of the subject who was asked to present a one-sided view of the problem, has angered many.

UPDATE: In a related story, WWD reports that outside of the Brooklyn Museum Murakami event tonight, Louis Vuitton is setting up 10 street vendors to sell authentic Louis Vuitton product and special Monogramouflage canvases that Murakami has created specifically for the exhibition. The presentation is meant to highlight the issue of counterfeit goods.

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Tags: counterfeit, expire-images:2009-4-3, fakes, hunter college, international anticounterfeiting

Is The Warhol Market Rigged?

by Deidre Woollard (RSS feed) —

Filed under: Art

The prices for modern art have been booming lately and one of the top names that always comes up is Andy Warhol but a new lawsuit highlights a potential risk for Warhol collectors. Joe Simon-Whelan, a filmmaker, is part of a class action lawsuit that alleges the Andy Warhol's estate, art foundation and authentication board have conspired to manipulate the art market to keep the price of Warhols in their own collection high.

Joe Simon-Whelan is the owner of a Warhol self-portrait from 1964. He bought the silk-screen on canvas in 1989 for $195,000 and it has a not on one side from Fred Hughes, the late executor of the Warhol estate,certifying it as an original. When Simon-Whelan brought it to the board for authentication, the board denied it not once but twice even though he also brought letters of substantiation from other art professionals. They even stamped it with a red ink stamp that bled through the canvase. Simon-Whelan was hoping to sell the work for $2 million. Simon-Whelan says he believes that the board is trying to create a monopoly in the market by denying artworks that are not in the foundation's own collection. The lawsuit is seeking $20 million in damages.

The suit comes at a time when Warhols are achieving record prices, .Green Car Crash recently sold for $72 million and the Lemon Marilyn, shown at right, went for $28m on the same day.

Part of the problem is that no one knows precisely how many artworks were produced by Andy Warhol and his Factory. Warhol was famous for seeing art as commerce and devoted himself and his large team of apprentices to churning out a large quantity of art. The fact that Warhol used silk screens and generally focused on known people and objects makes him an easy mark for art fakery and as prices for Warhols rise and rise, there are more people eager to own a Warhol.

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Tags: andy warhol, AndyWarhol, art, art market, expire-images:2008-7-17, fakes

Sir Elton And The Case Of The Fake Gods

by Deidre Woollard (RSS feed) —

Filed under: Celebrity Shopping, Art

Sir Elton John is a noted art collector with an impressive collection and as, has happened to many avid collectors, he found himself in possession of some fakes. A French court has awarded Sir Elton John $500,000 in compensation for the purchase of four marble statues of Olympic gods that bore the signature of 18th century artist Luigi Grossi but were in fact, fakes. He had bought the four-foot-high statues in an antiques store in Paris in 1996 while shopping with another dedicated art and antiques collector, the late designer Gianni Versace. A valuation of John's collection turned up the fact that the sculptures were worth not genuine and worth just $20,000 (he had paid $360,000). Dealer John Renoncourt will be paying Sir Elton John the compensation.

Unfortunately, fakes, looted antiquities, and questions of provenance can be a risk when shopping for art and antiquities. I'm currently reading The Medici Conspiracy, which is a fascinating account of the story of Giacomo Medici, an antiquities dealer who illegally dealt in a wide variety of antiquities, real, fake and those that were a pastiche of real and fake elements. Often with faked works, like Sir Elton, the buyer only finds out when they have a valuation done of their collection. Unfortunately, not even the signature of a famous artist on a work proves that it is the real deal.

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Tags: art, elton john, EltonJohn, expire-images:2008-6-27, fakes, fraud, sir elton