Product counterfeiting at the state level: An empirical examination of Michigan-related incidents

Abstract

Product counterfeiting represents a range of criminal activities associated with intellectual property rights infringement of material goods. Virtually, any product, from pharmaceuticals and food to auto parts and electronics, can be counterfeited. Although the precise extent of product counterfeiting is not known, by most accounts the problem is substantially large and growing, and affects many, including consumers, industry, and governments. Despite the scope and scale of the problem, to date there are few empirical examinations of product counterfeiting. To address this gap and help policymakers better understand and respond to this problem, this article systematically examines the nature of product counterfeiting incidents related to Michigan as evident in the open-source literature. We develop initial evidence-based policy lessons to generate discussion about this crime and highlight directions for future research.

Keywords:

• product counterfeiting
• intellectual property crime
• Michigan
• police
• consumer goods

Acknowledgments

This research was funded in part by a grant from Michigan State University's Applied Public Policy Research Program (MAPPR) facilitated by the Institute for Public Policy and Social Research (IPPSR). This program is made possible through funding allocated by the State of Michigan to develop expertise for Michigan's policymaking community.

Notes

1. Additional variables were subsequently created using the original variables.

2. In some cases, we identified two different incidents in a single search file. We coded these incidents separately in the event, suspect, and victims databases. However, we counted the number and type of open-source documents just once because they sometimes had overlapping information.

3. The broader categories contain a variety of specific items. For example, an incident could involve counterfeit hats, shirts, sunglasses, and belts, but these are counted together as just “worn goods/apparel.”

4. As our focus is on counterfeit products, there are no incidents in which the only item involved is pirated software/DVDs/CDs. Incidents needed to include at least one of the other types of counterfeited products to be included in our database.

5. We counted racketeering charges (e.g., RICO – Racketeer Influenced and Corrupt Organizations Act) as non-IP charges, which can encompass product counterfeiting activities.