eBearing - Anticounterfeiting Resources

The International Chamber of Commerce estimates 7% of world trade is in counterfeit goods. The International Trade Commission estimates counterfeit sales worldwide grew from $5.5 billion in 1982 to $200 billion in 1996 to over $350 billion in 2005. China has built a well-deserved reputation as the source for many counterfeit goods. More than 60% of the counterfeit products seized by U.S. authorities in 2005 were produced in China.

Organized crime and terrorist organizations worldwide use counterfeit goods as an easy way to finance their operations. Terrorist organizations such as Al Qaeda, Hezbollah and Hamas get most of their funding from trafficking in counterfeit goods -- particularly cigarettes, pharmaceuticals, baby formula, and designer goods such as handbags. The 1993 World Trade Center bombings were financed by sales of counterfeit designer-brand clothing. Terrorists in Northern Ireland were well-financed through sales of counterfeit Disney Lion King merchandise. Basque terrorist group ETA sells counterfeit designer handbags and clothing around the world and online.

North Korea's oppressive regime is financed largely through high-quality counterfeiting, in everything from sprawling state-owned counterfeit cigarette factories, to billions of dollars in exquisitely produced counterfeit U.S. currency. As of early 2005, for example, North Korea was churning out 2 billion packs of counterfeit name-brand cigarettes every year.

The World Health Organization estimates 10% of all pharmaceutical sales worldwide are fakes, but that 80% of the pharmaceuticals sold in Nigeria in 2003 were fake or counterfeit. In 1990, WHO reported over 100 Nigerian children died after taking cough syrup that was actually antifreeze.

The Chinese government admits that 192,000 people died in 2001 from taking counterfeit drugs; one U.S. pharmaceutical company alone has 38 cases pending against counterfeit drug makers in China.

Millions of fake Viagra pills are sold online every week. Counterfeit alcohol, primarily vodka containing methyl alcohol, kills hundreds of people around the world each year.

Counterfeit bearing failures cost lives and millions of dollars in sales and lost profits every year. Tens of thousands of jobs have been lost by legitimate businesses due to counterfeiting.

In one instance, counterfeit bearing seal spacers were found in a United Airlines jet engine; testing of this seemingly innocuous part revealed an operational life less than 600 hours vs. 20,000 hours for real parts. In 1989, a Norwegian jetliner crashed, killing 55 people; the crash was traced to counterfeit fasteners made in the United States.