Fake Goods, Real MoneyThe Counterfeiting Business and its Financial Management

Fake Goods, Real MoneyThe Counterfeiting Business and its Financial Management

Georgios A. Antonopoulos, Alexandra Hall, Joanna Large, Anqi Shen, Michael Crang, and Michael Andrews

Print publication date: 2019

ISBN: 9781447346968

Publisher: Policy Press

Abstract

The trade in counterfeit goods is growing. Recent EU studies on Fast Moving Consumer Goods indicate that 6.5% of all sports(wear) goods, 7.8% of cosmetics and 12.7% of luggage/handbags sold in the EU are in some way counterfeit. The WTO has an oft-repeated estimate of 7% of all global commerce as counterfeit. The World Economic Forum goes further, suggesting that counterfeiting and piracy cost the global economy an estimated $1.77 trillion in 2015, which is nearly 10% of the global trade in merchandise. Much work and popular scrutiny has examined flows of counterfeit goods. However, there remains a general lack of information on the financing of the counterfeit trade. Drawing upon cross-disciplinary research, the book offers a unique account into the financing of the trade in counterfeit goods. Focusing on tangible goods, it addresses the ways in which capital is secured to allow counterfeiting businesses to be initiated and sustained, how entrepreneurs and customers settle payments, the costs of conducting business in the counterfeiting trade, and how profits from the business are spent and invested. The book covers the UK context, whilst also considering the distinctly transnational nature of the trade.