Counterfeiting is production of goods similar to the original article; they are cheaper alternatives of the original and there may not be perceivable difference in quality (Phau, Teah & Lee, 2009). OECD (1998) defines counterfeiting as any manufacturing of a product which so closely imitates the appearance of the product of another to mislead a consumer that it is the product of another. Hence it also includes trademarks and copyrights infringements, including packaging and labeling or any other significant feature of the product.
Counterfeiting is a civil offence, a criminal crime apart from being a social, political and serious economic problem (Bian & Veloutsou, 2007). However, according to the OECD (Organization for Economic Cooperation & Development, 2007) the total value of counterfeit goods in 2005 was $200 billion (Gistri et al. 2009) and by 2007 it has estimated to have exceeded $500 (Phau, Teah & Lee, 2009). It is estimated that about 15% of the branded products sold across the world are counterfeit (Cross, 2006). The core target for counterfeiting brands is the luxury brands. It has increased to such proportions because of global trade and emerging new markets (Phau & Teah, 2009). Counterfeiting thrives because in some countries such as the US, their legal system protects only functionality and not designs or the style. In other countries even this level of protection is not present (Hilton, Chot & Chen, 2004). Countries like China and Hong Kong has no way to deal with counterfeiters and moreover, many times counterfeiting takes place outside the jurisdiction of a country (Nejdet, 2000). North Korea too engages in secret counterfeit printing and packaging of billions of cigarettes and drugs sold in the US (Cross, 2006). Phillips Morris has been able to trace the counterfeit version of its Marlboro brand at more than 1300 stores in the US. Such illicit activities generate more than half a billion US dollars. The counterfeiting is done so