• Counterfeiting is the act of fraudulently and illegally creating or manufacturing a product that is intended to replicate an authentic and original product.
• Counterfeiting is best known to the public in terms of the financial crime of fraudulently producing currency; however, the production of counterfeit consumer products has increased exponentially

Counterfeiting is an Extremely Costly and Dangerous National, International Problem:

• The FBI estimates that counterfeited goods cost United States’ businesses between $200 and $250 billion yearly.
• It is estimated that global counterfeiting is valued at approximately $600 billion annually.
• The profits from counterfeited goods are directly linked to organized crime, as well as terrorism and drug trafficking.

Counterfeit clothing and personal items include, but are not limited to:

• Denim
• Hats
• Handbags
• Watches
• Shirts
• Sports jerseys
• Luggage
• Shoes and sneakers
• Sunglasses

In addition to counterfeited currency, there is a practically endless list of counterfeited goods and products, including:

• Documents in general
• Electronics
• Compact discs with recordings of all kinds, particularly music
• Computer software
• Designer clothing
• Pharmaceutical products
• Documents pertaining to lending institutions
• United States postage stamps
• Federal documents
• Official federal seals
• It is estimated by the Federal Aviation Administration that 2% of airline parts are counterfeit – this equals over 500,000 parts.
• Counterfeit auto parts include brake linings, transmission fluid and oil filters

Counterfeited goods and products involve trademark and patent infringement issues:

• Counterfeited currency, bonds and other items of monetary value fall under federal jurisdiction.
• Counterfeiters of goods that illegally utilize registered trademarks may be fined treble damages for profits or damages under the Lanham Act, in addition to attorney’s fees.
• Penalties vary, including prison sentences of 15, 20 or 25 years per count, and $250,000 + fines.
• Damages may be assessed up to $1 million per counterfeit mark under 15 USC Sec. 1117 (c) (2).
• Counterfeiting is considered a crime of such seriousness that in some circumstances it may be considered a crime of treason and the death penalty may apply – although life in prison is generally the maximum penalty.

Lack of intent to defraud.

• In cases of poorly created counterfeited currency, the defendant may argue that counterfeiting was not seriously attempted and the items did not qualify because of obvious lack of quality.
• The defendant may argue that they did not realize the item was counterfeit and that they had no intent to pass counterfeit goods or currency.

Couterfeiting and forgery

http://www.law.cornell.edu/uscode/text/18/part-I/chapter-25

Trafficing in Counterfeit Goods or Services

http://www.law.cornell.edu/uscode/text/18/2320