Study Predicts Explosion Of Online Counterfeits Based On Profits Similar To Narcotics Trade
NEW YORK, May 15, 2012 /PRNewswire/ — RogueFinder LLC, working in conjunction with a leading New York-based brand protection law firm the Gioconda Law Group PLLC, released a comprehensive new study of over 3,000 “rogue websites” that have been shuttered by US federal courts in recent years. Federal courts have also recently issued dramatic financial judgments against a number of fluid networks of rogue websites.
The comprehensive study found that a primary reason for the continued explosive growth of such networks is that online counterfeiters can collect immense profits by generating over $10,000 in sales with a $1,000 initial investment.
According to RogueFinder’s review of the public data, “this low-risk business model offers a comparable return on investment (ROI) to trafficking in illegal narcotics.” The report cites evidence from dozens of successful legal actions filed from 2008 to the present by a number of major brands, including Louis Vuitton, Coach and Nike.
The report found that counterfeiters are using advanced software to warehouse and keep track of thousands of domain names that contain unauthorized trademarks, and are constantly reshuffling their network servers to avoid detection and enforcement against them.
The report also notes that the most commonly accepted form of payment on these sites was Visa, but that MasterCard and PayPal are also commonly accepted.
SOURCE RogueFinder LLC