Theft of original ideas is probably the worst form of robbery in the fashion industry. Considerable effort by designers and manufacturers is invested in creating distinctive designs and establishing trademarks. Yet, industrial and commercial counterfeiting represents an estimated 5 to 7% of world trade.
International organisations like the World Intellectual Property Organisation, Interpol and Europol are becoming increasingly concerned with this growing crime. The problem was raised at the 2003 World Economic Forum, which endorsed the view that for several years counterfeiting was being controlled by criminal organisations and even terrorist groups.
The illegal profits made from counterfeiting translate into a loss of millions each year to industry, governments and the community.
The first victims are often businesses, which lose sales revenue, market share and investments. Well developed brand images are also at risk of devaluation and the loss of product integrity. Governments and communities also pay a high economic cost both in terms of employment (100,000 jobs are lost each year in the EU) and lost tax revenues due to the reduction in declared sales. In China, the authorities estimate that they lose $3 billion in tax revenues each year, while the UK authorities estimate VAT evasion at $2.4 billion.
Taking the fight against counterfeit to another level
DataThread DNA is a form of continuous DataDot DNA, integrated into a fine thread and used as an anti-counterfeiting measure in apparel and many other industries. The DataThread DNA is an encrypted thread which may be sewn into clothing labels or any item from a fabric or paper. Encrypted with a unique alphanumeric code, it works in a similar way to DataDot DNA, to prevent fraud and counterfeiting in the clothing and fabric industries.
Clothing manufacturers and designers who apply our low-cost, high technology into their clothing lines are now able to distinguish their products from the counterfeit - making it possible to identify, quickly and conveniently, the fakes with the use of very affordable and portable devices.