Imitation Nation

Senior Trade and Policy Analyst Piotr Stryszowski at the OECD published a piece this week in advance of the holidays called “The real cost of counterfeits is higher than you think,” about how the real cost of counterfeits isn’t just poor quality, but toxic materials and health consequences. OECD reports that counterfeit trade hit nearly $470 billion - that’s 2.3% of global trade. And it’s no longer just fake handbags. We’re talking auto parts, medicines, toys, even alcohol, products that can literally kill. The OECD says 65% of seizures continue to come from small parcels and mail. Now this data is from 2022, so we will see how the end of DeMinimis will impact this.

The National Highway Traffic Safety Administration said it is looking into seven incidents, including five fatalities, involving aftermarket air-bag parts that failed and ruptured during collisions. Federal regulators say they think the air bags in the incidents contain parts from a China-based company called Jilin Province Detiannuo Safety Technology, also known as DTN Airbag. Last year, NHTSA said it was aware of five incidents, including three fatalities, involving substandard air-bag inflators failing during a crash. Now the agency is connecting DTN to those incidents and the two additional fatalities—including a crash as recent as July. Air-bag replacements have been in focus since the 2014 recall of Takata air bags, which were linked to 28 deaths in the U.S. and tens of millions of vehicles recalled over the past decade.

France’s highest court reaffirmed Christian Louboutin’s trademark protection for their red sole on their shoes, and upheld a previous court decision of nearly a quarter million euros on a defendant who was found to have sold 12 pairs of counterfeit shoes and 628 handbags. The decision also reaffirmed the enforceability of Louboutin’s signature red-sole trademark under French law.

In the UK so far in 2025, Border Force authorities say they have seized a quarter million fake toys worth 3.5 million pounds. 90% of these were fake Labubu dolls. Testing conducted by authorities show that 3 in every 4 seized toys contain banned chemicals or choking hazards, despite being designed for toddlers and young children. Authorities say parents should prioritize safety, stick to trusted retailers and beware of unusually low-prices.

The European Union Intellectual Property Office announced that in 2024, authorities intercepted 112 million counterfeit goods valued at 3.8 billion euros, the second highest seizure year on record. The report has a breakdown of categories of contraband goods which is topped by fake CDs and DVDs. Italy, Spain, France, the Netherlands, Portugal, Romania, and Poland accounted for 90% of the volume of items detained. The top three countries of origin, in this order, are the United Arab Emirates, China, and Turkey. Sea cargo remains the primary mode of transport.

The UK’s Medicines and Healthcare products Regulatory Agency made a huge bust in Northampton, which is northwest of London. The Criminal Enforcement Unit raided a facility that was manufacturing retatrutide, tirzepatide, and putting it into injector pens for shipment to customers. There was so much product I think it took them two days to log all the seized materials into inventory.

At the time of the raid, they found current inventory of about 2,000 illegally manufactured pens waiting to be shipped worth about a quarter of a million pounds. Authorities say the facility it has been used for large scale illegal manufacturing for some time.

The Mexican pharmaceutical firm IFA Celtics, which makes a variety of pharmaceuticals for women’s health, mental health, and metabolic health has deployed ForgeStop’s NFC labels in their production line of medicines. This is probably the largest investment in anti-counterfeiting technology that a Mexican pharmaceutical firm has ever made. If you’ve ever tapped to pay with your phone or watch, you’ve used the NFC technology. You don’t need to download a new app. Anyone, from patients to pharmacists to the entire distribution chain can use these to verify authenticity of medicines.

Additionally, these verifications get reported to ForgeStop who runs a global dashboard that brands can monitor. So if you’ve shipped a pallet of medicines to Mexico City and the verifications start popping up in the U.S., you’ve got a heads up on a diversion scheme. And since you probably know where you sold that pallet to, you know your suspects.

Nightline aired a special investigative report “The Dark Shot” on the rise in fake Ozempic with Special Agent Nicole Johnson of Homeland Security Investigations. The reporters found fake Ozempic with no prescription needed available online. They also went to the Port of Cincinnati where they watched them open some Spanish labeled Ozempic that’s not safe for Americans and unable to determine if its counterfeit or not. There was also an interview with legendary investigative reporter Katherine Eban, who chased down counterfeit Ozempic to its source for an earlier article in Vanity Fair.

San Francisco local fashion brand Baggu created a custom line of hats and water bottles adorned with what looks like the Bay Area Rapid Transit systems logo to celebrate the launch of its new store at 888 Valencia St. There’s just one problem: the transit agency BART had no idea it was happening.

The U.S. Department of Justice is dismantling OCDETF a key task force targeting major drug cartels, according to internal documents obtained by Reuters. DOJ says the move will streamline operations and save over $11 million, but critics warn it risks weakening core capabilities in prosecuting cartel activity. 

“The Louisiana Department of Public Health (LDH) warned the public about counterfeit botox, and to avoid receiving injections from unlicensed sources and non-medical settings like med spas.

Police in Los Angeles raided a warehouse tied to CoolKicks, a high-profile sneaker retailer, on Oct. 2 and arrested Co-founder Adeel Shams while he was live streaming an auction of sneakers.

In this episode, we cover:

Fedex announced to analysts that the tariff chaos will hit their finances to a total tune of a billion dollars. $300mm of that is due to costs associated with clearing goods through customs, which has suddenly become infinitely more complex. Despite that, revenue they said will grow 4-6% this year, indicating that a massive fall off in shipping is not anticipated. For context, Fedex’s stock has declined 19% this year, which is a sign that the market really punished them for concerns about tariff impacts.

A troubling development out of Belgium. Customs officials there say that major fashion brands, including Nike and Adidas, are allowing counterfeit goods into the country to avoid disposal costs. Faced bureaucracy and high costs, too many fakes are waved through, turning Belgium into a hub and leaving local law enforcement to clean up the mess.

Two Chinese Nationals pled guilty to Fake Apple Device Return Fraud that Conned the Technology Giant Out of More Than $16 million in a case brought by the US Attorney Office of the Central District of California. This was a result of an investigation by Homeland Security and IRS investigators that unearthed that the charged (now convicted) individuals smuggled fake iPhones, iPads, and other devices into the United States, then brought them to Apple stores across Southern California. By claiming the devices were defective, they were able to get Apple employees to repair or replace them with genuine products.

Quick news hits:

We found a tutorial from Steve Chou on how you can change elements in a product to avoid or minimize tariffs fascinating.

The counterfeit Labubu scourge continues: CBP Seattle seizing fake Labubu dolls valued at over $500K and disguised as light bulbs at Seattle airport and the New York Times reports that Lafufus, Fake Labubu Dolls, Raise Safety Alarms and Spawn Raids. And a useful reader guide how to spot the fakes.

The story behind the story. The real reason what StockX took such a new and proactive approach to combat counterfeit sneakers, as it was reported that Nike, StockX End Trademark Clash Over NFTs and Fake Shoes

Walmart’s Marketplace boom: How lax vetting came with identity theft and fakes

Fake weight-loss drug sales surge in Europe. Reported in Politico and CNBC

Liberia to Launch Central Identification Registry to Combat Phone Theft and Counterfeits

Consumers in South Africa are knowingly purchasing counterfeit alcohol, unaware of both the risks and the disappointment of not actually getting the complex product.

Show notes - Imitation Nation #18

In this episode, we cover:

The International Trademark Association published a quick 14 page handout on making the case for Return on Investment for your company’s anticounterfeiting program.

The U.S. Department of Health and Human Services (HHS), through the U.S. Food and Drug Administration (FDA), and U.S. Customs and Border Protection (CBP) last week announced the seizure of 4.7 million units of unauthorized e-cigarette products with an estimated retail value of $86.5 million – the largest-ever seizure of this kind. The seizures were part of a joint federal operation in Chicago to examine incoming shipments and prevent illegal e-cigarettes from entering the country. And simultaneous enforcement actions across the U.S. The seizures, done in conjunction with the Food and Drug Administration, with enforcement actions carried out at five distributors and five retailers in North Carolina, Arizona, Illinois, New Jersey, Georgia and Florida, she said.

Puma’s enormous legal victory in German court against a logistics provider for providing logistics for a counterfeiter. It’s a big case, but the key is that it creates new liability for logistics carriers that we didn’t think existed before.

Quick news hits:

In this episode, we cover:

If you have a story you want us to cover, let us know in the comments on our linkedin page.

On this week’s episode of Imitation Nation, we discuss one of the biggest trade policy shifts in years: the end of De Minimis, which officially expired at midnight through an Executive Order. This sudden end to a decades old policy is sending ripple effects through supply chains, as freight companies, freight forwarders and Post Offices across the globe are temporarily suspending or stopping shipments to the United States.

We explore what this seismic change means for global commerce and we highlight the positive outcomes for brand protection, brand owners, trademark holders and how this will likely provide lasting impacts on counterfeit enforcement. We also discuss the ripple effects across supply chains, and the strategic implications for professionals on the frontlines of IP enforcement.

We also cover the sudden termination of the controversial Type 86 entry pilot program, which has resulted in the exponential growth in small parcel and De Minimis shipments. Beyond the headlines, we look at where counterfeiters may move next and why this shift,

In this episode of Imitation Nation, hosts Shabbir Imber Safdar and Sven Bergmann break down one of the biggest trade shifts of 2025: the imminent and likely permanent end of the de minimis. With more than 1.3 billion packages entering the U.S. last year under this exemption, it’s about to get a lot harder for counterfeit goods to hide in the pile. But what does this change mean for brands, shippers, consumers and law enforcement? We discuss what it is, why it’s ending, how it might make your online shopping a little more expensive and what this means to illicit trade and counterfeit.

We are also covering a plethora of counterfeit stories from across the world in our lighting round, including:

The conviction of a man in Liverpool to 28 months in prison for selling £650,000 in fake postage stamps.

Formula One cracks down on counterfeits at Vegas GP, suing souvenir shops for selling knockoff merch.

Europol seizes a massive shipment of counterfeit currency—$76 million worth of fake dollars, euros, and pounds.

BMW adds new security features to protect auto parts, and Mercedes is stepping up its anti-counterfeit fight too.

U.S. regulators warn about fake Labubu dolls breaking apart and becoming a choking hazard.

Seagate busts a counterfeiting ring in Malaysia that was flipping old hard drives as “new.”

This White House has made big changes to De Minimis: For a look at the scale of packages, check out this CBS News piece. We cover the impact on counterfeit medicines, especially fake fentanyl pills, and techniques that companies might start to use to circumvent tariff uncertainty.

The Trump trademark owners have complained about ecommerce platforms selling counterfeit versions of Trump-branded products and filed litigation.

We also talk about a machine that makes counterfeit pills, the pill press, and a recent report the Partnership for Safe Medicines published about illegal pill presses.

And there’s a lot of shout out stories this week we don’t have time to go into fully:

Counterfeit Labubu toys

$3.5mm seized in Port of Cincinnatti

Fentanyl analogues finally got scheduled after 6 years of work

Brandy Melville sues Temu after suing Shein

Really good looking fake $100’s

Amazon’s counterfeit crimes unit is claiming they’ve secured $180mm in penalties and 65 criminal convictions.

Operation Pangea 17 from Interpol was released. See this fancy graphic.

Sven looked back at the previous 10 years of Operation Pangea and these results are record breaking by any measure.

50.4 million doses of illicit pharmaceuticals worth USD 65 million. The largest operation to date had been $11 million in illicit medicines.

Arrest of 769 suspects and the dismantling of 123 criminal groups worldwide.

In total, law enforcement agencies worldwide launched 1,728 investigations and issued 847 search warrants targeting criminal networks engaged in the illicit distribution of pharmaceutical products. 93 per cent of the illicit pharmaceuticals seized lacked regulatory approvals from national health authorities.

This trend is being driven by the widespread promotion and availability of these medicines across social media and online marketplaces, creating lucrative and relatively low-risk opportunities for criminal networks selling low-quality or counterfeit products.

Lululemon is suing Costco over design patent infringement of several of their clothing products. While you could read the suit yourself, we recommend this video from fashion designer Joe Ng that explains the types of patents you can have, and how trade dress works. Joe Ng says the craftsmanship is not as good on the Costco product.

China is now entering the world of IP protection because their brands are fighting off fakes. China has brands and now Intellectual Property to protect! Phones by Huawei, Drones by DJI, My favorite portable batteries from Anker, and New electric cars from BYD.

According to the OECD, China remains the source of most counterfeits in the world, so this could be a very topsy turvy time. Our bottom line is that there’s never bad news in adding a new ally country to the world of brand protection.

Quick news hits:

9 great documentaries on counterfeits and illegal trade from Factual America

Issues in the fake wine world in Bill Koch’s cellar

Chinese controlled counterfeit gang busted.

Tom’s hardware review ran an article this week about a chinese pc repair shop that received four of these, and upon closer examination, three of them were fake and unrepairable and unusable. They had modified older cards and in some cases attached other parts to give the appearance of the 4090 unit but the fake one was still inoperable which you would have discovered the moment you plugged it in.

StockX has reported it rejected nearly $10 million worth of counterfeit sneakers last year as part of a comprehensive report outlining its efforts on verification, fraud prevention and anti-counterfeiting in 2024. The resale platform's "Brand Protection and Consumer Trust" report consists of 19 pages detailing the measures it takes to ensure it delivers authentic product to consumers. Over the course of 2024, StockX rejected more than 30,000 sneakers alone suspected of being counterfeit. Suspected fakes are the second most common reason for products being rejected, accounting for 22 percent of total products rejected. 32 percent of items were rejected for defects, while 12 percent were found to be used and another 7 percent came in a damaged box.

We are following this new case of Audi AG v. CarParts.com, Inc., 1:25-cv-04940 (S.D.N.Y.), in which Audi asserts that CarParts.com is selling copies of their goods using their trademarks, including proprietary OEM numbers. We think it’s also interesting that the EU Court of Justice also found that selling grills without the Audi logo, but that have a cutout that fits the logo, is also trademark infringement.

Quick news hits:

Another fake money scheme in Florida, where four men obtained $100 fake bills made by bleaching $10 bills and printing the $100 bill over the same material. You could still see Hamilton’s face in the watermark, which tipped off a grocery cashier.

Labubu dolls are a hot item, which means counterfeits are being made and China just shut down a factory making them. As a response the other factories making fakes appear to have shut down operations and gone dark to avoid getting caught.

Back on the fake stamps beat, the US Postal Service filed and obtained a temporary restraining order against two shipping companies New York and Los Angeles who are accused of using fake USPS shipping labels to ship merchandise for Chinese customers through the US Postal service…for years.