Forensic Accounting
Brand Protection
Computer Forensics
Corporate Investigation

spacer
Search

Forensic Accounting, Computer Forensics, & Corporate Investigations
The Kessler Report
THE KESSLER REPORT Continued
A Publication of Michael G. Kessler & Associates, Ltd.
Archive           Home
Fraudbusters® Edition
Volume 7

Number 1

FOOD AND DRUG SUPPLY
continued from page 2
worldwide. Over the past decade, Kessler International has investigated cases involving prescription drugs, software, food, cigarettes, liquor, baby formula, auto and airplane parts, perfume, watches, and various household products. Obviously, not all of these items can be directly attributed to terrorist organizations, but counterfeiters are generally not upstanding citizens of our nation. Groups that are profiting from counterfeiting are numerous terrorist groups, underworld organizations, and various criminal factions.

In the case of t-shirts, often the greatest damage reverts to the manufacturers in lost profits or even the buyer in purchasing sub-standard merchandise. But in other areas, the results of counterfeiting can be much more dangerous and in some cases even deadly.

Prescription drug counterfeiting has been responsible for numerous deaths throughout the world, whether it be from poisonous ingredients added to the medication or simply placebos replacing the necessary medication to keep the user alive. Companies in Florida, Nevada, and New York have been caught distributing counterfeit cancer, Aids, and dermatology prescription drugs to drug stores nationwide. Yet these multi-million dollar US companies were not prosecuted. Companies in Ohio, New York, and Florida have been caught distributing counterfeit food products yet they were never prosecuted. And the track records for this type of activity by these companies go back to the 1980's.

The hit to our economy is devastating as well, with counterfeiting costing over 200 billion dollars in lost revenue per year. When all of these factors are weighed, it should cause second thoughts before consideration is given to purchasing counterfeit items. Most often the buyer is naive in the purchase or perhaps tricked into believing that the item is authentic.

However, there are certain red flags that should be apparent to the average consumer. If an item is significantly less expensive than previously found, suspicions must be raised as to the authenticity of the item. Often individuals who cannot afford the real product will knowingly purchase counterfeit items if they feel they look enough like the actual item to appear authentic. This is an obvious support of counterfeiting and serves to help line the pockets of terrorists who may be scheming towards their next attack on innocent Americans.

Swap meets, flea markets and street stands are not likely to be the distribution network of legitimate manufacturers. Purchases of these products should take place in store locations and not street stands.

Purchasers should also examine product labels thoroughly. The misspellings of brand names, or exceptionally small or photocopied logos, are attempts to trick the purchaser into believing the product is authentic.

A major consideration should be made when purchasing items of questionable authenticity. Americans are quite conscious of the threat of biological warfare, of which we could easily fall prey. What better way to spread such plagues than with the use of
Q&A

The Kessler Report recently sat down with Marylee Jenkins, Esq. of Robin, Blecker & Daley. Ms. Jenkins specializes in intellectual property matters involving the Internet and New Media, including domain name disputes, trademark and patent prosecution and litigation and Internet-related transactions and agreements. We asked Ms. Jenkins to shed some light on some of the most common questions regarding Intellectual Property infringement on the World Wide Web. Below are her responses:

1. What are the most common obstacles facing prosecution of online intellectual property infringement?

Generally, the two most common obstacles are identifying and locating the alleged infringer. Unlike a storefront on Main Street, U.S.A., in an online environment, it is very easy to move and create new web sites and aliases in a very short period time. It is therefore important during your investigation of an alleged infringement to try and maintain good records of these activities because the alleged infringer's web site your client first visited may have changed multiple times by the time your client commences an action against the infringer.

2. Are there factors that are specific to online infringement matters that need to be considered before deciding to take such a matter into litigation?

One specific factor that a potential plaintiff needs to consider and assess is whether
or not the alleged infringer can actually be located based upon the ease of changing and modifying an identity and site online. Another quite common factor with respect to online matters is that the alleged infringer is located in a foreign country - thus raising further issues concerning jurisdiction, enforcement and damages against the alleged infringer for the potential plaintiff.

3. Why is there not new legislation being adopted to specifically address infringement of intellectual property online?

With respect to intellectual property infringement, we already have existing federal as well as state laws that we can look toward and apply to online activities. There is also the general philosophy that existing laws should be applied to new technology rather than rushing to create new laws on technology that may change rapidly over a short period of time.

But if you feel there is a need - call your Representative or Senator!
GUARANTEE OF DISCRETION
In addition to cost effective, thorough investigative services, the clients of Kessler International are assured the highest levels of discretion and sensitivity to individual situations. We never sell or rent client lists, or in any way reveal the details of our investigations.

3


Copyright © Michael G. Kessler & Associates, Ltd. 2003. All rights reserved.