Thai for counterfeit - kŏng bplom
Counterfeit money - ngern bplom

Background
Elevated to the United States Trade Representative Priority Watch List in 2007, Thailand has a counterfeit market value of $900.1 million, with software dominating nearly half of that, at $421 million (source: Havocscope Global Market Indexes). In 2007 the Thai software industry lost $468 million to the software pirates (source: 2007 Global Software Piracy Study). Thailand is considered to be the primary staging point for counterfeit goods produced in China, where up to 90 percent of fakes sold around the world are made. It is frequently a sordid and violent business, operated by organized gangs with financial ties to Hong Kong and Taiwan.

Prior to China opening its trade borders with the outside world, Thailand was a regional centre for the production of counterfeit goods, chiefly clothing. But the counterfeiters are attracted to China for the same reasons as the legitimate manufacturers: lower wages, a massive work force and an undervalued currency. Its prime geographical positioning and modern ports and airports have therefore rendered Thailand an ideal transit point for counterfeit goods. The fact that Thailand also shares its borders with other countries with lax IP enforcement also helps the industry to flourish.

A 2007 article in the Columbus Dispatch entitled Thailand’s Counterfeit Pipeline, highlighted the extent of the problem and offered the grim suggestion that the counterfeit industry is encouraged through lack of enforcement and by officials in Thailand's military-led government simply looking the other way. “Stopping counterfeiting is a difficult proposition in any case, but adding in corruption makes some producers virtually untouchable," said a Western diplomatic source in Thailand who asked not to be named for fear of political retribution.”

Thailand’s range of counterfeit products runs the whole gamut from fake food products, cell phones and printer components to auto parts, luxury fashion brands and multimedia. And when it’s a simple matter of filling used ink cartridges with generic ink and packing them into Hewlett-Packard boxes, and selling them on for a profit margin is higher than heroin, it’s easy to see the attraction.

“The penalty is often death for narcotics, whereas if you're a counterfeiter, people say, 'OK, you're just a businessman”, Daniel C.K. Chow, an Ohio State University law professor and a counterfeiting expert said in the Columbus Dispatch.

Pressure is mounting for Thailand to get to grips with its counterfeit problem, especially as it has such global impact. So, what is being done? Raids are being stepped up, more advanced technologies are being applied to enhance the authorities’ abilities to deal with tracking down counterfeit goods and the perpetrators and efforts are being made to inform the public – such as the demonstrative destruction of 34 million baht’s worth of fake goods in Phuket back in 2007. Another good example is The Business Software Alliance setting up a Thai hotline (1800 291 005 or 0 2711 6193) and recently doubling its reward money from 250,000 to 500,000 baht for pirated software informants. Despite these efforts, the global opinion is that the Thai authorities are acting insufficiently to combat this issue, and the problem is only worsening.

When looking at the counterfeit trade in Thailand, it is important to highlight that it does more than rob companies of sales; it supports organized crime, child labour and terrorism and is steadily becoming a global-scale threat to consumer well-being. Some counterfeit items purchased by tourists, among others, are produced in sweatshops not only in rural Thailand, but also neighbouring China, Burma and Cambodia with people, young and old, often being forced to work inhumane hours, in atrocious conditions and for a pittance.

 

Legislation
At the behest of a registered trademark owner, Thailand’s Customs Department has the right to stop counterfeit goods at the borders and there is a general infrastructure in place to prevent counterfeit goods from entering or leaving the country. More recently efforts have been made to ease the administrative burden of trademark owners wishing to report a suspected counterfeit shipment. Criminal action under the Thai Penal Code can be taken against perpetrators of trademark fraud. Criminal prosecution can result in fines and imprisonment. Penalties for infringement of a trademark registered in Thailand can include fines of up to 12,600 USD and up to four years’ imprisonment.

It is not only selling counterfeit goods that is illegal; so is buying them and any counterfeit products you have purchased may be confiscated at customs on the way back home. Although individuals are not usually prosecuted for buying fake goods, counterfeit items may be seized by immigration, resulting in a humiliating experience and loss of money that you won’t be refunded.

Because of the knock-on effects of the Thai counterfeit problem experienced in the US, bringing these goods into the US may result in forfeitures and/or fines.

If you are planning to work in Thailand, be aware that foreigners found to be involved in counterfeit trade also risk having their work permits revoked. Worse still, you can get caught out with fake work permits too.

Anti-counterfeiting agencies
Department of Intellectual Property
Central Intellectual Property and International Trade Court
Customs Department

Products to look out for
Software
Pirated software is openly available in shopping malls in Thailand, especially Bangkok. Raids at IT malls across the capital have been carried out as part of the continued fight against counterfeit and unlicensed software. Piracy is generally associated with the sale of counterfeit products such as CDs or DVDs but it is now also very common for computers to be sold to consumers with pre-installed, unlicensed software. A survey commissioned by Microsoft in 2007 revealed that 97 per cent of system builders in major IT malls in Bangkok are guilty of ‘hard disk loading’- the practice of installing pirated or unlicensed software on a PC and, at the time of that survey, only three per cent of software vendors at Panthip Plaza, Zeer Rangsit Mall and Fortune Mall offered PCs pre-installed with genuine Microsoft products! Don’t buy software or hardware in Thailand, that’s the bottom line. The low prices are beguiling but you will be funding and supporting a criminal industry that is deeply affecting the economy of this country and its people.

CDs and DVDs
These counterfeits are often of very poor quality with movies with poor sound quality, frequently featuring the passing heads of cinema-watchers and music CDs that jump so much you can hardly listen to them and they’re only fit for the bin!

Luxury and fashion goods
Bangkok, Phuket and Chang Mai are hotspots for counterfeit luxury items with tourist markets openly sell replica brand names.

Sukhumvit, Bangkok’s main drag is a typical example of this, lined as it is with vendors selling fake luxury brands ranging from Calvin Klein underwear and D&G belts to Louis Vuitton handbags and Rolex watches. Often the vendors have professional-looking brochures on show, featuring their counterfeit wares, laid out to give their fake items extra kudos. Anything more than a superficial glance will reveal that a lot of these fakes are not very sophisticated with ill-fitting designs, zippers bearing one brand name on items bearing another brand name, misspelled or smudged logos. However, in some cases it is harder to spot the fakes from the genuine products, especially those for sale in apparently more upmarket boutiques. If you buy a Gucci bag for $50 from a market stall you know it’s a fake, but you can also spend a few hundred dollars on the same bag at one of Thailand’s more upmarket stores only to find out later that it’s fake. When buying a bag, one tell-tale sign that it’s a fake is if the stitching has irregularities or loose ends. Look carefully at handles, buckles, pockets, zippers and other details that don’t look authentic. An original Louis Vuitton handle, for example is made from one complete strap of leather and doesn’t have any joins. Also vendors of counterfeit bags will often carry styles and designs you have never seen before, if you have familiarised yourself with the full range of the genuine product.

You don’t need to resort to buying fakes to save money in Thailand because genuine designer items can often be purchased at a cheaper price here than in Europe or the US.

Viagra and Cialis
On the streets of Bangkok, grubby-looking packets of Viagra and Cialis are laid out on the stalls alongside the fake luxury brands and you may also be approached by street vendors wafting the packets under your nose as you walk by. Don’t be tempted to buy these drugs, or any other, from street stalls. At about 20 baht per tablet they are significantly cheaper than over the counter but might contain a chemical substance that only stimulates insulin production – potentially lethal for diabetes sufferers.

Click here for more information on avoiding fake Viagra.

Beware the fake gem scam
The Tourism Authority of Thailand (TAT) receives over 1,000 complaints annually from visitors who have been cheated on gem purchases. These gem scams usually follow the same pattern: a tourist is approached outside a tourist attraction and is told that the attraction is closed. The friendly stranger quickly gains the tourist’s confidence, and suggests a visit to a temple that is supposedly open only one day per year; the stranger then mentions in passing that a special once-a-year government-sponsored gem sale is going on, and directs the tourist to a waiting tuk-tuk. At the temple, another stranger – sometimes a foreigner – engages the tourist in conversation and, apparently by coincidence also mentions the “special” gem sale. The tourist agrees to go look at the gem shop, and is soon convinced to buy thousands of dollars worth of jewels that can apparently be sold in the US for a 100% profit. However, the gems ultimately turn out to be of minimal value, and the shop’s money-back guarantee is not honoured. No matter what a tout may say, no jewellery stores are owned, operated, or sponsored by the Thai Government or by the Thai royal family. Lists of gem dealers who have promised to abide by TAT guidelines are available online here. Tourists who fall foul of a gem scam should contact the local branch of the Tourist Police, or call their country-wide toll-free number: 1155.

Credit card fraud
Credit card fraud, especially “skimming” (when your card is secretly copied sometimes by the line being tapped when you are making your transaction) is rampant in this part of the world. Never let your credit card out of your sight when paying with it, keep all records of transactions you make at ATMs (cash points) and, most importantly, make sure beforehand that your card is covered by your travel insurance. Sometimes it becomes apparent months later that your card has been copied, so also be on the look out for strange transactions on your statement after you have returned from your trip.

Shopping in Bangkok
Thailand is a fantastic place to go shopping and many bargains await you. Except for in department stores, you should always haggle to get the best price, which can be somewhat stressful initially but quite fun once you get used to it. Don’t be talked into going shopping with a tout or tour guide because they are almost definitely working for commission and will drive the price up of whatever it is you’re buying.

Be aware of areas with large amounts of counterfeit products in Bangkok, including Sukhumvit, Silom, Pratunam, Ramkhamhaeng, Banglumpoo, Patpong. Panthip Plaza, Fortune Towers and Seacon Square, where authorised computer dealers and pirates compete for customers.

If you want an authentic designer bag, look for an authorized registered dealer in one of the high-class shopping malls such as Emporium, Gaysorn or Siam Paragon, and remember that you can get good deals on genuine brand names.

Avoid the masses of counterfeit products and go for the genuine stuff that reflects the culture of this wonderful and varied country, such as ceramics, textiles, tailor-made clothing, rattan and teak furniture, gems and jewellery (read section above warning about gem scams!), hill-tribe crafts and laquerware.

One of the sad things I noticed on a recent trip to Bangkok was the amount of tourists flocking around the counterfeit tat, while the nearby stalls selling handicrafts and artwork, some of it admittedly not that tasteful but genuine all the same, were markedly bereft of interest. It seems a great pity that tourists are so eager to waste their money on hauling back the fake stuff when there are many more meaningful and lasting experiences to be had here, like spending a mere 250 baht (7 US$) on a fantastic full body massage for example; something that would probably cost more than twice as much in Europe.

Bangkok is also home to the Museum of Counterfeit Goods, which houses over 1,500 fake items in 20 categories ranging from clothing, leather goods and footwear, to electronics, households appliances, car parts and drugs. Some items appear alongside the genuine article, so visitors can play spot the difference and learn about the social and economic consequences of counterfeiting. Members of the public are welcome, though entry is by appointment only. Click here to read a review of this museum.

A note on antiques
There are plenty of beautiful antique pieces on sale at market places and shopping malls but be aware that real antiques cannot be taken out of the country without an export licence, which you can apply for from the Department of Fine Arts at Bangkok National Museum. No Buddha images, except those so small that they can hang around your neck, may be exported without the permission from the same department plus a permit from the Ministry of Commerce.

If you take the Sky Train to Mo Chit you can visit the fantastic covered market there. Yes, the counterfeit stuff is on sale there too but the massive part of the market is devoted to Thai art and design classics such as wood carvings, Buddha heads, textiles and paintings. Get your haggling boots on you though and be prepared to get lost in the maze of alleyways jam packed with the various products on sale.

If you are planning a visit to the famous Jim Thompson house (and well worth a visit it is), there are a couple of good handicraft shops along the same street where you can strike a good bargain and exchange a bit of banter with the sales people there. You’ll always be told you are the first customer of the day and that is very lucky for them and for you, but that’s all part of the fun.