Sunday, April 30, 2006

Not exactly counterfeit

Fortune has a fascinating article on problems that brand owners are having with perfect counterfeits being produced by the same factories to which they have outsourced production of their goods (via Open Rights Group):

"When you're outsourcing, you provide specifications, drawings, blueprints," says Peter Humphrey, who runs a risk-management firm in Shanghai called ChinaWhys. "What can easily happen is, someone takes it down the road to his brother or uncle," who also has a factory. "Before you know it, there's ten or 20 factories in that county making knockoffs of your product."

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