Terrorism: Knockoff Artists

Bulletin of the Atomic Scientists ^ | Shane Harris

[minerboy]

When you carry a fake Gucci handbag, you're carrying it for bin Laden. That's the alarm being sounded by a string of law enforcement agencies and industry associations, including Interpol, the Department of Homeland Security, the Motion Picture Association of America, and some software and luxury goods manufacturers. They say the sale of counterfeit products--including stolen intellectual property such as films, music, computer games, and imitation luxury clothing--is a lucrative and largely untraceable money source for Al Qaeda, Hezbollah, and other global terrorists.

To be sure, counterfeiting is a profitable business. Interpol and U.S. law enforcement agencies estimate that companies lose $400 billion to $450 billion annually to counterfeiters worldwide. (U.S. companies are hit the worst, accounting for more than half the total losses.) Yet, historically, busting traffic in bootleg Harry Potter DVDs and fake Rolexes has not been high on the priority list for law enforcement agencies otherwise occupied with drug smugglers and violent criminals. Counterfeiting is perceived as a victimless crime, and it's hard to inspire public outrage over the plight of multibillion dollar corporations, especially when a genuine pair of Armani shoes costs upwards of $450.