Friday, December 31, 2010

There's Gambling at Rick's? I'm Shocked, Shocked!

Let me end an all too serious year on a lighter note. This is just one of those stories that is way too good to pass up. In “Authorities Crack Down on Flea Market Fakes” the Associated Press reports in shocked tones that counterfeit brand name goods are being sold in flea markets and swap meets, as well as by the traditional street vendors in major cities. I am reminded of the scene in the movie Casablanca where the thoroughly corrupt French police chief, Captain Renault finds an excuse to close down Rick’s American Café. He announces, “I’m shocked, shocked to find that gambling is going on in here!” Even as he is handed his share of the night’s take. Gee, you mean Rolex and Gucci do not extend franchises to New Orleans flea market dealers? I’m shocked, shocked, I tell you.

"If the price is too good, you have to think about it," said Lt. Mike McDonnell with the New Jersey State Police cargo theft unit. "If you see it at a flea market and it's half the price of normal, you have to think there's something wrong." Say it ain’t so. You mean that expensive watch I was once offered by an apparent drug addict on the streets of San Diego could have been a fake or stolen property?

The charges here are the possession of counterfeit trademark items. In one single raid, the police confiscated goods from flea market vendors “that included fake trademarks for Nike, Polo Ralph Lauren, Oakley, Ray-Ban, Coach, Louis Vuitton, Chanel, Gucci, Dolce & Gabbana, and UGG boots.” Did any of their customers seriously believe they were getting the same products sold in the best shops on Rodeo Drive, or were they just trying to make a low cost imitation of a fashion statement normally limited to the very wealthy?

The article estimates that 80% of such counterfeit goods come from China. I’ll bet most of the remaining 20% comes from our remaining Asian trading partners. The protection of foreign intellectual property is a relatively low priority in a country focused on building itself into a first class superpower. Not surprisingly, there was less of this nonsense when most of what was sold in this country was made in this country. Although, products like foreign manufactured counterfeit prescription drugs are extremely dangerous, most of the counterfeit products are probably made in the same city as the legitimate product. Comments by the readers indicate that at least in some isolated cases, such as that of a football jersey, the copycat goods are of similar quality to the authentic item.

Selling counterfeit trademark items should be a crime. I have a pair of Ray-Ban sunglasses that are over 20 years old. They were made in the good old U.S.A by Bausch and Lomb. They have proven themselves to be of the highest quality. That trademark means something and is worth something. If I owned the Italian company that bought the trademark and today manufactures Ray-Ban sunglasses, I would be quick to prosecute counterfeiters. The real problem is finding a way to return manufacturing jobs to this country. Then maybe more people would have enough money to buy an occasional luxury item even if it was what the article describes, “as the cheaper imitation versions found at major retailers, like Wal-Mart or Target,” that follow Consumer Safety Product Commission guidelines.

From the Movie Casablanca:

Rick: How can you close me up? On what grounds?
Captain Renault: I’m shocked, shocked to find that gambling is going on in here!
(a croupier hands Renault a pile of money)
Croupier: Your winnings, sir.
Captain Renault: (sotto voice) Oh, thank you very much.
Captain Renault: (aloud) Everybody out at once!

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