As part of the fight against counterfeiting, luxury brands call on private investigators or specialist agencies to identify and pursue networks of counterfeiters.
What is counterfeiting?
Counterfeiting is defined by INSEE as ‘the reproduction, imitation or use, in whole or in part, of a trademark, design, patent, software or copyright, without the authorisation of its owner, by asserting or allowing the presumption that the copy is authentic’.
Penalised under French law as an anti-competitive practice, counterfeiting is provided for and punishable under articles L. 335-2 et seq. of the French Intellectual Property Code.
Counterfeiting is a massive phenomenon, accounting for 2.5% of world trade and up to 5.8% of goods imported into the European Union (OECD studies, EQUIPO 2021). All sectors of activity and all types of goods are affected. The exponential growth of online commerce and the physical flows associated with it (express and postal freight) are helping to amplify the phenomenon, which is perfectly structured by criminals.
Can a detective be commissioned by luxury brands to investigate counterfeit cases?
Yes, private detectives can be commissioned by luxury brands to investigate high-end counterfeiting cases.
In January 2006, Louis-Vuitton, the leading brand in the LVMH group, called on the services of the private company CP Conseil to combat the sale of counterfeit luxury goods. In 2005, this scourge accounted for more than 61.4% of products seized by customs, or 5.6 million items, and a loss equivalent to more than €314 million. At the time, the firm was headed by Charles Pellegrini and was the leading private firm in the fight against counterfeiting.
Also in 2006, the firm launched an investigation into the counterfeiting of products at the Saint-Ouen flea market in Seine-Saint-Denis. To gather all the evidence, the firm mobilised three detectives for more than a month and a half to carry out scouting, stake-outs, spot the perpetrators and shadow the members of the network. After a month and a half of investigation, the work of the private investigators is paying off. On 18 August, two men were sentenced to two months’ imprisonment and five others were given suspended sentences, in Paris, for selling counterfeit luxury goods.
The advantage of private detectives in this type of situation
Calling on the services of investigators is a real time-saver. Police officers are often overworked, whereas private investigators have more time to carry out their investigations and track down dealers. Investigators will gather evidence on the production and distribution of counterfeit products. They will carry out discreet research, monitor online sales sites, infiltrate suspect networks or interview people linked to counterfeiting. However, their work is governed by the law and does not allow them to carry out illegal actions or exceed the limits of the legislation in force.
The reason why luxury brands make so much use of private detectives in the fight against counterfeiting is that they often win in the end. On the one hand, they protect the integrity of their products and their brand image. Counterfeiting is a major problem for the luxury goods, fashion, watchmaking, accessories, cosmetics and other industries where the brand is a key value factor.
The various investigations carried out by detectives in the fight against counterfeiting
Private investigators implement different action plans depending on the needs of the business. In this way, they act on a case-by-case basis to achieve optimum results.
Monitoring physical and online markets
Detectives can be commissioned to monitor distribution channels, in particular online markets, auction sites, e-commerce platforms, and even physical shops suspected of selling counterfeit products.
Investigating distribution networks
Brands want to know where counterfeits are coming from, who the producers and distributors are, to better target their legal actions and possibly dismantle counterfeiting networks.
Discreet evidence gathering
Private investigators can conduct undercover investigations to gather evidence on counterfeiting without being noticed, which is essential for successful prosecutions.
Follow-up of legal actions
Detectives can also help monitor the progress of certain cases, ensuring that legal action is taken effectively, and that counterfeiting networks are continually targeted. For example, detectives usually work closely with the lawyers of injured companies.
Evaluation of suspect products
Private investigators are sometimes called in to analyse products that appear to be counterfeit to determine their authenticity and establish proof that they are indeed counterfeit.
Because of the significant financial impact that counterfeiting can have on luxury brands, they often invest significant resources to protect themselves. Counterfeiting can damage their reputation, affect sales and reduce the perceived value of their products. Private investigators therefore play an essential role in this fight by gathering information and evidence so that legal action can be taken.
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