"It's invisible to most of us but there's a crime wave going on, unprecedented in human history." "It's everywhere, in every country, on every continent." "And it affects virtually everything." "The goods we buy." "The kind of jobs people do, and where they do them." "The safety of our homes and families." "It's theft on a colossal scale." "You could say that it's the crime of the century because you'd almost be foolish to try any other kind of crime if you're organized and you know what you're doing." "It's so profitable and it's so easy to get away with." "The crime of the century is counterfeiting." "Illegal copying." "Not counterfeit money that's a small part of the bigger story." " We're talking about everything." " Shoes, clothing, designer goods, electrical products, medicines, car parts, computer chips." "The list is endless." "And if we think of street-level counterfeits the purses and watches - as no big thing..." "In fact we'e missing the big picture." "People don't understand the difference between a counterfeit product that might be dangerous and the fact that that product is being brought in by a criminal and manufactured and distributed by the same criminal that's bringing in the high-end luxury bags." "In the past 20 years, global shipments of counterfeit goods have exploded in growth because we've changed the way the world does business." "With globalization, international trade barriers have mostly faded away." "Goods move all over the world bought and sold by people who never even have to meet." " It's just mushroomed." " It's grown out of all proportion what it used to be." "And this is a scary version of capitalism, which just shows how things can get out of control before we realize what's happened." "Tim Phillips is a British journalist." "He's written a book about counterfeits, and about how even though we know it's morally not quite right to buy them - we do it anyway." "There's an idea that we can hold two completely separate opinions about something at the same time." "Cognitive polyphasia is a fancy word for it." "We can object very much to people stealing or people ripping other people off." "But at the same time we can want what the product is of that and feel that it's not so bad." "Apparently millions of people feel this way." "Counterfeit goods now account for about a tenth of the world's total economy..." "About 700 billion dollars a year, worldwide." "Putting an end to it?" "Good luck with that." "¶" "I was speaking to a lawyer, a guy who spends his whole life chasing after counterfeiters, and he was saying the counterfeiting problem is like playing a whack-a-mole." "As soon as you hit one mole, there's two or three others poking their heads up." "The problem that we've got at the moment is that the counterfeiting business is so huge and it's so out of control there's far too many moles, and there's far too little whacking that's going on." "Meet one of the mole whackers." "Rcmp inspector Todd gilmore." "He leads the fight against counterfeiting in the greater Toronto area." "Todd Here's an example of counterfeit Cialis and Viagra." "We seized over 100 thousand of these pills, manufactured without regard for health and safety standards so we have no idea what the ingredients are." "These are counterfeit batteries." "They go in children' toys." "They go in all kinds of devices that we want to make sure, that they work." "And I'll tell you we've also had cases where these have actually exploded." "You can tell by looking at the packaging there's no bilingual labeling." "Traces of contaminants were found in this toothpaste." "A counterfeit glock pistol." "It's made out of plastic but looks exactly like a glock." "International suppliers, large networks of distribution, money laundering." "Our investigations demonstrate clearly that the sale of counterfeit goods, the importation of counterfeit goods is a highly-organized criminal activity." "The criminal activity happens in broad daylight..." "In Canadian flea markets, shops and malls." "Toronto lawyer lorne lipkus has seen it all." "When I first started doing anti-counterfeiting twenty odd years ago, it was t-shirts in flea markets." "Four t-shirts, 10 bucks." "Here you go." "Nobody' hurting anybody." "Well, guess what?" "Twenty/twenty-five years later all of a sudden organized crime is involved." "All of a sudden we have forced labour, child labour." "We have people spending millions to bring counterfeit into countries like Canada, making people believe it's authentic." "With a researcher carrying a hidden camera, lipkus goes shopping for counterfeits at the biggest indoor Asian mall in Canada." "He's done this before - many times - on behalf of clients whose goods are being counterfeited." "First up, a charger for his iPhone." "Next, a pair of ray-ban sunglasses." " You can try." " But this way just try it on " "Yep, you can have this one to try it." "The potential problem here is that real ray-bans offer uv protection for the eyes." "The counterfeits?" "Maybe not." "Funnily enough, while the sales person has no qualms at all about selling counterfeit sunglasses, she is concerned about counterfeit money." "Why isn't it okay?" "On a regular basis, customs in Canada is allowing counterfeit goods, that they know are counterfeit, to enter the marketplace in Canada." "Because they just don't have a mandate and don't have the resources to deal with this product." "Even something as innocent as a child's toy can be questionable." "Lipkus knows of angry birds toys just like this one that were stuffed with potentially dangerous materials." " Do you sell a lot of these?" " Yeah." "Fifteen minutes later the shopping is done." "Lorne lipkus:" "It doesn't say apple Japan, a-p-p-l-e." "It says "apole Japan'." "A-p-o-l-e." "Also, caution is spelled, c-a-u-t-I-c-n, instead of I-o-n." "So there's a typo on it." "And yet this person told me that this was made by apple." "Clearly not." "And it's every single product that is being manufactured in the legitimate marketplace is being counterfeited." "If it's popular, it's being counterfeited." "In Canada, there's one product so popular it's become a national icon - the Canada goose jacket." "For many young Canadians the Canada goose jacket is a status symbol, quite the fashion item." "But in places where it gets really cold, a Canada goose jacket is considered mandatory, almost a safety item." "They're made at this factory in Toronto, by Canadian garment workers who earn a lot more money than their Asian counterparts." "The result?" "Serious competition." "Counterfeiting' become a significant problem for Canada goose." "We're not unlike other brands like Louis vuitton or rolex." "As we've gained in popularity, premium brands become targets for counterfeiters." "So this is a counterfeit Canada goose jacket." "And I'll tell you how I can tell." "The first thing I notice is the fur." "This is not coyote fur." "This is probably some sort of dog or cat." "It won't protect you from the cold and goodness knows how it was caught." "The next thing I look for is the logo." "So, what you see here is a really poorly-done stitching, the maple leafs look more like chicken feet." "It just really doesn't look anything like our logo." "Although from a distance, you could be fooled." "Inside the jacket on the inside back label you start to see some of the more obvious clues." "This is supposed to be a maple leaf?" "Our website is wrong." "Online, knock-off Canada goose jackets are easy to find..." "For about half the price of the genuine article." "The websites look real enough, and Canadian, but they're not." "The cut-price coats are typically made in China." "And what they're sometimes filled with, can be bad news." "Inside a counterfeit jacket you can find bird parts, which might be beaks, feet, feathers, who knows." "It's often covered in feces and mildew and bacteria." "And it poses a health risk." "There was a time when we had one person internally who could scan the Internet looking for counterfeit websites or auctions and take them down in due process." "Today, we have a global team of people working on the problem with us." "¶" "Lacoste is one of France's best-known clothing brands, famous for it's iconic crocodile logo." "Meet one of the family, Philippe lacoste." "He's on the board of directors of one of Paris' most unusual museums." "It's called the museum of counterfeiting." "Here you'll find one of the world's best collections of fake products." "The museum has a mandate to educate the public about the evils of copycat goods, and the variety on display is truly impressive." "Foods, building materials, automobile parts, toys, kitchen gadgets, condoms, even counterfeits of lacoste's famous logo." "And there's history too." "Before people started putting alcohol in bottles, the romans used ceramic vessels called amphorae." "Two thousand years ago, this represented a business opportunity for an unscrupulous merchant." "Philippe You have a genuine amphora stopper, and a fake one." "A guy was producing wine was trying to claim he was manufacturing the same wine as this producer was." "Counterfeiting is called the second oldest profession." "This is a joke by intellectual property lawyers." "And it has been around for thousands of years." "Holy Roman empire, Charles v in the 16th century - people were making counterfeit tapestries." "He was having their hands chopped off." "Not a big problem these days, counterfeit tapestry." "Charles ix of France, he instituted the death penalty." "Many counterfeiters through the years have been put to death for what they'e been doing." "It really accelerated in the 19th century." "A guy called Louis vuitton, bags that he was making, were being copied." "So he invented a particular design, tried to protect that and so, created branding at the same time as creating the counterfeiting business." "Today, some of us may still get a kick from buying a bargain designer purse." "But what about the fakes we didn't bargain on?" "These are automobile parts, for brakes." "This one is the counterfeited product." "This one is the genuine one." "So it's very difficult to see a difference." "There are a few." "But if you are not a specialist, and someone working day and night in the garage, you will not see the difference." "If you drive at 80 Miles an hour with this counterfeited piece it will take around about 40 yards more to stop than with the genuine one." "Forty yards at 80 Miles per hour can mean the difference between life and death." "Real brake pads are made from ceramics and metals." "The counterfeits are too, but they've also been found containing sawdust and dried grass." "Tim Fake car parts exposes this double-think that we do;" "We like counterfeits when we think we're getting a bargain." "And we like to be experts on oh, that' not a real rolex." "You can tell, because the way the second hand's moving." "No one knows what a real brake pad looks like, compared to a fake brake pad." "And we don't make the choice." "No one shows them to us in the garage before they're stuck onto our car." "And so that's taken out of our hands." "At which point we throw our hands up and say, 'oh my God." "This is terrible." "How can people do this to us?" "' well, this is the world we made for ourselves." "We have to deal with the world we made for ourselves." "And that involves the fake Rolexes and the fake car parts, because they're coming from the same people." "So, where are these people?" "Counterfeiting is a global industry." "But the fact is, almost three-quarters of the world' counterfeit goods comes from one country, China." "¶" "China is the largest manufacturing economy in the world." "They can create, adapt, or copy anything you can think of." "The Chinese are very, very good businessmen." "And in China the ability to copy precisely always had great social status." "So it's natural they should get into this business." "¶" "In Southern China, there' a village where copying is the only industry." "Here, the entire population works towards turning out copies of art masterpieces." "Vincent van gogh, Gustav klimt, the old masters..." "Anything you want can be faithfully reproduced here, for prices that average around fifty dollars." "The skills are passed from generation to generation." "You could say it's in their cultural DNA." "Chinese calligraphy is an ancient discipline, an art that takes years of study, copying the work of past masters." "There is no improvising here." "Everything must be just so." "Just like the original, centuries ago." "This tradition lives on in peculiar ways." "In 2011, police in the city of kunming had to shut down a look-alike Ikea store." "Identical product line, a copycat store layout." "And in the same city - a counterfeit apple store:" "Logo, displays, staff uniforms." "All fake." "¶" "Western-style consumer goods are in huge demand in China." "We are coway, the leading producer of iron in Hong Kong." "Trying to protect patents and copyrights here is challenging to say the least." "Private investigator Ted kavowras is in the fight." "Sometimes we'll come across new designs." "Something new we'll see." "Perhaps it's something that looks like our clients'." "We'll be notified in advance what to look for." "Kavowras is a former New York City cop." "Now he lives in Hong Kong, and he runs a security company that specializes in intellectual property theft, and counterfeit goods." " Some of you failed to check in." " I insist you check in..." "Kavowras employs a team of undercover agents." "His office is a treasure trove of props and fakes, tools of the trade." "I change my identity and my appearance quite often." "I've got my eastern European teeth which actually work quite well." "I'll show you a hidden camera system built into a clipboard." "So when we talk to people sometimes we'll be able to video tape them at the same time." "Here's video from an investigation of a factory in Southern China." "This high-tech facility was suspected of making counterfeit printed circuit boards, used in mobile phones." "Footage gathered by kavowras became evidence in legal action against the factory." "Some are switches, some are chips, some are pillows, some are patented designs." "The range of products is just shocking, from toilet seats to edible products I mean the cases and the items we investigate are everything in the world." "China has raised more out of poverty in the last 20-25 years than anyone has done in history." "And that is a huge achievement." "On the other hand, through counterfeiting, it has been done at the expense of a lot of developed world companies." "Developed world companies like channel, Gucci and rolex." "If it's knock-off luxury goods you want, kavowras can take you shopping." "Again, with a hidden camera." "Here, copies of pretty much anything are available for a great price." "Yeah sure what do you have?" "I want the copy rolex like this." "The fakes come and go by the bagful." "Watches, leather goods, wallets, purses " "Louis vuitton, mont blanc;" "Exact copies of any brand name you want." "Custom order your counterfeit." "And then there's the made-to-order copies of any movie you like on DVD." "How long will it take you to bring it here?" "About five minutes." "The headsets." "Trendy Dr. dre headphones, a $300 item, the knock-off sells for the equivalent of 40 bucks." "Copies of luxury goods are what make the world go round here." "You might think there's no harm in it." "You pay your money you make a choice." "But kavowras knows that more sinister counterfeits don't come with a choice." "Do I want to support this kind of dangerous industry that you know there are no boundaries of?" "I mean in the 80s dealing drugs was what was changing the world." "I think counterfeiting today is what's changing the world." "There are great dangers people don't acknowledge." "When we come back..." "Counterfeits that kill." "Tim The fake drug business is huge." "It does kill thousands of people all over the world every year." "It is a scandal." "And it is a scandal that is nowhere near being solved." "By most estimates, around 15% of all drugs bought and sold in the world are fakes." "But in some African and Asian countries, up to a half of all medicines can be counterfeit, and ineffective." "Globally, the cases are chilling." "In Panama, in 2006, more than 350 people including children were killed by counterfeit cough syrup." "In 2012, in Pakistan, more than 100 people died after being given counterfeit heart medication." "In China, it's estimated that 300,000 people die because of fake drugs every year." " The fake drug business is huge." " It is growing." "It is enormous." "We haven't been able to do very much about it." "It does kill thousands of people all over the world every year." "And we know that for sure." "It is a scandal." "And it is a scandal that is nowhere near being solved." "¶" "At this pharmaceuticals conference in Philadelphia..." "They are all about looking for solutions." "Push the button, it beeps and says 'authentic'." "New packaging ideas, and hi-tech verification codes are being tried..." "Anything to make life more difficult for the counterfeiter." "There were six legislative recommendations when it came to pharmaceutical crime..." "Rich halverson is a unit chief with the us department of homeland security." "Counterfeit medicines can be found anywhere in the world." "And we have seized them everywhere around the world." "We have seen counterfeit malarials in Africa and in Asia." "But in Europe where we saw one of the largest recalls of counterfeit drugs, that took place in the uk." "And those were heart, cancer and anti-depressants that were recalled." "In the United States we have seen counterfeit drugs." "Counterfeit 'Viagra' 'Cialis'." "Heart medicine, cancer medicine, anti-depressants." "It's not simply one problem for one part of the world." "But it' a global problem and it requires a global response." " "Hey my brothers and sisters..." " We have a big problem here..."" "This video was created by interpol, it features some of Africa' s biggest music stars, part of a huge public awareness campaign about fake medicines." ""People need good medication..."" "The supply chain in the developing world is very loose." "It's not very well regulated, because of course a lot of drugs are sold in markets and through small street vendors, hawkers on buses, those sort of things." "It's the easiest thing in the world to get fake drugs to market there." "But counterfeit drugs are not confined to the developing world." "Using the Internet, people are buying, selling and shipping medicines all over the planet." "¶" "This is glenda billerbeck an American visiting." "British Columbia's Gulf islands, where her best friend used to live." "Glenda Marcia was the best person you could ever know." "She was very friendly, caring, giving, kind." "She'd do anything for anybody to help them out." "She enjoyed the outdoors, you know, places like this." "She loved just doing anything that would enhance her life." "¶" "This is where marcia lived." "I came here, spent Christmas with her in 2006." "We had a wonderful time." "I cooked dinner for her." "We watched a little football." "Enjoyed our time together." "On boxing day, marcia bergeron dropped glenda off at the." "Victoria airport, and the two friends said their goodbyes." "The next day, back in Iowa, glenda got a phone call from bc." "But it wasn't marcia." "Phone rang." "I picked it up." "Judy says hey glenda, this is Judy." "Marcia's neighbour." "And I said, oh, what's up?" "She goes, well I have some bad news to tell you." "She said, I found marcia dead yesterday." "She was lying in her bed all curled up." "We don't know what happened." "The coroner's here." "He would like to talk to you." "These are photos taken by the bc coroners office." "Marcia bergeron had died at the age of 58, and it wasn't obvious why." "On the bedside table some pills." "Meet Barb mclintock who works with the bc coroner's service." "In her world, the bergeron case became a mystery to be solved." "When the pathologist went to do the autopsy a few days later he found that marcia's skin color had changed very drastically since she came to the hospital and had been in their morgue." "The best description we could give was that her skin had become kind of a greenish-purple." "The investigators quickly zeroed in on the drugs that marcia had been taking." "They were painkillers and sleeping tablets bought from an online pharmacy." "They're just plain white caplets and they don't have any stamping of the amount, the strength of them or the drug manufacturer's name or anything." "There were 3 different medications in all." "No one knows how long marcia had been taking them." "But all of them were contaminated with things that in high enough doses - can kill." "For example a whole lot of strontium in them." "Strontium is a radioactive element that you shouldn't expose yourself to at all." "Chromium." "Manganese." "Cobalt." "Gallium, arsenic." "Selenium." "Molybdenum." "The list just goes on and on." "And virtually all of them much higher than they should be." "Some of them were particularly toxic, like the aluminum and the strontium and uranium." "No matter what you do or how you think about it, this is murder." "These people selling these pills over the Internet." "And what the us authorities think happened was that the site of the factory where they manufactured these, were near the site of a mine tailings heap in India, where they had been doing some metal mining." "And that in fact the folks in India probably just went and basically gathered up free buckets of the powdery dust left over from the mine and used it as their filler." "And that was probably what caused the poisoning of marcia." " I lost a good friend." " Plain and simple." "¶" "¶" "But if you think you're safe by simply avoiding online pharmacies... events in 2012 proved otherwise." "This was the year most of us first heard about an expensive cancer drug, called avastin." ""We were surprised on Tuesday when the fda warned doctors." "About a fake chemotherapy drug ..."" "Counterfeit avastin was found in us cancer clinics and hospitals, ready to be administered to patients." "This is taking it to a whole new level." "To do that, you're going to have to be able to con whole hospital supply systems and whole doctor's supply systems." "Which makes me think they've got very good at this indeed." "Which is probably very scary if you're a consumer." "When we return counterfeits at 30 thousand feet." "People are always surprised, because, and I've heard this thousands of times, they say well, they wouldn't let it fly unless it was safe." "And I always say, well who's they?" "Of all the places we might run into a counterfeit product, there is one place no one would ever want to." "As improbable as it might sound, airplanes have for decades been a profit centre for counterfeiters." "Mary What it's all about is money." "Somebody is giving you a counterfeit part to save money." "Mary schiavo used to be the inspector general of the us department of transportation." "In the 1990s, in Washington, she locked horns with the federal aviation authority." ""We've had some very strange action come out of the faa." "I've been a lawyer for 15 years in law enforcement for 12 and frankly I've never seen anything like it."" "We met a lot of resistance on investigating counterfeit parts." "The industry didn't want us to focus on it." "Our government didn't want us to focus on it." "It was an expense, they said, actually said this in writing:" "It was an expense the airlines couldn't afford at the time." "We assume that an airliner is like a television;" "It just exists as one unit." "That's not the case." "They're regularly being stripped down and re-fitted." "Every part in them has a time during which it is safe, and then after that, has to be thrown away." "The problem comes when those parts that are taken off are not disposed of." "They find their way back into the supply chain somehow." "People are always surprised - I've heard this thousands of times." "They say, they wouldn't let it fly unless it was safe." "And I always say, well who's they?" "And they say, the government." "But the government can't do it." "Like I said, there are less than four thousand inspectors." "And there are tens of thousands of aircraft all over the world." ""For example, we have a counterfeit nose-wheel..."" "Schiavo's team pursued the problem with no holds barred." "One of the investigations we were working concerned helicopter parts." "And they were counterfeit." "And we found that those parts had made their way onto the president's helicopter, called 'marine one'." "People became believers at that point." "If counterfeit parts can make it to the president's helicopter, how bad is it?" "It's worse than that." "Because as we went on, we were then doing some investigations concerning parts that were headed for 747s." "Yes indeed, those parts were also destined for 'air force one'." "While re-fits and maintenance overhauls are a potential source of counterfeit parts, they're not the only source." "American airlines discovered this in 1995 when one of their planes crashed in the mountains of Colombia." "A hundred and fifty-five people dead." "But some of the first people that came onto the scene were the salvagers." "And they started taking parts." "Cutting parts out." "They were obviously savvy enough to realize that these after-market parts are very, very expensive." "They basically stripped the airplane of hundreds, hundreds and hundreds of parts." "Flew them off the Mountain within 24 hours." "Literally, these parts were showing for sale within weeks." "Tim Presumably, they got fitted to commercial airliners, because that's whats the parts were for." "We don't know where they went." "We have no idea." "We do know that crashed airliner parts were stolen and fitted to something we could have flown on." "But perhaps the most infamous case of a bogus part in the airline industry happened in 2000, and it coincided with the beginning of the end of supersonic passenger flight." "The 'concorde' is the quintessential example, the pinnacle example of a bogus part causing horrible loss of life." "¶ It's July 25th, 2000." "A hundred passengers have come to check in to air France's concorde flight to." "New York City." "They have signed up to become elite members of the travelling public - the few lucky enough to experience supersonic travel." "The concorde has never had a serious accident in 25 years of service." "On this day, in the cockpit everything looks routine..." "And the passengers settle in." "But on the runway during take-off;" "A catastrophe." "The concorde runs over an object lying on the tarmac." "A tire bursts, slamming rubber into the wing..." "Where fuel tanks are located." "There's a point where you cannot stop." "You must go." "And they learned that they were on fire after that point." "¶" "This is video of the concorde's last moments, shot from the cab of a passing truck." "Just 90 seconds after take off, concorde crashed into a small hotel." "More than a hundred people lost their lives." "And investigators went looking for the reasons." "In the airline business we don't talk about fake parts, we talk about 'suspected unapproved' parts, you know." "'Unauthorized' parts, they got into the supply chain through a 'non-official' way." "They found the part that cut the tire, that set off this horrible chain reaction, was a part that had fallen off from a us airliner, a 'continental' plane." "And it was just a little piece of metal." "Didn't look like much of anything." "But they were able to find by placing the part in the pieces of the tire that had been cut off and left on the runway, and it matched." "And so they were able to tell that this part started this horrible chain of events." "The metal strip was a replacement part from the dc10's engine cowling, but it didn't come from the plane's manufacturer." "A continental airlines mechanic had fabricated it, and tried repeatedly to rivet it to the plane." "Photos taken by the crash investigator show a haphazard row of rivet holes... evidence of repeated attempts to attach a non-authorized part." "So - criminal or not, you know, who's to say?" "The faa in the end will say it wasn't criminal." "But it certainly caused the downing of the plane." "So, a bogus part brought down the 'concorde'." "We have to give credit to the airline industry." "It has done a lot to make this business safer." "It has put a lot of effort into this, because it's obviously not in their interests to have any aircraft crashing for any reason at all." "But we still don't know." "And no one would claim that there are no fake parts around." "In fact, it might be harder than ever to track the parts supply because of the way the maintenance industry has changed." "These days, to save money, many airlines fly their planes to foreign countries for maintenance and repair." "We have lost control." "Not just us." "All aviation nations have." "You've lost control of the a to z process." "There are parts now that are beyond your inspection control, beyond your manufacturing control and beyond your maintenance control." "And that has happened in the last two decades." "And that's modern aviation." "By intent and definition, aviation has no national boundaries." "And the future of aviation could be great because everybody in the world can fly now." "Or it could be very dangerous." "Because if you don't have a national boundary, who's going to lay down the law?" "When we come back..." "China, chips and counterfeits." ""We have millions, literally, of used parts that have gotten into the defense supply chain." "They're not supposed to be used parts." "The problem with counterfeit electronic parts in the defense supply chain is more serious than most people realize."" "In 2012, after a year-long investigation, the senate armed services committee in Washington dropped a political bombshell." "The U.S. military supply chain, the committee reported, is riddled with counterfeits." "Eighteen hundred cases were uncovered involving more than a million bogus parts." "We had example after example of weapons systems that had counterfeit parts in them." "The examples were shocking." "Sophisticated fighter jets, hellfire missiles, transport planes, even top-secret unmanned surveillance aircraft, all had counterfeit parts installed." "The problem began in the mid 1990s when the Pentagon was looking for a way to cut costs." "Instead of buying directly from manufacturers, the military began doing business with privately owned parts brokers, including suppliers of computer chips." "The thing about counterfeit or used chips is, there's no way of knowing how long they will last before they fail." "Not very reassuring when you are heading into combat." "There are counterfeit chips being brought into the U.S." "True story, a case out of Houston, Texas where father-son were buying chips off e-bay for $25 apiece, and their goal was to take these $25 chips, put them into counterfeit packaging and then sell them to the U.S. military" "for $625 apiece, and that was to fulfill a military contract for equipment to go into field radios being used by the marines when they were fighting in Iraq." "In some specific cases the recent senate investigations led back here, the Southern Chinese city of shenzhen." "This has become the place where the world comes to shop for bargain electronics." "In the city center multi-story outlets are booming." "We have multiple floors of chip traders and brokers..." "Private investigator Ted kovowras has checked out this mall several times." "It's packed with all kinds of electronics new and used." "If it's semi-conductors you want, this is the place." "There are 3000 individual vendors here;" "One of them shows kavowras what certainly look like brand new chips." "Unless you're an expert it can be difficult to tell a new chip from a cleaned-up, recycled one." "And in China there's no shortage of recycled parts." "What is going on here is that electronic waste, which is shipped from the United States and the rest of the world, mainly to China is then disassembled by hand, washed in dirty rivers, dried on city sidewalks," "sanded down to remove part numbers and other marks that would indicate its quality or performance, its amazing how far the counterfeiters, particularly in China, are willing to go." " The problem is not China." " The problem is that, I think the military's budget has been cut so drastically that they buy from unethical middle-men who knowingly sell them used parts, which are considered counterfeit." "So the problem is not China, not ethics in China;" "The problem is a lack of budget in the U.S. and shame on the politicians who want to deflect criticism of their budget cuts by blaming China." "Including the threat counterfeit electronic parts pose to the safety of our men and women in uniform..." "The U.S. government is passing laws to make its military supply chain more secure." "But most countries including Canada take the official position that their armed forces have no problems with counterfeits." "But the problems keep coming." "Brand new Hercules transport planes used by air forces all over the world are coming into service." "Canada took delivery of its first new plane in the summer of 2012." "Today we're all excited to be here to welcome the first of 17 new c130-j Hercules aircraft." "Not mentioned at the official ceremony, the Canadian department of defense now admits that counterfeit computer chips from South Korea have been found in at least one of the brand new planes." "They were installed, inadvertently, by the manufacturer lockheed Martin." "Rcmp inspector Todd gilmore is ending his day at the shredding plant." "Every month in Ontario a small fortune in fakes is seized and destroyed, a drop in the ocean really, compared to what gets through." "Hundreds of thousands of dollars shredded, bailed and sent to the landfill." "I think the psychology of buying fakes is really under-examined." "Some people like to buy a fake bag and say 'you know what?" "I just screwed that fancy company out of their profits because I have the same bag with the same logo.' but I mean, really, who are they cheating?" "I think people are cheating themselves." "I really wonder the wisdom of that and the fact that that contributes to a wide range of products, not just bags, but industries where people get hurt." "People need to take that into account as well." "But in more serious cases how could we take it into account?" "We're not offered a choice." "Mary schiavo believes that the counterfeiters themselves need a dose of human reality." "They need to listen to the families of the dead because people forget about them, and that's who I work for now." "They never recover;" "Never the same." "Their life is gone." "And for a few bucks that somebody made illegally they have destroyed the lives of countless individuals." "And the thing that families ask over and over again, and you can't give them a good answer 'cause there isn't one, they say 'how could they allow this to happen?" "Well the answer is money." "The situation will never change until consumers change." "As long as it is driven by consumer demand then counterfeiting will not go away." "So really, we've got to grow a conscience, we've got to grow up and take responsibility for our own lives and what we buy and what we consume." "It's kind of unfashionable to say this but we have to." "A bargain isn't a bargain just because of what you pay for it."