US, Bust Nets 15,000 Phoney Oakleys
One clue that more than 15,000 Oakley sunglasses seized from an Eagan man's house were knockoffs: "Made in Taiwan" stickers on some lenses, with "Made in America" stamped on the side of the glasses.
It was one of the largest caches of counterfeit Oakley sunglasses authorities have unearthed in the country, an Oakley official said Wednesday.
Joseph Francis Werb, 25, was arrested May 12 in connection with the counterfeiting, said Eagan Police Detective Doug Matteson. The case was sent to the Dakota County Attorney's Office on Wednesday to consider charges against Werb.Werb did not respond to a note left at his home requesting an interview.Counterfeiting is a big problem for Oakley as well as other businesses.
In the United States, the value of counterfeit goods is estimated at more than $100 billion annually, although it may well be double that, said Bruce Wimmer, director of TransAsia Operations for Pinkerton Consulting and Investigations. It's estimated that 70 percent to 80 percent of counterfeit goods in the United States come from Asia.
"Some people say it's basically harmless," Wimmer said. "If a person is buying a Gucci handbag and it's $15 or $20, they know it can't be real, so what's the harm to them? What I try to point out is these products are mostly produced in Third World countries, in sweatshops. As Americans, most of us ought to be saying, 'Why are we supporting this?' "
And the ante has been raised since the Sept. 11, 2001, terrorist attacks because counterfeiting has been linked to financing terrorism and organized crime.In the Eagan case, there was no tie to terrorism, said Sandy Beattie, U.S. enforcement for Oakley. Matteson said he couldn't comment on that aspect of the case.
Matteson began his investigation in April, when Oakley investigators informed him about a Web site, amazing-replicas.com. The site, which is no longer selling products, was dedicated to the sale and distribution of counterfeit products, namely Oakley sunglasses, according to the affidavit Matteson submitted in his application for a search warrant.
The average retail price for a pair of Oakley sunglasses is $100. Wearers tend to be young, hip men, but the company is starting to gear more products to women.Authentic versions of some of the sunglasses Werb sold would retail for about $130, but Werb was selling them for $15 or $16, Matteson said.
Oakley learned of the Web site in February 2002. The mailing address was a rented mailbox at the UPS store in Eagan, the affidavit said. During another Oakley counterfeit investigation, a target told investigators he was receiving shipments from Werb.
Attorneys for Oakley began sending cease-and-desist demands to Werb and told him he was infringing on the Oakley trademark and patent, the affidavit said. The Web site continued to operate.
"Basically, what it does is cheapen our name," Beattie said. "Our reputation is completely at stake when these counterfeits are sold. It really hurts our image."Earlier this month, Matteson searched Werb's Eagan home. He found a "small warehouse" in the basement. There were shelves with sunglasses on them and a center to package them to mail, Matteson said.
Officers also found smaller quantities of other brands of counterfeit sunglasses, Nike hats and counterfeit Louis Vuitton, Gucci and Kate Spade purses.Because there are so many boxes of evidence, they are being stored, not at the Eagan police evidence room, but in a self-storage rental unit.
Matteson said he couldn't comment yet on the financial aspects of the case, but a significant amount of money is involved since "a lot of product was being moved and distributed."
The International Chamber of Commerce has estimated that 5 percent to 7 percent of all global trade is counterfeit merchandise, which is in the neighborhood of half a trillion dollars, said Tim Trainer, president of the International Anti-counterfeiting Coalition in Washington, D.C.
