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Fashion pirates find gold in stylish fakes
When stylish, metropolitan women stroll along with a Louis Vuitton Pleaty bag, they exude an air of high class, impeccable taste and considerable purchasing power
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When stylish, metropolitan women stroll along with a Louis Vuitton Pleaty bag, they exude an air of high class, impeccable taste and considerable purchasing power.
And because this effect does not come cheap, some resort to buying knockoff designer goods that have found permanent homes in the malls and along the pavements of the country's main cities.
Unlike fake cosmetics or medicines, commodities that can be potentially lethal, replicated fashion goods seem harmless -- especially on the consumers' pockets.
FAKING IT: FAKING IT: Counterfeit brand-name items such as women’s bags are openly sold in many of Jakarta’s shopping centers. (JP/R. Berto Wedhatama)
The Justice and Human Rights Ministry admitted state losses due to counterfeit goods were impossible to calculate, although the ripple effects are being felt far and wide.
"It has caused Indonesia to gain a bad reputation internationally, caused lost revenue because counterfeiters do not pay taxes and has hampered foreign investment because investors have lost their faith in our protection of intellectual property rights," Ansori Sinungan, the ministry's director for copyrights, industrial design and trade secrets, told The Jakarta Post recently.
He said reports of brand violations were on the rise since 2004, with 83 cases recorded in 2007 -- up from 69 cases in 2006. The 2004 and 2005 figures stand at 61 and 63 respectively.
Of the 83 cases reported last year, only 45 have been tried in court, Ansori said.
One counterfeiter, Ninna Aryanto (not her real name), said strong demand, cheap materials and a talented labor pool, as well as high returns, were some of the factors driving the growing trade in counterfeit fashion products.
Ninna, who started her Louis Vuitton (LV) replica business eight years ago, receives orders from buyers as far away as Sweden and Austria. In her small studio in Bali, she employs five workers, each working on a different process -- pattern drawing, leather cutting, stamping, stitching and sewing.
"I do a lot of research, mostly from LV-authorized boutiques, catalogs, the Internet and first-hand experience with authentic LV bags," she said.
"I study all sorts of details, such as the fabric lining -- whether it's canvas, microfiber suede, cowhide leather or micro-monogram denim."
Claiming her knockoff LVs are of the highest grade, Ninna said, "I sell a limited number of LV replicas to foreign high-class buyers. They know the quality of my products very well, that's why they're confident about using them."
"I use high quality monogram leather with real oxidizing leather handles and trim, just like authentic LV products. I carefully inspect each bag -- no missing stitches and no gaps in the stitching, no loose threads, no materials that don't lay right or zippers that don't work properly."
She said each fake LV bag cost between Rp 300,000 and Rp 400,000 to make. Her knockoff of the LV Monogram Multicolore Alma sells for US$250, with the authentic item retailing for $1,600.
Ninna said her husband, a foreign national, was responsible for delivering the bags on his monthly visits to Europe.
"The reason is simple: My husband can trick both Indonesian and EU customs officials by pretending to be a tourist who has bought souvenirs from Indonesia," she said.
Ansori said a major reason for the flourishing counterfeiting business was the lack of severe legal consequences for counterfeiters.
He said the 2001 law on trademarks was designed to provide copyright protection and support fair competition in trade, but allowed most offenses to be punishable by fines rather than imprisonment. The maximum fine under the law is set at Rp 800 million.
On the topic of protection for brand-name items, Ansori said, "Indonesia has moved a step forward in complying with a World Trade Organization agreement last year to protect brand-name products."
He said prior to this agreement, there was a "first to file" loophole in the law, which meant protection for the person or company that first registered a brand in the country, regardless of whether they actually owned the rights to it.
He cited the example, a few years ago, of a dispute between Italy-based Prada S.A., owners of the Prada brand since 1913, and an Indonesian citizen Fahmi Babra. By registering the brand name Prada in Indonesia in 1995, Fahmi was allowed to use the Prada brand on his products. Prada S.A. took the case to court and was eventually named the official trademark owner of Prada in the country.
Ansori said because of the WTO agreement, such cases were now a thing of the past.
PT Mitra Adi Perkasa (MAP), Indonesia's leading retail marketer of brand-name products, said counterfeiting well-known designs was inevitable and difficult to prevent.
"It is difficult to control such practices. But as long as it doesn't greatly affect our sales, we won't bother taking further action," Ratih D. Gianda, MAP head of investor relations, told the Post. (dia)
