Investigations show the majority of those engaged in defrauding rights-holding companies and consumers are from China, but the phony goods are also produced in other countries, according to top law enforcement officials. The officials say they conduct undercover purchases with the help of legitimate rights holders to confirm the goods are bogus.
They acknowledge the operators of the websites are beyond the reach of U.S. agents, and when the sites selling counterfeit goods are shut down, the same criminal enterprises sometimes simply change domain names and continue to prey on customers. Officials are concerned that some of the millions of dollars in proceeds may end up in the hands of organized crime.
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