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BOOK REVIEW: Black Market Billions

Rob Holmes and Hitha Prabhakar

As I do the last few days of every April I was preparing for the International AntiCounterfeiting Coalition Spring Meeting.  Per my normal routine, I downloaded the agenda and devised a conference plan.  I noted that this year, unlike last, the conference had a host: Hitha Prabhakar, author of the new best seller Black Market Billions: How Organized Retail Crime Funds Global Terrorists.  In preparation of the possibility of carrying on a conversation with her, I decided to extend her the courtesy of purchasing the book on my favorite book site, audible.com.  Don’t laugh.  Come on.  You didn’t expect a narcissistic guy this hopped up on Starbucks to be able to sit down and actually read a book in three days, did you?  Besides, I love listening to non-fiction books.

Black Market Billions began with the author receiving an instant message from a friend offering her handbags for sale at a very attractive price.  Knowing that she is a full-time fashion reporter, the friend explained that the items he was selling ’fell off the truck’.  What followed was a rabbit hole I was not expecting.  Most books that involve the world of counterfeit goods focus on the counterfeit goods industry (makes sense, doesn’t it?), but not this one.  In order to set the table properly to explain the role that counterfeit goods play in our society, Prabhakar first takes us deep into the varied world of shoplifting, human trafficking and Organized Retail Crime.

Knockoff Report - BOOK REVIEW Black Market Billions

Most of my readers know I grew up in the anti-counterfeiting industry so one may assume I was schooled in all of the ways counterfeit goods are tied to the dark parts of the world’s economy.  One would be wrong.  I knew all about cargo theft, human trafficking, parallel imports and (of course) product counterfeiting and cybercrime.  Although I knew that retail boosting existed, I didn’t know how organized it was and that it is directly tied to the same black market.  I know we can watch an episode of reality television to learn something new, but Black Market Billions added a new view to even this easily jaded joker.  Early on, she moves right to the ties between counterfeit goods and radical terrorists.  Some of these stories were cases I had worked on, so it hit home as closely as it was well-written.

Moving through the chapters, I first was trying to figure out where she was going because the structure was not organized like most books, where there would be claim, evidence, conclusion, rinse, repeat.  She told stories of individuals through their eyes and provided case studies with insight into their effect on these individuals.  As the book unfolded I felt myself engrossed in a story that I thought I knew but saw it in a different light.  Perhaps this insight was partially due to the fact that it was written by a woman.  The stories felt personal and the street crime was real as it was woven into the larger picture of Big Fashion.

I recommend this book, not only for those interested in anti-counterfeiting, but anyone who reads true crime or even thrillers.  Keep an eye on this author as well.  To top it all off, I did end up chatting with her at a party, so my reading it in time was worth it!

Now I’m going to finish my coffee.

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If Hasbro Had Called Me…

Nerf

Nerf (Photo credit: Helgi Halldórsson/Freddi)

I read yesterday in TechCrunch that Hasbro had used brainless tactics to enforce a simple case of overzealous fandom in an IP-related case.  A popular toy gun blog, Urban Taggers, had reported about an upcoming Nerf product being offered on the Chinese marketplace Taobao.  Hasbro representatives then contacted this blogger asking for his address so they could send free Nerf guns for his fans.  Instead of free guns, this blogger received legal action from Hasbro and their attorneys.  This is a common tactic used in the IP enforcement industry, but extremely flawed.

When the business of leaking products on blogs was heating up, we began receiving requests from clients asking us to have content removed.  While many employed the above plan against their fans, our clients consulted IPCybercrime.  We identified the bloggers and explained the situation to them in a friendly, yet parental, fashion.  No letters, threats or lies.  If that didn’t work, we contacted their parents (even if they were full grown adults).  You can click here to read about VentureBeat’s coverage of IPCybercrime’s part in a positive campaign for what turned out to be a billion dollar release.  As Churchill said, “It is better to jaw-jaw than to war-war.”  The lesson?  If Hasbro had called IPCybercrime, this would never have happened.

Now I’m going to finish my coffee.

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Dexter and the Detective

In the popular television shows Dexter, CSI and Quincy, the title characters  examine specific items or scenes and issue reports on their lab analysis.  The detective unit then introduces the findings to the formal investigation process.  Although, in these fictional television shows, the forensic examiners are featured throughout an entire investigation, this is not the case in real life.  By the time the detective has come to his conclusions, the forensic examiner has moved on to dozens of cases just like it.

Now that the computer forensics field has become a fast-growing one, the line has blurred between detectives and forensic examiners.  Some of the recent laws requiring these examiners to obtain state-issued private investigator licenses began with geek squad types helping wives spy on their cheating husbands’ computers.  Thanks Dexter.  I got this.

What makes anyone good is that they are passionate and highly qualified at one thing.  A racecar driver is no mechanic, Samuel Colt was no Wyatt Earp and vice versa.  Forensic examiners are good at examining blood spatter, ballistics, computers, or something else.  Detectives are good at determining whodunit, often using those reports.  A good detective in the online space spends most of her/his personal and professional time socializing online.  In other words, take the time to be a person in that space.

I consider myself one of the best at investigating Intellectual Property issues online.  I am successful because I have a passion that is unbound and experience that derives from that passion.  Nobody expects you to be good at everything.  Have the courage to be pigeonholed.

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Video

Sh*t Excel Users Say

Case NinjaWe recently launched a case management application called Case Ninja which is a commercial version of the data management system we have been using in-house at IPCybercrime since 2004.  With it, we have tracked our tens of thousands of Intellectual Property cases without the loss of one record or report.  The cutting-edge technology used to write the Case Ninja  application is called TrackVia.  Below is a video that anyone who uses Excel to manage their cases can relate.  If you are still using spreadsheets to manage your cases, you need to call us at (972) 422-2100 for a free Case Ninja trial.

Five Easy Steps to Success in Online Brand Protection™

Five Easy Steps to Success in Online Brand Protection™IPCybercrime released a white paper entitled Five Easy Steps to Success in Online Brand Protection™ along with the below accompanying infographic. When our CEO Rob Holmes began outlining his upcoming book The Brand Protection Bible (due in 2013) he realized that everything a brand owner needs to know to get started with a successful online program could be summed up in five words, with brief instructions, that fit into one simple page.  This is to be the definitive approach to protecting any brand online.

This was created as a free reference for Brand Protection professionals.  If you find any of this information helpful, please share the link, download the white paper and the infographic, use them, and circulate freely to anyone you think might find it useful.  We encourage you to post this to your Intellectual Property website or blog and include it in your association newsletter. If you need a different size for your website, blog, or newsletter, need an accompanying article or interview, have different printing requirements, or have any other requests regarding this piece, send an email to rob@ipcybercrime.com.

 Five Easy Steps to Success in Online Brand Protection™

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Cents and Censorbility

Google recently forfeited a half billion dollars generated by counterfeit drugs sales after being being held responsible by the United States Department of Justice.  Google stock then quickly dropped 22 percent from $627 to $490 per share.  Is it possible that investors may lose some confidence that Google is able to generate the same profits legally?  After all, their business model replies upon the presumption that nothing online has value until it is found on Google and then monetized by their ads.  This is a clear conflict of interest between the gathering of ‘free’ information and advertising around that same content.  No wonder they oppose a bill that would limit the illegal distribution of copyrighted works online.

The other day I read a post on Facebook from a friend who said that the real elephant in the room isn’t censorship.  It is that the average person has been stealing music, movies and software for years and nobody wants the free buffet to end.  The concept that all ‘knowledge should be free’ is absurd.  While it is noble that Wikipedia remains ad-free, its founder Jimmy Wales pleads for donations totaling $16 million annually.  The world needs to get reacquainted with the concept that we all win when everyone is compensated for their hard work and creativity.

Google already censors sites they deem objectionable for content such as pornography,  racism and political protests.  They even blocked The Pirate Bay in 2009 and then backpedaled after some criticism.  Their problem with the Stop Online Piracy Act (SOPA) is not whether content on the web is blocked, it is over who does it: them or our democratically elected officials.

Last week Google distributed a Goebbels-worthy propaganda cartoon that gathered four million signatures protesting SOPA in one day.  I would be hard pressed to believe that many of those folks actually read the bill before falling in suit.  This did not demonstrate the power of the Internet, but that of one organization.  Shortly thereafter, Barack Obama made a public announcement against the bill.  This is contrary to the president’s previous commitment to remain neutral due to the fact that his two largest supporters, Hollywood and Silicon Valley, are diametrically opposed on this issue.  I don’t think I need to be a psychic detective to predict the direction of his fundraising strategy for the 2012 election.  Maybe the argument should not be about limiting the power of our government or even that of one massive corporation.  Perhaps we should focus on stopping them from becoming one and the same.

Now I’m going to finish my coffee…

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Don’t Drop the SOPA

Imagine a world where all of the world’s creative works are reduced to ones and zeros and the control of that art is in the hands of a few tycoons.  A world where those same few Wall Street companies have enough money, influence and power to force all creators to work for free.  That time is now.

Beginning midnight on Wednesday January 18th, 2012 a few popular websites shut down for 24 hours as a planned protest of the Stop Online Piracy Act and Protect IP Act known as SOPA & PIPA, respectively.  In fact, one protester’s website says “Imagine a World Without Free Knowledge.”  Reducing my creative works to ‘knowledge’  or ‘data’ that can be commoditized is so Skynet.

Some people spend their entire lives creating that one toy, one song, one book, one clothing accessory.  Their legacy.  In most cases, this creation is the only property of value they will have  to pass onto future generations.  Only to have some tycoon call it ‘information’ and re-purpose it for their own profit.  A creative work is not mere ‘knowledge’.  It’s a human creation.  Someone’s child.

This Ain’t a Movie…

Here is an excerpt from the popular movie The Matrix where the villain explains to the hero how, in the film’s bleak future, one organization controls the masses:

  • “Did you know that the first Matrix was designed to be a perfect human world? Where none suffered, where everyone would be happy. It was a disaster. No one would accept the program. Entire crops were lost. Some believed we lacked the programming language to describe your perfect world. But I believe that, as a species, human beings define their reality through suffering and misery. The perfect world was a dream that your primitive cerebrum kept trying to wake up from… …Human beings are a disease, a cancer of this planet. You’re a plague and we are the cure.

What Agent Smith did not understand was that the human condition is more than ones and zeros.  Our ideas are more than data that can be distributed perfectly with algorithms and without complication.  Humanity is suffering and pain.  Humanity is joy and laughter.  Humanity is complication.  Imposing any perfect-world scenario should not be mistaken as naive.  The last organization to almost succeed in creating a Utopian society were the Nazis.  How’s that working for you, Agent Smith?

The American dream used to be to learn a trade, earn a decent living, have a house, and make your mark.  That is still my dream and the dream of many others but it is no longer the dream that is being fed to us.  This new dream is to start a company, sell it to Wall Street for a hundred million dollars; rinse and repeat.  Although we are being told it is our dream, doesn’t it look a lot like a plan for world domination?

Let Me Clear Up a Few Things…

SOPA will not break the Internet.  The Internet is a network of millions of networks controlled by millions of people.  It’s not one thing that can break.  Yes, this regulation will create more work for some large, not-so-poverty-stricken corporations.  But these new jobs that will be created will actually help keep the virtual streets safe for our kids.

SOPA is not censorship.  Censorship is the suppression of speech or other public communication which may be considered objectionable.  This bill will not stop anyone from being original or objectionable.  It will, however, stop people from distributing your original works without your permission.

SOPA does not bypass due process.  In order for the owner of a creative work to enforce against a rogue site, they must prove to a judge that the site has received refuge from outside the United States and that there is no reasonable way to properly contact the host or registrar.  Only then will a judge sign an order to block the illegal website.

Google, Facebook and Twitter already have systems in place to filter content they deem objectionable such as spam, child pornography and even racism.  Piracy can join that mix without a ton of disruption.

I have been working to prevent the theft of others’ Intellectual Property my entire adult life just as my father did before me.  I have faith in our judicial system, which is comprised of thousands of officials whom we ourselves elect.  I do not trust a handful of tycoons.

Now, I’m going to finish my coffee…

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SOPA: Taming the Wild West

Set in the year 1865, the television show Hell on Wheels centers on the individuals working on the construction of the first transcontinental railroad.  Colm Meaney plays Thomas “Doc” Durant, a greedy entrepreneur and the driving force behind this railroad, where he hopes to take advantage of the changing times and make a fortune. Although his mad quest is noble in many ways he goes, for the most part, unwatched.  He successfully kept the US government at bay by occasionally returning to lobby Washington while his operation ran as he saw fit.

Here we are in the 21st Century, where new railroads have been constructed and new entrepreneurs are taking subsidies and lobbying the US government on how they think their throughways should be governed.  The Internet is not just a bunch of wires and tubes, but the sidewalks, highways and railroads of our nation.  Profiteers want to bamboozle you into thinking that this is not the wild west.  It is.

I was recently on Capitol Hill presenting along side many of America’s labor unions in support of the pro-jobs bill known as Stop Online Piracy Act (SOPA).  We were regular working joes presenting to congress and outside were teams of Google suits with wolfish grins.  I can tell you first-hand that those leading the charge against SOPA are the richest people in the history of mankind.  They want to make sure they can run their operations without regulation as long as they can.  The non-billionaires that oppose this bill are the gunslingers who also profit from this lawlessness.

Every nation has border security.  If a swindler tries to make his way across the American border he will likely meet with an enforcement agent and, if found a threat to American consumers, will likely be turned around and not make it across the border.  If a swindler makes it across the border, and is caught, he is deported.  SOPA is nothing more than a border protection act.

Google and Facebook are not their own nations and they do not deserve their own laws.  They are companies incorporated in the United States and want to do business here.  They also stand to benefit from the sale of illegal goods to American consumers.  Because they believe older generations’ learning curves are slower, they are making outrageous statements like we are going to “break” or “censor” the Internet.  Heed my warning — Do what is best for the consumer, not the billionaires and the gunslingers.

A great American Eleanor Roosevelt chaired a committee to draft The Universal Declaration of Human Rights.  In 1948 it was adopted by the United Nations.  Article 27 Section (2) of this declaration states, “Everyone has the right to the protection of the moral and material interests resulting from any scientific, literary or artistic production of which he is the author.”  In 2011 those rights are under attack.  Under attack by faceless perpetrators who are hiding behind these Rogue websites.   Forty-seven per cent of America’s gross national product now comes from Intellectual Property.  That means our nation’s most precious resource is its IP.  Rogue sites are not only the vessel of choice of the modern criminal, I have seen first-hand terrorist and other criminal organizations selling counterfeits online to fund their activities overseas.  I will tell you this —  They don’t care about the economic impact, labor standards or consumer safety.

The Internet is a real place with real people, and real businesses need real laws.  Don’t let these billionaires swindle you into thinking otherwise.  Wyatt Earp needs to clean up.  Let’s do this!

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Curiosity Killed the Case

One of the great joys in my life is that, every morning, I wake up and get to walk my two dogs Chauncey, a West Highland Terrier, and Lucky, a Chihuahua, around the block.  When Chauncey gets a scent he follows it until he locates the source.  Then he sniffs until he gets all of the data he feels he needs, or satisfies his curiosity.  Once this is achieved Lucky decides to mark his territory on the spot that Chauncey found.  One day, due to Chauncey’s amazing focus, he ended up with a stream of Lucky’s pee pee on his head.

I have been in private investigations most of my life.  In my twenties I thought my tenacity and curiosity were my greatest assets.  Once I was promoted to working larger, more complex, cases I began to realize how much time was actually wasted extracting more data from a lead than needed or following leads that did not pan out.

Very often the greatest skill an investigator can have is knowing when a lead is dead or when to put it down for a while.  The word ‘lead’ rhymes with ‘seed’.  Think of the concept of sowing seeds.  Except the opposite.  When you sow seeds you lay dozens, and maybe hundreds, and expect only one or a few to ever bear fruit.  Most leads do not take you to the end.  Most are distractions.  The greats know which are which.  Solve the case without ending up with pee pee on your head.

Now, I’m going to finish my coffee.

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Audio

Top 10 Tips for Fighting IP Cybercrime

I was recently interviewed by IQPC as a preview for my IPCybercrime Boot Camp that I will be giving in conjunction with their Anti-Counterfeiting & Brand Protection conference in San Francisco in January 2012.  This will be the second time I’ve partnered with them to do a Master Class.  Last year was a great time and I’m excited to kick off the New Year with my 2012 material at their event.  Please listen to the below podcast/video for a preview of some of the topics I will discuss.  You know you want to press ‘play’.  So do it.

CLICK HERE FOR MORE INFO

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