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Rogue Finder Study

Rogue Finder Study

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Published by Joseph Gioconda
RogueFinder and the Gioconda Law Group conducted an exhaustive study of rogue websites.
RogueFinder and the Gioconda Law Group conducted an exhaustive study of rogue websites.

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Categories:Types, Research, Law
Published by: Joseph Gioconda on May 16, 2012
Copyright:Attribution Non-commercial

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05/25/2012

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Copyright © 2012 RogueFinder LLC. All Rights Reserved.
 
Study of “Rogue Websites”Selling Counterfeit Products
Issued:May15,2012www.RogueFinder.com
 
 |2 
Copyright © 2012 RogueFinder LLC. All Rights Reserved.
 
Conclusions
 
Online counterfeiters can collect immense profits by generating over $10,000 in sales with a $1,000 initial investment.
1
 
 
This low-risk business model offers a comparable return on investment(ROI) to trafficking in illegal narcotics.
 
 
Because of this dramatic ROI, online counterfeiting networks areexponentially spreading on the Internet like an infection.
The ROI from a single successful website selling counterfeit productsencourages the creation of many more such websites.
Skilled programmers who have access to sophisticated technology and anextensive supply of counterfeit products are creating and operating thesesites.
 
 |3 
 
Copyright © 2012 RogueFinder LLC. All Rights Reserved.
To protect their business model, they are employing a variety of creativetactics to frustrate efforts to monitor them and remove them from themarketplace.
For example, they dynamically redirect their websites across multiple serverslocated in different countries.
Significant server bandwidth is dedicated to hosting such sites, with largeblocks of server space and IP addresses dedicated to managing the Internettraffic to them.
Counterfeiters’ websites are creating significant actual consumer confusion.
The prices for counterfeit goods are designed to be credible to suggestgenuine, discounted products rather than low quality counterfeits.
Goods received are typically shipped directly from locations throughout Chinaand Hong Kong.
China is most commonly named as the country of the domain nameRegistrant.
However, Registrants do not usually provide legitimate or consistent contactinformation when registering new domain names, often using gibberish,nonsensical words and false addresses.
Some Registrants are using the “Privacy Protection” services offered byRegistrars to purchase a cloak of further anonymity.
Software applications make it easier for infringers to create, register andwarehouse thousands of domain names that contain permutations of trademarked brands.
Visa
®
is the most commonly accepted form of payment accepted by roguewebsites, but MasterCard
®
, Western Union
®
, JCB
®
and PayPal
®
are alsocommonly accepted.

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