Luxury counterfeit goods in the form of 'DIY assembly kits' have emerged. These DIY assembly kits are designed so that buyers can complete counterfeit products by following online video tutorials. Although this is a new criminal technique intended to evade crackdowns, the use of stolen trademarks and other intellectual property still makes them subject to enforcement. Consumers who purchase and assemble these DIY kits may also become involved in criminal activity and suffer damages, so caution is advised.
On November 27, the Special Judicial Police for Trademarks at the Intellectual Property Office announced that they had indicted, without detention, three individuals including Ms. A (female, age 50) for violating the Trademark Act. The suspects are accused of manufacturing and distributing 'counterfeit product DIY assembly kits' that allow consumers to make counterfeit luxury bags and wallets themselves.
The Intellectual Property Office determined that the assembly kits, which may be perceived by consumers as simple DIY hobby activities, could encourage the spread of counterfeit goods. Through a planned investigation, they apprehended Ms. A and her associates.
Sinsang Gon, Director of the Intellectual Property Protection Cooperation Bureau at the Intellectual Property Office, is briefing on the overview of the case involving the detection of a new distribution organization for 'Counterfeit Product DIY Assembly Kits' at the Government Complex Daejeon on the 27th. Provided by the Intellectual Property Office
According to the investigation, Ms. A and Ms. B operated a workshop business in Suwon, where they stored and managed counterfeit luxury fabrics and accessories, producing and selling assembly kits. Notably, they limited membership in their online community to adult women and acted as an online and offline distribution hub by sharing instructions on how to complete the assembly kits.
Mr. C, who runs a metal accessories company in Jongno, Seoul, is accused of supplying Ms. A and Ms. B with counterfeit ornaments tailored to the specifications of luxury bags.
The trademark police conducted a search and seizure of the two businesses, confiscating more than 20,000 items, including assembly kits, counterfeit fabrics, molds, and metal accessories. They determined that the designs and patterns of the fabrics and accessories are also protected by trademark rights, and that manufacturing and selling assembly kits with the intent to infringe on these rights constitutes a clear violation of trademark law.
Among the items seized from the workshop and metal accessories business, there were about 80 completed assembly kits, with a genuine product value of 760 million won. Considering this, if all 600 seized unfinished assembly kits were completed, the genuine product value would amount to approximately 2 billion won.
A group involved in manufacturing and distributing luxury counterfeit goods in the form of DIY assembly kits has been caught in a crackdown. Comparison photo of an unfinished assembly kit product (left) and the completed product. Provided by the Intellectual Property Office
In particular, Ms. A and her associates used a sophisticated method by presenting the assembly kits, rather than completed products, as 'legal hobby activities,' thereby involving consumers in the production of counterfeit goods. For this reason, the trademark police explained that consumers may have unintentionally become involved in criminal activity or the distribution of counterfeit products, resulting in damages.
The instruction manuals for the seized 'assembly kits' not only included sewing steps and cutting dimensions but also provided information on where to purchase counterfeit accessories, making it easy for consumers to manufacture counterfeit goods. This raises concerns that such practices may distort consumers' normal perceptions of consumption and lower the barriers to producing counterfeit products.
The trademark police emphasized that this case is significant as it marks the first time in Korea that assembly kit-type manufacturing has been subject to a crackdown. They also warned that as counterfeit crime techniques become increasingly sophisticated and evolve, there is a serious risk that consumers could be easily exposed to counterfeit goods and be enticed to produce and consume them.
Sinsang Gon, Director of the Intellectual Property Protection Cooperation Bureau at the Intellectual Property Office, stated, "Assembly kits, due to their low price and the sharing of production methods online, raise concerns about accelerating the spread of counterfeit goods. The Intellectual Property Office will strengthen crackdowns on the manufacturing, distribution, and sales networks of counterfeit products to swiftly respond to these evolving criminal techniques."
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