Counterfeit goods – using the waist wisely
11/10/2007

COPYRIGHT � FINANCIAL MAIL – Published with acknowledgement to Financial Mail (20 July 2007 edition)

Counterfeit goods – using the waist wisely

By Jacqui Wilmot

When 28 000 pairs of counterfeit jeans were seized at Cape Town harbour in 1999, there was one place they were headed: a trench a few kilometres outside the city.

With an increased number of counterfeit goods hitting SA shores, particularly from China, brand holders have destroyed thousands of "designer" handbags, shoes and clothing, says law firm Adams & Adams.

But a series of legal hurdles prevented the fake jeans from being destroyed and they remained untouched at the harbour for nearly 10 years.

"The size of this particular consignment was unprecedented," says Adams & Adams candidate attorney Caroline Morgan. "It seemed such a waste to destroy them when there are so many needy people out there."

The jeans imitated well-known brands such as Edgars' Route 66, as well as Guess and Roxy, and were destined for destruction. But with permission from the brand owners and the Department of Trade and Industry (DTI), Morgan put the jeans to good use. In return for the jeans, Catholic Welfare & Development (CWD), a charity that helps empower women, undertook to "de-trademark" them.

"Obviously you can't go around using fake goods for good causes, because it can cause losses and erode brand equity," says Morgan. "But the clients were comfortable because all distinguishing signs and branding were removed."

In a precedent-setting case, the DTI allowed CWD to remove the fake rivets, buttons and labels and rebrand the jeans with CWD's Brand New logo. Four women are now employed to prepare the jeans for resale. "The new range will raise funds to start other empowerment projects," says CWD director Lungisa Huna.

Though most of the confiscated jeans are high-waisted (a no-no for trendy shoppers), CWD hopes to resell the Brand New range to a buyer in the less fashion-conscious informal market.

"But fashion is notoriously cyclical and high-waisted designs are back on the catwalk," says Huna. "In future we could use the Brand New brand to target the socially conscious market."

Other counterfeit goods suitable for resale may include different types of clothing, but it's unlikely that you will find a Louis Vuitton handbag or Dolce & Gabbana perfume for sale on the sidewalk. Those counterfeit goods will still be headed for the trench.