Levi's: California Leads Fight Against Counterfeit Apparel Goods

California is leading the way in enforcement of anti-counterfeiting tactics in the apparel industry, according to Eric Mueller, director of global anti-counterfeiting for Levi Strauss & Co.

“We train other law enforcement and prosecutor’s offices around the world,” Mueller said at a recent hearing on piracy and counterfeiting hosted by the California Legislature’s Joint Committee on the Arts.

Levi’s, along with other major brands in California, trains law enforcement and customs agencies on brand identification, best practices for investigations and current trends in counterfeiting.

“The cooperation we have with the state of California with local law enforcement and ICE [U.S. Immigration and Customs Enforcement] is tremendous,” Mueller said.

The company worked on more than 800 counterfeiting cases last year and has recently started working with the International Anti-Counterfeiting Coalition to train customs officials in Brazil and will begin training in China later this year, Mueller said.

In addition to causing indirect and direct job losses, an estimated $480 million in tax revenue was lost in California during 2005 due to piracy and counterfeiting, according to state Sen. Curren D. Price Jr. (D–Los Angeles), who chairs the committee and co-authored Senate bill 550 to increase law enforcement around illegally made DVDs.

From shoes to sunglasses, fake apparel goods are on the rise, and counterfeiters are often linked to larger organized crime—including cockfighting, dog fighting or drug rings—according to state Sen. Ron Calderon (D–Montebello), who sits on the committee.

The largest seizure of counterfeit apparel goods in San Francisco increased from #8232;$25 million in 2008 to $100 million in 2010, and clothing companies are under immense pressure from counterfeiting in California and around the world, Mueller said. With counterfeiting increasing and most items still going undetected, Mueller expressed his concerns about protecting the economic stability of Levi’s employees and the exportation of Levi’s innovation around the world.

“The counterfeiters who rip us off do not innovate, do not pay taxes, do not follow safety and environmental standards, do not follow the rule of law, and they directly steal from Levi Strauss and from other brands in the apparel industry and from the economy and the people in California,” he said.

Price said he hosted the hearing to combat piracy of the arts and its negative impact on the economic development of California.

“This issue directly impacts jobs and economic development, and so I’m just concerned about anything we can do to stop the leakage, to provide more opportunities, to create greater cash flow and to assist our businesses—businesses that are paying taxes, that are trying to do the right thing.”—Deidre Crawford