There is adefinite process followed by a lot of counterfeiters across the world. Some ofthese methods have already been tackled by authorities. These have been trackedand sought after in many countries for similar processes. Others remain amystery even to the Interpol and Food and Drug Administration (FDA). For instance, how the counterfeiters wereable to infiltrate the tight security around Jakarta without being detected inJava and other islands of Indonesia is still being reviewed. Even more surprisingis the increasingnumber of counterfeiting cases when the government has clearly imposedimmediate execution to anyone found to illegally smuggle goods within thearchipelago. One thing is for sure though, these counterfeiters not only workwith black markets selling ample amount of fraud goods. They have also alreadypenetrated the legitimate market, blending in with the real products and makingit hard for the authorities to capture the main culprit.
While thereis the emergence of tampering and stealing of intellectual property rights fromlegitimate manufacturers, other methods of fraudulence include Diversion.
In thislevel, medicines created and designed for a specific market or function isremarketed in violation of the producer’s instructions. These counterfeitersmostly target non-profit and humanitarian organizations or the supply of freesamples to hospitals and clinics.
According toa study conducted by The PetersonGroup, a non-profit organization campaigning against the proliferation ofcounterfeit medicines across the world shows that between 1992 and 2002,prescriptions written for unscheduled and scheduled drugs increased by 56.6%and 154.3% respectively.
Furtheremphasized in the study is that diversion can happen within the limits of aspecific country or it may become an international scope.
Drugdiversion in North Korea is one of the examples the first form of this kind ofphenomenon. Since there are no other sources of medicines in this secludedcountry, some corrupt officials steal some of the medicines and resell it tothe citizens even when it is marked as “UN aid”.
The otherform of this phenomenon is driven by economic motive. For instance, an aid fromthe western countries can be halted by other leading countries and sold toneighboring nations for a higher price. The entity can also fraudulentlyacquire the products from the producer, declaring an intention to deliver thedrugs for humanitarian purposes but in reality it re-markets the drugs afteracquiring them at low cost. These international exchanges are implementedthrough multiple transfers and involve frequent repackaging of the product,thereby providing opportunities for counterfeit products to penetrate the legaldistribution chain.