By Jay P. Kennedy

Product counterfeiting is a pervasive crime that involves the unauthorized use of a legitimate trademark, a violation of intellectual property rights. Counterfeiting is also one of many forms of global illicit trade, mirroring legitimate markets in structure and reach. Counterfeit goods span nearly every product category from luxury items and electronics to pharmaceuticals and military components, posing risks that range from consumer deception to threats to public health. The globalization of commerce and trade and the rise of e-commerce and social media have significantly expanded counterfeiters’ reach, enabling them to exploit legitimate supply chains and marketplaces and reach consumers around the world. The production and
distribution of counterfeit goods often involve sophisticated networks, including legitimate businesses and transnational criminal organizations, and are sometimes linked to human trafficking and forced labor. Despite regulatory efforts and public–private partnerships aimed at curbing counterfeiting, enforcement remains challenging due to the complexity of global supply chains and the difficulty in distinguishing counterfeit operations from legitimate ones. This article describes what product counterfeiting is and addresses how
markets for counterfeit goods represent an illicit parallel market that is in many ways intermingled with aspects of legitimate markets. The role of consumers as drivers of demand for counterfeits is addressed, and motivations for consumers’ willful purchase of counterfeit goods are explored. This article also provides exploratory insights about the supply chains for some of these products

By Greg Midgette and Meredith L. Gore

Illegal wildlife markets comprise a complex global economy generating criminal profits while harming biodiversity and livelihoods. The negative externalities from biodiversity loss, ecosystem destabilization, and zoonotic disease risk may be orders of magnitude larger than the multibillion dollar annual total market value. Despite decades of international policy attention, fundamental economic characteristics of these markets remain poorly understood. We suggest distinguishing three categories of illegally traded wildlife products
based on product durability and intended use: luxury durable goods, nondurable products processed to be food or medicine, and live or perishable exotic pets and plants. Through case studies of elephant ivory, pangolin scales, and succulent plants, we characterize market organization, pricing structures, supply network architecture, and regulatory vulnerabilities across product types. Our analysis suggests illegal wildlife markets exhibit economic characteristics distinguishing them from other illegal markets, including biological production constraints creating absolute supply limits, opportunistic supply networks exploiting existing legal trade infrastructure, and extreme markup structures leaving harvesters with a fraction of final
retail value. We conclude by proposing the concept of Accelerating Demand for Novel or eXclusive Assets, or AD NOXA, which describes how scarcity may paradoxically increase rather than decrease the appeal of
consuming certain wildlife markets. This paradox creates feedback loops that may drive species toward extinction, despite—or because of—protective regulations and fundamentally limits the effectiveness
of supply-side interventions. Policy responses may be more effective when they integrate supply-side enforcement with demand reduction strategies tailored to the distinct characteristics of illegal wildlife markets.