There is a definite process followed by a lot of counterfeiters across the world. Some of these methods have already been tackled by authorities. These have been tracked and sought after in many countries for similar processes. Others remain a mystery even to the Interpol and Food and Drug Administration (FDA). For instance, how the counterfeiters were able to infiltrate the tight security around Jakarta without being detected in Java and other islands of Indonesia is still being reviewed. Even more surprising is the increasing number of counterfeiting cases when the government has clearly imposed immediate execution to anyone found to illegally smuggle goods within the archipelago. One thing is for sure though, these counterfeiters not only work with black markets selling ample amount of fraud goods. They have also already penetrated the legitimate market, blending in with the real products and making it hard for the authorities to capture the main culprit.
While there is the emergence of tampering and stealing of intellectual property rights from legitimate manufacturers, other methods of fraudulence include Diversion.
In this level, medicines created and designed for a specific market or function is remarketed in violation of the producer’s instructions. These counterfeiters mostly target non-profit and humanitarian organizations or the supply of free samples to hospitals and clinics.
According to a study conducted by The Peterson Group, a non-profit organization campaigning against the proliferation of counterfeit 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.
Further emphasized in the study is that diversion can happen within the limits of a specific country or it may become an international scope.
Drug diversion in North Korea is one of the examples the first form of this kind of phenomenon. Since there are no other sources of medicines in this secluded country, some corrupt officials steal some of the medicines and resell it to the citizens even when it is marked as “UN aid”.
The other form of this phenomenon is driven by economic motive. For instance, an aid from the western countries can be halted by other leading countries and sold to neighboring nations for a higher price. The entity can also fraudulently acquire the products from the producer, declaring an intention to deliver the drugs for humanitarian purposes but in reality it re-markets the drugs after acquiring them at low cost. These international exchanges are implemented through multiple transfers and involve frequent repackaging of the product, thereby providing opportunities for counterfeit products to penetrate the legal distribution chain.