The War Against Counterfeits

 By Bruce Shawkey

Counterfeits have been around almost since the invention of the wristwatch. But this article in a 1963 issue of Europa Star magazine is the first time I've seen this "industry" covered in detail, naming names, quoting number of fake watches made, etc.

The article estimates approximately 25,000 fakes are made each month. This is a drop in the bucket

compared with the number of fake watches made today. By some estimates, 40 million counterfeit watches are sold globally each year, the net profit of which is roughly $1 billion. Most of us have seen images of steam rollers smashing piles of counterfeit watches. The most common fakes are Rolex. The practice is so common, that Rolex won't even comment on the practice any more. However, there are dozens and perhaps hundreds of You Tube videos on how to spot a fake.

So without further ado, here is the article: 

HONG KONG -- A secret organization is making millions of dollars by copying expensive Swiss watches In Hong Kong. A reliable source said today. The source said the Hong Kong police refused to cooperate with him to crack down on the organization. He said he had collected considerable evidence of piracy. He was working to protect the interest of the Swiss watch industry. 

"The organization is so deep-rooted and powerful that it is extremely difficult to pin down," he said. He was convinced that the factory where the watches were made is in Hong Kong because this colony is famous for its watch case manufacturing. He said the copies were so good that in most cases a buyer would not discover he had been tricked until the watch was taken in for repair. He said the organization was turning out about 25,000 fake Swiss watches a month. 

A great calamity has befallen regular importers of Swiss watches in Hong Kong. The falsification of famous watch brands on the one hand and the fraudulent use of the words "Swiss Made" on the other. An investigation carried out on the markets of Hong Kong and of the countries to which watches cased in Hong Kong are exported in a more or less legal fashion, reveals that it is not just a question of a few pieces made by a handful of dishonest dealers. But of a real industry threatening the actual position of the Swiss watch on this all-important market. How many watches are sold under a faked trademark? It is difficult to give the exact number, but an authority on Hong Kong affairs has advanced the figure of 25,000 pieces monthly. For some years, imitation Omegas, Rolexes, Eternas, etc., have been found all over Asia. What are the reasons for this sudden rise of counterfeit production?

They can he defined as follows: Inflow of relatively qualified watch repairers having taken refuge from China. Inflow of investment capital also from China, engaged in various forms of manufacture, such as dial and watch-case making. Inflow of non-brand movements and watches which lend themselves on arrival at Hong Kong to being camouflaged as valuable pieces.  Our Hong Kong correspondent was able to see for himself the disappointing results obtained by importers who try to unmask culprits and get them condemned. In the rare cases where investigations produce tangible results, the punishment for the counterfeiter is in no proportion at all with the profits he has made and will go on making out of his industry. Our correspondent was informed of a case where the agents of two first class Swiss manufactories managed to get a specialist in counterfeiting condemned to pay a fine which did not represent probably more than a 1/100th of the profits he had made. Meanwhile, the watchmaking circles of the Colony joke about the watches made from four nations: A German movement, a Japanese dial, a Hong Kong case and a "Swiss-made" hallmark. But these jokes cannot conceal the gravity of the situation. Watches equipped with cheap Roskopf movements, but marked  "Swiss" are found in Hong Kong, Singapore, Thailand, Burma and all South East Asia, where A great calamity has befallen regular importers of Swiss watches in Hong Kong. The falsification of famous watch brands on the one hand and the fraudulent use of the words "Swiss Made" on the other. An investigation carried out on the markets of Hong Kong and of the countries to which watches cased in Hong Kong are exported in a more or less legal fashion reveals that it is not just a question of a few pieces made by a handful of dishonest dealers, but of a real industry threatening the actual position of the Swiss watch on this all-important market. How many watches are sold under a faked trademark? 

Investigations undertaken on the Hong Kong market reveal some disturbing facts. One may well wonder how far the circle extends of those taking part in this industry, this trade of counterfeits, of imitations. Isolated actions such as the one mentioned by our correspondent in his report, are quite insufficient to put an end to these frauds that are causing irreparable harm to the Swiss watch industry. For the steadily growing demand for watches sold below their real price is likely to give a further evidence of this racket. There is a danger of seeing tomorrow on the markets of Europe and of the United States, so-called Swiss watches that have been cased in Hong Kong. 

TRACKING DOWN COUNTERFEITERS 

We burst into a Chinese hairdressing salon on the second floor of a house situated on the Hong Kong quay in the center of the town. A whole watch and clock workshop has been installed on a glassed-in balcony. The search is carried out in due and proper form under the impassive gaze of the owner and his Chinese employee. The result is meager. A few dials and bracelets of doubtful origin. Our next move is to a nearby watch and clock workshop on the same quay. This time we make a haul: a batch of 25 watches consisting of Swiss movements that have been placed into the perfectly imitated cases of a famous brand. 

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This article was written 50 years ago, but would still stand up today. The only difference is that fakes are no longer made in small shops, but in large manufacturing facilities.