Imad Nazmi el Badawi, the director of United Trademarks and Patent Services, left, and Sarmad Hasan Manto, a lawyer at the company, inspect fake products confiscated from a shop in Dubai.
Imad Nazmi el Badawi, the director of United Trademarks and Patent Services, left, and Sarmad Hasan Manto, a lawyer at the company, inspect fake products confiscated from a shop in Dubai.

Investigators trick Dubai shops to curb trade in fakes



DUBAI // A civilian network of mystery shoppers is trawling the markets of Dubai in pursuit of counterfeit goods, and passing on their tips to the police.

As many as 40 such investigators walk the streets daily in a bid to trick fake-goods traders into revealing where they keep their stock. They represent United Trademarks and Patent Services, an anti-counterfeit organisation hired by luxury brands to battle the rising tide of fake goods.

Makers of fake goods can erode an established brand's bottom-line performance. The global trade in counterfeit goods is worth $600 billion (Dh2.2 trillion) and accounts for as much as 7 per cent of the world economy, according to figures from the International Anti-Counterfeiting Coalition.

"Dubai is a major transit hub because of the purchasing power and the number of tourists," said Imad Nazmi el Badawi, the United Trademarks director. "That makes it attractive to these people."

His company, used by labels such as Louis Vuitton and Montblanc, is among a handful of brand protection groups investigating copyright infringements. The information they provide has helped anti-counterfeiting specialists at the Dubai Police Criminal Investigation Department in conducting inquiries and carrying out raids.

"Once we receive the complaint we start our own investigation and, if it proves correct, we raid the location, arrest the people and seize the counterfeit products," said Major Salah bu Se'aba, who heads the police anti-economic crime department. "On average we investigate about 10 cases a week."

United's team comes from a variety of backgrounds and includes people with an expert knowledge of car parts, information technology and luxury accessories. By posing as tourists, they convince shop owners to take them to large apartments used as warehouses for storing counterfeit goods.

"Three years ago the retailers would show us everything," said Mr el Badawi. "Now they hide their fakes in hidden rooms. We have scared them.

Some companies don't stop their involvement once the police are called. Montblanc employs its own legal team that goes into action once a major fake-goods case involving the firm goes to court, said Joe Nahhas, its UAE brand director.

"It is something that we take very seriously," he said. "It's difficult to stop it entirely but we've certainly made inroads with it."

Mr. Nahas declined to disclose how much the company loses from the trade in counterfeit products.

The United team meets every Sunday morning to discuss which brand to focus on for the week and what targets they need to reach. Each staffer's weekly goal is to record the location of at least two apartments used for storage of fake goods. Consistently meeting the quota pays off in year-end bonuses, Mr el Badawi said.

Though wise in spotting fake goods, the mystery shoppers are schooled in the tricks of the trade before being sent onto the streets, said Sarmad Hasan Manto, a lawyer and office manager at United.

"You have to convince the guy that you don't like the quantity which they are showing you," said Mr Manto. "He will take you to an apartment. There's a psychological game involved. You can't just go to Karama and shout about how you want fake goods."

Using shopping tips provided by United, a reporter from The National, posing as a tourist, was able get a firsthand look at a storage apartment for counterfeit goods. In an area near a dozen Karama shops, the reporter was taken to four or five different outlets by a sales agent before being brought to an apartment in a nearby residential building.

The number on the door of the third-floor apartment was scratched out and, inside, the living room was sparsely furnished. A bookshelf was then pushed open, revealing a huge stash of what appeared to be ersatz Louis Vuitton bags. Closed-circuit television cameras covered every angle of the hidden room.

* With additional reporting by Wafa Issa

Test

Director: S Sashikanth

Cast: Nayanthara, Siddharth, Meera Jasmine, R Madhavan

Star rating: 2/5

UPI facts

More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions

Results

Women finals: 48kg - Urantsetseg Munkhbat (MGL) bt Distria Krasniqi (KOS); 52kg - Odette Guiffrida (ITA) bt Majlinda Kelmendi (KOS); 57kg - Nora Gjakova (KOS) bt Anastasiia Konkina (Rus)

Men’s finals: 60kg - Amiran Papinashvili (GEO) bt Francisco Garrigos (ESP); 66kg - Vazha Margvelashvili (Geo) bt Yerlan Serikzhanov (KAZ)

UAE currency: the story behind the money in your pockets
RedCrow Intelligence Company Profile

Started: 2016

Founders: Hussein Nasser Eddin, Laila Akel, Tayeb Akel 

Based: Ramallah, Palestine

Sector: Technology, Security

# of staff: 13

Investment: $745,000

Investors: Palestine’s Ibtikar Fund, Abu Dhabi’s Gothams and angel investors

Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
 
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
 
Round 3: February 7-9, Dubai Autodrome – Dubai
 
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
 
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
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The specs

Engine: 2.0-litre 4-cylturbo

Transmission: seven-speed DSG automatic

Power: 242bhp

Torque: 370Nm

Price: Dh136,814

The smuggler

Eldarir had arrived at JFK in January 2020 with three suitcases, containing goods he valued at $300, when he was directed to a search area.
Officers found 41 gold artefacts among the bags, including amulets from a funerary set which prepared the deceased for the afterlife.
Also found was a cartouche of a Ptolemaic king on a relief that was originally part of a royal building or temple. 
The largest single group of items found in Eldarir’s cases were 400 shabtis, or figurines.

Khouli conviction

Khouli smuggled items into the US by making false declarations to customs about the country of origin and value of the items.
According to Immigration and Customs Enforcement, he provided “false provenances which stated that [two] Egyptian antiquities were part of a collection assembled by Khouli's father in Israel in the 1960s” when in fact “Khouli acquired the Egyptian antiquities from other dealers”.
He was sentenced to one year of probation, six months of home confinement and 200 hours of community service in 2012 after admitting buying and smuggling Egyptian antiquities, including coffins, funerary boats and limestone figures.

For sale

A number of other items said to come from the collection of Ezeldeen Taha Eldarir are currently or recently for sale.
Their provenance is described in near identical terms as the British Museum shabti: bought from Salahaddin Sirmali, "authenticated and appraised" by Hossen Rashed, then imported to the US in 1948.

- An Egyptian Mummy mask dating from 700BC-30BC, is on offer for £11,807 ($15,275) online by a seller in Mexico

- A coffin lid dating back to 664BC-332BC was offered for sale by a Colorado-based art dealer, with a starting price of $65,000

- A shabti that was on sale through a Chicago-based coin dealer, dating from 1567BC-1085BC, is up for $1,950