Dubai raids net record Dh195m in fake goods

Ibrahim Behzad, director of the intellectual property protection division at DED, puts faker designer sunglasses through the shredding machine. Victor Besa for The National

DUBAI // A record Dh195 million worth of counterfeit goods – including 3.5 million smartphones and more than 2.6 million pairs of sunglasses – have been seized from Dubai warehouses.

It took inspectors from the Department of Economic Development 26 hours to sort through the boxes of fake goods and 31 lorries to move them.

“We had intelligence that there were some fake goods being sold from a wholesaler and, after raiding those premises, we did further investigations that led us to warehouses where we found the rest,” said Mohammed Lootah, executive director of the DED’s Commercial Compliance and Consumer Protection division.

“This seizure is the largest of its kind and the result of our continuous efforts to protect brands.”

Three warehouses in Al Qusais and International City were raided in the early hours.

More than 2.6 million pairs of sunglasses, including copies of 18 well-known brands, with a street value of Dh125m were found in two Al Qusais warehouses.

And in International City, 61,768 counterfeit smartphones and 899,000 accessories worth Dh70m were discovered. All told there were more than 3.5 million smartphone copies, bearing brands including Samsung.

The smartphones included counterfeits and refurbished handsets rebranded as new but with fake covers and cameras.

DED officers, who have shifted their focus to wholesalers and importers, believe the goods were intended to be sold locally and overseas.

“It’s more work for us and the investigations are more complicated but they bear results,” Mr Lootah said.

All of the counterfeit goods are expected to be destroyed, which officials hope will act as a deterrent to others planning the crime.

“By destroying nearly Dh200m worth of fake goods, that is a much bigger loss to criminals than fines and hopefully sends a clear message,” Mr Lootah said.

“These products are often manufactured with scant respect for international standards and they can be harmful to consumers. The batteries in the smartphones could explode while charging.

“We would like to caution consumers against falling prey to traders who ignore safety standards and instead manipulate and mislead consumers.”

Mr Lootah said the raids were part of the DED’s campaign to protect brands and consumers.

“It also reaffirms the commitment of the Government of Dubai to promoting fair trade, maintaining transparency and impartiality in upholding intellectual property rights and acting against those who violate the rights of trademark owners.”

Ibrahim Behzad, director of the intellectual property protection division at DED, said traders and counterfeiters used sophisticated technology and innovative methods to hide the goods as they entered Dubai.

“Some of them even bring counterfeit goods in parts and assemble them here,” Mr Behzad said.

The DED regularly meets with trademark owners to alert them to commercial fraud and conducts joint inspection campaigns with other government agencies, Mr Behzad said.

Ashish Panjabi, chief operating officer for Jacky’s Electronics, said it was not so much of a problem for retailers in key locations.

“You don’t tend to see it so much in the locations we are in, like the malls, because it’s so visible,” Mr Panjabi said. “You’re more likely to find it in places like Karama or Dragonmart, but people who go there know full well that they are buying fakes.

He warned consumers tempted by cheaper prices to think twice.

“In terms of phones, the Telecommunications Regulatory Authority has the power to block unregistered phones from the network,” Mr Panjabi said. “So if you buy a fake smartphone that uses unauthorised frequencies, then both du and Etisalat can block the user from making or receiving calls.”

Fraudulent practices can be reported to the Ahlan Dubai call centre on 600 54 5555.