Counterfeiting

A flood of high-quality counterfeit U.S. money from Peru is perplexing federal authorities, who say the shadowy networks that are responsible are also engaging in other criminal activity that poses a threat to national security. Over the last year, authorities and banks have recovered at least $7.8 million in fake notes across the United States that they believe were manufactured in Peru, according to Secret Service statistics. In addition, $446,280 in fake U.S. cash from Peru was seized before it was spent during that same period, and more than $18.2 million more in raids in the South American country, the Secret Service said.

A first-in-the-nation plan to keep counterfeit prescription drugs from reaching consumers was put on hold again Tuesday by the state Board of Pharmacy at a meeting in San Diego. It was the second two-year delay for the start of a statewide electronic pedigree drug-tracking program first approved by the Legislature and governor in 2004. It would require factory-to-patient tracking of individual units of pills and other medications.

EBay Inc. was ordered by a French court to pay nearly $63 million to luxury-goods maker LVMH, which produces Louis Vuitton- and Dior-labeled products. The French company, whose full name is LVMH Moet Hennessy Louis Vuitton, had claimed in a lawsuit that the Internet auctioneer had not done enough to stop the sale of counterfeit goods. The ruling also banned EBay from selling perfumes by the company.

If ANY place would be selling cheap, pirated copies of Olympic souvenirs, it'd be the Yatai Xinyang Fashion and Gift Market, a notorious underground maze of stores in Shanghai's suburban Pudong district. Fakes of Prada, Callaway, Apple and countless other famous brands abound -- mostly in plain sight. But Olympic items are another matter. They're all hidden away. At one toy shop, the mention of the Beijing Olympics prompted the merchant to reach for a black suitcase.

The World Trade Organization has partly sided with the U.S. in a dispute with China over product piracy, officials said Thursday. The WTO panel faulted China for not prosecuting pirates who copy fewer CDs and DVDs than others, said one trade diplomat who had reviewed the interim ruling. The U.S.

Retailers are having a tough time this holiday season because of the recession, but stores in downtown L.A.'s Santee Alley got a bit of help over the weekend from police raids that led to the arrests of 28 people for making and selling knockoff goods. Police seized $2.7 million in counterfeit items bearing names such as Air Jordan, Ed Hardy, Coach and Sony in the weekend raids, resulting in the second-largest take of knockoffs in Los Angeles County history, officials said Tuesday.

U.S. prosecutors are probing possible counterfeit wine sales, auction houses Christie's International and Sotheby's said Tuesday. The New York office of Christie's said it had received a subpoena requesting information on wine sales and had been cooperating with authorities. The London-based auction house sold $58.6 million of wine last year. "We have been cooperating with officials and will continue to do so," spokesman Toby Usnik said.

Amid budget shortfalls, the Los Angeles Police Department has sparked controversy by asking Philip Morris USA to donate $50,000 to help pay for an investigation into counterfeiting of its cigarettes. In a letter to the company, Police Chief William J. Bratton said the department was requesting the funds to help defray the costs of an ongoing investigation into the "illicit manufacture, transport, distribution or sale of Philip Morris USA products." The LAPD would be in control of the probe.

The Los Angeles City Council on Wednesday accepted a $50,000 donation from Philip Morris USA to help pay for a police investigation into counterfeit cigarettes, but only after police officials promised to review the department's gift policy. Councilman Richard Alarcon was among those who raised concerns that such donations could foster a perception that wealthy corporations can buy extra police protection.

The Paris premiere for "Spider-Man 3" was a hot-ticket blowout. Stars Tobey Maguire and Kirsten Dunst were on hand for the late April screening, as were throngs of paparazzi. Once the movie began, the real fireworks started when Sony Pictures security guards spotted a premiere guest secretly recording the movie. Even though the guest said that only one scene was taped, Sony wasn't taking any chances.