Counterfeiting of patented products or highly successful goods is not just a violation of intellectual property rights but also a criminal act. Despite enforcement agencies’ efforts, private investigations often prove to be far more efficient in uncovering and addressing such issues.

The appeal of counterfeiting lies in its lucrative rewards, enticing many to take the risk. Unfortunately, the penalties for patent infringement or trademark violations are not severe enough to deter such activities. Victims of counterfeiting usually have no recourse other than pursuing civil litigation to stop the distribution of counterfeit goods in the market.

Why do counterfeit goods flood markets in less developed countries? The answer lies in the economic conditions of these labor-intensive, low-wage nations. With low per capita GDP and limited purchasing power, there is a high demand for counterfeit branded products as consumers aspire to own luxury items at affordable prices. The profitability of counterfeit goods ensures that there will always be manufacturers willing to take the risk. In some cases, counterfeit goods are indistinguishable from authentic ones, as they originate from the same factories—leaked by unscrupulous employees rather than factory owners, who would not deliberately tarnish their own reputations.

For instance, counterfeit versions of a patented shoe design were found across platforms like Taobao in China, and Yahoo Auctions or PChome Auctions in Taiwan. To identify the source, a friend was asked to place an online order, creating a transaction record. The investigation revealed that the shipment came from a small town in China. Reporting this to local authorities and agencies like the Lex Solution Investigations (formerly referred to as “保智大隊”) often yields limited results when the case involves international jurisdictions. With no immediate resolution, the victim reached out to a private investigation agency for consultation, marking the turning point in this case.

The investigation agency’s experienced commercial investigations team speculated that a former employee might be involved in the counterfeiting operations. With only basic personnel information provided, the agency conducted in-depth analyses and undercover operations. They successfully infiltrated the organization behind the counterfeit operation. The findings were striking: the counterfeit goods were manufactured in factories in mainland China, while all e-commerce sales operations were managed from an office in Taiwan. Products were shipped from specific logistics hubs in China to distributors or individual buyers.

Armed with the whistleblower’s critical testimony and corroborating evidence, obtaining a search warrant became straightforward. The investigation, meticulously executed by the private agency, enabled law enforcement to dismantle the entire counterfeiting network, including its personnel, logistics, and sales channels.

This case underscores the importance of proactive measures—“self-help before seeking external help.” The timely private investigation salvaged not only the intellectual property of an innovative inventor but also prevented the imminent collapse of their business. The company’s inventory of genuine products was finally able to clear the market, demonstrating the value of effective counterfeit investigations.

Keywords: Counterfeit Investigation, Intellectual Property, Patent Infringement, Trademark Violation, Private Detective, Commercial Investigation, Lex Solution Investigations, Undercover Operations, Whistleblower Testimony, Supply Chain Analysis, Law Enforcement Collaboration.