Cigarette counterfeiting is big business in South America. In Paraguay authorities are strengthening their efforts to control and crack down on production and distribution of counterfeit cigarettes. However, these illegal products are entering neighbouring countries such as Argentina, Brazil and Bolivia in significant volume. This is, probably unnecessary to say, very damaging to the brand owners. 

In february 2003 two truckloads containing 2,296 boxes of counterfeit DERBY brandcigarettes and 400 boxes of MARLBORO brand cigarettes, destined for the Brazilian Market, were seized in Paraguay near the border. The boxes appearence was very professional and stamped with falsified Brazilian Federal Reserve seals.

In the past decade numerous tobacco manufacturers have been established near the borders of Brazil and Argentina. Modern installations, able to produce extremely large quantities of cigarettes, destined for the vast consumer markets of Brazil and Argentina rather than the small Paraguayan marketplace, are unfortunately no exception. Inexplicably local tobacco companies have been obtaining the legal authorization to manufacture cigarettes under famous brands, causing direct harm to the legitimate trademark owner in the country. Only after these illegal activities have been discovered trademark owners then have to endure long and expensive lawsuits to regain their trademark rights. During this period the tobacco companies keep on producing vast quantities of cigarettes and distribute them in the continent under usurped trademarks. The extent of the damages caused by these infringements are huge even forcing legitimate trademark owners of the market.

In Europe the illegal trade in cigarettes is based on an entirely different problem. Recently French police officers have arrested eight persons who where involved in an illegal import scam of cigarettes via the website e-tabac.com. Through this site they have supposedly dodged import-taxes on the cigarettes. Although the company behind e-tabac.com was based on Mauritius, the trade was conducted from France. The cigarettes where bought in Switzerland, shipped to Africa and later imported to six European countries, dodging high European taxes on cigarettes. In seven months the suspects have traded 24.000 cartons of cigarettes, earning 348.577 Euro.

Pretection can help protect the right of exclusivity of brand cigarettes. The Online Sales Monitoring Service will scan the Internet for possible counterfeits and paralell imports offered anywhere in the world. The analysts at Pretection will determine whether a website is offering counterfeit or gray market tabacco products. If so, an online investigation is conducted to determine the person or organistaion behind the website. All this information will help tobacco manufacturers fight these intellectual property infringements and restore the image of their brands.