Fake Hermès Crime Ring Busted

Last week, the French police dismantled an international crime ring that was in the business of producing counterfeit Hermès bags. According to WWD, a dozen arrests were made and the company suspects that several Hermès employees were also involved.

The ring consisted of secret workshops filled with precious leather skins. While the debate over whether counterfeiting has any effect on the company's brand may continue, here are some numbers that might help give our readers some perspective:

- In this crime ring alone, a single workshop has been estimated to be driving sales of about 22 million dollars

- Counterfeiting costs France 6 billion euros, or $7.5 billion dollars, in lost revenue every year

This isn't the company's first success in going after counterfeiters. Last month, a U.S. court ordered 34 Web sites selling counterfeit Hermès products to pay the company damages of $100 million dollars. And while these judgments are rarely paid out, luxury companies are continuing the fight because they find more value in the court system's willingness to recognize the ongoing illegal activity and develop a strategy against such criminals than in any payment of damages. Hopefully as the judicial system continues to catch on, the legislative branch will also begin to step up their willingness to provide more IP protection for the fashion industry.