According to Ministry of Justice in Brazil, About 200,000 People Live by Trading Counterfeit

TOTAL OF COUNTERFEIT PRODUCTS SEIZED IN 2005

GOODS QUANTITY AMOUNT/US$

WEAPONS AND MUNITIONS 311 2,878.32

BEVERAGES 777.416 1,065,010.69

TOYS 2.268.192 4,948,316.73 327.717* 2,394,476.81

SHOES 41.675 1,356,482.20

CIGARETTES 60.080.735 15,977,740.57

ELECTRONICS 6.555.867 15,104,733.47

INSECTICIDES AND FUNGICIDES 58.672 26.669.09 16.986* 7,720.90 21.166** 9,620.91

COMPUTERS 910.886 18,915,924.99

HARD LUCK PLAY MACHINES 1.184 217,019.91

MEDICINES 189.648 616,934.39 1.707* 3,267.87

CD AND DVD 25.692.443 7,360,037.19

SUNGLASSES 487.286 1,293,348.38

WATCHES 889.496 2,538,761.88

VEHICLES 2.026 13,529,332.40

OTHER GOODS --- 85,534,916.08

TOTAL 170,903,192,76

* kilogram

** litre

source : Ministry of Justice

According to Ministry of Justice in Brazil, about 200,000 people live by trading counterfeit products in our country. The main sectors which have been affected by piracy are : electronics, softwares, toys, phonographic, textile and movies industries.

Usually, the counterfeit products come from China, Korea and Paraguay. The National Union of Federal Revenue Auditors reveals that the counterfeiting and piracy costs Brazilian companies around US$ 30 billion by year. It means about US$ 13 billion in lost tax revenue. Last year 33 millions of CDs, DVDs and softwares were seized on the border of Paraguay. The Federation of Industries of Rio de Janeiro State has conducted a research about habits of consuming counterfeit products and verified that :

82% of young people buy counterfeit CDs;

60% of young people buy counterfeit DVDs;

38% of young people buy lighters and razors;

31% of young people buy watches, electronics and softwares;

85,5% of young people allege that they buy counterfeit products because the prices of the original goods are high. 45,9% of young people state that the counterfeit products enter the market faster than originals.

THE BRAZILIAN INSTITUTE OF PUBLIC OPINION AND STATISTICS – IBOPE HAS CARRIED OUT RESEARCHES ABOUT PEOPLE WHO BUY COUNTERFEIT PRODUCTS BETWEEN THE AGE OF 16 AND 50. THESE RESEARCHES WERE CONDUCTED IN SÃO PAULO, RIO DE JANEIRO AND BELO HORIZONTE CITIES.

PEOPLE WHO BOUGHT COUNTERFEIT PRODUCT IN THE LAST 12 MONTHS (2005) By age (%)

São Paulo, Rio de Janeiro and Belo Horizonte cities

CATEGORY 16 / 24 25 a 39 40 a 49 50 AGE AGE AGE and over TOYS 21 28 21 13 CLOTHES 33 18 14 7 TENNIS SHOES 18 17 13 4 WATCHES 15 16 11 6 GLASSES 14 12 8 4 HANDBAGS 10 10 8 4 PENS 12 7 6 3 PARFUMS 08 7 4 3 ELECTRONIC 14 12 6 2 GAMES STATIONERY 6 3 2 1

PEOPLE WHO BOUGHT COUNTERFEIT PRODUCT IN THE LAST 12 MONTHS (2005) BY SOCIAL CLASS (%)

São Paulo, Rio de Janeiro and Belo Horizonte cities

CATEGORY A B C D/E 2005 2005 2005 2005 TOYS 16 22 22 18 CLOTHES 7 11 21 25 TENNIS 6 13 14 11 WATCHES 10 14 12 10 GLASSES 8 13 9 6 HANDBAGS 8 8 9 6 PENS 6 6 7 9 PARFUMES 4 4 5 7 ELECTRONIC 13 12 7 3 GAMES STATIONERY 6 5 5 3

Source : IBOPE