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Made in China: Fake golf equipment sold on Internet
Authorities warn about counterfeit merchandise racket

Singapore (pte/May 18, 2005/14:03) - Fake Chinese-made golf gear is being sold on Internet auction sites worldwide. The products, which come from Shanghai and Guangdong province, are being sold under big-label names, keeping tens of millions of dollars from real manufacturers annually.

Although bogus, the equipment is sophisticated, and has Callaway http://www.callawaygolf.com , the world's largest manufacturer of golf clubs, teaming with five gear producers, among them Nike, to crack down on the illegal sales.

Steve Gingrich, security director for Cleveland Golf, says, "It's a nightmare. We're getting some assistance in China, but the problem is becoming larger scale through the rest of the world."

Sixty per cent of the world's golf equipment is manufactured in China, which is how Chinese counterfeit operators have access to gear-making techniques. The other 40 per cent is made in Taiwan, Japan and the US. However low costs make it more lucrative to produce in China - a golf club with a retail price of US$70 can be made for $3 to $5 in China.

Internet purchases are considerably higher now than they were in 2002, says Stu Herrington, security director for Carlsbad, Californian-based Callaway.

"It's like spraying mosquitoes," said Colin Hegarty, president of Golf Research Group of Dallas. "You're never going to get all of them, but you can reduce the problem significantly."

Because of the counterfeit market Callaway's sales fell by 18 per cent in the first quarter. The company also had to shut down 'hundreds and hundreds' of auctions last year.
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