IntroductionCounterfeiting -the production of copies that are identically packaged, including trade marks and labelling, copied so as to seem to a consumer the genuine article (Kay, 1990)[1] -is a serious problem besetting an increasing number of industries. It affects not only products whose brand name is synonymous with its quality or flavour, but also products which require a high level of research and development, and marketing (Nash, 1989). The manufacture and sale of counterfeit products is undermining company and brand reputations, hitting profits, devaluing research and development costs, and incurring legal fees (Nash, 1989). According to US estimates, the global loss from counterfeiting amounts to some $80 billion a year, but what is almost impossible to value is the damage inflicted on a company by the dilution of its brands (Kay, 1990). Cartier reportedly spends 25 million French francs a year trying to protect its trademark (Asia Magazine, 1991). Substandard counterfeit goods not only ruin goodwill and destroy credibility, they can also be hazardous to the innocent end-purchaser, especially with regard to pharmaceutical products (Nash, 1989).The seriousness of this counterfeiting problem has prompted some marketers either to take independent legal actions, or depend on anti-counterfeiting firms which employ international investigators to carry out surveillance and raids against counterfeiters (Ashuri, 1993). Many countries have also tightened their laws and regulations against counterfeiting. All six members of the Gulf Cooperation Council now have trademark laws on their books (Hanson, 1993). However, counterfeiting continues to flourish because multinational marketing has created high worldwide demand for well-known brands (Bush et al., 1989). In addition, technological advances enable counterfeiters to produce brand name products easily (Cottman, 1992). Inadequate penalties for commerce in counterfeits and weak enforcement of the respective laws and regulations have also been blamed for the growth in counterfeit trade. Better organization of counterfeit activities and the removal of trade barriers also make it likely that counterfeiting will continue to abound (Kay, 1990).