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US in huge crackdown on alleged designer fakes from China

Microsoft patches "critical" crack in Windows
San Francisco (AFP) Aug 2, 2010 - Microsoft on Monday released an emergency patch for a "critical" crack in Windows operating system software that could let hackers take control of computers over the Internet. "The vulnerability could allow remote code execution if the icon of a specially crafted shortcut is displayed," the US technology giant said in a security bulletin ranked 'Critical.' "An attacker who successfully exploited this vulnerability could gain the same user rights as the local user." Computer users commonly use short-cuts in the form of on-screen icons they can click to instantly awaken favored applications. The Windows flaw lets hackers booby-trap such icons with malicious software that could let them control machines from afar.

Microsoft routinely releases software patches the second Tuesday of each month but resorts to making patches available "out of band" when it deems situations dangerous. "Several families of malware have been attempting to attack this vulnerability," Microsoft Trustworthy Computing response manager Christopher Budd wrote in a blog post. "We firmly believe that releasing the update out of band is the best thing to do to help protect our customers." Some attacks have reportedly been directed at power plants and other vital infrastructure. People using computers running on any version of Windows software were urged to apply the update immediately.
by Staff Writers
San Francisco (AFP) Aug 3, 2010
US authorities announced Tuesday the biggest federal crackdown ever on West coast shopowners who allegedly sell counterfeit luxury handbags and other goods worth some 100 million dollars.

Prosecutors said they have charged operators of eight San Francisco shops with selling suspected designer fakes made in China, the US attorney for northern California and US Immigrations and Customs Enforcement (ICE) said.

The 25-count indictment is "part of the largest federal enforcement action ever taken against West Coast retailers suspected of selling counterfeit designer apparel and accessories," they said in a statement.

"To consumers who think designer knockoffs are a harmless way to beat the system and get a great deal, 'buyer beware,'" said ICE Director John Morton.

"Trademark infringement and intellectual property crime not only cost this country much needed jobs and business revenues, but the illegal importation of substandard products can also pose a serious threat to consumers' health and safety," he said.

Authorities revealed the details of the case in an indictment unsealed Monday. The indictment was filed in federal court July 22.

It charged the defendants, mostly residents of San Francisco, with conspiracy, smuggling goods into the United States, and trafficking in counterfeit goods.

"The investigation has led to the seizure of nearly 100 million dollars worth of counterfeit merchandise [based on the manufacturer's suggested retail price (MSRP) had the products been legitimate]," a statement said.

Among the items seized were "clothing, handbags, wallets, jewelry, watches, scarves, sunglasses and shoes that were illegally imported from China," it said.

The suspected counterfeit items purported to be luxury brands such as Dooney and Bourke, Nike, Coach and Kate Spade, Armani, Burberry, Prada and Louis Vuitton.

"Interdicting and destroying counterfeit and trademark infringing goods has long been a priority of the federal government," US Attorney Joseph Russoniello said.

"The significant impact of trafficking in such merchandise on the American economy should be obvious."



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San Juan, Argentina (UPI) Aug 3, 2010
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