Counterfeiting is on the rise, according to a recent report (The Economist 2010b). The article describes how Philip Morris, the tobacco business, was suing eight American retailers for selling...

Counterfeiting is on the rise, according to a recent report (The Economist 2010b). The article describes how Philip Morris, the tobacco business, was suing eight American retailers for selling counterfeit versions of Marlboro cigarettes. Other examples given are fake Porsches and Ferraris on the streets of Bangkok; and a German bank which had discovered that what it thought was a gold ingot was in fact made of tungsten. The rise of fakes is attributed to the global economic downturn, and the rise of international supply chains. a Can brand names and the design of goods such as Marlboro cigarettes, Porsche cars and Louis Vuitton luxury goods be considered public goods? b What is the motivation for intellectual property laws that seek to restrict commercial use of brand names and designs to the originators of those brand names and designs? c Can you think of reasons why counterfeiting activity might have increased recently?