have you found a counterfeit or fake product online? learn how to take advantage of our counterfeit reward program and earn up to $10 million in rewards. From the terms, amounts, and application process to tips on how to earn a little extra cash by reporting online sales posts, we've got you covered from A to Z.

1. introduction: You too can be a 'choparazzi', awaken your dormant sense of justice

who hasn't wondered, while shopping online, "Is this the real deal at this price?" From luxury bags to popular cosmetics to electronics... counterfeit goods, or "knockoffs," that cleverly deceive consumers have become a part of our everyday lives. More than just an unpleasant experience, it's a serious crime that undermines the value of hard-working brands and even hurts national economies.

what if you could help put an end to this illegal behavior and get paid for it? that's the world of counterfeiters. a portmanteau of "counterfeit" and "paparazzi," it's a neologism for people who spot and report illegal counterfeit goods and get rewarded for doing so. It's more than just a pocket change, it's a modern-day hero who protects the healthy order of commerce in our society.

governments, especially patent offices, run robust counterfeit bounty programsto encourage people to get involved. the rewards range from large rewards for reporting huge illegal manufacturing plants or distribution warehouses to small side income for reporting small sales posts on social media or open marketplaces.

this article is a complete guide to make you the best 'chapparazzi' you can be. we'll tell you everything from A to Z: which counterfeit product reportslead to bounties, who gets paid how much, and what the exact process is to claim your reward. awaken your dormant sense of justice, level the playing field, and take home your rightful reward.

2. two tracks: Which counterfeit bounty program is right for you?

the Patent and Trademark Office's counterfeit rewardprogram has two main tracks. the first is the Traditional Reward Scheme, which has been in place since 2006, and the second is the Online Sales Posting Reward Scheme, which was launched on April 8, 2024, in response to changes in the online marketplace. These two schemes have completely different goals, conditions, and reward sizes, so it's important to be clear about which one you should use in which situation.

in the past, the traditional system focused on cracking down on large-scale manufacturers and distributors of counterfeit goods, with a very high threshold of at least KRW 300 million in total genuine value of the seized counterfeit goods to be eligible for a reward. While this was effective in detecting large warehouses and factories, it was clearly limited in its ability to crack down on the large number of small-scale online sellers operating across multiple channels, including Instagram, Naver blogs, and various open markets.

to address this 'blind spot' in online enforcement, the KIPO has come up with a new strategy: enlisting the power of the general public to monitor and block the distribution of counterfeit goods online. The 'Online Sales Post Reporting Reward System' was born. the rewards are smaller, but the reporting requirements are much simpler and easier to fulfill, so that everyone can participate in their daily lives. In other words, the two schemes are not substitutes for each other, but complementary, targeting the "wholesalers" and "retailers" of the counterfeit goods ecosystem, respectively.

check out the table below for an at-a-glance comparison of the key differences between the two schemes, and decide which strategy is right for you.

3. aim for the big bounty up to $10 million, conquering the 'traditional reporting bounty system'

if you have information about large warehouses, manufacturing plants, or organized distribution organizations, you may want to target the traditional counterfeitbounty program, which offers rewards of up to $10 million. the requirements for this program are as demanding as the reward itself.

3.1. The golden ticket: 3 conditions to receive a bounty

to be eligible for a bounty, you must meet three key requirements

  1. contribute to enforcement: Your report must be instrumental in bringing down an offender. specific and direct evidence, such as the seller's identity, storage location, and transaction method, rather than vague suspicions or rumors, must be the basis for the crackdown to be eligible for a reward.

  2. the amount of counterfeit goods seized is very important: 300 million won or more. here, the 'seized amount' is calculated according to the KIPO's formula.

    $$Detection Amount = Quantity of goods (sales volume + inventory volume) \times genuine price$$

    for example, if you report a warehouse storing 1,000 pairs of counterfeit shoes, and the genuine price of the shoes is 300,000 won, the amount of the discovery is 300 million won ($1,000 \times 300,000$), and the conditions for the reward payment are met.

  3. referralto prosecutors: This means that after the KIPO Trademark Special Judicial Police or general police investigate the reported case, they determine that there is sufficient evidence of a crime and refer the case to prosecutors. this is an important legal step that goes beyond a simple internal investigation or inquiry and signals the start of formal criminal proceedings.

3.2. The reward ladder: How much will I get?

reward amounts are tiered based on the size of the discovery. like climbing a ladder, the reward increases exponentially as the size of the bust increases.

it's also important to remember that rewards are limited to two per person per year, up to a total of KRW 10 million.

3.3. The official process: How to apply for a bounty A to Z

once you've met the requirements for a bounty, it's time to formally apply. the most important thing is not to miss the deadline. you must apply within five months from the date thecase you reported was sent to the prosecutor's office. Usually, the investigating agency will send you a "Notice of Case Disposition", which signals the start of the application process.

documents to prepare

  • one copy of the Counterfeit Goods Reporting Reward Application Form (available for download from the JPO website)

  • one copy of the complainant's ID

  • one copy of the bankbook in the name of the complainant

  • notice of case disposition (if applicable)

how to Submit

the prepared documents must be submitted by registered mail to ensure the security and delivery of the documents.

  • send to: In front of the Trademark Special Judicial Police and the Counterfeit Goods Reporting Reward Program, Government Daejeon Office Building 4, 189 Seo-gu, Daejeon, Korea

3.4. Attention! You will not receive a reward in this case

even if you have made a great effort to report, you will not be eligible for the reward in the following cases.

  • verbal report: If you make a verbal report, such as a phone call, and do not leave any written evidence.

  • anonymous and pseudonymous reports: you made a report under an anonymous, pseudonym, or someone else's name where you cannot be identified.

  • reported by anofficial: An official of a relevant organization, such as a patent office, prosecutor's office, police, or customs office, reported facts that they learned in the course of their duties.

  • already under investigation: You report something that a law enforcement agency already knows about and is investigating or looking into. the reward will go to the original reporter.

  • false reporting: Colluding in advance or making a false report for the purpose of receiving a reward, which may result in penalties.

  • failureto submit evidence in an online report: If you report an online seller and it leads to an offline enforcement action, you may not be eligible for a reward if you don't provide evidence (such as a physical counterfeit) or purchase history.

4. everyday tips: How to utilize the Online Sales Posting Reward Program

you don't have to be a big warehouse or factory to be rewarded for reporting counterfeit sales posts, which are lurking in the online space around us. this new 2024 program is a groundbreaking way for anyone to clean up the online commerce landscape and earn a little extra cash on the side.

4.1. 2024's game changer, breaking down the core rules

the goal of the scheme is clear. it's to weed out the spiderweb of counterfeit goods sales that spreads across multiple online channels through the voluntary monitoring and reporting of ordinary citizens. There is only one key condition to be eligible for the reward.

"Find and report evidence of the same seller selling counterfeit goods on two or more different online channels."

for example, if a seller is selling the same fake wallet on NAVER Smart Store and Instagram at the same time, it is eligible to be reported. it doesn't matter what kind of channel, such as Coupang and Kakao, Open Market A and Open Market B, as long as there are at least two.

4.2. Become a digital detective: A practical guide to collecting evidence

to successfully file a report and receive a reward, it's important to collect the correct evidence required by the KIPO. become a digital detective and follow the three steps below to gather evidence.

step 1: Prove you're the "same seller

you'll need to prove that the seller on two or more different channels is the same person. Capture screenshots from the seller information page, etc. that show that any of the following items are the same

  • the merchant's phone number

  • address

  • email

  • deposit account number

  • business license number

  • mail-order license number

step 2: Look for evidence that suggests the product is 'counterfeit'

you need to capture where the seller has used language that admits or implies that they are not genuine. Look for words such as

  • "Fake," "knockoff," "emissary of authenticity"

  • "Replica", "Repl"

  • "OOO st", "OOO style" (e.g. Chanel st)

  • variations or abbreviations of part of the brand name (e.g. LV, GC)

step 3: Finalize your evidence package

ultimately, you'll need to gather all three of the materials below. If any of them are missing, your report may not be accepted.

  1. sales post URLs: the address of the sales post from at least two different channels

  2. ascreen shot of the same seller verification evidence: the screen captured in step 1

  3. suspected counterfeit evidence screen: screen captured in step 2

4.3. From click to deposit: Reporting and claiming your reward

once you've gathered your evidence, it's time to make it official.

file a report

  • where toreport: 'Intellectual Property Infringement One-Stop Reporting Consultation Center' website (ippolice.go.kr)

  • directions: report Industrial Property Infringement > Trademark (Counterfeit Goods) Infringement > Online Report. you will need to verify your identity to file a report.

secrets of the process

it is important to note that the reporting process consists of three steps: the complainant → KIPO → KIPO. once the complainant submits a report to the portal, an organization called the KIPO (Korea Intellectual Property Office) is responsible for reviewing the report and requesting that the sales post be blocked. only for successfully blocked posts does the KIPO notify the KIPO on a quarterly basis to initiate the reward payment process. because of this intermediary organization, there is a certain amount of time between the time a report is filed and the bounty is paid.

reward payment process

  1. on a quarterly basis, the protection center notifies the KIPO of the list of reward recipients.

  2. the KIPO sends a message to the eligible applicants via KakaoTalkto apply for the reward.

  3. you must submit the application form, a copy of your ID card, and a copy of your bank account via registered mail within 14days of receiving the application notice. (Please note that the application deadline is much shorter than the traditional system)

  4. after the KIPO confirms the final requirements, the reward money (50,000 won per case) will be deposited into your account.

5. reporting counterfeit products: From suspicion to report to reward

now that you know the theory, it's time to put it into practice. here are some tips to increase your chances of success and a final checklist to make sure your report leads to a reward.

5.1. An expert eye: Pro tips for spotting counterfeits

here are some tricks to get better at spotting counterfeit goods online.

  • keyword manipulation: Sellers use abbreviations like "LV" instead of "Louis Vuitton" or "GC" instead of "Gucci" to avoid detection, or they use their own secret words like "replica" or "st". you can easily spot counterfeits by searching for these keywords.

  • unusual pricing: If the price is ridiculously low compared to the genuine product, you should be suspicious. Phrases such as "huge discount" and "factory direct" are common red flags.

  • frequent platform changes: Sellers who move between smartstores, blog markets, and social media accounts to avoid crackdowns are likely counterfeiters.

  • vague product descriptions: If a seller omits details such as material, size, country of manufacture, etc. that a genuine product should provide, or if they steal images from the official website, it's also a red flag.

5.2. Final check before submitting! Reporters' checklist

before hitting the report button, run through the checklist below to make sure you haven't missed anything.

[Traditional Reporting Bounty Checklist]

  • do you have specific information about the seller, such as their identity and warehouse location?

  • do you estimate the total value of the counterfeit goods to be seized to be more than KRW 300 million?

  • have you recorded all reports in writing and secured evidence?

[Online Sales Posting Bounty Program Checklist]

  • do you have at least two different platform URLs?

  • have I clearly captured screenshots (phone numbers, accounts, etc.) that prove the two sellers are the same person?

  • did you capture the part where the seller used words like "knockoff," "replica," or other words that suggest the product is counterfeit?

related article: How to recognize and report counterfeits on international dropshipping platforms (Ali, Temu)

related article: How to get consumer compensation if something you bought is counterfeit

6. knowledge is Power: Counterfeit Reward FAQs

Q1: Is my personal information really safe? i'm afraid I'll be retaliated against for reporting.

A: Yes, it is safe. Investigating agencies, such as the Patent and Trademark Office, have a strict "duty of confidentiality" regarding the identity of complainants under applicable laws and regulations. you can also rest assured that the Public Interest Informant Protection Act prohibits any identity or economic penalties for filing a report. your courageous actions are protected by law.

Q2: How long does it usually take from report to reward?

A: This varies greatly by program. traditional reward programs can take months to a year or more because they involve a complex criminal process, including investigation, referral to prosecutors, and trial. online selling post reporting bounties, on the other hand, are relatively quick because they are awarded on a quarterly basis. for example, if you reported a post in January and it was taken down, you might receive an invitation to apply for a bounty in early April at the start of the next quarter. however, if the government's bounty budget is low, your payment may be rolled over to the following year.

Q3: What happens if someone else has reported the merchant I want to report?

A: As a general rule, bounties are paid to the first person to submit a valid report. if it is unclear who made the first report, we may split the reward equally. In particular, in the case of online sales posts, if the post has already been removed by someone else's report by the time KIPO checks your report, you will not receive the reward. This is why it is important to act quickly.

Q4: What is the difference between filing a report directly with a shopping mall like Naver or Coupang and filing a report with the KIPO?

A: The two have different objectives and outcomes. reporting directly to individual platforms such as Naver or Coupang will result in quick action such as removal of the sales post or suspension of the seller's account within the platform, which is effective when you want to remove a specific post quickly. on the other hand, filing a report through the KIPO's IP Infringement One-Stop Reporting Consultation Center is the start of a formal law enforcement process, which can lead to not only post removal, but also investigation of the seller, seizure of counterfeit goods, and even criminal penalties. most importantly, you are only eligible to receive a reward if you report through the official process at the Patent Office.

Q5: Are bounties taxable?

A: The tax implications of an award may be classified as other income under the Income Tax Act, which may vary depending on the circumstances. in general, other income is taxable if the amount, excluding necessary expenses, exceeds a certain amount. the best way to know for sure is to check with the IRS or be informed at the time of the award decision.

7. conclusion: Your report creates a fair marketplace

reporting counterfeit goods is more than just "whistleblowing" - it's a smart consumer right and action that can help create a healthy commerce culture, protect intellectual property rights, and get you the rewards you deserve. Your keen eye and a little courage can be your most powerful weapon in discouraging illegal sellers who profit from counterfeit goods and protecting the countless brands and small businesses that work hard to be honest.

starting today, look around a little more when you shop online. if you see something suspicious, use this guide to help you feel confident in reporting it. your clicks make our society more transparent and fair.

have you ever reported a counterfeit product before, or did this article make you think, "I should do it too"? Share your experiences and thoughts in the comments below! If you found this article useful, please subscribe and like to help us reach more people.