He argues that most people think the counterfeit trade is harmless but it 1) is run by criminal syndicates also in drugs and child prostitution, 2) "may have helped finance the 1983 World Trade Center bombing," and 3) is made by child labor. All bad. His solution is greater enforcement and persuading people not the buy the knock-offs.
Thomas doesn't seem to think that most buyers are fooled by the counterfeit into thinking it is the real thing. The price difference and the seller's facilities attest to that. Enforcement doesn't seem to work and it is very expensive trying to catch all those little entrepreneurs. So we need to persuade the public not to buy.
In favor of the counterfeit trade is an argument that it actually helps the "legitimate" industry. David points out that the fashion industry would be greatly harmed by fashion patents (posted on 08/23/2007 07:49 AM at http://www.againstmonopoly.org/) Wouldn't a consumer boycott or over active enforcement of trade marks in handbags do the same thing by removing the stimulus of competition to improve designs and create new design trends?