Counterfeit Gap joins the counterfeit Gucci

The big luxury brands have cracked down hard.

Last year, fashion label Tory Burch won $164 million in a lawsuit against a group of cyber squatters peddling fake shoes, purses and accessories. Chanel filed suit in September against 399 websites allegedly selling knockoff sunglasses, wallets, jewelry and other goods bearing the luxury retailer's name.

But with slim budgets and few employees, small brands can't afford legions of lawyers and private detectives, making them less-risky targets for counterfeiters.

"It's a business-expansion strategy for the bad guys," said Tom Taylor, president of brand protection for OpSec Security, a Boston firm that monitors counterfeiters. "The downturn left a lot of capacity open in factories in China and other parts of Asia, so they are coming up with ways to fill that capacity."

Shoppers themselves, meanwhile, are another factor. A low-paid clerical worker might have a hard time passing off a $10,000 Hermes tote as the real thing. But who would ask questions about $44 Toms shoes?

"When you're talking about middle-market brands with middle-of-the-road price points, you don't have that stigma about counterfeits, people being suspicious about fakes, because the real thing isn't that unattainable," said Caleb Westbay, vice president of sales at Ed Hardy, a Los Angeles tattoo-themed street-wear brand.

Until its worldwide licensing rights were sold last year, Ed Hardy had a dedicated anti-counterfeiting team that worked with the police to identify and track down knockoffs. In 2006, the brand started sewing anti-counterfeit strips onto its clothing labels, similar in idea to the security strips that go into dollar bills, Westbay said.

"Counterfeit goods look authentic. Everything from quality and execution of product down to packaging and labeling and all that stuff," Westbay said. "It's tough to fight."

These cheaper items may ultimately make more money for counterfeiters than their luxury cousins because it's easier to sell vast quantities of the lower-priced items. Many more people are likely to buy $15 counterfeit hoodies and sweat pants than shell out $100 for a fake Louis Vuitton handbag.

"If there is profit to be made, things will be counterfeited, and it goes so far beyond luxury goods in terms of what is actually being counterfeited," said Christine Hogue, who monitors counterfeits as an import advisory specialist for the U.S. Customs and Border Protection agency at the Los Angeles and Long Beach ports.