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More than 3,000 fake Gibson electric guitars were seized by U.S. Customs and Border Protection in Southern California in what authorities are calling the largest seizure of counterfeit musical instruments at the busiest container port in North America. If they were authentic Gibson guitars, the instruments — which were destined for the e-commerce market — would be worth an estimated $18 million, according to U.S. Customs. They were seized by federal officials at the Los Angeles/Long Beach Seaport, a sprawling coastal complex that includes the Port of LA. The massive West Coast port is the busiest in the U.S. among container ports, in the volume of shipments seen, with cargo worth an estimated $292 billion passing through in 2023. While the knockoffs seized by federal authorities were manufactured outside the country, all authentic Gibson guitars are hand-crafted and made in the U.S., said Beth Heidt, chief marketing officer at the company. The iconic guitar brand, founded in 1902 in Kalamazoo, Mich., has all its instruments made at facilities in Nashville, Tenn. and Boseman, Mont. — with several generations of artisans behind the more than 100-year-old company, she said. "This is really emotional and personal for us because our teams have generations who have dedicated their entire lives to making these instruments," Heidt said, describing Gibson's guitar-making as a craft passed down generations within American families. Among the seized guitars were imitations of designs such as the Gibson SG and Les Paul , and while the majority were Gibson knockoffs, some were counterfeits of other well-known brands like Fender , Heidt said. She said there were models worth about $2,500 each if they were authentic as well as imitations of higher value Gibsons that would typically retail for more than $10,000. Federal authorities would not release any details about suspects in the investigation or where the instruments came from. U.S. Customs officers worked with Gibson's intellectual property experts to determine whether the guitars were counterfeits, according to LA County Sheriff's Lt. Bill Kitchin, who oversees the department's piracy division. Violating the federal statute that protects U.S. consumers from counterfeit products can result in a fine of up to $250,000 and 10 years in prison, said Jaime Ruiz, a spokesman for U.S. Customs and Border Protection. Africa Bell, director of the LA-Long Beach Seaport, said the record-breaking seizure was especially noteworthy since the port is the largest container port in the country — collecting $19 billion in import duties, taxes and fees during the last fiscal year. She said finding counterfeits and contraband "in this massive amount of cargo arriving here everyday is like trying to find the smallest of needles in the largest of haystacks." Heidt said seasoned guitar players would be able to easily tell the difference between the fake Gibsons that were seized and the brand's authentic instruments, from the sound to other elements visible to the trained eye. "We can pick it up immediately and tell," she said, describing flaws in the fakes such as in the finishing, a more "flimsy" and light feel, placement of the logo, misplaced inlays and flaws in where the neck of the guitar meets the rest of the body. Andrea Bates, an attorney for the company who protects its intellectual property rights in court, said the well-known brand only sells through its website and authorized retailers which are listed on the site. Over the past fiscal year, Bell said, more than $2 billion in counterfeit products have been seized at the Southern California port. John Pasciucco, U.S. Customs' deputy special agent in charge for Los Angeles, said the selling of counterfeit goods can not only violate intellectual property rights and undermine respected brands that play by the rules, but also put consumers at risk. They can be made with substandard, even dangerous materials posing health risks — while also potentially being made through forced labor. Products made with paint containing lead, potentially dangerous counterfeit medications and knockoff brand cosmetics bearing that can cause severe skin reactions are just a few examples given by federal authorities of such potentially harmful counterfeits. Marissa Wenzke is a journalist based in Los Angeles. She has a bachelor's degree in political science from UC Santa Barbara and is a graduate of Columbia Journalism School.The Best True Crime-Shows to Watch on Your Next Night In
US budget airlines are struggling. Will pursuing premium passengers solve their problems? DALLAS (AP) — Delta and United Airlines have become the most profitable U.S. airlines by targeting premium customers while also winning a significant share of budget travelers. That is squeezing smaller low-fare carriers like Spirit Airlines, which filed for bankruptcy protection on Monday. Some travel industry experts think Spirit’s troubles indicate less-wealthy passengers will have fewer choices and higher prices. Other discount airlines are on better financial footing but also are lagging far behind the full-service airlines when it comes to recovering from the COVID-19 pandemic. Most industry experts think Frontier and other so-called ultra-low-cost carriers will fill the vacuum if Spirit shrinks, and that there's still plenty of competition to prevent prices from spiking. Bitcoin ticks closer to $100,000 in extended surge following US elections NEW YORK (AP) — Bitcoin is jumping again, setting another new high above $99,000 overnight. The cryptocurrency has been shattering records almost daily since the U.S. presidential election, and has rocketed more than 40% higher in just two weeks. It's now at the doorstep of $100,000. Cryptocurrencies and related investments like crypto exchange-traded funds have rallied because the incoming Trump administration is expected to be more “crypto-friendly.” Still, as with everything in the volatile cryptoverse, the future is hard to predict. And while some are bullish, other experts continue to warn of investment risks. Australia rejects Elon Musk's claim that it plans to control access to the internet MELBOURNE, Australia (AP) — An Australian Cabinet minister has rejected X Corp. owner Elon Musk’s allegation that the government intends to control all Australians' access to the internet through legislation that would ban young children from social media. Treasurer Jim Chalmers said on Friday that Musk’s criticism was “unsurprising” after the government introduced legislation to Parliament that would fine platforms including X up to $133 million for allowing children under 16 to hold social media accounts. The spat continues months of open hostility between the Australian government and the tech billionaire over regulators’ efforts to reduce public harm from social media. Parliament could pass the legislation as soon as next week. Oil company Phillips 66 faces federal charges related to alleged Clean Water Act violations LOS ANGELES (AP) — Oil company Phillips 66 has been federally indicted in connection with alleged violations of the Clean Water Act in California. The Texas-based company is accused of discharging hundreds of thousands of gallons of industrial wastewater containing excessive amounts of oil and grease. The U.S. Department of Justice announced the indictment on Thursday. Phillips is charged with two counts of negligently violating the Clean Water Act and four counts of knowingly violating the Clean Water Act. An arraignment date has not been set. A spokesperson for the company said it was cooperating with prosecutors. US regulators seek to break up Google, forcing Chrome sale as part of monopoly punishment U.S. regulators want a federal judge to break up Google to prevent the company from continuing to squash competition through its dominant search engine after a court found it had maintained an abusive monopoly over the past decade. The proposed breakup floated in a 23-page document filed late Wednesday by the U.S. Justice Department calls for Google to sell its industry-leading Chrome web browser and impose restrictions designed to prevent Android from favoring its search engine. Regulators also want to ban Google from forging multibillion-dollar deals to lock in its dominant search engine as the default option on Apple’s iPhone and other devices. What you need to know about the proposed measures designed to curb Google's search monopoly U.S. regulators are proposing aggressive measures to restore competition to the online search market after a federal judge ruled that Google maintained an illegal monopoly. The sweeping set of recommendations filed late Wednesday could radically alter Google’s business. Regulators want Google to sell off its industry-leading Chrome web browser. They outlined a range of behavioral measures such as prohibiting Google from using search results to favor its own services such as YouTube, and forcing it to license search index data to its rivals. They're not going as far as to demand Google spin off Android, but are leaving that door open if the remedies don't work. Stock market today: Wall Street gains ground as it heads for a winning week Stocks gained ground on Wall Street, keeping the market on track for its fifth gain in a row. The S&P 500 was up 0.3% in afternoon trading Friday. The Dow Jones Industrial Average climbed 352 points and the Nasdaq composite rose 0.1%. Retailers had some of the biggest gains. Gap soared after reporting quarterly results that easily beat analysts' estimates. EchoStar fell after DirecTV called of its purchase of that company's Dish Network unit. European markets were mostly higher and Asian markets ended mixed. Treasury yields held relatively steady in the bond market. Crude oil prices gained ground. Apple and Google face UK investigation into mobile browser dominance LONDON (AP) — A British watchdog says Apple and Google aren't giving consumers a genuine choice of mobile web browsers. The watchdog's report Friday recommends they face an investigation under new U.K. digital rules taking effect next year. The Competition and Markets Authority took aim at Apple, saying the iPhone maker’s tactics hold back innovation by stopping rivals from giving users new features like faster webpage loading. The CMA’s report also found that Apple and Google manipulate the choices given to mobile phone users to make their own browsers “the clearest or easiest option.” Apple said it disagreed with the findings. German auto supplier Bosch to cut 5,500 jobs in further sign of carmakers' woes FRANKFURT, Germany (AP) — Germany's technology and services company Bosch is cutting its automotive division workforce by as many as 5,500 jobs in the next several years, in another sign of the headwinds hitting the German and global auto industries. The company cited stagnating global auto sales, too much factory capacity in the auto industry compared to sales prospects and a slower than expected transition to electric-powered, software-controlled vehicles. Some 3,500 of the job reductions would come before the end of 2027 and would hit the part of the company that develops driver assistance and automated driving technologies. About half those job reductions would be at locations in Germany. At least 15 people are sick in Minnesota from ground beef tied to E. coli recall U.S. health officials say at least 15 people in Minnesota have been sickened by E. coli poisoning tied to a national recall of more than 160,000 pounds of potentially tainted ground beef. Detroit-based Wolverine Packing Co. recalled the meat this week after Minnesota state agriculture officials reported multiple illnesses and found that a sample of the product tested positive for E. coli O157:H7, which can cause life-threatening infections. Symptoms of E. coli poisoning include fever, vomiting, diarrhea and signs of dehydration.