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Edit - although it may only show for ebay.co.uk
In the action figure world SW figures have been faked for years (as have many others) and some of these now form key parts of certain collectors' focuses on character etc. so while they are a pain and so very wrong they do also open up an area of collecting if you are that way inclined.
I can understand street stalls selling counterfeit goods, but surely it's breaking some laws as a UK ebay seller?!
Regular joe public can report all they like, ebay might remove a single item, they might not. But if a VERO rep makes the report, it will be removed as it is clearly fake.
I think the OP is right in what he says. It is actually easy to spot a fake set. There is no lego logo for a start. Spotting faked minifigs (or indeed parts) taken from these sets is much harder, especially if you are buying them on the internet and so cannot check the quality of them before paying.
Of course, they could decide to protect a handful, but when this sort of strategy is used, the really valuable ones often haven't been protected.
That's just the IP generation issue. Enforcing IP against small-ish Far East companies when it's not millions of pounds/dollars at stake is not straightforward.
The LEGO Group tend to patent every single mould they produce, but patents only last so long (usually around 20 years, is my understanding) and LEGO bricks (and sets) last much, much longer, so the copy-cats just sit around, waiting.
I know that with other brands that are manufactured in China, the same factory that makes the official products will also allow a black-market to exists, where they run a few hundred or thousand extra products on the same machines with the same raw materials, creating products that are pretty much impossible to detect they are fake. They are sold on the black-market for fraction of the price and can also end up on eBay...)c: