[barrkel]

Do people who buy fake Rolexes think they are real, or fakes? If you go into a jewellery shop and spend a lot of money on a Rolex but it turns out to be fake, then sure, it's probably fraud. But if you buy one out on the street for 10 bucks, then I hardly think it's fraud. But these things are independent of the physical form of the thing sold; it comes down to the understanding of what is being sold, as in a contract of sale, implicit or explicit.

[ataggart]

If you know it's a fake, then why does it matter what the label says?

[pessimizer]

To impress your peers, which is often the same reason you would buy the real item. That is why manufacturers of luxury and designer products try to conflate knockoffs and counterfeits in legislation.