. >> stu herrington is callaway's head of security and he has seen fake callaway clubs pour into the u.s. from china. and, of course, repairs took a look at this broken club and realized right away it was fake. >> but fake golf clubs don't begin to suggest the enormity of the problem. >> we have never seen a problem of this size and magnitude in world history. >> now, hang on. in world history. >> there's more counterfeiting going on in china now than we've ever seen anywhere. >> dan chow should know. a law professor at ohio state university, his specialty is chinese counterfeiting. we know that 15% to 20% of all goods in china are counterfeit. >> and these days, the way china's economy is booming, 15% to 20% means tens of billions of dollars. evidence of the counterfeiting trade can be seen at this hong kong warehouse where counterfeit watches, shoes, computer chips, all copied in china, and seized in hong kong, are tossed onto a conveyor belt, and consigned to the dust bin of history. but it's like stopping the rain, the seizure may look impressive, but every day, 6,000 shipping co