There were many who thought the Bejing Olympics would become the Counterfeit Olympics when Chinese produced counterfeit Olympic merchandise flooded the city. However, it appears that the authorities have at least protected the intellectual property it stands to make some money from.
It would appear that the biggest fake is the Olympics itself. An indication that the authorities are more concerned with appearance than substance. It doesn't bode well for the appearance that China has moved toward a more open society with improved human rights.