Why? Will the average person know the difference?
The sort of person that wants to buy a Southard (a knife nut--who else pines for these sort of products?) should notice the difference. The real product is just about perfect, as far as fit and finish go, at least on the five I own. The fake has a big collection of small flaws that make for a lesser overall impression by far.
The "average" person has no idea that knives cost upwards of what they see at Wal-Mart or Big 5 sporting good stores. Some coworkers about fainted when they overheard my friend mention what he paid for his Delica. The average knife collector should already know that if a deal is too good to be true it usually is. Buying from a reputable vendor is the only way to go. If an item is priced above our means, then we need to learn to either save up for it or move along somehow without it. Unfortunately there are people that disregard their common sense and insist on buying something for much less than what the actual cost is. In some cases it is entitlement, in other cases it's denial, in every case this is theft. Now, you've been here a while, do you think pot metal steel can cut as well as a highly refined alloy such as CTS-204P? Good question to ask yourself.
I agree with almost all of this, except for the "pot metal" business, for two reasons. First, the difference in edge retention between AUS8 and M390 makes about 0% difference in actual use for most people. There are a lot of people who sharpen infrequently at most, some once a year or less--what would halving the time they went between sharpening really matter? That's for the knives that get used at all--hop into the exchange and 90% of knives listed or more, Spyderco knives included, are listed as BNIB or LNIB, and look like they've never seen daylight, much less cut anything.
I think counterfeits are evil, and that the people making them and selling them suck, but I cringe a bit when folks dismiss the counterfeits as being total crap or that they're made from pot metal or the like. The truth is that these knives are quite well made, and while I have no doubt that no CTS-204p is used in the production of these fake Southards they're not made from tinfoil either; the one I have has a titanium frame, captive bearing rings at the pivot, carbon fiber scales and over-travel stop, and what is most likely (based on my having sharpened it and played around with it a bit, nothing more) 9Cr18Mov blade steel.
Shun people who promote making, selling or buying them by all means, but when we pretend the knives are total crap we risk making ourselves look silly and worse probably leading folks to think that they would easily be able to tell the difference between the real thing and the fakes at a glance (something that is true with the Southard clone, but isn't even close to true with what I've seen of the PM2 clones).