Posted by Brian Brown on Mon, Dec 07, 2009
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A couple of monthes ago, I published a post detailing counterfeit LAN equipment and how it's spread through the grey market. That article can be found here.
This morning, Maximum PC is reporting on two Kansas residents who were allegedly selling counterfeit networking hardware they claimed to be from Cisco.
From Maixmum PC:
"The two Kansas-area men -- Christopher Myers, 40, and Timothy Weatherly, 27 -- are facing a single count of conspiracy, 30 counts of trafficking in counterfeit goods, and a single count of trafficking counterfeit labels, the U.S. Department of Justice said in a news release."
Counterfeits are no longer relegated to the dark alleys of large cities or coastal regions, they have found their way into every region of the United States and spotting these products has become increasingly difficult.
Typically the simplest way to identify counterfeit products is to inspect the labeling and packaging, but this method isn't 100% reliable. Counterfeiters have gotten quite skilled at replicating the look and feel of the products they're copying. Again, from Maximum PC:
"Legal documents allege that Myers and Weatherly would buy counterfeit Cisco-branded hardware built in China and Hong Kong, slap counterfeit labels on it, and then packet it in counterfeit Cisco boxes. They would even include counterfeit Cisco manuals, according to the Attorney General's Office in Kansas."
Based on the report, this material would have passed most consumer's initial 'look and feel' test. Keep in mind this wasn't some small-time operation either. These two men netted around $1 million dollars from the sale of counterfeit Cisco products. I can't stress enough the importance of purchasing your networking equipment from authorized distribution. This is the only true method to ensure the networking equipment used in your infrastructure is genuine. A list of authorized distributors can be found on any manufacturer's website
It's been said before, but it is worth repeating, "If it looks too good to be true, it probably is."
Posted by Brian Brown on Thu, Oct 15, 2009
Source
Our world is shrinking. The global economy is interacting and conduction business like never before. Ideas, products, and capital-- it's all quickly spread across the globe. This unifying phenomenon is known as globalization and it has changed the way business is conducted.
"One of the benefits is the ability to manufacture products more affordably overseas. This in turn allows consumers access to newer technology faster and at lower prices. The down side to manufacturing these products overseas is that there is limited regulation on the factories that build this product to protect copyright and patent infringements," explains Bill Geary, Senior Vice President-Sales, Accu-Tech Corporation.
While globalization has resulted in a more connected marketplace, it has also facilitated the spread of counterfeit products in the United States. According to the International Chamber of Commerce, counterfeiting is one of the fastest growing economic crimes of modern time. It accounts for 5-7% of world trade, worth roughly $600 billion a year. Yes, billion with a "b". The US is under attack on all fronts as counterfeit products enter our borders at an alarming pace. It is a global epidemic.
Due to the ease of transportation, product counterfeiting has continued to surge in recent years. Nearly all industries are plagued with this problem, whose effects can be felt through the entirety of the supply chain-- from manufacturer, to distributor, and finally to the consumers, who are impacted the most.
There is now a booming business called the 'grey market' for higher end telecommunications and LAN products. This grey market produces counterfeit copies of products and attempts to sell them in the legitimate market through brokers instead of authorized distributors. These products are then offered to consumers at extremely low prices. While the prices are enticing, consumers purchasing these products are putting their network's performance at great risk.
Now more than ever, business is about being connected. Companies rise and fall based on how quickly they can assess, react, and transmit information. This speed is subject to the performance of a company's network. Without an agile network, a business is put at a severe disadvantage.
Billions of dollars are spent each year to ensure networks can perform and meet the demands of the global marketplace. With this much money on the table, why risk that performance? Remember, a telecommunications network is only as strong as its weakest link. Counterfeit products can not and do not perform. By venturing outside the proper channels of distribution, customers are exposing their network to counterfeiters. A business can essentially flush their entire system's performance and livelihood down the drain.
"Counterfeit products are just that...counterfeit. Whether you are talking about product performance or safety regulations, these products are not manufactured with the same materials, manufacturing processes, or adherence to specifications", Jonathan Hayes of CommScope says.
Protect your network by becoming a more knowledgeable consumer. NEMA, National Electrical Manufactures Association, highlights warning signs consumers should be aware of to protect their network's performance:
- ‘Deals' and extremely low pricing.
- Products not accompanied by instructions or warnings.
- Missing components or features.
- Unusual colors or shades used on product logos or the product itself.
- Misspelled words on the packaging.
- The absence of required certification marks on product or package.
- Country of origin different from genuine source
- Apparent product defects or product performance differences
Don't go at it alone; the dangers are far too great. This is where authorized distributors come in. Distribution is designed to protect and back its customers. The quality control and support staff offered cannot be matched. Partnering with distribution not only protects against counterfeit products, it also empowers the customers by opening the lines of communication with the leading manufacturers.
The global marketplace is changing and the telecommunications industry is leading the way. Products are being developed today that will influence the manner business is conducted tomorrow. Manufacturers continue to break new ground and push network performance to speeds once thought impossible. As these products are being developed, there are those looking to take advantage of this innovation. Counterfeiters have been around a long time and they're not going anywhere. That doesn't mean businesses can't be protected. By becoming a more knowledgeable consumer and partnering with an authorized distributor, counterfeiters don't stand a chance.
Remember the advice of our parents, "If it looks too good to be true, it probably is."