Counterfeiting Hurts the High-Tech Supply Chain

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Barbara Jorgensen
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Re: Counterfeiting Hurts the High-Tech Supply Chain
Barbara Jorgensen   10/20/2010 6:52:39 PM
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Sadly, the technology to not only identify counterfeits but keep them out of the channel exists. There are RFID tags, holograms and a number of other authentication technologies that are proven. They are still prohibitively expensive for the supply chain and there is another problem: everyone has to agree to use the same process or it's useless. Supplier A uses RFID and supplier B uses a hologram. Authorized distributor C has to invest in RFID and hologram scanning equipment--big bucks. Supplier E uses barcoding and so on...

Now, another wrinkle: investment in scanning equipment differentiates C for awhile because they can say the products are authentic. But then nonauthorized distributor D also invests in the equipment and D can prove the parts are authentic too. What then differentiates Distributor C? A proprietary system is one answer, but that would require everyone in a single supply chain to agree to and use that technology. What if you have a mom and pop supplier that can't afford it? So we are back to the beginning.

It boggles the mind.

 

papri1
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Counterfeiting Hurts the High-Tech Supply Chain
papri1   10/18/2010 1:57:29 AM
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Counterfeiting occuring in the semiconductor industry not only invalidates authenticated products but also a decrease in buisness heights which lead to a loss for further rapid growth. This could be avoided only by watermarking and also using holograms. This could be developed in a semiconductor industry or could be imported from the concerned manufacturer who sells the products to retain the authentication of the valuable products in a semiconductor industry.

Steve Saunders
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Re: Counterfeiting is an industry Cancer
Steve Saunders   10/12/2010 8:54:23 PM
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Bolaji, that's incredible and certainly doesn't make me feel safer in my bed at night. What's next - fake parts for nuclear reactors in the US, or real ones for the reactors in Iran? (sorry, bit political)

Bolaji Ojo
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Re: Counterfeiting is an industry Cancer
Bolaji Ojo   10/12/2010 5:32:04 PM

Steve, The U.S. Navy was indeed stung by counterfeiters but it was not alone. The entire U.S. Department of Defense was impacted. In a report, the three military branches admitted to having seen their supply chain infiltrated by counterfeiters. The Navy bought counterfeit routers "that had high failure rates and the potential to shut down entire networks." The Air Force said it bought microprocessors for its F-15 flight-control computer that turned out to be fake while the Army bought seatbelt parts "made from a grade of aluminum that was inferior to that specified in DoD's requirements." The report is available here.

Steve Saunders
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Re: Counterfeiting is an industry Cancer
Steve Saunders   10/12/2010 4:33:45 PM
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didn't the US Navy also get stung by counterfeiters recently? Anyone have a link to that story?

Steve Saunders
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Re: Counterfeiting is an industry Cancer
Steve Saunders   10/12/2010 4:33:10 PM
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this doesn't say much for Newegg's inspectors!! Their should be some sort of watermark for electronics components imilar to what they have for brand sports equipment, but tiny. This seems like a problme with a solution to it for an industry as innovative as the electronics world 

TIOLUWA
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Counterfeiting is an industry Cancer
TIOLUWA   10/12/2010 10:48:25 AM
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now this is an issue that really touches me  and i look forward to it being handled on this page.

The safety implications are enormous, not to mention to damage to the integrity of companies that have their products counterfeited.


 


Barbara Jorgensen
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Counterfeiting hurts
Barbara Jorgensen   10/11/2010 4:28:33 PM
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I'd like to hear more about the inspection and verification procedures the Newegg chips passed. Here's why: inspection may not do a lot of good without comparison data--in other words, what does this thing look like vs. the original? I know of an organization that published a catalog of real vs. fake devices and I used to think that was awfully simplistic. Now I'm not so sure.

tech4people
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Supply Network Guru
Counterfeiting is a Big-Big problem.
tech4people   10/11/2010 2:39:05 PM
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George,

There is no disputing that Counterfeiting among Global Electronic Manufacturers (especially the most popular ones) is a very serious and growing menace.

There are in (my opinion) two ways to tackle the problem-

1)Make your products and the supply-chain more robust and difficult to duplicate

and 2)Make your products cheap enough there is no incentive for a counterfeiter to counterfeit your products and under-cut you on price.

Both these ideas will work wonders to eliminate this terrible problem (which could also put peoples lives at risk,through faulty products..).

Regards

Ashish.

pocharle
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Supply Network Guru
Counterfeit CPUs Hurt
pocharle   10/11/2010 1:08:38 PM
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I heard of this story as well. I felt bad for Newegg since everyone will blame them for not being able to detect the fraudulent products. But I saw a few instances close to home where people were burned by counterfeit products. What's worse than NOT getting what you pay for is the additional damage that will be done to your other products. For instance, if you built your custom machine, a counterfeit CPU might cause harm to your other 'real' components.



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