Worldwide Supply

Counterfeit Prevention

How serious is equipment counterfeiting?

According to a white paper by AGMA and consulting company KPMG in 2005, counterfeit products accounted for nearly 10% of the overall IT products market. Initially, many businesses stayed away from purchasing used equipment and in 2007 a study conducted by UNEDA (the United Network of Equipment Dealers Association) 50% of respondents noted counterfeit equipment identification as a serious issue.  However, increased import/export diligence and improved awareness by the business community at large has reduced the risk of purchasing used networking equipment and helped instill confidence in the secondary market’s testing and counterfeit identification procedures. And, in fact, the 2009 study conducted by UNEDA showed a 10% reduction in the number of respondents concerned about the receipt of counterfeit networking equipment.

Make no mistake, while the influx of counterfeit goods in the marketplace is small, the ramifications of installing counterfeit equipment can have dire consequences and has been known to take complete networks offline for extended periods of time.

Who is the primary target?

Because it is the industry leader, Cisco is the primary target for counterfeit goods. So much so that there have been cases where authorized distributors/resellers and even premium partners inadvertently sold counterfeit Cisco equipment.  It is for this reason, that most of the counterfeit identification procedures are focused on Cisco equipment specifically. However, the details of counterfeit inspection and the types of things looked for on Cisco equipment apply to other manufacturers also.

Is purchasing from the secondary market safe?

For most buyers, a visual inspection of each and every piece of incoming equipment just isn’t possible, emphasizing the need to be confident in your chosen supplier. If you do purchase equipment from eBay or other questionable sources and suspect counterfeit, a basic understanding of identifying factors is helpful. Buying pre-owned networking equipment is not a risky undertaking for the educated buyer.

Refurbished or reconditioned secondary market technology presents no greater risk than new equipment. Quality control programs and warranties or maintenance initiatives offered by most providers further mitigates the risk.

At Worldwide Supply, expert engineers carefully inspect network equipment for any signs of counterfeiting. Using our comprehensive technical library of known counterfeit equipment for comparison and a constant review and understanding of what to look for in the market, helps ensure that counterfeit equipment does not get passed on to our clients. In the event we encounter counterfeit equipment, it is destroyed according to strict electronic equipment disposal guidelines to ensure it does not end up in the marketplace in the future.

So, what types of things do you look for?

There are several items that can raise a red flag in terms of counterfeit identification, a few primary indicators are:

SCREWS
Genuine: Dull Screws, fine lines.
Counterfeit:  Droopy & shiny screws; lines are imprecise and seem sand cast.

WELDING
Genuine: Clean, precise.
Counterfeit: Inconsistent, messy.

SERIAL NUMBER STICKER
Genuine:  Sans-serif typeface (typefaces that do not have small flourishes or lines at the ends of characters like Arial or Helvetica), tight letter spacing, inconsistent typefaces between multiple stickers.
Counterfeit:  Sloppy letter spacing, serif typeface, bar code not flush with sticker edge.

RJ45 CONNECTORS
Genuine: Finely extruded connectors (1/16” to 1/32”), multiple metal attachments.
Counterfeit:  Flush connectors, two metal attachments.

POINTS ON BOARD
Genuine:  Silver points on main board generally indicate genuine.
Counterfeit:  Copper points on main board generally indicate counterfeit.

PACKAGING
Genuine:  Consistent typography, high quality materials.
Counterfeit: Absence of a seal on back identifying weight, low resolution printing.

How can I make sure that I’m dealing with a qualified supplier?

Ask questions and if you’re not satisfied with the answers, ask more questions.   

1. Know who you are dealing with.  Ask for references.
2. Ask suppliers how they identify and test for counterfeit networking equipment and clearly understand the difference between legitimate secondary market suppliers and unqualified fly-by-night organizations.
3. Use suppliers with a well-stocked inventory not a broker that has to search for products on demand. A secondary market supplier with inventory on hand is more likely to ensure that equipment on hand undergoes rigorous testing and inspection to weed out any counterfeit or defective hardware.
4. Demand that your supplier inspect for counterfeits – both visually and through thorough and detailed diagnostic testing. Make sure they operate the equipment in a simulated environment long enough to ensure it will run 24/7 in your own network at expected MTBF standards.
5. Make sure that the equipment is restored to its default configuration or with the customized configurations you need.
6. Be certain your supplier keeps meticulous documentation enabling their test engineers to spot trends and constantly improve procedures. With an industry standard low defect rate of .05, it is better to look for providers that maintain an average low defect rate of no greater than .02
7. Insist that test equipment is precisely configured and calibrated at least twice a year. This process can actually take 3 experience engineers a minimum of one week but is well worth the investment in terms of quality and customer satisfaction.
8. Be sure your supplier maintains an anti-static environment and that equipment is kept on electro-static discharge (ESD) shelving. Testers should wear foot and wrist ESD straps as well and all equipment should be carefully packaged in ESD bags.
9. A certified quality management system is a must!  ISO 9001:2008 and TL9000 Quality Management System certified means that a documented and strict process specifically addressing the telecommunications and data networking industry is followed on a daily basis. TL9000 demands that companies amply demonstrate and document systematic and repeatable quality control processes.
10. Insist on a better warranty. Many manufacturers only provide a 90-day to 1-year warranty with most secondary suppliers offering only 1-year. Insisting on a minimum 3 year warranty is not just a way to help protect you against counterfeit it provides additional investment protection for your network.
11. Look for a supplier that will act as a trusted partner, takes whatever time is needed to learn your business and its needs, is always looking for specialized equipment tailored to your business, and is always available.