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www.us-tech.com
June, 2013
Identify Imitations To Avoid Counterfeit Parts
By Kenneth Bradley, Vice-President of Supply Chain — Allied Electronics C
ounterfeit merchandise is a growing, global problem across almost all industries. The very
broad range of counterfeit parts and products indicates that counterfeit- ers are increasingly targeting mar- kets for luxury items and consumer goods.
Counterfeiting costs Americans
billions of dollars a year and has harmful effects throughout the econ- omy. Fake products can expose con- sumers to serious health and safety risks. Moreover, terrorist networks often use counterfeit sales to finance their operations.
Avoiding Counterfeits As with other industries, coun-
terfeiting has become a serious obstacle for manufacturers, distribu- tors, and consumers of electronic components. How can consumers of electronic components protect them- selves from the glut of imitation com- ponents flooding the market? The simplest answer is to not buy or use counterfeit components, but this requires the capability of identifying counterfeit components. Avoiding counterfeit components requires developing the capability to identify the imitations, and to only buy from authorized distributors and/or the manufacturers they represent.
How can consumers of electronic components protect themselves from the glut of imitation components flooding the market?
According to industry standard
SAE AS5553, a counterfeit part is a copy or substitute without legal right or authority, or one whose material, performance, or characteristics are knowingly misrepresented by a sup- plier in the supply chain. Examples of counterfeit parts include electron- ic devices lacking the proper semi- conductor die or wire bonds; parts that have been used, refurbished, or reclaimed and are represented as new; and parts with different pack- ages or finishes than the genuine component. In addition, counterfeit parts are those that have not suc-
cessfully completed the Original Component Manufacturer’s (OCM) full production and test flow but are represented as completed product; they might be parts sold as upscreened parts that have not suc-
product data sheets. Visual Inspection Performing a visual inspection
Counterfeit parts can look genuine, but often small differences in a package or in labeling will show them not to be authentic.
cessfully completed an upscreening process; or they might be parts sold with modified labels or markings intended to misrepresent the form, fit, function, or grade of the compo- nent.
Counterfeit components can
originate from a number of different sources, including from the hundreds of thousands of computers that are disposed of daily in this country alone. The electronic waste is typi- cally exported to China by way of Hong Kong, where recycling of chips and other electronic components is a multibillion-dollar-per-year indus- try. Recycling houses work to make these salvaged components look new again for resale to unknowing cus- tomers. A way to avoid counterfeit components is by learning how to spot them. Knowing what constitutes a real component can be helpful in identifying phony parts. Inspection of documentation
and packaging information can help uncover counterfeit parts. For exam- ple, lot and/or date codes on packag- ing may not match the lot and/or date codes on the parts. A manufac- turer’s logo may be missing from the parts, or poorly drawn. The docu- mentation may contain poor English or misspelled words. Bar codes on documentation may not match the printed part numbers. The package materials may also be inconsistent with descriptions provided on the
can also help reveal counterfeit parts. For example, a counterfeit may suffer from poor- quality ink or laser marking, or the pack- age may have scratches on the surface, or bent leads or inconsistent or incomplete plating on the package leads. The part may show uneven top and/or bottom coat- ing or inconsistent tex- ture or color between the coating on the top and bottom sides. Carefully examining a part can expose the tell- tale signs of a counter-
feit component. Of course, the most important
protection against counterfeit parts is to buy only from authorized compo- nent sources. As a product moves down the supply chain, away from its manufacturer, traceability of the product’s origin becomes more diffi- cult to establish. Buying from a man- ufacturer ensures that the product is genuine. But man- ufacturers often do not sell directly to consumers, selling them instead through distri- bution channels. Authorized distributors
have been formally author- ized to sell products from specific manufacturers with which they have a distribu- tion agreement. When buy- ing from an authorized dis- tributor, such as Allied Electronics, a customer can be confident that the distrib- utor and manufacturer of the part are working closely to provide a genuine part. But the term “authorized” can have different meanings to different people. For those who may be unsure if a distrib- utor is truly authorized for a particu- lar manufacturer and its part, numerous steps can be taken:
l
Contact a supplier for proof, requesting a manufacturer’s certifi- cate of compliance. Any supplier committed to combating counterfeit
products will have a counterfeit mit- igation policy in place and any hesi- tation to provide this policy would send up a red flag.
l
Check with the manufacturer for validation of the distributor. In many cases, a list of authorized sup- pliers can be found directly on a manufacturer’s website.
l Visit the ECIA Authorized Website
(
www.eciaauthorized.com) for a com- prehensive list of authorized distribu- tors serious about keeping the integrity of their supply chain and selling only authentic parts.
Minimizing Risk The pressure to deliver parts on
time and within budget can be tremendous. In many industries and applications, demand for obsolete parts can further add to manufactur- ing pressures. Some handy tips can help make sound decisions when procuring electronic components. An important practice is to negotiate prices. Pricing should never become enough of an issue to prevent work- ing with an authorized and trusted components distributor. If pricing is a concern, then it is time to contact an authorized components distribu-
Differences in date codes can indicate a counterfeit part.
tor on how it will be possible to work with them for the authentic version of a required component at a compet- itive price.
Another useful tip is to pur-
chase required parts from an exist- ing line card. A customer may at times ask an authorized distributor to go outside their line card for vari- ous reasons, but such action can
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