Electronics are a prime target for sophisticated counterfeiters worldwide, because of their incredible demand, and the relative ease with which unscrupulous merchants can penetrate import barriers. The illicit manufacture and distribution of counterfeit electronics have rapidly increased over the past decade. The OECD estimates that counterfeit and pirated electronics products could be valued up to $200 billion. The Alliance for Gray Market and Counterfeit Abatement estimates that electronics companies lose close to $100 billion of revenue each year due to counterfeiting operations. Some experts have concluded that up to ten (10) percent of technological items sold worldwide are counterfeit.
There are two sectors within electronic counterfeiting – fully manufactured consumer electronics and electronic components. Consumer electronics include fully-assembled products ranging from computers, printers, mp3 players and cellular telephones to lighting appliances and smoke detectors. Counterfeit electronic components include transformers, fuses as well as hydraulic turbines and sophisticated chips and semiconductors. In many cases, when any of these products (or their components) are counterfeit, they are materially defective and can pose serious risk to consumer as well as to brand owners. Counterfeit electronics can drastically reduce sales revenue, lower royalties, damage brand value and firm reputation, as well as increase risk of product liability.
The Gioconda Law Group’s attorneys have represented and counseled some of the largest electronics’ companies in the world about brand protection matters. Members of the Gioconda Law Group can analyze an electronic product’s security features, and recommend ways to improve those features. Our flexibility and efficacy allows us to combat an ever-changing electronic counterfeiting environment, examining all steps of the counterfeit distribution chain. Our most important concern is to protect and advance our clients’ commercial interest by shielding their valuable brand from electronics counterfeits both domestically and abroad.