U.S., EU Crack Down on Counterfeit Tech

U.S. and EU officials are vowing to crack down on counterfeit computer components after seizing more than 360,000 fake items in just two weeks last year.

U.S. and EU officials are promising to crack down on the manufacturing, distribution, and sales of counterfeit computer components after seizing more than 360,000 fake items worth more than $1.3 billion during a two-week period in a joint operation run at the end of 2007. Seized materials bore the trademarks of major manufacturers including Cisco, Intel, and Philips. Officials would not say whether they knew importers were knowingly bringing counterfeit goods into their markets, or whether the problem was limited to only a few factories. However, both U.S. and EU officials agree counterfeiters have become more sophisticated, offering products covering a wide range of industries from computer and telecommunications to aeronautics and cars.

The joint U.S-EU operation—the first of its kind—was carried out at a number of U.S. air hubs, as well as London’s Heathrow, France’s Roissy-Charles-de-Gaulle, and several German airports including Frankfurt and Leipzig. Officials said that most counterfeit electronic components arrive by air or courier.

Customs and border security officials are concerned about counterfeit electronic components not only because they represent an infringement on the intellectual property rights of the legitimate manufacturers and a possible hazard to consumers (who may unwittingly purchase sub-standard or unsupported goods), but also because integrated circuits and similar components can be used in critical infrastructure, like emergency communications systems. Officials promised the seizures would lead to criminal investigations.