Beating the counterfeiters
Copying electrical products is an insidious, fast growing global business. Penalties are low, usually just token fines, and the potential profits are staggering.
The OECD estimates 2005 lost sales worldwide of 2.4 billion Euros due to counterfeit electrical components and even
this figure is considered conservative. Annually, an estimated £30 million worth of counterfeit electrical products reaches the UK.
Electrical component counterfeiters are driven by the potential of a global market and high unit profitability based on low-tech, simple, low cost production. Plus, counterfeit operations are often small, so easy to conceal. Counterfeiters are buoyed by poor enforcement of anti-counterfeit measures with inadequate penalties.
However, industry efforts led by BEAMA mean the risk of being discovered is increasing and infiltrating established distribution chains is difficult, provided wholesalers and contractors remain vigilant. If safety concerns are highlighted, consumer resistance will increase.
This is an area where local authorities can help with awareness campaigns targeting local electrical contractors and wholesalers and via public sector specifier briefings highlighting the potentially devastating consequences of installing counterfeit electrical products.
Trading Standards departments and the Health and Safety Executive need to be vigilant in seeking out fake and noncompliant electrical products, which cheat consumers and can be highly dangerous. Consumers and genuine manufacturers need to be encouraged to 'whistle blow' on any traders they suspect of supplying these illegal products.
Decisive action is needed to combat the devious 'masterminds' behind this growing 'industry'. international cooperation concerning initiatives combating the counterfeiters is gathering pace, particularly between the US and the EU.
New moves will ensure counterfeit products cannot comply with European safety legislation, that countries work together in improving enforcement in China (12 million euros EU allocation), and encourage expertise/experience exchanges and joint customs projects.
Copy cat electrical products include: plugs, sockets, lamps, cables, connectors and even more worryingly fuses and circuit breakers.
Sophisticated production techniques mean it is often difficult at first sight to distinguish counterfeit from genuine until something goes wrong and the expected protection is not there.
Some copies are complete replicas - including product design, branding, packaging, internal components and external
appearance. Others are of patents, trademarks, safety - and even certification marks. Most are sold at 'too good to be true' prices.
The consequences of counterfeit electrical accessories entering the supply chain are damaging for everyone, from loss of revenue and reputation for the industry to the potential loss of life from fires started by inferior products.
Those specifying electrical products should remember the three Ps:
Person - do you know - and trust - the person who sold you the product?
Place - was it bought at a place from which a recognised trader operates?
Price - was the price in line with what you normally pay?
If not, you may be buying or specifying a dangerous counterfeit product.
These are defective goods, manufactured without a due sense of responsibility, and providing no guarantee on defective goods.
BEAMA has taken positive action against counterfeiters for seven years. Via the 'Electric Dragon' campaigns and intelligence networks, over 12 million products have been seized and 200 factories raided in places ranging from China, where over 80 per cent of the counterfeit electrical products are made, to the Middle East and Africa - plus the UK. Eighteen brands are now represented.
Only governments can take the necessary action to ensure effective changes.
The association's anti-counterfeit working group has participated in discussions between the European Commission and the US Trade Administration in a joint EU/US Working Group on IPR.
Robust enforcement to SMEs is essential. Local authorities and inspectors must get tougher and become more proactive, not just wait for industry tip-offs. More controls and deterrent penalties are required to combat counterfeiting.
BEAMA's hard-hitting 'Counterfeit Kills - Protect Yourself', available in DVD/CD-Rom formats, graphically highlights the potential dangers - fire, death, injury, and impact on reputation of specifying or installing inferior quality products.
A new European Directive seeks to enforce intellectual property rights with retailers facing jail for knowingly selling counterfeit or copied goods. The EU is consulting on new proposals, under which those found guilty of peddling fake goods would face a minimum prison sentence of four years and fines up to Ä300,000.
If anyone is any doubt about a product's authenticity they should immediately check with the manufacturer. The best solution is for products to be purchased only from an authorised supplier/distributor.
The responsibility for ensuring that only genuine products are used lies with all those specifying, purchasing and installing electrical equipment. BEAMA's campaign aims to stem the flow of counterfeit products at source - in the marketplace and transit.
The aim is to ensure the UK and European markets do not suffer from a flood of these dangerous products as has happened elsewhere. No action is not an option. The support of local government is absolutely vital!
