Electronic Equipment & Components

The International Market for Brand Protection Solutions

Publication Date	April 2009
Publisher	VandaGraf
Product Type	Report
Pages	125
ISBN Number	not applicable
Product Code	VIL00006

Buy this product or for assistance call +44 20 7060 7474

PDF £400.00$665 | €448

FAX Order above formats by FAX

Summary

This report comprises 125 to 130 pages and includes detailed analysis of problems and key drivers, together with descriptions of appropriate solutions, including actual case studies and also highlighting potential suppliers.

Background
The Electronics Equipment & Components industry embraces a broad range of dissimilar product categories, including the following:

Key building blocks in the electronics industry including ICs, PCBs / PCAs, capacitors, transistors, resistors and the like. Electrical components that go in to finished consumer products, such as plasma screens, TV and radio antennas, CD / DVD drives. Power supply components, such as batteries, rechargeable batteries, mains cables with or without voltage transformers

Electronic equipment / electrical engineering components used in electrical power generation / transmission / distribution and consumption, manufacturing, construction and other industries, including industrial switchgear, switches, relays, contacts, timers, circuit breakers, fuses and wiring accessories, distribution boards and wiring accessories, motors and generators, industrial controls and control systems, electric measuring devices and instrumentation

Consumer electronic / electrical products sold at retail and through other routes to market, including internet sales. Computers (PCs and peripherals). Mobile telephones and accessories. Household electronic / electrical, appliances for cooking and cleaning, lighting and heating. Electronic / electrical personal care devices including women’s hair straightening / curling tongs, men’s electric shavers, electric toothbrushes and the like. Domestic entertainment equipment / consumer electronics (incl. iPods, electronic games, TVs and radios, video / audio and multi-media equipment). Power tools.

Over the last few years counterfeiters have become much more resourceful and sophisticated and are no longer limiting themselves to counterfeiting the types of goods that they have been known for previously (such as footwear, clothing, handbags, watches and the like).

Today, there are increasing numbers with high-tech goods that are being counterfeited. Counterfeiting of electronics components and also all kinds of electronic products is today widespread and has become a major problem for the industry.

Due to comparatively low R&D and labour costs, many electronics hardware manufacturing companies have been relocating to Asia-Pacific over the past decade or so.

This general trend of relocation to Asia Pacific region applies to the whole manufacturing and assembly chain from electronic components through sub-assemblies to finished products.

Brand owner manufacturers of components through to finished electronic goods rely on intricate networks of sub-assembly manufacturers. Since many electronic components find their way into the hands of ‘wholesalers’ – who sell individual parts, and / or sub-assemblies on to the major brand owners - there is always a danger that counterfeit electronic components can enter the supply chain system.

As a source of counterfeit electrical / electronic components products China reigns supreme. While in Chinese marketplace, between 10% and 40% of electronics goods are believed to be counterfeit today. Across the Middle East the estimated figure is 20% to 40% counterfeit and Eastern Europe 10% to 40% counterfeit.

The Internet provides counterfeiters with a low cost means of promoting and selling their wares, while also offering a relatively safe ‘smoke screen’ between the supplier and the customer which means that the counterfeiter can usually avoid being apprehended.

There have been many instances of severe safety failures resulting in injury and even death because of counterfeit components in electrical goods. In addition the failure of individual components can lead to knock-on failures in major systems or infrastructure. When such tragic events take place, the damage to reputation and strength of brand value tends to be harmed in a way that it can be difficult to reverse.

As counterfeiting grows ever more prevalent in the electronics sector the promised returns of outsourcing are diminishing. It seems quite possible that counterfeiting and other improper IP related activities may eventually force OEMs to reconsider the philosophy and overall benefit of the outsourcing movement that has been the gospel in the electronics and other sectors over the past one or two decades.

Security Features and Brand Protection Systems – Labelling & Packaging Applications - Electronic Equipment & Components

The first step towards effective brand protection is to improve and optimise supply chain security. Supply chains across electronic equipment and components markets tend to be characterised by a number of routes to market:

•   OEM sales
•   Contract manufacturers
•   Official agents and dealers and distributors
•   Retail sector (computer outlets such as PC World, specialist audio stores and the like)
•   Internet sales
•   Unofficial channels.

So an over simplistic approach (such as the use of a hologram to deter counterfeiting) to brand protection in this industry sector is unlikely to succeed.

Appropriate measures need to be developed with due consideration to the route(s) to market involved for a specific product or product category.

It may well be important to take in to consideration ‘unofficial / unauthorised’ routes to market as well as ‘official’ channels, when devising a brand protection program.

Authentication technologies can assist in the fight against product piracy but it requires more than technology on its own. It is important to develop an appropriate strategy and to apply effective tactics to anti-counterfeiting and product protection:

•   Developing a layered approach to product protection
•   Recognising the importance of being able to prove provenance
•   Designing and installing a resilient and adaptable system
•   By protecting against theft in the supply chain and on the retail shelf
•   By protecting against tampering, grazing and extortion risk.

On-product / packaging marking of some kind is generally required so that products can carry their own self-validating features. This can be achieved by various means:

•   Adding paper labels
•   Using swing tickets and tags
•   Adapting primary packaging and adding tear tapes
•   Applying labels to electronic equipment and components
•   Direct marking methods
•   Specialist Security materials for use in the electronic equipment and components sector.

Devices that can be used as authentication tools to protect branded products / packaging include: Special Inks, embossing, holograms and foils, films and seals for tamper evidence and authentication, chipless tags, radio frequency (RFID) devices, digital watermarking and covert codes carried on-pack

On product marking to aid verification may be achieved with: Ink jet marking, transfer ribbon marking, laser encoding; on-product and ink activated, linking serial marking to authentication databases, using the internet and SMS messaging to provide provenance advice, product marking with encrypted bar codes, surface feature identification.

Various types of brand protection technologies and devices are being deployed today across the electronic components and equipment market.

Content

Forward
1. Summary Overview – Electronic Equipment & Components
- 1.1 Table Security risks - Product related through the supply chain in Electronics Equipment & Components
- 1.2 Table Countermeasures – Appropriate to product related crime in Electronics Equipment & Components
- 1.3 Structural Shifts in the World Electronics Industry have been a Key Driver of Counterfeiting in the Sector
  - 1.3.1 Regional Trends - Electronic parts and components.
  - 1.3.2 OEM global strategies
  - 1.3.3 Counterfeiting is a major problem in the Electronics Sector
  - 1.3.4 Ways that Counterfeiters operate in the Electronics Sector
  - 1.3.5 Geographical Trends in Counterfeiting of Electronics
  - 1.3.6 The dynamics of Chinese counterfeiting operations - Electronic parts and components
  - 1.3.7 Selling Counterfeit Electronic Goods by means of the Internet
  - 1.3.8 The Next 10 Years – Trends in Global Manufacturing – Electronic Equipment and Components
2. Electronic Components
1. 2.1 Market Overview – Electronic Components
2. 2.2 Product Related Crime – Electronic Components
  1. 2.2.1 Leading problem area for Counterfeit Electronic Components - Low cost, relatively simple ‘generic’ components
  2. 2.2.2 Case Study – Counterfeit LM4051 Voltage References
  3. 2.2.3 Case Study – Counterfeit Audio Power Transistors
  4. 2.2.4 The Nature of IP Violation in the Electronic Components Business
  5. 2.2.5 Types of IP Violation and Counterfeiting – Electronic Components
  6. 2.2.6 Types of problems arising from IP Violations – Electronic Components
  7. 2.2.7 ICs versus PCBs – Vulnerability to Counterfeiting
  8. 2.2.8 Case Study – Counterfeit ICs (Integrated Circuits) – Some Recent Findings by Semiconductor Insights (SI)
  9. 2.2.9 US Customs and Border Protection service seizures in 2008 and a joint operation with the European Union
  10. 2.2.10 Counterfeit Electronics in the United Kingdom – A Summary of the Situation
  11. 2.2.11 The US and the EU crack down on counterfeit electronic components
3. 2.3 Brand Protection – Electronic Components
  1. 2.3.1 Organisational and Management Steps towards assuring the security of their supply chains for electronic parts and components.
  2. 2.3.2 Electronic Components - Product Packaging can help to mitigate overall Risk
  3. 2.3.3 Printed Circuit Boards (PCBs) versus Integrated Circuits (ICs)
  4. 2.3.4 Case Study - Security Labelling Requirements for Printed Circuit Boards (PCBs)
  5. 2.3.5 Labelling requirements – Printed Circuit Boards (PCBs)
  6. 2.3.6 RFID chips mounted on PCBs / PCAs – A Solution from Silica / Avnet Inc. that improves visibility in manufacturing and can also provide enhanced brand protection
  7. 2.3.7 Several organisations that are taking a pro-active and strong stance against this threat in the electronics sector
4. 2.4 Opportunities for Brand Protection Solutions – Electronic Components
3. Batteries
1. 3.1 Market Overview – Batteries
2. 3.2 Product Related Crime – Batteries
  1. 3.2.1 Case Study – Deployment of the ’Kodak Traceless’ System for Anti-counterfeiting on Kodak Li-Ion Rechargeable Digital Camera Batteries
  2. 3.2.2 Case Study - Counterfeit Nokia rechargeable batteries seized by Customs Officers in Hong Kong
  3. 3.2.3 Case Study - Batteries: One of the world’s most consumed items – Significant problems with potentially dangerous, sub-standard counterfeit products
3. 3.3 Brand Protection – Batteries
  1. 3.3.1 Case Study – Rechargeable batteries - Original Nokia Battery Labelling Program Latest Step in Fight against Unsafe Counterfeits
  2. 3.3.2 Case Study - Security Labels for a Motorola Mobile Telephone Rechargeable Batteries
  3. 3.3.3 Case Study – Rechargeable batteries - Sony Ericsson Use Hologram label
  4. 3.3.4 Rechargeable battery pack from Sony carries an authentication hologram and a covert EAS tag on the clam shell blister pack
4. 3.4 Opportunities for Brand Protection Solutions – Batteries
4. Computer equipment, components and accessories
1. 4.1 Market Overview - Computer equipment, components and accessories
2. 4.2 Product Related Crime - Computer equipment, components and accessories
  1. 4.2.1 Case Study - The seizure of £38 million UK pounds worth of counterfeit Cisco electronic equipment has raised concerns over the security of networks
3. 4.3 Brand Protection - Computer equipment, components and accessories
  1. 4.3.1 Case Study – Holographic Brand Protection Label - Microsoft Mouse
  2. 4.3.2 Case Study - 3Com introduces 3-Dimensional holographic label to 3Com switches to protect partners and end users from non-authentic 3Com switches
  3. 4.3.3 Case Study - 3m tamper evident package seal designed to protect PC computer components and to assure that they are genuine
  4. 4.3.4 Case Study – Brand Protection Security Label - Sony Vaio PC Laptop
4. 4.4 Opportunities for Brand Protection Solutions - Computer equipment, components and accessories
5. Mobile Telephones and accessories (excl. Batteries)
1. 5.1 Market Overview – Mobile Telephones and accessories (excl. Batteries)
2. 5.2 Product Related Crime – Mobile Telephones and accessories (excl. Batteries)
  1. 5.2.1 Case Study – Seizures of Mobile telephone accessories at US port in late 2008
  2. 5.2.2 Case Study - More than 30% of all mobile telephone handset sales in Uganda are counterfeit
  3. 5.2.3 Recent Trends in Counterfeit Mobile Telephone Handsets
  4. 5.2.4 Counterfeiting of mobile telephone accessories
  5. 5.2.5 Other types of product related crime – Tampering, Warranty abuse, Theft - Mobile telephones and accessories
3. 5.3 Brand Protection – Mobile Telephones and accessories (excl. Batteries)
  1. 5.3.1 Case Study – Nokia mobile telephone handset with a brand protection holographic security label
  2. 5.3.2 Case Study – Injection moulded battery charger cable with integrated Motorola logo provide some defense against counterfeiting
  3. 5.3.3 Case Study - An Integrated packaging solution provides enhanced brand protection – Nokia mobile telephone kit, including handset, rechargeable battery and accessories
4. 5.4 Opportunities for Brand Protection Solutions - Mobile Telephones and accessories (excl. Batteries)
6. Other Electronic Equipment – An Overview of Other Product Types affected by Counterfeiting
1. 6.1 Market Overview - Other Electronic / Electrical Product Types affected by Counterfeiting – An Overview
2. 6.2 Product Related Crime - Other Electronic / Electrical Product Types affected by Counterfeiting – An Overview
  1. 6.2.1 Case Study - UL Warns of Potentially Hazardous Counterfeit AC Adaptors
  2. 6.2.2 Case Study - Counterfeit Electrical Lighting Products - UL Warns of Potentially Hazardous Fluorescent Portable Lamp
  3. 6.2.3 Case Study – Some other examples of Counterfeit Electrical Lighting Products and related connecting cables and switches
  4. 6.2.4 Case Study - Counterfeiting of Power Tools
  5. 6.2.5 The tip of the iceberg – Counterfeiting in the Electronics sector
7. Security Features and Brand Protection Systems – Labelling & Packaging Applications - Electronic Equipment & Components
1. 7.1 How authentication technologies can assist in the fight against product counterfeiting
2. 7.2 Introducing a simple method of validation for customs inspection
3. 7.3 Developing an inspection tool or security feature that assists in identifying suspected or spurious electronic equipment and components
4. 7.4 Providing assurance to end users
  1. 7.4.1 Case Study – Retail Packaging with security hologram – D-Link Wireless Router for PC
  2. 7.4.2 Case Study – BBC News Story - Fake ‘GHD Hair Stylers’ warning in the United Kingdom – Check for the security hologram band the 16 digit code number on the genuine article – On-line internet verification
5. 7.5 Is it possible to develop a single, global anti-counterfeit device that will be recognised and used in all applications?
6. 7.6 Applying the right strategy and tactics to anti-counterfeiting and anti-tampering initiatives
7. 7.7 Developing a layered approach to product protection
  1. 7.7.1 A layered approach to authentication
  2. 7.7.2 Case Study – Tamper evident and authentication labels for Intel CPUs
8. 7.8 The importance of being able to prove provenance
9. 7.9 How install a resilient and adaptable system
10. 7.10 How to protect against theft in the supply chain and on the retail shelf
11. 7.11 Marking packaging so that products can carry their own self-validating features
12. 7.12 Adapting paper labels
13. 7.13 Using swing tickets and tags
14. 7.14 Adapting primary packaging and adding tear tapes/li>
15. 7.15 Forensic (invisible) marking methods and compounds for products and components
16. 7.16 Direct Visible Marking methods for Electronics components
17. 7.17 Security labelling (base) materials
18. 7.18 Security packaging (and cap sealing) materials
19. 7.19 Security tags and swing tickets
20. 7.20 Adding security laser engraving
21. 7.21 Specialist security materials for use in the electronics sector
22. 7.22 Brand Protection Features
  1. 7.22.1 Special Inks
  2. 7.22.2 Embossing, Holograms and foils
  3. 7.22.3 Films and overlays (includes polarisers)
  4. 7.22.4 ‘Chipless’ tags
  5. 7.22.5 Radio frequency (RFID) devices
  6. 7.22.6 Digital watermarking (printed encryption) and covert codes carried on-pack
  7. 7.22.7 On product marking to aid verification
  8. 7.22.8 Ink jet marking
  9. 7.22.9 Transfer ribbon marking
  10. 7.22.10 Laser encoding – on product and ink activated
  11. 7.22.11Linking serial marking to authentication databases
  12. 7.22.12 Using the internet and SMS messaging to provide provenance advice
  13. 7.22.13 Product marking with encrypted (2D) bar codes
  14. 7.22.14 Surface feature identification
  15. 7.22.15 Protecting brands on the world wide web
23. 7.23 Cost and relative security performance measurement
24. 7.24 Summary - Suitability of security technologies for a variety of packaging components
25. 7.25 Opportunities for Manufacturers of Brand Protection Solutions – Electronic Equipment and Components
Appendices
1. Appendix I Brand Protection Solutions – A new series of 10 targeted end user sector specific market reports from Vandagraf International
2. Appendix II Major multi-client report: “The International Markets for Brand Protection Solutions – 2nd Edition (Publication date: January 2008) - A techno-economic market review