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Illicit hardware

This overview highlights the global counterfeit market's challenges, especially in the IT industry. It estimates 6% of international trade involves counterfeit goods, costing technology firms up to $100 billion annually. The guide emphasizes understanding the definitions of illicit hardware, grey market products, and counterfeit items, and offers practical advice for protection, such as purchasing only from authorized OEM sources and recognizing warning signs of counterfeit products. Guard your network's integrity and your financial investments with informed choices.

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Illicit hardware

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Presentation Transcript

  1. Illicit hardware Neil Ichiki 14 July 07

  2. Agenda • Quick background • Overview of the global counterfeit market • Illicit products defined & how to protect yourself • Concerns • Examples

  3. Global Counterfeit Market • The World Customs Organization estimates that international trade of counterfeit products exceeds six percent of global trade • Specific to the IT industry, KPMG found that approximately 1 in 10 IT products sold worldwide is counterfeit, costing global technology companies as much as $100 billion in lost revenue annually.

  4. Illicit Hardware Defined • Grey Market • Ebay • Companies that upgrade their network and no longer need old equipment

  5. How to Protect Yourself Against Grey Market • Buy products through authorized OEM sources only • Understand the authorized pricing discount levels • High-end (restricted) product is offered to an end user by an entity that is not entitled to purchase that product through authorized OEM channels. • Communication with the OEM reps

  6. Counterfeit Products • Definition • HW, SW or Documentation to which an OEM trademark/logo has been affixed w/ out proper consent from the OEM • How to Protect Yourself • Offered at a much greater discount than genuine products • performance and appearance are inconsistent when compared to similar, genuine products

  7. 3rd Party Products • Components, typically memory, cables, or gigabit interface converters (GBICs), manufactured by a company other than the OEM. They are only illegal if they display counterfeit OEM labeling or trademarks. • Product advertised as “OEM Approved” • Product was sourced through contract manufacturer rather than from OEM

  8. Concerns • Increased risk to your network • Products purchased through unauthorized channels may not be entitled to warranty & service support • SW licenses on grey market equip do not transfer, exposing resellers and customers to software licensing issues, including paying for a software re-license

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