Safety is paramount. All countries need tougher deterrents - from China to the EU. BEAMAInstallation director, Dave Dossett, explains from an electrical accessories perspective why we must beat the devious product counterfeiter:
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| This tested fake controlgear is dangerous! |
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Counterfeiting isn't restricted to producing forged Cup Final tickets and bank notes. It affects everything from drink to appliances. Even the pills we take. The electrical industry is not immune and the consequences can be fatal. Copying electrical products is an insidious, fast growing 'business' - globally. Penalties are low usually just token fines and the potential profits are staggering. Decisive action is needed to combat the devious 'masterminds' behind this growing 'industry'.
'Copy cat' electrical products include: plugs, sockets, lamps, cables, connectors and even more worryingly, fuses and circuit breakers which are there to protect you.
Sophisticated production techniques mean it is often difficult at first sight to distinguish counterfeit from genuine until something goes wrong and that expected protection is not there. Some copies are complete replicas - including product design, branding, packaging, internal components, external appearance. Others are of patents, trademarks, safety marks. Most are sold at 'too good to be true' prices.
Annually, an estimated £30m worth of counterfeit electrical products reach the UK. The consequences of counterfeit electrical accessories entering the supply chain are damaging for everyone. Loss of revenue and reputation for manufacturers, wholesalers and contractors. But, much worse is the potential loss of life from fires started, because one of these products failed to protect you.
So, remember the three Ps:
- Person - do you know - and trust - the person who sold you the product?
- Place - did you buy it at a place from which a recognised trader operates?
- Price - was the price in line with what you normally pay?
If the answer to any of these is 'NO' - beware! You may be buying a dangerous counterfeit product. These are defective goods, manufactured without a due sense of responsibility. International Law clearly prohibits counterfeiting, which is equivalent to the act of free riding on the names and reputations of others, receiving undue profits, and providing no guarantee on defective goods.
Action:
BEAMAInstallation has been taking positive action against counterfeiters for over five years. Over 10m products have been seized in places ranging from China, where most (over 85%) of the counterfeit electrical products are made, to the Middle East and Africa - plus the UK.
Individual action in China can be complicated, expensive and time consuming. Our 'Electric Dragon' campaigns have overcome this, and many other problems associated with an individual enforcement action.
Individual actions are unable to maintain an impetus with the authorities and do not receive the necessary attention. However, 'Electric Dragon's' investigations are dynamic and ongoing. Through these operations we now control investigators in China on a daily basis, and can direct their actions hour by hour. This enables swift and impactful action - and positive results.
There has been a marked change in the brand profile of the most popular counterfeit products due to some brands changing from labelling to embossing of trademarks. Also, counterfeiters have been reluctant to continue with consistently raided brands.
'Electric Dragon' has been so effective in the electrical products sector that we believe it would work just as well in other sectors. Here's why:
- Most sector big brands are involved. This means that when a factory is raided we can usually seize all the products being produced, whatever the brand being copied.
- Most products have the trademark embossed in the mould. So, we can also seize the mould, and often the machinery. We have our own bonded warehouse in Wenzhou. Thus, there is no chance of products being returned to the counterfeiter - all seized products are destroyed.
- Our team of Chinese investigators is permanent. Working only for BEAMAInstallation, this ensures we can investigate, and 'stake out' a factory, raiding it at the optimum time - at the end of a production run when most products can be seized.
- We have built-up a large database of counterfeiters. We pass this information to authorities worldwide for them to follow up in the local markets - subsequently, through this intelligence, there have been many successful results in the Middle East, African and North American markets.
- We target relevant trade fairs to flush out the traders and gather intelligence on the counterfeit producers.
- All of this is achieved at a modest investment, because of the efforts of just 10 brands working together and sharing the costs.
- The impact of the 'Electric Dragon' campaigns has seen the production of counterfeits move from the larger factory units, fakes are now being produced in smaller, often unlicensed, units. Orders are split into smaller consignments, which, while reducing the risk of complete order being seized, also damages the efficiency - and the profits - of the counterfeiter.
Action:
Despite the success of 'Electric Dragon', the problem in China remains. Even if a factory is raided/closed, the products and tooling seized, there are many others waiting to fill the gap.
Why?
Because the penalties are too low - often just the equivalent of a few hundred pounds. Even though the profits are enormous - indeed, so large that drug smugglers and people traffickers are moving into counterfeit products to avoid the serious penalties for these offences. Only Governments can take the necessary action to change this situation.
BEAMAInstallation, through its European Federation Orgalime, has been participating in discussions between the European Commission and the US Trade Administration in a joint EU/US Working Group on Intellectual Property Rights (IPR).
In response to a questionnaire circulated by the group, we have requested that:
- Commission representations in Third World countries should create a specific department that would run an IPR help desk for affected European companies.
- Good contacts should be established/maintained with local decision-makers.
- Our scheme is offered as an example of best practice.
There are many excellent examples where European manufacturers of the same product group cooperate, establishing enforcement networks in other countries.
The main purpose is collective action against counterfeiters; through sharing costs for employing intelligence-gathering organisations and for financing other activities.
Moves:
Following discussions with ANIE, the Italian federation, in a combined initiative against counterfeiters. Also, Italy's largest accessories manufacturer has now joined the raid action alongside the biggest British, French and Australian companies.
It is hoped that industry groups in the USA (including UL), Canada and Spain will soon join the campaign, to increase the impact globally.
New presentations have been shown to product groups, at the EU, in China, at Orgalime, CAPIEL, CECAPI, NEMA (USA), CSA (Canada) meetings, plus the CELMA Strategic Forum (European Lighting Association).
In the pipeline are presentations to the European Union of Electrical Wholesalers (EUEW) and FISUEL, and international organisation promoting electrical safety.
The campaign continues to develop with several active projects in progress.These include direct action projects in China, Kuwait, Jordan - and the UK - with new actions in East Africa (Kenya, Uganda,Tanzania).
While free trade zones, as in the Gulf, are very useful for facilitating trade in products, WTO agreements (including TRIPS) still apply. These free zones should take care they don't become clearing houses for dangerous counterfeits. Local authorities and inspectors must get tougher. More controls are required to combat counterfeiting.
With lives at risk, countries lacking effective controls, like some in East and West Africa, must guard against becoming dumping grounds for unsafe counterfeit products. Smuggled, low price counterfeit goods also mean significant loss of revenue for countries with import tariffs. Reduced prices and duties arising from copied electrical accessories impact on countries economies.
The Middle East & Africa:
In Dubai, potentially lethal 'circuit breakers,' which are just push button switches, and in Yemen 600A 'fuses' with copper straps instead of fuse elements, were discovered. In Kenya, seized containers of counterfeit electrical products have been destroyed. While, Yemen has seen a huge reduction in counterfeit products finding their way onto the marketplace. The largest distributor reported a massive upturn in business concerning genuine products.
It's not just UK brands - all well-known brands are targets. For example, 70,000 copycat Italian style socket-outlets and 80,000 American made circuit breakers have been found by 'accident' during raids.
Throughout the Middle East, BEAMAInstallation-designed anti-counterfeiting posters have appeared in every electrical shop in Qatar, by working with the local authorities and Qatar's Ministry of Economics and Commerce.The message - counterfeit products are dangerous and it is a criminal offence to trade in them.
Ramped up:
The campaign against counterfeit products has been ramped up by making our hard-hitting 'Counterfeit Kills' film widely available on CD. Over 20,000 of the CDs have been issued to electrical contractors, distributors, specifiers, consultants, local authorities and housing associations. This six minute long CD graphically highlights the potential dangers - fire, death, injury - and impact on reputation of specifying or installing inferior quality 'copy cat' electrical products. We don't hold any punches. Our team also regularly visit the Middle East Electricity Exhibition in Dubai where our 'Counterfeit Kills' film was premiered.We have since produced an Arabic version.
The film plays a pivotal part in the fight against the large-scale manufacture of counterfeit products, which are not just threatening jobs and eroding market share of bona fide British electrical installation manufacturers, but are often such poor quality that they are potentially lethal. Targeting electrical trade and related audiences, the film has been distributed worldwide.
It receives a positive response and we're continuing to show it in presentations to groups of UK contractors, wholesalers, industry associations. A sequel, 'Counterfeit Kills - Protect Yourself', soon will be available on DVD.
We must keep communicating the message in the UK, Middle East and globally, that product counterfeiting is a danger to consumer safety and a serious threat to the British electrical industry.
Vigilance:
Everyone in the supply chain must ensure the authenticity of the products they buy or install. The alternative could be extremely costly to them - and kill people. A new European Directive seeks to enforce intellectual property rights with retailers facing jail for knowingly selling counterfeit or copied goods. Moreover, the EU is preparing to consult on new proposals, under which those found guilty of peddling fake goods and potentially jeopardising public health, would face a minimum prison sentence of four years and fines of up to €300,000.
To really counter the problem, manufacturers should register their logo and brand.Country of origin and brand name should be stamped - embossed is more effective - on the products.This ensures crucial evidence if counterfeit tooling is discovered. Products with branded adhesive labels are no deterrent.The counterfeiter produces them separately from the product and the labels are then added in the market country.
If anyone is any doubt about a product's authenticity they should immediately check with the manufacturer. The best solution is to purchase products only from an authorised supplier/distributor.
The responsibility for ensuring that only genuine quality products are used lies with all those specifying, purchasing and installing electrical equipment. Our campaign aims to stem the flow of counterfeit products at source - in the marketplace and transit. 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. Your support is needed. If you are a counterfeiter in China, the Middle East, Africa - or elsewhere - watch out, we're on your trail!
For free copies of BEAMAInstallation's 'Counterfeit Kills' CD and to order the new DVD phone: 020 7793 3013 or email: cac@beama.org.uk.
Contact: Dave Dossett at BEAMAInstallation; tel: 020 7793 3009; email: dd@beama.org.uk; web: www.beamainstallation.org.uk
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Related contacts
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BEAMA
Westminster Tower, 3 Albert Embankment,
London SE1 7SL
Tel: 020 7793 3000
Fax: 020 7793 3003
Web: www.beamainstallation.org.uk / www.beama.org.uk |
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Source: BEAMA Installation & James Hunt |
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