Countering counterfeits

Counterfeit parts have long been a problem in the U.S. and not just for big trucks but your personal vehicles as well.

Too many times when a conversation about counterfeit products come up, people often think about purses, shoes and things that “don’t hurt anyone.”

While knock-off name brand tennis shoes bought on a street corner may just be a style and trademark infringement issue, counterfeit automotive products especially pose a real danger to those who use them. These fake products are being bought, and even sold, without anyone spotting them. And perhaps most disturbing of all, these look-alikes are not subjected to quality control or safety testing.

It is a worldwide problem, and while counterfeiters once stayed away from trucking supply chains because the distribution network is so narrow, the proliferation of such phony products has become more common over the past 25 years.

The parts are built with substandard materials and are not entirely up to specification. That allows them to be sold for roughly 60 percent of the cost of an authentic part and still make a nice profit.

To highlight just how substandard the materials can be in counterfeit products, there were cases out of Nigeria where brake pads were made of compressed grass. In 1997, brake pads made of sawdust caused a school bus to catch on fire, killing seven children.

While those examples are extreme, even the smallest of parts failing not only can cause safety concerns but also damage to your truck.

The growing threat on the net

The Motor and Equipment Manufacturers Association, also called MEMA, has a membership of more than 1,000 vehicle suppliers that manufacture and remanufacture original equipment. The organization has long been in the battle to find legal remedies to shut down the flow of counterfeit parts into the U.S.

One growing area of concern is online sales.

“Historically, online sales have not been a significant means of counterfeit parts entering the domestic or global marketplace. This is changing as China and other countries experience a phenomenal growth in e-commerce, resulting in an increase in counterfeit parts in the international online environment,” Ann Wilson, MEMA senior vice president of government affairs, wrote in formal comments to the United States Intellectual Property Enforcement Coordinator in November.

Counterfeit goods offered as genuine brands are more readily available online in the local market and globally because of the nature of the internet.

Wilson explained in her comments that online sales have become more attractive to counterfeiters over the years because of the lack of inspection.

“Instead of containers or pallets arriving at U.S. ports, which are subject to routine inspection, online orders typically are fulfilled individually. While these shipments are in containers with other individual packages, the nature of the small shipments creates challenges for U.S. Customs and Border Protection to identify and seize counterfeit product,” Wilson wrote.

MEMA is pressing the intellectual property enforcement coordinator, an executive office in the White House, to form task forces and find ways to strengthen protections against counterfeiting in online transactions.

What’s not being counterfeited?

The Office of the Intellectual Property Enforcement Coordinator has its hands full, according to a February report to Congress. Working with the Federal Bureau of Investigation, the Intellectual Property Enforcement Coordinator busted countless forms of commercial and state-sponsored trade secret thefts.

Investigations in the report detail theft of trade secrets ranging from financial information, to aviation schematics, to information on circuit boards in autonomous trucks.

On July 12, 2018, Xiaolang Zhang was indicted for theft of trade secrets. According to the indictment, Zhang is alleged to have taken a confidential 25-page document from Apple, his employer, containing detailed schematic drawings of a circuit board designed to be used in the critical infrastructure of a portion of an autonomous vehicle. The wrinkle was Zhang returned to China after leaving Apple and went to work for X-Motors, a company in the autonomous race.

How do I know a part isn’t counterfeit?

Unfortunately counterfeiting, or more appropriately the theft of intellectual property rights, is so diverse and prevalent in a variety of markets which means that it’s tough for authorities to magic wand it away with one piece of legislation or enforcement blitz.

That means it really comes down to you on your day-to-day purchases.

The International Anti-Counterfeiting Coalition has been battling counterfeiting since 1979. The organization recommends consumers use the “Three Ps: Price, Product and Place.”

It almost should go without saying, but if the price is too good to be true, it probably is. Before buying a part, do some research and get the average range of the product’s price before grabbing at a steal of a deal.

Your eyes are one of your best weapons. Inspect the quality of the product. Look at the labeling and details of the package, anything from a typo to a banged up box can be a tip off.

When it comes to where you buy, go with reputable dealers. Legitimate product is not sold on street corners, in flea markets, mall kiosks, dark alleys or on suspect online auction sites. Know who is an authorized dealer for the product you are planning to purchase, and make your purchases from the most legitimate source possible. LL