COUNTERFEIT ELECTRONIC/ELECTRICAL DEVICES, MOBILE PHONES AND COMPONENTS

Electronics and electrical devices are a key category of counterfeit products. This category includes audio/video apparatus, memory cards and sticks, ink cartridges and toners, and computer equipment (hardware) including all technical accessories and parts. The country of origin for most of the seized counterfeit electrical/electronic and computer equipment is China (including Hong Kong).  In addition, mobile phones, their accessories and components remain among the commodities most affected by IP infringements especially those involving designs and trade marks – and counterfeit electronic products are a multi-million euro business controlled by criminal networks. It is estimated that 184 million counterfeit phones are sold globally each year . The mobile phone industry states presumed losses of billions of euros due to lost sales, with nearly one in five mobile phones sold being counterfeit . The overall results of detentions in 2020 show that mobile phones gained relevance in terms of estimated value . The main countries of origin for counterfeit mobile phones and accessories seized in the EU are China (including Hong Kong) and Singapore. The mobile phones market is of particular interest to counterfeiters due to the sustained and burgeoning demand for popular smart phones. The visual appearance of the counterfeit devices is very convincing, closely mimicking the external characteristics of the original phones. However, typically some features and software characteristics are missing and the International Mobile Equipment Identity (IMEI) is often fake. The use of cheap and substandard electric components, which can be found in fake batteries, headphones or chargers, poses safety risks. Counterfeit electrical components entering the manufacturing supply chains are unreliable and pose serious risks of fire or electric shock. The software on these devices is often manipulated to allow the use of EU-compatible SIM cards . Some of the most in-demand electronics products are at risk of being counterfeited and advertised on online marketplaces even before the genuine items are available for sale. Counterfeit models of newly announced wireless headphones and smart watches have been advertised prior to the release of the genuine articles. Illicit manufacturers manage to match the characteristics of redesigned models based only on the presentations of the new models . The growing global shortage of semiconductor chips is linked to the high demand for digital devices and manufacturing problems that emerged during the COVID-19 pandemic . The electronics industry is facing a considerable demand for computers, components, mobile phones, tablets, gaming consoles and other devices. Counterfeiters may try to exploit this demand and supply shortages by introducing counterfeit semiconductors such as diodes to the market. Supply chains are global and vulnerable to the introduction of counterfeits since typically several distributors handle components before they reach the manufacturing sites. Tracing the original supplier of the counterfeit semiconductors can be difficult when trade marked counterfeit chips are verified by the semiconductor firms. Disruptions in supply chains and the possible introduction of counterfeit components has the potential to cause serious failures in critical infrastructures.  Semiconductors are an integral part of critical systems used in the healthcare sector, transport, defence, and trade. The risk of privately used electronic devices being affected is also high. Additionally, counterfeit electronic devices may also feature malware and other harmful software, adding the risk of data theft. Counterfeit electronic devices are sold in great numbers during sales events such as Black Friday and Cyber Monday. It is estimated that overall expenditure on such sales day can reach up to EUR 9.5 billion (USD 11 billion). Product categories affected include hair straighteners, phone chargers, cables, travel adaptors, laser hair removers, headphones and other devices. Online marketplaces and platforms are popular distribution channels for counterfeit electronic devices and components and typically entail physical distribution via post and parcel services.

Products

1. audio/video apparatus
2. batteries
3. cables
4. charger
5. components
6. computer equipment (hardware)
7. computers
8. electric components
9. electrical devices
10. gaming consoles
11. hair straighteners
12. ink cartridges
13. laser hair removers
14. memory cards
15. mobile accessories
16. mobile components
17. mobile phones
18. other devices
19. other devices
20. phone chargers
21. semiconductor chips
22. smart phones
23. smart watches
24. software
25. sticks
26. tablets
27. technical accessories and parts
28. toners
29. travel adaptors
30. wireless headphones