Electrical Contractor/TED Magazines Launch New Industry Effort to Eliminate Counterfeit Electrical Products
2008-11-12 00:31:01 -
- National Electrical Contractors Association (NECA) Lorelei Harloe, 703-362-2774 lh@ascendcomm.com www.ecmag.com www.tedmag.com Electrical contracting industry allies are joining forces in a new, industry-wide effort to eliminate the rapidly increasing crime of counterfeit electric products in the United States--90+ percent of which are imported from China. Now reaching epic proportions in a $130 billion industry, it involves almost every type of electrical products--from wiring, switches and lighting to pirated Underwriters Laboratories, Inc. (UL) labels--in commercial and residential buildings. Counterfeiting is a crime that threatens the lives and safety of electrical workers and all U.S. citizens.
The new Anti-Counterfeit Products Initiative got underway with a panel discussion on Oct. 6 during the National Electrical Contractors Association's (NECA) Annual Convention and Trade Show. This first, joint panel was hosted by the NECA-published Electrical Contractor magazine, Bethesda, Md., and The Electrical Distributor (TED) magazine, published by the National Association of Electrical Distributors (NAED), St. Louis. The Initiative is endorsed by NAED, NECA and the National Electrical Manufacturers Association (NEMA).
"Underwriters Laboratories Inc., like many other Intellectual Property Rights and Trademark owners, has seen a dramatic increase in the amount of counterfeited products and trademark labels on those products in the past, several years," said panel participant Robert Crane, lead enforcement manager, Anti-Counterfeiting Operations, UL, Chapel Hill, N.C. "For several decades, UL has integrated security features in many of its labels."
Crane said that more recently, holographic labels were developed to further thwart the piracy of UL labels with the first holograms introduced in 1993 for decorative lighting strings and outfits. Since the holograms were so successful, said Crane, in 1996 additional categories for products manufactured in China also required holographic labels. This year, he said more requirements have been implemented regarding the use of holograms along with a newer hologram technology including the newest gold holograms.
Crane estimates counterfeit China imports closer to 99 percent, and UL partnering with organizations including U.S. Customs and Border Protection, Immigration and Customs Enforcement (ICE), Interpol, Royal Canadian Mounted Police (RCMP) and the International Anti-Counterfeiting Coalition (IACC) among others.
"For this reason, we place emphasis on targeting and attacking the problem not only in the U.S. but in China as well with private investigators and legal representation in mainland China. We also provide training to the UL field staff based in China."
Crane believes that responsibility cuts across all channels.
"Everyone in the distribution chain--from manufacturer, broker, exporter, importer, distributor, retailer, even consumer--has a responsibility to do due diligence in the protection of their trademark and avoidance of purchasing of counterfeit products," he said. "It requires tremendous increases in resources--both money and personnel--than years ago. So much so that UL now has a dedicated department working full time on the issues. We must work together. United we stand, divided we'll fail," he said.
A new proposal by NECA's Executive Committee through its Board of Governors affirms support for collaborative industry efforts to eliminate the presence of counterfeit electrical products in the supply chain. It also affirms independent action to educate its members, their customers, the industry and the public about the potential liability and economic cost and the threat to public safety posed by counterfeit electrical products.
Yates said the warning signs of counterfeit products include very low price levels, purchasing from Internet sites known for distributing other counterfeit products and inconsistent or improperly marked products.
"Contractors must be knowledgeable of their supply base," said panel participant Kevin Yates, vice president, Residential Products Division, Siemens Energy and Automation, Inc. "Siemens uses certified distributors to distribute product. If the products are not from a certified Siemens distributor, then there may very well be a counterfeiting issue."
Piracy Costs U.S. Economy $200-$250 Billion Annually
