Counterfeit Electronics Black Market Value: $100 Billion





Data on the black market in Counterfeit Electronics


GPS piracy in China

In Zhongguancun, known as China’s Silicon Valley, more than half of all GPS maps sold are believed to be pirated.

An authentic GPS using licensed data costs about $88, while a GPS using pirated data can be sold for $44.

Source:  Zhang Hui, “More than half of GPS maps pirated,” Global Times, August 12, 2010.

Counterfeit electronics in supply chain

An estimated 5 to 20 percent of electronic components in a supply chain is at risk of being counterfeit.

Source:  Kris Sangani, “The global trade in counterfeit consumer electronics,” Engineering and Technology Magazine, May 10, 2010.

Number of counterfeit Cisco equipment seized

Between 2005 to 2010, US law enforcement agencies made over 700 raids on counterfeit networking equipment and seized over 94,000 counterfeit Cisco networking equipment.

The counterfeit equipment was valued at $86 Million.

Source:  IDG News, “US Agencies Crack Down on Counterfeit Networking Hardware,” PC World, May 6, 2010,

and Associated Press, “Crackdown targets counterfeiting network equipment,” Google News, May 7, 2010.

Counterfeit Networking Equipment seizures on US Borders

The United States Customs and Border Protection reported a decrease of 75 percent in the number of counterfeit networking equipment seized at US borders between 2008 and 2009.

Source:  IDG News, “US Agencies Crack Down on Counterfeit Networking Hardware,” PC World, May 6, 2010.

Number of counterfeit HP products seized over 3 years

Between 2005 and 2008, computer manufacturer HP conducted 4,620 counterfeit investigations that lead to over seizures of counterfeit electronics products worth nearly $800 Million.

Source:  Brandon Bailey, “HP says stolen components found in ink cartridges sold on-line,” San Jose Mercury News, March 8, 2010.

Counterfeit electronic parts in the defense industry

A report by the US Commerce Department in January 2010 reported 9,356 incidents of counterfeit electronic parts found within the defense industry, an increase of over 100 percent from the 3,868 found in 2005.

Source:  Rachel King, “Fighting a Flood of Counterfeit Tech Products,” BusinessWeek, March 1, 2010.

HP Anti-counterfeiting activities

According to computer and printer maker HP’s Director of Brand Protection, HP conducted over 4,620 counterfeit investigations in 55 countries between 2005 to 2009.  These investigations resulted in seizures valued at more than $795 million in counterfeit printing supplies.

Source: Avanti Kumar, “HP Malaysia seizes more than 370 counterfeit products,” MIS Asia, August 28, 2009.

Most counterfeit electrical goods purchased at legitimate stores

The US Chamber of Commerce and the Gallop Organization found that 64 percent of all counterfeit electrical goods are purchased at legitimate shops and retailers.

Source:  Electrical Safety Foundation International, “Buyer Beware Anti-Counterfeiting Campaign Fact Sheet,” National Electrical Safety Month, May 2009.

Nokia blames high tax for counterfeit phones

Cellphone maker Nokia is blaming high VATs for an increase in counterfeit phones in East Africa.  The company has stated that the level of tax in African countries, such as 16 percent in Kenya, 18 percent in Tanzania, and 20 percent in Uganda, creates opportunities for counterfeit phone makers in Asia to penetrate the market.

Source:  Rebecca Wanjiku, “Nokia blames tax evasion for rise in counterfeits,”Computerworld, May 22, 2009.

Counterfeit phones make up 20 percent of China mobile phone sales

Fake mobile phones consist of up to 20 percent of all mobile phones sold in China. The phones, which are sold for as little as $20, resemble legitimate phones such as the iPhone.  Many of the counterfeit phones have exploded while being used.

Source: David Barboza, “In China, Knockoff Cellphones Are a Hit,” New York Times, April 27, 2009.

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