IT companies lose an estimated $100 million to counterfeit technology products each year.

Source: KPMG and The Alliance for Gray Market and Counterfeit Abatement, “Managing the Risks of Counterfeiting in the Information Technology Industry” , White Paper, Pg. 2, August 2005 .

Between 2005 and 2008, computer manufacturer HP conducted 4,620 counterfeit investigations that lead to over seizures of counterfeit 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.

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.

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.

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.

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.

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.

Counterfeit goods are gaining popularity with the masses in China as an antiestablishment symbol, according to the Daily Yomimuri. Utilizing the term “shanzhai” to reference goods produced in counterfeit factories, the Chinese population are openly defying the central government and continuing to purchase fake cell phones and other goods.  According to the article, over 100 million counterfeit cell phones are produced each year, costing the central government $2.5 billion in lost taxes.

Read the article “Counterfeit goods find favor in China / Public likens pirated brands manufacturers to bandits of yore” at The Daily Yomimuri.

Counterfeit computer chips from China are entering US Warplanes. 

From BusinessWeek:

The American military faces a growing threat of potentially fatal equipment failure—and even foreign espionage—because of counterfeit computer components used in warplanes, ships, and communication networks. Fake microchips flow from unruly bazaars in rural China to dubious kitchen-table brokers in the U.S. and into complex weapons. Senior Pentagon officials publicly play down the danger, but government documents, as well as interviews with insiders, suggest possible connections between phony parts and breakdowns.

US Computer Manufacturer HP is claiming that up to 60 percent of refill ink cartridges sold in East Africa are counterfeit. 

From Network World: 

U.S. PC and printer maker Hewlett-Packard has said 60 percent of the refill products used in printers across East Africa are not genuine — a situation that is impacting sales heavily.

HP East Africa made the revelation as the company rolled out printing technology targeting the multi-million dollar regional graphic arts market.

Charles Munyororo, the HP general manager for the imaging and printing group for English-speaking Africa, said the products most affected are laser and ink cartridges used in printing machines, of which he says only 30 percent to 40 percent are genuine.

“These fake and counterfeits are finding their way into the regional market through Asia, mainly from China,” said Munyororo.