According to a statement by U.S. Senator Charles Schumer, counterfeit aircraft parts are causing a 5 to 15 percent decrease in the reliability of the United States military weapons systems.
According to a statement by U.S. Senator Charles Schumer, the number of counterfeit electronics used by the military increased by 250 percent between 2005 and 2008. In 2010, the United States Navy alone purchased 59,000 counterfeit microchips for missiles, transponders and other military equipment that originated from China.
The U.S. Customs and Border Protection seized $4 Million worth of counterfeit electronic components in Fiscal Year 2009. The counterfeited products were considered critical components used for defense systems and aircraft system, according to a press release by the Aerospace Industries Association.
A company in Russia states that it losses up to $400 Million a year due to sales of counterfeit AK-47s. The company reported that Venezuela is the only country that has an official license that allows for production of Kalashnikovs.
In the 60 years that the AK-47 has been in production, almost 100 million Kalashnikovs have been made. Only about half of the total world production has been officially licensed and made in Russia.
The only official company in Russia that is licensed to make the Kalashnikov Assault Rifle, or AK-47, loses an estimated $450 Million a year to counterfeit copies.
Counterfeit copies of the AK-47 are maded in 8 different counties with dozens of businesses within them. The AK-47 is a Russian creation and product and only one company is officially licensed to make the AK-47.
$2 billion worth of unlicensed small arms are sold on the international market each year, with 80 to 90 percent of those arms being counterfeit.
According to Larry Kahaner, author of AK-47:The Weapon That Changed The Face Of War, counterfeit production of AK-47s stems from the fact that the inventor of the AK-47 Mikhail Kalashnikov “never patented the rifle’s design – the thought had never occurred to him or anyone else under the Soviet regime.”
Around 100 million Ak-47s are circulating around the world, with 47 national armies utilizing the weapon. Russia has stated that it only accounts for 10 to 12 percent of the sales of the weapon, with the rest being unlicensed and counterfeit copies.