COUNTERFEIT ELECTRICAL PRODUCTS KILL

Kevin HarrisKevin HarrisChairman BEAMAChairman BEAMA

Anti Counterfeit Working Groupg p

FINDING AND COMBATINGFINDING AND COMBATING COUNTERFEITERSCOUNTERFEITERS

1 WHAT DOES THE BEAMA A.C.W.G. DO?

2 WHAT IS THE PROBLEM?2 WHAT IS THE PROBLEM?

3 WHAT CAN BE DONE ABOUT IT?3 WHAT CAN BE DONE ABOUT IT?

The BEAMA Anti-Counterfeiting WGThe BEAMA Anti Counterfeiting WG

WHAT DO WE DO?WHAT DO WE DO?

BEAMA Anti CounterfeitingBEAMA Anti-Counterfeiting Working Group - Membersg p

BEAMA Anti-Counterfeiting Working Group

Raising Awarenessg

Sequel to “Counterfeit Kills”Sequel to Counterfeit Kills available on DVD and CD free of charge Arabic andfree of charge. Arabic and French versions also available.

“Counterfeit Kills – Protect Yourself”

available.

S S C C S C SC CSigned by BEAMA, BASEC, EDA , LIF, BCA, SELECT, ESC and ECA

Electric Dragon - 2009Electric Dragon 2009• Permanent operation in China since 2000• Permanent operation in China since 2000

• Chinese investigators exclusive to us

• Great co-operation from authorities

• Visits to Guangzhou Trade Fair• Visits to Guangzhou Trade Fairtwice per year to raid stands and gain intelligencegain intelligence

• Over 200 factories raided

• 10 Million products seized plus packaging & tooling.

• 16 brands now represented and growing• 16 brands now represented and growing

Electric Dragon - 2009Electric Dragon - 2009

Yiwu market ChiChina

• Largest wholesale market in the world – 36,000 Traders.

• Because of the action of BEAMA the Yiwu market has removed many of its counterfeit electrical products.

• We also tackle the problem at Trade Fairs worldwide, including the Canton Fair and Middle East Trade Fairs.g

Arriving at an illegal factory in China

Production continues during a raidg

Components ready for assemblyp y y

Moulding Area – Claimed to have ISO 9001 !

A hairdryer for temperature calibration !

CC

Fakes being taken to the warehouse

CC

BEAMA Warehouse - Wenzhou

DESTRUCTION - Wenzhou

DESTRUCTION - Wenzhou

BEAMA Anti-Counterfeiting gWorking Group

Projects• Electric Dragon – ChinaElectric Dragon China• Electric Lion – Kenya, Tanzania

El i Ch h Ni i Gh• Electric Cheetah – Nigeria, Ghana• Electric Falcon – Kuwait• Electric Ibex – Jordan• Electric Panda Dubai• Electric Panda – Dubai• Electric Oryx – Sudan• Electric Bulldog – UK

Kuwait May 2008Kuwait - May 2008• Kuwait, like many Middle East and African

countries have huge counterfeit issuescountries, have huge counterfeit issues

• It is reported that there were 5,000 house firesIt is reported that there were 5,000 house fires during 2007

• “Up to 80% could be attributed to Fake Electrical Appliances” ppJassam Al-Mansourie - Head of Kuwait Fire Service)

• 6 children killed in 1 blaze• 6 children killed in 1 blaze

SuccessesSuccesses• Government and business (rights owners) leaders are• Government and business (rights owners) leaders are

engaged in expanding efforts to combat counterfeiting – 90 countries were represented in the most recent global90 countries were represented in the most recent global

Intellectual Property (I.P.) congress in Dubai.

G t h t th d l l f k d• Governments have strengthened legal frameworks and enforcement efforts

E f t di ti i th E U i– Enforcement directive in the European Union– The March 2006 ‘Stop Counterfeiting in Manufactured

Goods Act’ in the United StatesGoods Act’ in the United States– Trademark law revisions in China

60 t i id tifi d t i th i I P l– 60 countries identified to revise their I.P. laws.

WHAT IS THE PROBLEM?WHAT IS THE PROBLEM?

Counterfeiting TodayCounterfeiting Today B b Milk• CDs • Baby Milk

• Car Spares

• CDs

• DVDs • Car Spares

• Aircraft Spares

DVDs

• Designer Clothes p

• Cosmetics• Handbags

• Cement• Watches

• Pharmaceuticals• Software

Identities • Electrical Products• Identities

Counterfeit Market Shares -Electrical

Counterfeits share of Electrical Installation P d tProducts :

– Africa 25-75%– Africa 25-75%

– Middle East 20-40%Middle East 20 40%

– Eastern Europe 10-40%p

– Western Europe and UK? Growing share!

C t f iti T dCounterfeiting Today• Any electrical product can be copied• Even certification marks can be copied

D i d t b b• Designs and part numbers can be copiedcopied

• Labels and holograms can be copied• Chinese labels are replaced by branded

labelslabels

Testing of a Counterfeit Circuit Breakerg

E ampleExample• Products found in UK market intended for Middle East

and African markets• Non compliant to UK standards and non CE marked

products involved.products involved.• Sometimes over labelled by others – infringing

Intellectual Property rightsIntellectual Property rights.• Actions being taken against distributors trading in

these illegal productsthese illegal products.

Example:Example:Counterfeit Chargerg

• British boy aged 7 Connor O’Keefe killed byBritish boy aged 7, Connor O Keefe, killed by counterfeit charger

On holida in Thailand fo nd in hotel room still holding• On holiday in Thailand found in hotel room still holding wires

• Charger below safety standards – 1mm gap between circuits

• Coroner stated that the “lead was effectively live”

Typical ProblemsTypical Problems • Fuses no fuse elements• Fuses – no fuse elements

• Circuit Breakers – overload elements omitted

• Cable – fewer and smaller strands

• Copper – can be low quality giving much reduced current carrying capacity

• Moulding material and Plastics – usually recycled material, giving no strength on short circuit events, g g g

ALL THE ABOVE CAN CAUSE OVERHEATING, FIRE, INJURY AND DEATH

Electric Bulldog – UKElectric Bulldog UK• Retailers Distributors and D I Y Stores targeted• Retailers, Distributors and D.I.Y Stores targeted

• Fake Circuit Breakers, Fuses, Wiring Accessoriesand Lighting prod cts fo ndand Lighting products found

• Some products found which were copies ofgenuine products but in other brand names

• Rarely do they conform to the standards that they y y ystate on the product – can be very dangerous

• So copies are here in the UK either as dead copies orSo, copies are here in the UK, either as dead copies or passing off but in small quantities - however things are changing! g g

Electric Bulldog – UKThe world is getting a smaller place

Electric Bulldog UK• The world is getting a smaller place

• With Internet, trade is very easyy y

• Free Trade Zones and Duty Free Areas can hide illegal tradingcan hide illegal trading

• Customs resource at the ports of entry cannot control every consignment.

• Chances of getting caught and deterrentsChances of getting caught and deterrents are very low

All th UK i t t• All means the UK is an easy target

Electric Bulldog – UKElectric Bulldog UK• Loss of BRAND REPUTATION

• Issues of GUARANTEES

• Issues of PUBLIC LIABILITY

• Issues of LITIGATION• Issues of LITIGATION

• Issues of HEALTH & SAFETYIssues of HEALTH & SAFETY

WHAT CAN YOU DO ?WHAT CAN YOU DO ?

Questions for Buyers and Importers

• Are you in control of any quality and product checks?

• Do the products comply with relevant standards? ?• Do they do what it says on the labels?

• Do they earn the right to have the CE mark y gon them?

• Are you sure about the Intellectual Property• Are you sure about the Intellectual Property Rights of the products you are buying? Areyou trading in copies?you trading in copies?

Questions for Distributors, Installers and Specifiers

• Are you aware of counterfeit electrical products in the market?the market?

• Do you ever consider electrical products to be non-compliant to BS and IEC standards?

• Does anyone check certification marks to see if they are authentic?y

• If in any doubt, please check with the original manufacturer or certification bodyoriginal manufacturer or certification body.

Message for Distributors, Installers and Specifiers

• Check packaging, labelling and textCheck packaging, labelling and text• Check for any alterations to product or package• Check CE and certification marks• Check the weightCheck the weight• Obtain through authorised and

known distributorsknown distributors

Message for Distributors, Installers and Specifiers

• Remember to suspect prices that are too good to be true – they might not be!be true they might not be!

• If in doubt check with the brand owner• Check with the Certification body

Know your supplier• Know your supplier• Be sure – you are responsibley p• 3 P’s – Place , Person , Price

PLEASE, DON’T KILL YOUR CUSTOMERS!

Message to the IndustryMessage to the Industry• 8,000 electrical fires per annum in UK, 30 deaths• The number of accidents in UK is falling• The number of accidents in UK is falling

but has bottomed out• Is this a worrying trend over the last few

years? Are we as an industry satisfied y ywith these figures?

• Could any of this be attributed to the use• Could any of this be attributed to the use and installation of illegal counterfeit and non compliant products?non-compliant products?

Blow the Whistle!Blow the Whistle!ReportReport

Counterfeits and non-compliant products

www.counterfeit-kills.com

And finallyAnd finally,

we have a Message for thewe have a Message for theCounterfeiters!Counterfeiters!

WATCH OUT !WATCH OUT !

BEAMA’s ABOUT !BEAMA s ABOUT !

COUNTERFEIT KILLSCOUNTERFEIT KILLSwww.counterfeit-kills.com