Protecting the Semi Conductor Industry from Counterfeiting

The semi conductor industry is not immune to counterfeit activities. In fact counterfeit semi-conductors are perhaps one of the biggest reasons behind the breakdown of consumer electronic products. According to the semi-conductor industry association, what generally transpires is that the counterfeiters remove the genuine mark, add another mark possibly of another brand and then pass off the semiconductor to a buyer who is completely unaware of what has happened. In some other cases, the package contains an empty chip-less semi-conductor. According to a report issued by the Department of Commerce, the number of electronic counterfeits increased by almost 110 percent in 2008, and it only seems to be growing.

The World Semiconductor Council (WSC), which consists of industries from Europe, Japan, Korea, Chinese Taipei and China, issued a statement that reiterated that "Counterfeit products are an increasing problem throughout the world and the semiconductor industry is no exception to this growing threat. Semiconductor product counterfeiting is a serious and growing risk for the world market." The council further stated that "the impact [of counterfeits] goes beyond IP or trademark infringement of semiconductor companies. Together with an increase in the number of semiconductors being used in an end-product, proliferation of counterfeit semiconductor product in today's market creates risks to the safety and health of the consumer."

The WSC therefore has sworn to take strict measures against counterfeiting within the semi-conductor industry. But that does not mean that manufacturers can sit back and do nothing about protecting themselves from counterfeiting. They too have to take notice of these fake semiconductors in the market because genuine manufacturers also suffer huge losses by way of damage to their brand and their reputation. Engaging the right kind of brand protection mechanisms that offer the best anti-counterfeiting solutions is the first step towards protecting the enterprise from counterfeiting. These solutions should offer ways to identify and prioritize risks and also point out the source of counterfeit. The idea is to find the real players behind counterfeit networks and monitor their activities in real time. Details such as pricing, discounts and information about products sold online should be easily viewed through such brand protection solutions.

When anti-counterfeiting solutions come with systems that offer ways to rate suspect websites responsible for damaging brands, then manufacturers can feel empowered in tackling counterfeiters. While governments and administrations are putting in renewed efforts in their fight against counterfeiting, enterprises too must adopt effective solutions to help fight off counterfeiting.