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Illicit hardware

Illicit hardware. Neil Ichiki 14 July 07. Agenda. Quick background Overview of the global counterfeit market Illicit products defined & how to protect yourself Concerns Examples. Global Counterfeit Market.

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Illicit hardware

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  1. Illicit hardware Neil Ichiki 14 July 07

  2. Agenda • Quick background • Overview of the global counterfeit market • Illicit products defined & how to protect yourself • Concerns • Examples

  3. Global Counterfeit Market • The World Customs Organization estimates that international trade of counterfeit products exceeds six percent of global trade • Specific to the IT industry, KPMG found that approximately 1 in 10 IT products sold worldwide is counterfeit, costing global technology companies as much as $100 billion in lost revenue annually.

  4. Illicit Hardware Defined • Grey Market • Ebay • Companies that upgrade their network and no longer need old equipment

  5. How to Protect Yourself Against Grey Market • Buy products through authorized OEM sources only • Understand the authorized pricing discount levels • High-end (restricted) product is offered to an end user by an entity that is not entitled to purchase that product through authorized OEM channels. • Communication with the OEM reps

  6. Counterfeit Products • Definition • HW, SW or Documentation to which an OEM trademark/logo has been affixed w/ out proper consent from the OEM • How to Protect Yourself • Offered at a much greater discount than genuine products • performance and appearance are inconsistent when compared to similar, genuine products

  7. 3rd Party Products • Components, typically memory, cables, or gigabit interface converters (GBICs), manufactured by a company other than the OEM. They are only illegal if they display counterfeit OEM labeling or trademarks. • Product advertised as “OEM Approved” • Product was sourced through contract manufacturer rather than from OEM

  8. Concerns • Increased risk to your network • Products purchased through unauthorized channels may not be entitled to warranty & service support • SW licenses on grey market equip do not transfer, exposing resellers and customers to software licensing issues, including paying for a software re-license

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