Fighting back against the grey market

The problem articulated above presents a major challenge to all participants in the supply chain for electronic components (both users, distributors, and component manufacturers). Xxxxxxxxxxxxxxxxxxxxxxxxxxx Problem - Current North American legislation fines individuals who import counterfeit goods. As an reputable importer of goods I NEVER want counterfeit product but I have no control over what the sender puts into a package. The sender puts counterfeit and I get fined. I discover counterfeit goods and do I really want to disclose to enforcement. US Policy needs to change to a position that encourages people to report counterfeiters, and US Enforcement has to black-list foreign entities from shipping goods across our borders. Xxxxxxxxxxxxxxxxx Problem ? Finger Pointing ? It is convenient to blame the Grey Market, when in reality, the grey market has the most to loose as this problem explodes and is one of the few business communities who are educating and raising awareness in an effort to prevent these events. The worst independent distributor is fully aware of this issue while the above average OEM buyer or Franchise Distributor Buyer has not been trained in how to identify such issues. Xxxxxxxxxxxxxxxxxxxxx ? Counterfeiting happens everywhere in all industries, awareness is the first step in eliminating the problem; revised quality, component engineering, and purchasing procedures are the next step; industry teaming is the final step to get this problem managed. Xxxxxxxxxxxx ? I fully agree with Andreas comments at Oxygen Electronics.

How do you turn in a company that sells counterfit? They take back the parts, but who will buy them next time?

There are a lot of shades of grey in the independent market, and it would be a mistake to broad brush this entire business segment in a negative manner. Many legitimate independent distributors have invested $100ks in quality stock from carefully screened vendors. The truth is that Chip mfgs, franchised disties, and top tier OEM/CEMs all have a need to liquidate unused stock. The key for the component buyer is to align with premier brokers and independent disties who have quality control systems in place to ensure that product purchased is authentic. Purchasing Depts may have to put a little energy into qualifying the independents they deal with. Do they have stock? Has any stock been procured from China? Do they have an internal QMS system? Are they ISO certified? Do they belong to any legimate trade organizations? This will go far to reduce non-conforming product from the market place. Viewed in this light, independent disties can contribute positively to ensure that buyers receive top quality goods.

We are an independent distributor and like Dave, we have sold to Franchise. The independents are the guys who have the experience in detecting, stopping and reporting counterfeit parts.

The irony of the whole Franchise against the Grey market is Arrow and Newark are two very good customers of ours. I guarantee they dont tell there customers that they procured there product through the Grey market because the parts are on allocation etc. Big Joke!!

I am working for another independent distributor - Oxygen Electronics LLC - for 5yrs now. The counterfeit issues only got going after China got admitted to the WTO, when suddly everbody could export there. I agree 100% with Greg. To avoid this problem there is only one way: Know your vendor! Don't jump on 10US parts offered for 0.1US! I am personally sick of the Franchise drive to blame the grey market, I got myself counterfeit on various occasions FROM FRANCHISE!

I founded a independent distributor, MGA Engineering 11 years ago. We have never supplied counterfeit parts and warranty our parts yet it seams franchise and others are trying to intimidate our industries with horror stories so oem''''s/cem''''s will not use companies like ours. Fact is there is lots of good product at independent distributors.. most of this purchased from oem excess or franchise.. The counterfeit crap is coming from China.. from scrapped computers,etc coming from U.S.A. If your buying from independent dist. find out how long they have been in business...most of the good guys have been in business many years. Those trying to sell product that is counterfeit or bad have been in business less than 2 years! Also, know that some China dist. have set up office in U.S.A. to sell China crap! When you buy from independent dist ask if parts came from china