201305.pdf 43279KB May 08 2013 11:07:04 PM

Special SectionThe anti-counterfeitmovement: Is it really amovement yet?Despite greater awareness and significant strides, the high-tech sectoris only beginning to grasp what it means to deal with counterfeit parttracking and reporting.By Jennifer BaljkoUS legislation has compelled astepped-up interest in preventingcounterfeit electronic partsfrom slipping into the supplychain. It has also raised morequestions than it has answered.For many dealing with the enormity of tracking,reporting, and resolving issues associated withpotential counterfeit parts, there is a collectivehope that 2013 will bring clearer guidance on whatneeds to be done by whom and when.Conversations today are already moving awayfrom “What does the National Defense AuthorizationAct (NDAA) mean?” to “How is mycompany going to be impacted, and what am Idoing about it?” This mental shift brings withit another set of challenges requiring increasedcollaboration, communication, trust, and thoughtleadership throughout the electronics industry,several industry watchers noted. A tall order, someacknowledged, because of the deep-rooted stigmaand heightened concern about potential liabilityrelated to discovering counterfeits anywhere in apart’s chain of custody.Even so, if consensus is true, then the electronicindustry’s current dialog on this topic is agood start, but still largely perfunctory. Companiesmost affected by both the law and customers’updated risk-management requirements are doingwhat they can to be legally compliant, but an ongoingweak economic climate and a lack of specificgovernmental direction raise legitimate questionsabout whether the cost of an anti-counterfeitingprogram justifies the business case.Cost considerations aside, progress depends onhow willing industry, government, and academiaare to work together to create cost-effective, longtermanti-counterfeiting solutions that outsmartthe bad guys, reduce risks, and make the supplychain more secure.“We have come a long way since these issuesfirst surfaced,” said Kristal Snider, vice president atERAI Inc, Naples, FL. “But the supply chain cannotmature, improve, and keep up with this issueand develop effective solutions if it’s not somethingeveryone agrees on, at least to some extent.”“Everyone in the supply chain knows aboutNDAA,” she added, noting some of the lag time betweenwhen the law was signed, when details abouthow different elements of the law will actually cometogether, and what the industry can do in the meantime.“But everyone is waiting for clearer instructionabout what comes next. We’re waiting for moreinformation to flow down to the industry.”S-22 Top 25 Global Distributors May 2013