PROFILE We Saw It In <strong>ENX</strong> <strong>Magazine</strong> DECEMBER <strong>2010</strong>ASSOCIATION REVIEW:Imaging Supplies CoalitionCOMBATING COUNTERFEITING & FRAUDIN THE IMAGING SUPPLIES INDUSTRYThe Imaging Supplies Coalition (ISC) is a nonprofitorganization dedicated to educating, empowering andprotecting stakeholders in the battle to eliminate counterfeitingand fraud in the imaging supplies industry. TheCoalition is comprised of original equipment manufacturers ofconsumable imaging supplies and equipment that have joinedtogether to protect their customers by combating illegal activitiesin the Imaging Supplies Industry. Coalition membersinclude Brother International Corporation, Canon U.S.A., Inc,Epson America Inc., HP, Lexmark International, Inc., Oki DataCorporation, Samsung Electronics America, Inc., ToshibaAmerica Business Solutions Inc. and Xerox Corporation.Founded in 1994, the mission of the ISC is to protect our members'customers from misrepresented products and services byseeking the worldwide protection of intellectual property andrelated assets of the Imaging Supplies Industry's distributors,suppliers, and manufacturers. This is accomplished by trainingand education in counterfeit product identification, methods ofproduct security, techniques for avoiding telemarketing and e-commerce fraud, and by promoting laws and their enforcement.In its 16 year history, the ISC has accomplished a great deal incombating counterfeiting and fraud and has established itself asan international force in the Imaging Supplies Industry as wellas a leading organization in Intellectual Property protection.From engineering a unique, highly efficient product authenticationprogram and publishing hundreds of articles on counterfeitrelatedtopics to working with U.S. Customs, the ISC has andcontinues to generate unprecedented results in combating counterfeitingand fraud in our industry.How large is the problem?We think that worldwide imaging consumables loss to counterfeitingis approximately 4% to 5% of total revenue or between$3.5 and $4.0 billion. In the US it has been estimated that 3.5%of all inkjet cartridges sold are counterfeit. In some areas theestimate is up to 50%. HP, one of the ISC member companies,reports on its website that between2005 and 2008 it has conducted4,620 investigations in 55 countries,resulting in 3,528 enforcementactions conducted by lawenforcement officials where morethan $795 million USD worth ofcounterfeit supplies products hasbeen seized. A second ISC membercompany states that legalactions are currently pending in atleast 6 states in the US.Exactly what is considered to bea counterfeit product?EDUCATINGEMPOWERINGPROTECTINGAllen D. WesterfieldPresidentA counterfeit cartridge is a thirdparty product misrepresented asan original OEM cartridge.Cartridge counterfeiting is notthe same as refilling or remanufacturing.These counterfeitprint cartridges are meant tomislead the consumer intobelieving that they are genuineOEM products. This does notmean that all refilled or remanufacturedproducts are counterfeit or otherwise fraudulent.Legitimate refilled or remanufactured products exist on themarket and their packaging states that they are 'refilled,' 'remanufactured'or 'compatible' products.By definition, a counterfeit product is designed and packaged todeceive and mislead an unknowing customer in such a way thatconfuses them into believing that they are buying a brand newgenuine OEM product. Such products may be counterfeit andthe sale and distribution of counterfeit OEM cartridges is fraudulentand illegal.Why is the Imaging Supplies Industry Vulnerable?The Imaging Supplies is a broad, repeat market with a significantmarket for recycled/remanufactured goods. This meansthat there is an available supply of empty cartridges, as well ascomponents and known processes, making entry relatively easyfor counterfeiters. In addition, there is access to the distributionchannel through the gray market where counterfeit goods havethe opportunity to be commingled with legitimate merchandise.The expansion of e-commerce through the Internet has alsoenabled ease of market entry. An emerging threat is the explosivegrowth of clone/compatible cartridges.There are many methods to bringthese new clones/compatibles tomarket:1) Packaged as a compatible under anon OEM Brand. These are notcounterfeit and IP violations, if any,deal with patents and/or trade dressissues.continued on 4240enx magazine
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