DOJ, DHS Announce Convictions for Counterfeit Chinese Network Hardware
The Department of Justice and the Department of Homeland Security have announced that Operation Network Raider1, which targets the illegal distribution of counterfeit network hardware manufactured in China, has resulted in 30 felony convictions and more than 700 seizures of counterfeit Cisco network hardware and labels with an estimated retail value of more than $143 million.
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According to CBP, in addition to the convictions and seizures there has been a 75% decrease in seizures of counterfeit network hardware at U.S. borders from 2008 to 2009, which is indicative of the success of the program. In addition, as a result of the program’s investigations, nine individuals are facing trial and another eight defendants are awaiting sentencing.
Operation Includes International Cooperation
The agencies stated that international enforcement efforts and cooperation on counterfeit network hardware have resulted in five convictions internationally, including one in Canada and four in China. Foreign investigations have led to seizures in France, China and Canada totaling $17 million worth of counterfeit networking equipment.
Counterfeit Semiconductors Also a Problem
DOJ/DHS also stated that the global nature of the problem of trafficking in counterfeit electronics is further reflected in seizures of counterfeit semiconductor devices. According to the agencies, since November 2007 CBP and ICE have made more than 1,300 seizures involving 5.6 million counterfeit semiconductor devices.
More than 50 of the seized counterfeit semiconductor shipments were falsely marked as military or aerospace grade devices. The shipments of seized semiconductors were affixed with counterfeit trademarks from 87 North American, Asian, and European semiconductor companies and were destined for importers in the U.S. and 15 other countries.
1 Operation Network Raider is a joint initiative by the FBI, ICE, and CBP working with U.S. Attorneys’ Offices, DOJ’s Computer Crime and Intellectual Property Section, and the National Intellectual Property Rights Coordination Center. Through investigation and prosecution, the initiative seeks to protect computer networks and U.S. IT infrastructure from failures associated with counterfeit network hardware, including network routers, switches, network cards, and devices that protect firewalls and secure communications that have been intercepted both domestically and abroad.
[See ITT Online Archives or 10/13/09 daily news, (Ref: 09101305), for BP summary of CBP call for international partnership against counterfeit goods.]
DOJ/DHS Press release on Operation Network Raider available at http://www.justice.gov/opa/pr/2010/May/10-crm-534.html.