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Attacking Counterfeit Bearings
BSA Winter MeetingJanuary 2010
Counterfeiting -The Facts
Counterfeit Bearings - The Impact
Taking Action Globally
Domestic Focus
Overview
Counterfeiting The Facts
Counterfeiting – The Facts Counterfeiting has grown 10,000 percent since 1982 from
an estimated $5.5 billion to $600 billion per year. Counterfeiting costs U.S. businesses $200 - $250 billion
annually. Counterfeit merchandise is directly responsible for the
loss of more than 750,000 American jobs. Approximately 5%-7% of the world trade is in counterfeit
goods. U.S. companies suffer $9 billion in trade losses due to
international copyright piracy.
The International Anti-Counterfeiting Coalition
Counterfeiting is Criminal Act Counterfeiting is illegal. Counterfeiters are
criminals. Distributors of counterfeit
products are subject to fines and other criminal actions. You taking a risk if your
company’s name is on the box!
Counterfeiting Bearings -The Impact
Everywhere & Every Size Counterfeit bearings
are everywhere. Throughout global
supply chain. China, India, Thailand,
Brazil, UAE and many others
Counterfeit bearings are not limited by size or type. Perception is only
smaller, easier-to-copy bearings
Looks Like Real Thing
Counterfeits look more and more like the genuine every day from the actual bearing to the shipping box.
Tougher and tougher to distinguish from genuine.
Counterfeit
Genuine
Counterfeit Genuine
Safety Risks Counterfeit bearings can
degrade and fail quickly, even catastrophically, bringing a plant’s production line – and profits – to a halt.
Counterfeit bearings are global safety and health risk, causing steel mill shutdowns, serious auto accidents and death.
You get what you paid for!
Taking Action Globally
Global Anti-Counterfeiting Focus In 2006, the World Bearing Association established the Anti-
Counterfeiting Committee and agreed to promote legislative and administrative measures in countries that are the main source of counterfeit bearings and explore publicity activities in this area.
Initial Focus Implementing legislative measures and administrative measures in
countries suspected of counterfeiting. Cooperation with entities in China (Customs) Create awareness through communications campaign.
Company & Brand Leadership
Focusing on the Main Source WBA conducts simultaneous joint raids with support of global bearing
manufacturers to deter production of counterfeit products and take administrative and criminal action against offenders.
Joint raids have focused on China with first raids taking place in November 2007. 8 bearing companies participated – INA/FAG, TIMKEN, SKF, NSK,
NACHI, KOYO, NTN, SNR 7 target factories – 5 in Shandong Province and 2 in Zhejiang Province Over 180,000 counterfeits confiscated and destroyed All participating companies’ brands found
Joint Raid Activity against markets June 2009 in Guandong Province 7 bearing companies participated – INA/FAG, TIMKEN, SKF, NSK, NTN,
KOYO, NACHI 5 target wholesalers, 1 laser marking plant About 30,000 counterfeits and 1 laser marking machine confiscated All participating companies’ brands found
Focusing on the Main Source
Focusing on the Main Source Joint Raid Activity in August 2009 in Shandong Province
7 bearing companies participated – INA/FAG, TIMKEN, SKF, NSK, NTN, KOYO, NACHI
15 target factories, 3 laser marking plant Over 840,000 products counterfeits and 4 laser marking machine confiscated All participating companies’ brands found
Factories now producing bearings with no brand marks which are sent to the processing plants for completion.
Wholesalers have stock of non-brand bearings Marking Plants accept orders to mark completed bearings with various
brands. WBA has found trademarks of all participating WBA companies in these plants.
Is a blank bearing counterfeit? Who are the counterfeiters?
Counterfeiters Attempt to Circumvent Rules
Future Focus on the Global Supply Chain
WBA has agreed to look beyond China and the manufacturing part of the supply chain.
Future surveys and raids will expand beyond China and include other countries throughout the world looking at the entire supply chain with a focus on the distribution network.
Cooperation with Entities in China (Customs)
China Custom is one of the few customs in the world that are actually executing enforcement on export goods infringing IPR.
Information from IPR holders can assist China Custom in stopping suspected exports.
WBA has created a customs education program and piloted the program in December 2009 with Shanghai customs. The seminar successfully educated officials and border agents on this critical issue.
Shanghai Customs Seizure
Shanghai Customs Seminar
Education and Communication Campaigns WBA authorized an education and communications campaign to bring
attention to this critical issue. First phase of the project to be completed by February 2010.
Campaign Strategy Purpose: Generate awareness about the counterfeit problem and
increase motivation to buy from authorized WBA sources. Call to action: Always buy products from authorized sources.
Campaign Targets End Users: Primary target Law Enforcement: Secondary target Authorized Distributors: Secondary target General Distributors: Secondary target
Campaign Web SiteMember-Company Web Sites/Banners
Printed Material & E-mail
PPT for Personal Meetings
Branch and News Media
Search Engines/Wikipedia
Film, YouTubeOnline Communities
Education and Communication Campaigns
One fake bearing could break your business.
stopfakebearings.com
Domestic Focus
ABMA has created an anti-counterfeiting committee to focus on this issue domestically. The inaugural meeting took place in
October 2009. Initial Focus Disseminate WBA education campaign Seek out education and partnership
opportunities U.S. Government Partner with related industries and
associations.
Creating Industry Partnerships
Engage distributor partners Presented counterfeit initiative at PTDA Industry Summit
in October 2009 and at BSA today. Goal to create task forces with PTDA and BSA to
determine partnership opportunities. Possible joint manufacturer/distributor session focused
on counterfeiting. Awareness campaign assistance with end users.
Partner with other industry sectors dealing with this issue. Sharing industry best practices.
Creating Industry Partnerships
Controlling U.S. Borders – Ensuring Enforcement Presentation from U.S. Customs and Border
Protection at ABMA Fall Meeting. ABMA meeting later this week with National
Intellectual Property Rights (IPR) Coordination Center with distributor partners. IPR Center is the task force of federal government
agencies with administrative or enforcement authority over intellectual property.
Questions & Comments