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48 The Recycler 211 • September 2010

David Cooper, Director of HP’s GlobalAnti-Counterfeiting Programme, spokeexclusively to The Recycler about thethreat counterfeiting poses to the industry,and the efforts HP, and the rest of theworld, are making to deal with it.

Although counterfeiting affectseveryone, Cooper says that it’s theconsumers who are the real victims. “Theones who are really hit by it are theconsumers. They’ve made the decision tobuy genuine HP products and haveinvested the money to get that quality, andthey’re potentially getting tricked intobuying a low quality knock-off,” heexplained.

“Some people are willing to buy lowquality alternatives, especially if it will savethem money. When it’s a counterfeit HPproduct being sold as a genuine one, that’sdifferent. That is simply the consumerbeing conned.”

This has a knock-on effect on the OEM’sreputation, as many consumers who arestuck with poor quality, faulty cartridgesmay not realize they are fakes, and willblame the manufacturer they thoughtproduced it.

“If the product is disguised and sold asgenuine HP ink, it’s our reputation thatsuffers, and there’s no repercussion for thecounterfeiter,” said Cooper.

Remanufacturers and compatibleproducers are perhaps doubly at risk here,as consumers may not realise thedifference between these products andcounterfeits. A bad experience with a poorquality fake may make a consumer turnaway from all OEM alternatives.

“Of course there are many legal, lowercost alternatives out there, but it’s aquestion of awareness and choice,” saidCooper.

“It’s a big difference between aconsumer opting to buy a lower priced

alternative, or even a low quality one, andthem buying a counterfeit under theassertion its genuine,” he said. “Thatmeans a hard working innocent person isbeing tricked into buying a fake.”

HP’s official online counterfeiting guidealso points out the difference betweenlegal alternatives that are clearly marked ascompatible or remanufactured, and thosethat are branded and packaged as beingoriginal HP products.

A more tangible impact is the profits lostfrom the market share stolen bycounterfeits. The Imaging SuppliesCoalition (ISC) has estimated around one

in 20 cartridges in the US may be fakes,with figures ballooning to as much as halfof all cartridges in other parts of the world,like the Middle East.

Cooper stresses that accurate marketshare estimates are difficult to obtainbecause of the nature of the counterfeittrade. “It’s almost impossible to judge theamount of counterfeit products in themarket,” he said. “Because it’s an illegal,clandestine operation, there’s no real wayto keep track.”

What is clear is that counterfeiting is onthe rise, with an obvious example beingthe huge increase in the number of fakesHP has claimed during raids. Cooper saysthat from the company’s 2009 financialyear, approximately 9.6 million counterfeitpieces were seized around the world.

This is a dramatic increase over previousfigures – from 2005-08, HP collected eightmillion ink and six million tonercounterfeits – a total of 15 million piecesacross three years.

Counterfeiting is a crime witha harmful impact on everyonein the industry. It comes aslittle surprise that HP, thecompany with the centralmarket share, is investinguntold millions in fighting the pirates.

HP steps up anti-counterfeiting measures

The best advice I can giveis to know your

supplier

““

David Cooper, Director of HP’sGlobal Anti-Counterfeiting

Programme

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49The Recycler 211 • September 2010

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While the rise undoubtedly reflects HP’sincreasing ability to find and seize fakegoods, Cooper cautions that their figuresonly deal “with the tip-of-the-tip of theiceberg” and that counterfeiting as a“global phenomenon” is certainly growing.

“There are a lot of unscrupulouscriminals out there looking to make quickcash, and of course they have almost nooverheads so it’s easy to make money fast,”Cooper explained.

“Counterfeiters aim to get the biggestbang for their buck. They can avoidadverting, product research, and qualitycontrol, because they don’t need to worryabout backlash for poor quality products.If a consumer buys a product labeled as aHP original, it’s our reputation thatsuffers.”

“Normal businesses have to jumpthrough all kinds of hoops to get by –research, finding the right market, theright packaging, the right price.

“Counterfeiters don’t have that problem.There are very few boundaries, which is

why it’s easy for them to operate on aglobal scale. Clearly there’s an issue in theEMEA, but also Asia Pacific and LatinAmerica amongst others.”

The good news is that more is beingdone than ever before to fight againstfakes, and the effort is on a global scale torival the counterfeit networks, “We’ve builtyear on year. The more experience we get,

the better we get atdetecting counterfeits,”sa id Cooper. “ I t ’ s ve r y se r ious , sowe’ve maintained ourinvestment.”

Cooperation is keyCooper explained thatone of the mostimportant elements offighting counterfeiting iscooperation. HP worksclosely with authoritiesand governments acrossthe world to find andstop counterfeiting. In2009, it joined theImaging Supplies

Coalition (ISC), an organization made ofthe biggest print OEMs working togetheragainst counterfeiting. HP is also amember of the ISC’s sister organisation,the Imaging Consumables Coalition ofEurope, Middle East and Africa (ICCE).

“We have to work together with as manydifferent organizations as possible. It’simportant that we assist and support eachother,” he said.

“We put a great deal of effort intoeducating people about the dangers ofcounterfeiting. For example we holdpresentations on the risks it poses, andteach consumers and retailers how toidentify a fake.”

Know your supplier Cooper also offered his own advice onhow to avoid being conned bycounterfeiters. “The best advice I cangive is to know your supplier. If someoneis selling you what they claim to begenuine HP products, but at a reducedprice, it’s important to ask themquestions about it and find out why,” heexplained.

“There’s a lot of examples of wayscounterfeiters will sell their knockoffs asgenuine – claiming it is bankrupt stock,or special reductions, for example, so beon the look out for that.”

However, he cautioned that price is notthe only indicator and manycounterfeiters attempt to pass their fakesoff at the full price of the genuineproduct.

“It used to be the norm for fakes to besold at very cheap prices to enticebusiness, but don’t expect all fakes to becheap today. These are criminals lookingto make maximum profit, so increasinglyfakes are being sold at the same pricerange as original products.”

“Past the price it can be difficult to spota fake until its too late, so again, beingaware of your supplier is the number onepriority,” Cooper cautioned.

Cooper concluded that cooperation wasalso one of the most important ways tohelp stop counterfeiting.

“If you do have any doubts, don’thesitate to contact us or another OEM ororganization,” he said. “Counterfeiting isa global threat that effects everyone soit’s important we all work together tocombat it.

“That way we can help protect theindustry and make sure the consumers really get the product they’vepaid for.” R

One of the most important

elements offighting

counterfeiting iscooperation

““

Boxes of counterfeit toner cartridges seized by HP

Matt Brown is a journalist at The Recycler. Contact

him at m.brown@therecycler.com

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