Operation targeting counterfeit network hardware from China yield convictions, seizures
General Breuer. “Through the IP Task Force, and with recently announced additional resources, we are intensely focused on bringing to justice those who engage in piracy and counterfeiting.”
To date, ICE agents have seized counterfeit Cisco products having an estimated retail value of more than $35 million. ICE investigations have led to eight indictments and felony convictions to date. CBP has made 537 seizures of counterfeit Cisco network hardware since 2005, and 47 seizures of Cisco labels for counterfeit products. In total, ICE and CBP seized more than 94,000 counterfeit Cisco network components and labels with a total estimated retail value of more than $86 million during the course of the operation.
“These cases involve greedy businessmen hocking counterfeit and substandard hardware to any buyer — whether it could affect the health and safety of others in a hospital setting or the security of our troops on the battlefield,” said John Morton, assistant secretary of homeland security for ICE. “They pose a triple threat to our nation by stealing from our economy, threatening U.S. jobs and potentially putting the safety of our citizens at risk.”
The FBI, building upon its earlier success in Operation Cisco Raider, worked closely with law enforcement partners including ICE, Defense Criminal Investigative Service, General Services Administration, Department of Interior, Internal Revenue Service, and the Royal Canadian Mounted Police. During the last four years as part of Operation Network Raider and Cisco Raider, the FBI has executed 36 search warrants seizing counterfeit network components with an estimated retail value of more than $7 million.
“Individuals who break the law by attempting to profit from counterfeit technology do the marketplace great harm,” said FBI assistant director Gordon M. Snow. “This case illustrates how effectively the private sector and law enforcement organizations work together to combat fraudulent goods and preserve the integrity of U.S. computer networks and infrastructure.”
To date, international enforcement efforts 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. U.S. law enforcement authorities continue to work with China’s Ministry of Public Security (MPS) to combat the manufacture and export of counterfeit network hardware from China. This ongoing work is being facilitated by the IP Criminal Enforcement Working Group of the U.S.-China Joint Liaison Group for law enforcement, which is co-chaired by the Criminal Division and the MPS. The Working Group is dedicated to increasing cooperation in intellectual property enforcement efforts and pursuing more joint IP criminal investigations with China.
The global nature of the problem of trafficking in counterfeit electronics is further reflected in seizures of counterfeit semiconductor devices. From November 2007 to present, CBP and ICE have made more than 1,300 seizures involving 5.6 million counterfeit semiconductor devices. Semiconductors are used extensively in modern products and their proper functioning is critical to the safe and reliable operation of electronics in the aerospace, military, automotive, communications, industrial and consumer electronics sectors. More than fifty seized counterfeit shipments were falsely marked as military or aerospace grade devices. Shipments of seized semiconductors were affixed with counterfeit trademarks from eighty-seven North American, Asian and European semiconductor companies and were destined for importers in the United States and fifteen other countries.
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