Eaton Corporation
1000 Cherrington Parkway
Moon Township PA 15108
EATON REINFORCES POSITION AGAINST COUNTERFEITS
By Jerry Whitaker, president, Americas Region, Eaton’s Electrical Sector
For more than a decade, counterfeiting in the electrical products industry has been a growing problem. In 2009, U.S. Customs and Border Protection reported that electrical products represented 13 percent of all counterfeit products seized – the second-highest total of any category. More than 80 percent of these sub-standard, unsafe products originated in China and have started finding their way to the United States, Canada and Western Europe while continuing to have a strong presence in Africa, Asia, Latin America and the Middle East.
The manufacture and sale of counterfeit products is a crime involving the theft of intellectual property rights including patents, trademarks, and copyrights.
Counterfeiting of electrical products is a practice that inflicts harm in a number of very important ways in our industry. It affects the manufacturers as it takes away business, profits and jobs by bringing inferior and falsely-labeled products into a country or region. Also, if not stopped, it gives the manufacturer a bad reputation as the counterfeit products are illegally labeled with a reputable manufacturer’s brand, and the products will not serve the purpose for which it is labeled.
Counterfeit electrical products affect electrical distributors in much the same way as the manufacturer, but the distributor can also be held responsible for the failure of the counterfeit product they’ve sold. However, the most important issue with counterfeit products is that they affect the consumer since these products are not fit for the purpose intended and can cause property damage and personal harm.
Eaton is committed to stopping counterfeiting of electrical products worldwide. The initiatives we are undertaking and the dangers of these illegal products are spelled out below. I encourage you to read this position paper and be on guard for counterfeit products and, perhaps most importantly, to not to buy from gray market or unauthorized dealers. The only way to guarantee you are getting genuine electrical products is to buy them from an authorized manufacturer, dealer or distributor.
WHAT IS A COUNTERFEIT?
A counterfeit is a product, service, or package for a product that uses, without authorization, the trademark, service mark, or copyright of another with intent to deceive prospective customers into believing that the product or service is genuine.
Counterfeits are often referred to as “knock-offs,” “replicas,” “imitations,” “fakes,” or “look-alikes.” The counterfeit may also violate patent rights. In order to deceive the public, the counterfeit will contain the trademark or service mark of a well-recognized brand or use the appearance of a well-recognized article, which may not include the tags or labels.
WHAT IS EATON DOING ABOUT THIS PROBLEM?
Eaton’s electrical business has adopted a zero tolerance policy for counterfeiting and is committed to anti-counterfeiting technologies and programs. Eaton has established a Global Task Force to coordinate anti-counterfeit initiatives across global markets. The task force develops programs and methods to influence and train customs groups, law enforcement, distributors and customers intended to thwart counterfeiting. Other efforts to combat counterfeiting include:
- Developing an extensive anti-counterfeiting Web site. (www.eaton.com/counterfeit)
- Partnering with the electrical industry and governments worldwide to prevent the flow of counterfeit products at borders and halt production at its source.
- Collaborating with electrical manufacturers, suppliers and government on enforcement and best practices.
- Implementing communications support for these anti-counterfeiting initiatives.
Eaton has implemented many enforcement actions with the assistance of trade organizations such as British Electrotechnical and Allied Manufacturers Association (BEAMA), National Electrical Manufacturers Association (NEMA), and the Quality Brands Protection Committee, and in cooperation with law enforcement authorities, including U.S. Customs, U.S. Immigration and Customs Enforcement, U.S. Department of Homeland Security, Chinese authorities and the Royal Canadian Mounted Police.
Acting in cooperation with BEAMA, Eaton has been successful in conducting searches and seizures in China, the Middle East and Africa. These programs have identified hundreds or possibly thousands of breakers and electrical components that have been seized and destroyed.
Eaton has been involved with NEMA and BEAMA in creating a campaign to raise awareness of counterfeits, which is directed to consumers, contractors and distributors.
WHAT CAN I DO TO PROTECT MYSELF FROM COUNTERFEITS
The best way to avoid counterfeit electrical products is to purchase products from the manufacturer’s authorized distributors or resellers. Always consider the following:
- Stopping the sale of counterfeit products is everyone’s responsibility. The manufacturers, distributors, resellers (authorized and unauthorized) and customers alike.
- There is a higher risk of counterfeits if one cannot trace the path of commerce to the original manufacturer.
- If the price for a product seems too good to be true, there is a chance it’s a counterfeit.
- If you have reason to suspect you’ve purchased a counterfeit contact the manufacturer. Contact Eaton at unauthorizedproducts@eaton.com.
Eaton is committed to leading initiatives to protect public health and safety. In doing so, we are also helping to ensure that investments made by legitimate companies in product development yield returns which allow them to continue their essential roles in a world where demand for electricity is expected to increase by more than 80 percent over the next 20 years.
ABOUT EATON
Eaton Corporation is a diversified power management company with 2009 sales of $11.9 billion. Eaton is a global technology leader in electrical components and systems for power quality, distribution and control; hydraulics components, systems and services for industrial and mobile equipment; aerospace fuel, hydraulics and pneumatic systems for commercial and military use; and truck and automotive drivetrain and powertrain systems for performance, fuel economy and safety. Eaton has approximately 70,000 employees and sells products to customers in more than 150 countries.
