Counterfeit electronic components flooding US military supply chain

According to Senate Armed Services Committee Chairman, Carl Levin, committee investigators identified about 1800 cases involving 1million counterfeit parts since 2009. He warned that the numbers were, 'just the tip of the iceberg'. "If China will not act promptly then we should treat all electronic parts from China as suspected counterfeits," he said. "There's a flood of counterfeit parts entering the defence supply chain. It is endangering our troops and it is costing us a fortune." Levin estimates that counterfeit components cost the US electronics industry around $7.5billion a year. "What is damaging to US-China relations isn't our investigation, it's China's refusal to act against brazen counterfeiting which endangers our troops and our missions." A US intelligence report has concluded that China is the most active and persistent country using cyber espionage to steal US trade and technology secrets. Senator John McCain, the top Republican on the committee said that measures were being considered to address the issue, including amendments that would mean contractors would be held responsible for the cost of replacing any fake components. "We can't tolerate the risk of a ballistic missile interceptor failing to hit its target, a helicopter pilot unable to fire his missiles, or any other mission failure because of a counterfeit part," said McCain. "If you put the onus on all of our contractors, which we should do, to make sure that the parts that are being supplied are legitimate parts, they will get that message back to their suppliers as well." He claimed that China was 'falling short in certain important areas of its obligations as a responsible stakeholder in the international system'. The UK Intellectual Property Office estimates that counterfeiting and piracy costs the UK at least £9billion a year, while the US Patent and Trademark office has revealed that 9% of all counterfeit goods seized are electronic in nature. Taken together, these figures indicate that the value of counterfeit electronic goods entering the UK could be up to £1bn. More on counterfeit components.