Toner News Mobile › Forums › Toner News Main Forums › HP TO SPEND $1B. ON CARTRIDGE SECURITY FEATURES
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AnonymousInactivehttp://www.itweb.co.za/sections/hardware/2009/0904201042.asp?O=FPTOP&S=Business&A=BUS
HP will spend over a $1 billion on new security features for its printing products
Johannesburg,
April 2009 – a cost it says will only increase in the next few years.
In response to the increasing sophistication of counterfeiters, the
company says this expenditure has become a necessity.“Ten to 15 years
ago, you could always tell if a product was real or not. Now they make
the product virtually the same and the customer is not convinced they
have bought anything other than the original,” says Tina Rose, EMEA
anti-counterfeit programme manager at HP.The company has introduced
colour-shifting technology to its security labels and says it will
change its packaging and introduce new security features every 12 to 18
months. The new label will cost the company twice the cost of its
previous label, but is an extra investment that Rose says is
essential.“Security labels have been counterfeited before. We’re hoping
this security label is difficult to counterfeit – but we are already
thinking of the next one. Someone will counterfeit it – even if they
don’t do it very well,” notes Rose.While she says the highest cost to
HP currently is damage to its reputation, global estimates show
possible large financial losses for the company. The Organisation for
Economic Co-operation and Development estimates the annual value of
international trade in counterfeit goods at $200 billion. The World
Customs Organisation and the International Chamber of Commerce estimate
5% to 8% of trade in brand-name goods occurs through illegal trades in
printing supplies.Rose says it’s not possible for the company to even
estimate how much this crime is costing it because it is still an
underground activity. “Counterfeiting is linked to organised crime. It
takes money, investment and time to do it. They create distribution
networks; they have people who refill and repack the goods and people
who sell them. In 95% of the cases, the printing supplies are bought
from businesses. It’s hugely organised.Regional solutions
HP
states that since 2008, local authorities have seized 150 681
counterfeit products in Egypt, Kenya, Nigeria and SA. The
anti-counterfeit programme implemented in Kenya was successful and a
local programme for SA will be implemented, says Rose. She adds that
this is expected to yield similar successes within the next six to nine
months.“It’s significant that we tackle it in all regions. Once we
identify resources with the necessary knowledge, we can then implement
a programme in a specific country, which will impact on local
businesses.”HP says that, according to its agreements with channel
partners, companies are subject to unannounced audits. Rose states
that, of the companies audited last year, 97% passed, while 3% failed –
mostly for refusing HP access to their premises.Harmless crime
Consumers
need to become extra vigilant, says Rose. Security labels should be
checked along with the quality of the packaging, while print cartridges
should be carefully examined and supplies should only be bought from
authorised sales channels.Despite attempts at tightening legislation,
the problem will continue to grow with changing attitudes, says
Rose.“Counterfeiting is still seen as a white-collar, victimless crime
and, in many countries, counterfeiters will receive short-term
sentences. It’s essentially – at the moment – a low-risk, high-profit
operation. It needs to be seen as a very serious crime, with serious
consequences – and not a victimless crime.” -
AuthorApril 28, 2009 at 12:25 PM
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