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AnonymousInactiveFraudsters Invade Cartridge Market
Nigeria
oct 07 Consumers and makers of printer cartridges are losing millions
of shillings to a vibrant counterfeiting industry that refills and
repackages them for resale in the local market as new products.Top
among the victims of this illicit trade are American technology firm
Hewlett Parkard (HP) and Epfon whose cartridges are popular in the
Kenyan market. The Government and its agencies are notable among the
consumers bled dry in the syndicate as bulk buyers.The scam revolves
around businessmen working in collaboration with secretaries,
messengers and other junior staff to get the empty cartridges and boxes
which they later use to repackage the recycled products for sale.Other
than recylcing, this syndicate uses its network of junior employees to
steal original cartridges from offices for resale at lower prices.To
sell these poor quality gadgets, the purveyors collude with purchasing
and accounting officers to supply them at a fee for their certification
as genuine products worth buying at market price.Also caught up in this
web are small consumers who end up buying the fake products that do
poor work in a shorter period.HP’s regional manager Kennedy
Mbwaya, however, reckons that the company is not against the refill
business but is opposed to those passing the refills as new products on
its brand name. He said the company knew of firms that refill the
cartridge for sale under a different brand name.”We are strongly
opposed to the group that uses our boxes to pass the refills as new
products,” Mr Mbwaya said.In Nairobi, the refilled catridge business
has a complex network. The small dealers converge at the city’s Globe
Roundabout with the used catridges and boxes to supply their bigger
counterparts. These items fetch between Sh50 and Sh300 depending on the
quality of the boxes and cartridges .The business is getting more
complex by the day as the group now orders the printing of HP or Epfon
boxes for repackaging, especially when they land a big supply order
with the government.One dealer told the Business Daily that
depending on the organisation one is supplying, it was possible for the
refillers to get returns at the rate of 10 times the cost of refill. If
one, for example, uses Sh1, 000 to refill and package a given
cartridge, such items can be resold at the price of Sh11, 000.”There is
money especially if you land a contract with the government. Some
government departments do not care so long as you give them their cut,”
said the source.”Mid months are our good days, we get lots of supply
from people working in these offices since they are broke and it’s that
time that we buy them cheaply.”The consumer’s troubles are deepened by
the fact that some of the fakes are imported, making it impossible to
spot the difference.Stanley Munyasya of Okiprint Stationaries
in Nairobi down town, says the company is losing business to dealers in
refills. While he stocks genuine cartridges, Mr Munyasya says most
neighbouring businesses deal in fakes mainly originating from China.He
says while an original HP laser Jet 92A will retail at Sh4,200 the
counterfeits go for Sh1,500.”You can’t tell the difference if you have
not been in this business for long.”He claims even custom officials
find it difficult to distinguish between the fakes and the originals.Mr
Fred Obuya who deals in original catridges says the problem with the
refills is that they don’t work at all or they give poor quality print
out.”While an original cartridge can give you up to 2,400 print copies,
the refills will give you half at poor quality ,” said Obuya.Our
sources said the ill business was thriving along Tsavo Avenue,
Kirinyaga and River road areas in Nairobi.Prospective buyers who
question the lower prices are challenged that the products come from
Dubai.Sadly, the syndicate is now sending authorised dealers out of
town, said Mbwaya.Proposed law
The absence of tough laws and
an agency to tackle counterfeiting has left offenders free to thrive in
this illegal trade that is estimated to be worth billions of shillings
annually.This situation is, however, bound to change should Parliament
enact a proposed Anti-Counterfeit Bill that spells out stiff penalties
especially for repeat offenders.According to the proposed Bill, any
person found guilty of possessing or in control of the process of
trading any counterfeit goods, faces a maximum of five years in jail or
a fine three times the retail price of the goods to which the offence
relates.If found guilty the second time then the Bill proposes that the
offender face a fifteen-year imprisonment or fine not less than five
times the value of the prevailing retail price.It also proposes the
formation of an agency that will handle issues related to
counterfeiting.Counterfeit goods have also found their way into
the country mainly from China through Dubai. Locally, the music
industry is so far the worst hit by piracy.The Bill stipulates that any
person found manufacturing, producing, packaging, re-packaging,
labeling or making in Kenya or elsewhere any goods protected or
imitated in such a manner that they are identical or substantially
similar then the person or persons are liable for the offence.It also
states that a person is liable to counterfeit offence if found guilty
of imitating through a calculated move to confuse consumers to buy the
products assuming they were the original products and which are
protected.Other than those manufacturing, the Bill also says those
found either selling, hiring or offering on display any counterfeit
goods or distributing counterfeits goods for the purpose of trade, can
be charged in a court of law.However, taking into account the number of
days investigations take in the country and the requirement by the Bill
that during the case hearing, the need to get the identity of the
persons involved in the importation , exportation, their addresses or
whereabouts, may end up being a tall order.Through the Copyright
Society of Kenya, a number of organisations have started taking the
issue of copy right infringement seriously.Apart from the musicians,
other companies like Microsoft have also taken the cue by seeking legal
redress about some computers sales they alleged infringed on their copy
rights. -
AuthorOctober 9, 2007 at 11:07 AM
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