1986 – China's quest began for admission to the World Trade Organization (WTO)
1995 - The Internet was commercialized
1995 (March 1) – Yahoo incorporated
1995 - Electronic Resellers Association Inc. (ERA) founded
- Information Sharing
Most Common Complaint types:
- Cancelled Purchase Orders
- Past Due Invoices
- NSF Checks
1998 – Google incorporated as a privately held company
The company's mission statement: "To organize the world's information and make it universally accessible and
1998 - Electronic Resellers Association International Inc. (ERAI)
Name changed to reflect ERA had become an internationally recognized organization.
Google made the world a much smaller place.
International trade became readily available for everyone; not just large corporations.
2001 (November) – China Admitted to the WTO
"A monumental change to the world trading system."
"An event of historic proportions for the world trading system."
- Kofi Annan, UN Secretary General
"I believe that as this century unfolds and people look back on this day, they will conclude that in admitting China to the
we took a decisive step in strengthening the global economic trading system."
- Robert Zoellick, US Trade Representative
"Just like every member of the WTO, China will have to deliver on its commitments, and we will be watching this very
-Pascal Lamy, EU trade commissioner
2001 (November 29) – ERAI receives first nonconforming part complaint against a China-based distributor
3A Century aka Gold Advanced aka JXJ
Part number: TCM3105DW
Description of the product nonconformance:
Parts arrived in Samsung tubes (ordered TI parts). Numerous mixed date codes arrived in a single tube. Solder splash present on part leads.
were 'wash marks' and smears on the upper surface of the chip.
Within a few months, Chinese distributors began refurbishing and remarking parts to have consistent date and lot codes in order to pass used parts
off as new.
2002 (January) – ERAI Launches High Risk / Suspect Counterfeit Part Database
2002 (April 19) - ERAI Industry Advisory Committee formed; we saw it coming...
- Ethical standards in the industry
- Counterfeit/Substandard parts
- ERAI’s role now and in the future
- Negative advertising campaigns launched by AGMA & NEDA
2003 (March 1) – IDEA Public Launch
ERAI Executive Conference, Las Vegas, NV
- Promote the independent distribution industry through a media advocacy campaign.
- Improve the quality of products and services through a quality certification program, educational seminars and conferences.
- Promote the study, development and implementation of techniques and methods designed to improve the business of independent
2003 (March 31) – GIDEP Alert number CE9-A-03-02 issued by Texas Instruments
"Texas Instruments has received notice of counterfeit devices bearing the TI trademark and part number being sold through various brokers who are not
authorized TI distributors.
In this specific case, the devices are marked as 5962-8961405QXCA and SMJ27C010A-15JM, date code 9939A1, and country of origin as Singapore. TI production
Singapore was terminated prior to this date. The devices in question contain SGS-Thompson die and will not program correctly using the TI part number.
Note that Austin Semiconductor Incorporated acquired the TI military memory product line and currently supplies product under the ASI trademark. Per ASI,
ASI 27C256 devices are manufactured using authentic TI die."
2003 (April 15) – GIDEP Alert number B8-A-03-01 issued by Textron Systems
"Textron Systems has experience a high failure rate of parts marked LT1097S8 with a date code of 0103 and a Linear Technology Corp. logo. Four parts
were returned to Linear Technology Corp (LTC) for failure analysis. LTC has informed Textron Systems that the parts are counterfeit. Textron Systems had
purchased the parts through a distributor that was not franchised by LTC.
LTC electrically tested the parts and confirmed the failures as catastrophic. LTC performed visual and DPA analysis. They discovered that the top of the
parts appeared to have been sanded down and remarked. The back-marks on the part indicate the units were manufactured over eight years ago and are
inconsistent with the year 2001 date code on top of the parts. DPA revealed that the bond and probe metallization had been severely corroded."
2004 (January) – ERAI travels to China
2004 (January 27) – Secretary of Defense releases Memo for Service Acquisition Executives
Subject: Encouraging Industry Participation in the Trusted Foundry Pilot Program
Back door threats realized….counterfeits not the only problem!
2006 (October) - IDEA releases IDEA-STD-1010-A-Acceptability of Electronic Components Distributed in the Open Market
Standard specifically written to identify nonconforming/suspect counterfeit parts
"Counterfeits have a name and a face!"
2006 (November 29) – Counterfeit Components Detection & Prevention Symposium hosted by Component Technology Institute (CTI)
(attended by Phil Zulueta who later becomes SAE Aerospace G-19 Committee Chairman.)
2006 (December) – ERAI’s Second Investigative Trip to China
Investigation specific to the handling of OEM excess by Chinese based OEMs and CMs.
2007 (May) – Electronic Resellers Association International Inc. is renamed ERAI Inc. (the term “resellers” removed as ERAI
moves to share services with the entire supply chain). Membership no longer restricted to distributors only. Database opened to OEMs, CMs, US Government
Agencies, law enforcement, etc.
2007 (June) - the U.S. Department of the Navy, Naval Air Systems Command (NAVAIR) asked the Bureau of Industry and Security’s
(BIS) Office of Technology Evaluation (OTE) to conduct a defense industrial base assessment of counterfeit electronics. NAVAIR suspected that an increasing
number of counterfeit/defective electronics were infiltrating the DOD supply chain and affecting weapon system reliability.
The committee was tasked with developing a document that would standardize requirements, practices and methods related to counterfeit
parts risk mitigation.
2007 (September) - The L-3 Counterfeit Parts Team was established to define and provide guidelines for managing and
the risks associated with counterfeit parts.
OEMs ramping up awareness and avoidance efforts
- U.S. and European customs launched “Operation
” resulting in the seizure of over 360,000 counterfeit
ICs that were destined for U.S. and European markets.
Enforcement is engaged
AIA Counterfeit Parts IPT Plan of Action
To address the challenges of today’s supply chain environment, AIA has established a Counterfeit Parts Integrated Project Team (IPT). The AIA Counterfeit
Parts IPT is working in concert with government agencies, original manufacturers, industry associations and independent distributors.
Objectives of the IPT are to:
1. Engage the U.S. government in discussions concerning acquisition and procurement policies to avoid introducing counterfeit parts and materials into
aerospace, space and defense products
2. Create a set of standards for government and industry to ensure that the risk of introducing counterfeit parts and materials is minimized, is consistent
with risks accepted by the customer and implementable without sacrificing the benefits of buying commercially available products
3. Engage the U.S. government in discussions concerning enforcement of policies to avoid the introduction of counterfeit products into the U.S.
Significance = National & International Media Coverage
2009 (April) – SAE AS5553 Published
2009 (August) – SAE AS5553 adopted by the DOD
2009 (October 9)
– Mustafa Aljaff – MVP Micro /Indictment
2009 (November) – Counterfeit electronics survey initiated by the U.S. Dept. of Commerce, the Bureau of Industry and Security
(BIS), and the Office of Technology Evaluation (OTE).
Counterfeit electronics report was released by the U.S. Dept. of Commerce, the Bureau of Industry and Security (BIS) and the Office
Technology Evaluation (OTE).
The veil was fully lifted.
Purpose: The purpose of this study is to provide statistics on the extent of the infiltration of counterfeits into U.S. defense and industrial
chains, to provide an understanding of industry and government practices that contribute to the problem, and to identify best practices and recommendations
for handling and preventing counterfeit electronics.
- The 2010 Joint
Strategic Plan on Intellectual Property Enforcement
submitted to the President of the United States and Congress states the U.S. Government shall:
"establish a government-wide working group tasked with studying how to reduce the risk of the procurement of counterfeit parts by the U.S.Government." The
Administration also called for increased criminal penalties for such offenses.
2010 (September 14)
- Shannon Wren and Stephanie McCloskey (VisionTech) Press Release / Indictment
– Supply & Demand Chain Executive Special Edition - Supply Chain RISK
2011 (March) - Senators Levin & McCain announced a Senate Armed Service Committee (SASC) investigation into counterfeit
electronic parts and the risks they pose to the Department of Defense (DOD) supply chain.
Counterfeit parts impact 40% of Pentagon’s Supply Chain according to U.S. Commerce Dept study.
Senator Brown (OH) recommends DOD cancel supplier contracts when counterfeits are found in their supply chain.
2011 (July) - The UK Ministry of Defence formed a Counterfeit Awareness Working Group (CAWG) to assess whether or not counterfeit components had been incorporated in aircraft or military equipment manufactured in the United Kingdom.
2011 (November 29) - The Whitehouse measure was amended to the McCain / Levin Bill and then unanimously approved by the
It moved to the House for discussion.
2011 (December 20)
– SAE ARP6178
Electronic Parts; Tool for Risk Assessment of Distributors was published.
2011 (December 31) – Measure signed by President Obama - 2012 National Defense Authorization Act (Sec. 818) Detection and
Avoidance of Counterfeit Electronic Parts.
– SAE G-19T – AIR6273
Terms and Definitions
subcommittee was formed: Terms and Definitions - Fraudulent/Counterfeit Electronic Parts
2012 (November 7)
- Fraudulent/Counterfeit Electronic
Parts: Avoidance, Detection, Mitigation, and Disposition -
Distributors released by SAE Aerospace
2013 (January 1)
– H.R. 4310 National Defense Authorization Act for Fiscal Year 2013
signed into law (Public Law No: 112-239).
(Sec. 833) Amends the NDAA for Fiscal Year 2012 to provide an exception, in limited circumstances, to the prohibition as allowable contractor costs the cost of counterfeit and suspected counterfeit electronic parts and rework or corrective action with respect to such parts.
- SAE G-19-AD subcommittee formed
Fraudulent/Counterfeit Electronic Parts: Avoidance, Detection, Mitigation, and Disposition - Authorized/Franchised Distribution
2013 (May 22)
– U.S. Customs and Border Protection successfully completes "Operation Core Systems"
- 480 shipments of
potentially harmful counterfeit electronic components seized
2013 (June 12)
- United States of America v. Hao Yang (MS
– First individual to be indicted under the relatively new charge of trafficking in counterfeit military goods, a federal crime enacted
as part of the National Defense Authorization Act of 2011 (Conspiracy to Traffic in Counterfeit Goods and Counterfeit Military Goods, 18 U.S.C. 2320).
2013 (August 25)
- The National Institue of Standards and Technology (NIST) proposes a new cybersecurity control overlay for federal agency supply chain risk management in NIST Special Publication 800-161
2013 (December 11)
- Xilinx, Inc. v. Flextronics
Xilinx Inc. filed a lawsuit in a California court against Flextronics International Ltd., alleging the contract manufacturer resold
chips it purchased from the semiconductor vendor at a premium to other customers. The FPGA manufacturer also charged Flextronics with dealing in "gray
market and counterfeit" Xilinx products, according to the filing with the Superior Court of California, County of Santa Clara.
2013 (December 26)
- H.R. 3304 National Defense Authorization Act for Fiscal Year 2014
signed into law (Public Law No: 113-66).
(Sec. 803) Directs the Secretary to implement a process for the expedited identification and replacement of obsolete electronic parts included in DOD acquisition programs.
- National Aeronautics and Space Administration Authorization Act of 2014- SEC. 712. Detection and Avoidance of
Counterfeit Electronic Parts - The House of Representatives passed new NASA counterfeit parts legislation. If passed by Congress and the President, Section 712 of the NASA Authorization Act of 2014
would require that the
NASA Supplement to the FAR be revised to address the detection and avoidance of counterfeit electronic parts.
2014 (July 7)
- The Office of the Under Secretary of Defense for Acquisition, Technology, and Logistics releases the Assured Microelectronics Policy
report in response to Senate Report 113-85, page 179, accompanying S. 1429, the Department of Defense Appropriations Bill, 2014, SAC-D which, "provides a strategy for acquisition programs to integrate robust systems engineering, supply chain risk management (SCRM), security, counterintelligence (CI), intelligence, information assurance, software assurance, and hardware assurance (with an emphasis on microelectronics) for managing risks to system integrity and trust."
2014 (July 10)
- The UK MOD releases Defence Standard 05-135
– Avoidance of Counterfeit Materiel Issue 1. This Defence Standard defines the arrangements that a supplier is required to establish to demonstrate that they are actively planning and managing the risk of counterfeit materiel in their supply chain to prevent delivery of such materiel to the MOD.
2014 (July 30)
- SAE publishes AS6174A
– Counterfeit Materiel; Assuring Acquisition of Authentic and Conforming Materiel.
2014 (August 20)
- SAE publishes AS6496
– Fraudulent/Counterfeit Electronic Parts: Avoidance, Detection, Mitigation, and Disposition – Authorized/Franchised Distribution.
2014 (November 13)
- The US Nuclear Regulatory Commission (NRC) officially launched its Counterfeit, Fraudulent, and Suspect Items (CFSI)
public webpage. The site is intended to help all interested parties quickly locate counterfeit, fraudulent, and suspect items (CFSI) information relating to NRC regulated activities spanning a period of approximately 30 years.
2014 (December 4)
- H.R.5793 - Cyber Supply Chain Management and Transparency Act of 2014
(H.R.5793 — 113th Congress (2013-2014)) is introduced to require the Office of Management and Budget (OMB) to issue guidelines for agencies that contract to acquire software, firmware, or products containing a third party or open source binary component.
2014 (December 12)
– Jeffrey Warga pleads guilty to one count of conspiracy to commit wire fraud
. Warga and others engaged in a scheme to defraud their business customers, including a Connecticut company, by falsely representing that the electronic parts they sold were not from Asia when, in fact, the parts had been purchased from companies located in Asia; were new parts from the original manufacturer when, in fact, the parts were used; and were authentic parts when, in fact, Warga and his co-conspirators knew the parts were counterfeit parts.
2015 (January 7)
- The Defense Department’s top acquisitions official releases a new version of the acquisitions corps’ guiding document: Department of Defense Instruction 5000.02
, Operation of the Defense Acquisition System, which emphasizes that acquisitions programs should be tailored to the product being acquired.
2015 (April 22)
- The Secretary of the Navy issues SECNAV Instruction 4855.20
to establish Department of the Navy (DON) policy to prevent the introduction of counterfeit materiel into DON systems. It applies to all phases of life cycle management, from identifying an operational requirement, introducing an item into the supply chain, system operations and maintenance, through phase out and retirement.
2015 (June 11)
- Alexander Brazhnikov Jr. admitted his role
in an international procurement network that obtained and smuggled more than $65 million worth of electronics from the United States to Russia in violation of export control laws by pleading guilty to one count of conspiracy to commit money laundering, one count of conspiracy to smuggle electronics from the United States and one count of conspiracy to violate the International Emergency Economic Powers Act (IEEPA).
2015 (July 3)
- In order to support consistent interpretation of UK Defence Standard 05-135, the UK MOD Counterfeit Avoidance Working Group (CAWG) issues the Counterfeit Avoidance Maturity Model version 1.0
support document for auditors assessing compliance with the requirements of the Standard.
2015 (July 6)
- In compliance with DoDI 4140.67, "DoD Counterfeit Prevention Policy" (Reference (b)) and Section 818, Public Law 112-81 of the “National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2012” (Reference (d)), DCMA develops DCMA-INST 1205 – Counterfeit Mitigation Instruction
to enhance surveillance activities.
2015 (October 26)
- Alexander Posobilov, Shavkat Abdullaev and Anastasia Diatlova were convicted
of conspiring to export, and illegally exporting, controlled microelectronics to Russia. The defendants, all of whom worked at Arc Electronics Inc. (Arc), a Houston-based corporation, and eight other individuals were originally charged in October 2012. Five members of the conspiracy, including Arc owner Alexander Fishenko, previously pleaded guilty to related charges.
2015 (November 25)
- S.1356 National Defense Authorization Act for Fiscal Year 2016
signed into law (Public Law 114-92).
(Sec. 238) Requires DOD to conduct a hardware assurance study to assess the presence, scope, and effect on DOD operations of counterfeit electronic parts that have passed through the Department supply chain and into fielded systems.
(Sec. 885) Expands the eligibility for contractors to include costs for rework and corrective action related to counterfeit electronic parts as allowable costs under DOD contracts. Permits DOD to approve industry-selected trusted suppliers.
2015 (December 11)
- Jeff Krantz sentenced
to three years’ probation, fined $100,000 and ordered to pay $402,650.00 in restitution for supplying the U.S. military with mislabeled microchips.
2016 (January 21)
- Jeffrey Warga was sentenced
to three years of probation and was ordered to pay a $10,000 fine for supplying customers and the US military with falsely remarked microprocessor chips.
2016 (February 16)
- GAO report GAO-16-236
recommends that DOD oversee its defense agencies’ reporting efforts, develop standard processes for when to report a part as suspect counterfeit, establish guidance for when to limit access tor GIDEP reports, and clarify criteria to contractors for their detection systems.
2016 (March 18)
- JEDEC, an international standards body, publishes JESD243
which identifies the best commercial practices for mitigating and/or avoiding counterfeit products by all manufacturers of electronic parts.
2016 (July 21)
- Arc Electronics Inc. founder Alexander Fishenko is sentenced to 10 years
in a U.S. prison after he pleaded guilty to charges including conspiracy, acting as an unregistered agent of the Russian government and the illegal export of sophisticated microelectronics.
2016 (October 1)
– IPC publishes IPC-1782
: Standard for Manufacturing and Supply Chain Traceability of Electronic Products to help establish minimum requirements for manufacturing and supply chain traceability based on perceived risk as agreed between user and supplier
2016 (October 30)
- SAE AS6171
is published. This SAE Aerospace Standard (AS) standardizes inspection and test procedures, workmanship criteria, and minimum training and certification requirements to detect Suspect/Counterfeit (SC) Electrical, Electronic, and Electromechanical (EEE) parts.
2016 (December 23)
- S.2943 National Defense Authorization Act for Fiscal Year 2017
signed into law (Public Law No: 114-328). (Sec. 815) Revises requirements for the detection and avoidance of counterfeit electronic parts to require contractors and DOD to meet certain requirements using "suppliers that meet anticounterfeiting requirements" rather than "trusted suppliers."
2017 (January 13)
- U.S. Customs and Border Protection (CBP) and U.S. Immigration and Customs Enforcement (ICE) seized a record number of shipments
containing goods that violated Intellectual Property Rights (IPR) in FY2016.
2017 (February 7)
- The Secure E-Waste Export and Recycling Act (SEERA)
was reintroduced as H.R. 917 by Representatives Republican Paul Cook and Democrat Gene Green. If passed and signed into law by President Trump, the bill will ensure electronic waste does not become a source of counterfeit electronic parts which then re-enter the supply chain.
2017 (February 28)
- Alexander Posobilov, the former Procurement Director of Arc Electronics, was sentenced to 135 months' imprisonment
followed by 3 years’ of supervised release after a jury trial. Posobilov was found guilty of exporting controlled microelectronics to Russia in violation of the International Emergency Economic Powers Act (IEEPA) and the Arms Export Control Act (AECA) and for money laundering conspiracy.
- The Defense Science Board, an advisory committee established to provide advice to the Secretary of Defense, releases a Report of the Defense Science Board, Task Force on Cyber Supply Chain
providing a critical analysis and 25 recommendations to address cyber vulnerabilities in the DoD’s weapon systems supply chain and sustainment programs.
2017 (June 26)
- ERAI launches InterCEPT
, a web-based counterfeit avoidance training program designed exclusively for professionals with roles in manufacturing, management, procurement, logistics, distribution, or otherwise serving or engaged with the electronics industry.
2017 (August 3)
- Peter Zuccarelli pleaded guilty
to conspiring to smuggle and illegally export radiation hardened integrated circuits (RHICs) for use in the space programs of China and Russia, in violation of the International Emergency Economic Powers Act (IEEPA).
2018 (April 6)
- United States Department of Veterans Affairs (VA) proposes to amend and update its VA Acquisition Regulation (VAAR)
to require that contractor purchasing system reviews focus special attention on whether the contractor has implemented a counterfeit electronic part detection and avoidance system to ensure that counterfeit electronic parts do not enter the supply chain.