Counterfeit Cisco hardware – Does it exist?
Okay, it’s a dirty and unpleasant subject, i.e. counterfeiting. This is a subject that Cisco is reluctant to talk about and one that many dealers do not wish to acknowledge. Why? Because the problem is growing and no one is sure how to handle it. It is an ugly fact but a true one. There is counterfeit Cisco hardware out there and the problem is only going to get worse. As a customer it is important to educate yourself because in this marketplace, it is truly caveat emptor or let the buyer beware.
History of counterfeiting product:
Counterfeiting of all products is rampant and is only going to get worse. Fake Gucci purses, Nike shoes and Rolex watches have long been counterfeit staples of the consumer market for years. However with the spread of globalization in the past decade, counterfeiting has become far more widespread and insidious than the public realizes. What about fake medication? Counterfeit baby formula? What about airline parts made from inferior high carbon steel? All airlines use refurbished parts bought on the secondary aircraft market and critical components have found their way into all major airlines. All of these instances of phony goods are real and there are many more examples.
Now lets talk specifically about Cisco. Counterfeiters start at the top of the market and copy the high end manufacturers first; hence the fake Gucci purses and Rolex watches. If anything, the fact that counterfeiters have settled on Cisco as the networking vendor of choice is a testament to Cisco’s dominance and desirability in the marketplace. After all, counterfeiters don’t bother to copy junk or second rate companies; they want to copy market leaders. It happens to be a very real problem and one that buyers of Cisco products need to be aware of.
A great deal of Cisco manufacturing is now done overseas, specifically in China. Cisco made a decision a decade ago to manufacture product in China as a way of cutting production costs. What has happened is that many of the companies that do the outsourcing for Cisco now run an extra shift and sell the now counterfeit hardware out the back door. After all, they have the manufacturing capability, the expertise and the full blessing of Cisco. The result? More and more counterfeit Cisco hardware is now showing up on American shores. Part of the problem is that China does not have strong intellectual property protection laws. This is a situation that Cisco and many other companies are still struggling to solve and one that does not promise to be resolved soon.
Warning signs of a possible counterfeited item:
If you are getting discounts of 40-55% off the list price for brand new hardware, i.e. sealed boxes, then it is a red flag. The largest of Cisco’s customers – the Bank of Americas, Ford Motor Company, United Airlines, AT&T, etc. get these discounts. You don’t. If it is any consolation, even dealers do not get the top corporate discounts.
While it is flattering and tempting to receive big discounts for new Cisco hardware, it is also unrealistic and should be treated with the utmost caution.
Ask what the retail price is and compare it to the price you are being quoted. If you are getting a 15-25% discount from the list price for new/sealed hardware, then you are being quoted a fair and realistic price. Expect a reasonable discount, however; too big a discount often spells trouble.
Another sign to be aware of is the receipt of unsolicited email from unknown dealers offering you Cisco hardware at very good prices. This warning is doubly true if the email or company originates from mainland China.
How to protect yourself:
Buy Cisco hardware from a known dealer. Ask/investigate the following questions: What is the dealer’s reputation? How long have they been in business? Are they willing to provide references? Are they willing to guarantee that a part is genuine Cisco? If necessary, call Cisco and ask if they are a dealer in good standing. Ask for a guarantee in writing and one that is signed by the dealer that they are willing to take the product back if it is later determined that the product turns out to be counterfeit. Be sure that no re-stocking fee or other charges or "handling fees" will be assessed. Be aware of what product and part numbers are being counterfeited (see next point).
Ask the dealer/reseller if they are a genuine Cisco authorized dealer. If they hesitate, consider it a reason to be cautious. Get the name, URL, phone number, and email of the organization and contact Cisco directly to enquire if the purported dealer is legitimate.
List of known counterfeit Cisco product by part number:
The last 18 months have seen an acceleration of Cisco counterfeiting – particularly of network modules, WAN interface cards, GBICs as well as the less expensive routers.
The following list is of known Cisco counterfeit hardware by part numbers. This is not a complete list; unfortunately it is added to monthly as the counterfeiters work their way up the product line.
If you are interested in a Cisco part number and it appears on this list, then consider taking the steps outlined in this article.
How do you know that your Cisco product is counterfeit?
When the product fails and you attempt to get it repaired/replaced under warranty, Cisco will notify the end user that it is not a valid Cisco product.
Another way that the end user finds out in advance of a product failure is when they go to register the product with Cisco (for example, the customer buys a SmartNet Maintenance contract) and they are informed that the serial number is already registered to another end user. What is insidious about the counterfeiters is that the serial numbers are often valid Cisco numbers; they just happen to rightfully belong to someone else.
Cisco’s policy on counterfeiting:
The following 2 articles details Cisco’s aggressive new policy towards counterfeit manufacturers as well as those Cisco resellers who knowingly resell those products. The operative word here is “knowingly.” If you happen to purchase a Cisco product and it turns out to be counterfeit, don’t automatically assume that the dealer did so consciously. The counterfeiters, while engaging in illegal activity, are also very good at what they do. The hardware, packaging, manuals, even the holograms are increasingly sophisticated and knowledgeable people can be fooled.
Ask for a guarantee in writing:
Get a guarantee signed and dated with the serial number on the invoice from your networking dealer that if a Cisco part proves to not be genuine that it will be refunded in full without any restocking fees or special handling charges.
Keep one fact in mind – If a Cisco dealer sells you a part that turns out to be counterfeit, do not immediately assume the worst and accuse the dealer of selling you bad gear. The quality of counterfeits is very good and getting better all the time. Most dealers are honest. Should this happen, go back to the dealer that you purchased it from and simply remind them that you have a written and signed guarantee (you did get that written agreement before you purchased that router, didn’t you?).
What to do if you have been offered or sold counterfeit Cisco hardware:
Contact the dealer that you bought the product from. Explain the product is not genuine Cisco and that Cisco has already confirmed this. Give him a chance to explain and that you expect a complete refund. If necessary, remind him of the signed guarantee that you previously asked for.