How Much Used IT Gear Is Counterfeit?How Much Used IT Gear Is Counterfeit?

Counterfeit gear casts a shadow over the used IT equipment market. Just how long a shadow is difficult to judge, however. Cisco-a popular target of counterfeiters-wouldn't provide any information on the amount of fake gear it thinks is on the market, or how much it has recovered.Meanwhile, independent resellers that sell used IT gear-and which are accused of being a major channel for counterfeit goods--acknowledge the problem, but want to downplay its severity.

So let's look to other sources. U.S. Customs and Border Protection seized $14.2 million worth of counterfeit computers and computer hardware in fiscal year 2006. That's up from $4.7 million in 2005-an increase of 197 percent. The agency didn't provide a breakout of product categories.

Although these figures don't tell us how much fake equipment made its way to the market, they do provide some solid ground for judging the extent of the problem.

Now let's look at another number, which comes from a 2005 report from the Alliance for Gray Market and Counterfeit Abatement (AGMA) and KPMG. Based on surveys from electronics industry executives, the report states "As many as one in ten IT products sold may actually be counterfeit." It also says that for certain segments, such as NICs, the percentage may be higher.

In my opinion that number should be taken with a grain-or maybe a shaker-of salt. Is it really possible that one of every ten CPUs, hard drives, NICs or line cards in your network is a fake? If so, it can only mean the OEMs have abysmal control over their manufacturing processes and laughable anti-counterfeit mechanisms in place.

While such alarmist figures call attention to the problem, they do little to help IT buyers grapple with it. So let's hear from you. Is the IT market awash in counterfeits? And are independent resellers to blame?