THIS DOCUMENT IS NOT FOR SUBMISSION - EXCEL ONLY!

THIS DOCUMENT IS NOT FOR SUBMISSION - EXCEL ONLY!

Next PageOMB Control Number: 0694-0119

Expiration Date: 12/31/08

DEFENSE INDUSTRIAL BASE ASSESSMENT:Counterfeit Electronics - Original Component Manufacturers

SCOPE OF ASSESSMENTThe U.S. Department of Commerce, Bureau of Industry and Security (BIS), Office of Technology Evaluation (OTE), in coordination with the U.S. Department of the Navy, Naval Air Systems Command (NAVAIR), is conducting a defense industrial base assessment regarding the infiltration of counterfeit electronics into military and related industrial supply chains. The principal goal of this assessment will be to quantify reported counterfeits, document industry and government procurement and business practices that contribute to counterfeit product infiltration and, identify best practices employed to prevent counterfeit products from penetrating critical supply chains.

RESPONSE TO THIS SURVEY IS REQUIRED BY LAWA response to this survey is required by law (50 U.S.C. app. Sec. 2155). Failure to respond can result in a maximum fine of $10,000, imprisonment of up to one year, or both. Information furnished herewith is deemed confidential and will not be published or disclosed except in accordance with Section 705 of the Defense Production Act of 1950, as amended (50 U.S.C App. Sec. 2155). Section 705 prohibits the publication or disclosure of this information unless the President determines that its withholding is contrary to the national defense. Information will not be shared with any non-government entity, other than in aggregate form. The information will be protected pursuant to the appropriate exemptions from disclosure under the Freedom of Information Act (FOIA), should it be the subject of a FOIA request.

Not withstanding any other provision of law, no person is required to respond to nor shall a person be subject to a penalty for failure to comply with a collection of information subject to the requirements of the Paperwork Reduction Act unless that collection of information displays a currently valid OMB Control Number.

BURDEN ESTIMATE AND REQUEST FOR COMMENTPublic reporting burden for this collection of information is estimated to average 10 hours per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of information to BIS Information Collection Officer, Room 6883, Bureau of Industry and Security, U.S. Department of Commerce, Washington, D.C. 20230, and to the Office of Management and Budget, Paperwork Reduction Project (OMB Control No. 0694-0119), Washington, D.C. 20503.

Next PageBUSINESS CONFIDENTIAL - Per Section 705(d) of the Defense Production Act

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Previous Page Next PageSection II Who Must Respond to This SurveyPlease select the description that most closely reflects your company's operations from 2005 - 2008:1. My company is a manufacturer of integrated circuit products (microcircuits).2. My company is a manufacturer of discrete electronic components.

IMPORTANTIf your company manufactures both discrete electronic components and integrated circuit products, it will be necessary to complete separate surveys for each of these respective business activities. We will e-mail you separate IC related and Discrete-related survey forms in Excel format.

Please contact our office for assistance.

Teresa Telesco, Trade and Industry Analyst at 202-482-4959Ryan Barnes, Trade and Industry Analyst at 202-482-2397Mark Crawford, Senior Trade and Industry Analyst at 202-482-8239

E-mail: [email protected]

3.

Briefly explain the products and/or services provided by your company in the space below:

If you selected "No" for questions 1-2, please call one of the BIS contacts listed in the "General Instructions" section.Previous Page Next Page

BUSINESS CONFIDENTIAL - Per Section 705(d) of the Defense Production Act

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Previous Page Next PageSection III Table of Contents

I Scope of AssessmentII Who Must Respond to this SurveyIII Table of ContentsIV General InstructionsV Important NotesVI Definitions1 Company Information2 Operations3 Counterfeit Parts Issues

4.a Inventory Control - General4.b Inventory Control - Internal4.e Inventory Control - Authorized Distributors4.f Inventory Control - Counterfeit Handling4.g Inventory Control - Counterfeit Notification5 Reasons for Counterfeit6 Costs of Counterfeit7 Anti-Counterfeit Best Practices8 Certification

Previous Page Next PageBUSINESS CONFIDENTIAL - Per Section 705(d) of the Defense Production Act

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Previous Page Table of Contents Next PageSection IV General Instructions

A.

Your company is required to complete this survey using an Excel template, which can be downloaded from the BIS website. At your request, BIS staff will e-mail the Excel survey template directly to your company. For your convenience, a PDF version of the survey is available on the BIS website to aid internal data collection. PLEASE DO NOT submit the PDF version of your company’s response to BIS.

B.If information is not available from your records in the form requested, you may furnish estimates. Please indicate in the comment box on the page when you use an estimate.

C.

Questions related to this questionnaire should be directed to:

Teresa Telesco, Trade and Industry Analyst, (202) 482-4959Ryan Barnes, Trade and Industry Analyst, (202) 482-2397Christopher Nelson, Trade and Industry Analyst, (202) 482-4727Mark Crawford, Senior Trade and Industry Analyst, (202) [email protected]

For information on OTE’s defense industrial base surveys, please contact:

Brad Botwin, Director, Industrial Studies, at [email protected] or (202) 482-4060

D. Upon completion, review and certification of the survey, transmit the survey via e-mail to [email protected].

E.

For letter correspondence to the Office of Technology Evaluation (OTE), please write to:

Brad Botwin, Director, Industrial StudiesOffice of Technology Evaluation, Room 1093U.S. Department of Commerce1401 Constitution Avenue, NWWashington, DC 20230

Please do not submit completed surveys to this address; all surveys must be submitted electronically.Previous Page Table of Contents Next Page


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Previous Page Table of Contents Next PageSection V IMPORTANT INSTRUCTIONS

A.

All questions must be answered for survey submissions to be accepted. Incomplete surveys will be returned to the sender for completion. All response boxes must be completed - for "Yes/No" questions, a blank response will not be counted as a "No." Please fill in all "No" responses as appropriate.

Exceptions include: 1) Responses to "Comments" fields if you have none related to that page. 2) Responses to explanation questions beginning with "If you answered 'Yes'..." if you answered "No."

B.Do not copy and paste responses within this survey. Responses should be made manually. Copy and paste can disrupt the data collection process. If your survey response is corrupted as a result of copying and pasting responses, a new survey will be sent to you for completion.

Previous Page Table of Contents Next PageBUSINESS CONFIDENTIAL - Per Section 705(d) of the Defense Production Act

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Previous Page Table of Contents Next PageSection VI Definitions

After-Market ManufacturerA company engaged in the manufacture of electronic products initially produced by another company – and wherthe supply of such parts may or may not continue to be produced by the original manufacturer.

ArsenalAn establishment for the manufacture and/or storage of military equipment, weapons, and related parts and materials.

Assembled Board An engineered circuit board populated with electronic components that forms a working system or subsystem.

Authorized DistributorA company that is authorized by an Original Component Manufacturer (OCM) or Original Equipment Manufacture(OEM) to market, store, and ship OCM/OEM products subject to legal conditions set by manufacturers.

Bare Electronic BoardAn engineered circuit board with defined printed circuits on one or more layers of the board that serves as the foundation for integrating electronic components into a working system or subsystem.

BrokersCompanies/individuals engaged in the marketing of electronic parts, often scarce parts. Brokers frequently do not actually possess in inventory the parts being sought, but act as “middle men” to arrange the sale of the part from a third party.

Contract Manufacturer

A manufacturer that produces made-to-order custom electronic parts, including assembled electronic boards, for a private customer or government customer. These products may be manufactured on a build-to-print basis for an original equipment manufacturer; or may be designed by the contract manufacturer to conform to general specifications provided by the customer. Parts and board products manufactured by the contract manufacturer are not brand-name products marketed and sold by the contract manufacturer.

Counterfeit

An electronic part that is not genuine because it 1) is an unauthorized copy; 2) does not conform to original OCM design, model, and/or performance standards; 3) is not produced by the OCM or is produced by unauthorized contractors; 4) is an off-specification, defective, or used OCM product sold as "new" or working; or 5) has incorrect or false markings and/or documentation.

Distribution Depot Distribution depots store and distribute goods, materials and parts to the United States armed forces.

DMEADefense Microelectronics Activity, a Department of Defense facility located near Sacramento, CA, which manufactures integrated circuit products and electronic systems for U.S. Government national security applications.

Discrete Electronic ComponentIndividual components such as capacitors, diodes, resistors, transistors that can be mounted on a circuit board to form a working electronic system.

Electronic Testing

Evaluating the functionality of a discrete component or IC part; and determining whether the electrical parametersof the part conform with the alternating current (AC) and direct current (DC) characteristics specified by its manufacturer. Measurements can be made at room temperature or over the recommended operating temperature range for the part.

Excess InventoryLegitimate, genuine new electronic part product held by OCMs, OEMs, authorized distributors, contract manufacturers, and U.S. government agencies.

Federal Aviation Administration (FAA) Category 1

The part is one whose intended use indicates that the consequences of its failure, considered separately and in relation to other systems, could reduce safety margins, degrade performance, or cause a loss in the capability to conduct certain flight operations so as to prevent the continued safe flight and landing of the aircraft. Examples of such conditions are those which may require the use of the “Emergency Procedures” portion of the flight manual, aircraft placards, or TC data sheets, as applicable.


The part is one whose intended use indicates that the consequences of its failure, considered separately and in relation to other systems, would not prevent the continued safe flight and landing of the aircraft, but may reduce the capability of the aircraft or the ability of the crew, by increasing the workload, for example, to cope with adverse operating conditions or subsequent failures.


The part is one whose intended use indicates that the consequences of its failure, considered separately and in relation to other systems, would not cause a departure from normal operating procedures.

Generalized Emulation of Microcircuits (GEM)

Reengineered integrated circuit products whose manufacture has been authorized to meet the need for replacement parts for product that is obsolete. These replacement products are designed and tested to emulate all the functions of microcircuits that are no longer in production.

Gray MarketA secondary market outside of official OCM-OEM distribution chains where new electronic parts and systems, refurbished parts, and used parts owned by third parties are bought and sold. Not all product sold in this market is necessarily genuine, new, or working.

Hologram Three-dimensional printing used to validate authenticity.

Incident

Occurrences, reports, or transactions pertaining to electronic parts suspected and/or confirmed to be counterfeit. For example, a report involving 10 copies of a single electronic part model equals one incident. Occurrences, reports, and transactions involving three separate electronic part models equal three separate incidents, regardless of the volume counterfeit parts for any given model.

Independent DistributorAn independent distributor company that markets and distributes electronic parts often acquired as excess inventory from OCMS, OEMs, contract manufacturers, U.S. Government organizations, and other entities. Independent distributors maintain inventories of parts and typically have controlled environments for part storage.

ITARInternational Traffic in Arms Regulations – controlling the export and import of defense-related articles and services on the United States Munitions List.

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Legal ActionFiling of warning letters, civil complaints and lawsuits; filing criminal complaints; support of criminal investigations and prosecution by law enforcement agencies.

Microcircuit An integrated circuit product (Hybrids/Multi-Chip Modules should be counted as 'microcircuits').

Mined DieAn integrated circuit product that is removed from the original OCM package – and placed in a new package. Typically mined die are used parts being recycled. They are repackaged because the original package has been damaged or deteriorated in some way.

Non-U.S. Foreign country where microcircuit production, purchase, or company incorporation is located.

NAVSEA CraneNaval Surface Warfare Center, Crane Division – circuit board analysis, testing, design, manufacturing and assembly capability.

OCM Original Component Manufacturer.

OEM Original Equipment Manufacturer.

Physical Evaluation

A process of confirming that materials used in a discrete component or IC part are genuine. It can involve destructive tests such as decapping the component’s package to validate its authenticity; evaluation of materials used in a device’s packaging materials (including connection leads and encapsulant); and examination of discretand IC parts to verify it is genuine using various techniques including layer by layer destructive examination.

Prime ContractorA lead contractor that directs and manages the delivery of large projects or products -- and which relies on subcontractors to provide part or all of the major components, designs, parts, or subsystems required to complete and deliver a working product.

RFID Radio Frequency Identification.

Scrap Defective, damaged, or used electronic parts, or systems from which electronic parts may be scavenged.

"Seconds"Off specification, sub-standard product made by Original Component Manufacturers/Original Equipment Manufacturer that is normally destroyed by OCM/OEMs.

SubcontractorA company that provides parts, subsystems, or systems required by a prime contractor for completion of a product or project.

U.S. Munitions ListArticles and services designated by the President of the United States with concurrence from the Department of Defense as being specifically designed or configured for military applications; there are no equivalent civilian or commercial products.

United StatesThe “United States” or “U.S.” includes the 50 states, Puerto Rico, the District of Columbia, the island of Guam, the Trust Territories, and the U.S. Virgin Islands.

Visual InspectionNon-destructive evaluation involving visual examination for correct labeling, shape, size and dimension, form, fit, color, security coatings, etc. Visual inspection can include use of other non-destructive evaluation such as X-ray, XRF (X-ray fluorescence), and scanning acoustic microscopy.


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Previous Page Table of Contents Next PageSection 1 Company InformationCompany NameStreet AddressCityState Zip CodeWebsitePhone NumberFax NumberPrimary point(s) of contact regarding this survey's completion.

Name(s) Title Phone Number State E-mail Address

Lead person(s) in your company responsible for dealing with counterfeit electronic issues, if any. Name(s) Title Phone Number State E-mail Address

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Previous Page Table of Contents Next PageSection 2.a Operations

[Answer ALL Questions - Surveys With Blank Responses Will Be Returned For Completion]

A. Please state the number of years your company has been in business in the U.S.

B. State the number of manufacturing facilities your company operates in:

U.S. locationsNon-U.S. locations

C.State your company's net sales revenue in thousands of dollars (i.e. inputs of $12 = $12,000.00) for the following years:

200520062007

2008 (est.)

D. Identify the types of parts that your company sells.

Original component manufacturer (OCM) new parts

OCM factory refurbished parts

OCM new parts bought back from original customers as "excess inventory" with OCM purchase documents.OCM new parts bought back from original customers as "excess inventory" without OCM purchase documents.New parts acquired from independent distributors with OCM purchase documents.New parts acquired from independent distributors without OCM purchase documents.

New parts acquired from parts brokers.

New parts obtained through other methods.

Comments:


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Previous Page Table of Contents Next PageSection 2.b Operations (continued)


Identify the types of customers to which your company directly sells discrete electronic components and/or microcircuits in the United States and outside the United States.

Discrete Electronic Components Microcircuits

U.S. Non-U.S. U.S. Non-U.S.Original Equipment Manufacturers (OEMs)Contract ManufacturersAuthorized DistributorsIndependent DistributorsParts BrokersIndividual CustomersPrime and Sub ContractorsInternet-Exclusive SourcesU.S. DOD (DLA, depots, etc.)Other U.S. National Security AgenciesOther U.S. Federal AgenciesState and Local GovernmentsForeign National & Local Governments

Comments:


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Previous Page Table of Contents Next PageSection 3.a Counterfeit Parts Issues


A.

Select the type of parts, currently or previously produced by your company, for which counterfeit versions were being marketed by other entities from 2005 - 2008.[Note: Respond for either microcircuits or discrete electronic components. Contact OTE if you service more than one industry sector]

Discrete Electronic ComponentsDiodes CapacitorsMagnetics ResistorsSmall Signal Transistors Power TransistorsRectifiers ThyristorsCrystals/Oscillators Circuit Protection (fuses)Electromechanical OptoelectronicsSensors & Actuators All Other Discrete Electronic Components

MicrocircuitsMicroprocessors/Microcontrollers Logic, StandardSpecial Purpose Logic (PLD, FPGA, etc.) MemoryRadio Frequency/Wireless Other (specify)

B.

For the years 2005 - 2008, estimate the number of counterfeit incidents your company encountered by product unit resale value.Product Unit Value 2005 2006 2007 2008 (est.)

< 1 cent1 - 10 cents11 cents to $1.00$1.01 - $10$11 - $100$101 - $500$501 - $1,000$1,001 - $10,000

Total Number of Incidents 0 0 0 0

Comments:


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Previous Page Table of Contents Next PageSection 3.b Counterfeit Parts Issues (continued)


A. For the years 2005 - 2008, state the percent of your company's product models that were suspected/confirmed to be counterfeited.

200520062007

2008 (est.)

B.

For the years 2005 - 2008, state the number of product models produced by your company for which suspected/confirmed counterfeit versions were being marketed by other entities.

Type of Counterfeit Number of Incidents2005 2006 2007 2008 (est.)

ConsumerIndustrial/CommercialHigh Reliability - AutomotiveHigh Reliability - IndustrialHigh Reliability - MedicalGeneralized Emulation Microcircuits (GEM)

Commercial AviationFAA Category 1FAA Category 2FAA Category 3

Critical Safety ItemsQualified Manufacturers List (QML)Qualified Products List (QPL)

C.Of the product models identified above, how many were U.S. Munitions List/ITAR Controlled?

Comments:


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Previous Page Table of Contents Next PageSecton 3.c Counterfeit Issues (continued)


A.

For 2005 - 2008, estimate the number of suspected/confirmed counterfeit incidents involving microcircuits and/or discrete electronic components your company bought/sold by type of counterfeit.

Type of Counterfeit

Number of Incidents2005 2006 2007 2008

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Working copies of original designs"Seconds" recovered from scrap pilesNew product re-marked as similar, higher-grade partUsed product re-marked as similar, higher-grade partUnauthorized working part substitution packaged as new partUsed product sold as new (not remarked)Fake [non-working] OCM productUnauthorized overrun of OCM productInvalid Part Marking - Unknown Functionality/PerformanceOther (specify to the right)

B.

Rank the top five countries suspected/confirmed by your company to be sources of counterfeit products/parts.2005 2006 2007 2008 (est).

1.2.3.4.5.

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Previous Page Table of Contents Next PageSection 3.d Counterfeit Parts Issues (continued)


A.

For 2005 - 2008, state the number of incidents of suspected/confirmed counterfeit versions of product models sold by your company per the ways your company learned of the problem.Note: Complete the Yes/No column for EACH category below. If "Yes," provide the number of incidents encountered per category.

Way Your Company is Uncovering Suspected/Confirmed Counterfeit Parts

Number of Incidents2005 2006 2007 2008 (est.)

Y/N # of Incidents Y/N # of Incidents Y/N # of Incidents Y/N # of IncidentsProduct returned to you as "Defective"Product returned to you as "Excess Inventory"Product returned to you as "Wrong Merchandise"Customer suspected/confirmed part in product were counterfeitCounterfeit documentation/absence of original documentationDiscovered "defective" parts/poor performanceMarkings, appearance & condition of partsTestingNotification issued by OCMNotification issued by OEMNotification issued by DLANotification issued by Government-Industry Data Exchange Program (GIDEP)Notification by U.S. Customs of seized partsNotification by other U.S. government agencies of seized partsNotification by non-U.S. government agenciesDiscovery of unauthorized over-production by contract manufacturersDiscovered through self-initiated investigationsOther (specify to the right)

B. Does your company have written procedures in place to prevent unauthorized production overruns?C. Does your company specify in writing how manufacturing "seconds" and defective parts are to be destroyed?

D.How do your authorized distributors and customers notify your company of suspected/confirmed counterfeit products? [Select all that apply]

HotlineWebsite

Other (specify to the right)

Comments:


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Previous Page Table of Contents Next PageSection 3.e Counterfeit Parts Issues (continued)


A.

For 2005 - 2008, quantify the costs, in thousands of dollars (i.e. inputs of $12 = $12,000), attributable to suspected/confirmed versions of microcircuits and discrete electronic componenets manufactured by your company.

Type of Cost Costs Attributable to Counterfeit Products2005 2006 2007 2008 (est.)

Warranty ClaimsRefundsDeferred or Delayed ContractsCustomer Shifts to Competitor/Lost ContractsLost SalesOther (specify to the right)

Total Financial Product Losses $ - $ - $ - $ -

B.

Has your company experienced negative effects on its company image or reputation due to counterfeit activities?

If "Yes," please explain.

C.

Does your company maintain a database on suspected/confirmed counterfeit activities?

If "Yes," identify the variables tracked by your database:

Known/suspected companies and individualsSuspected/confirmed counterfeit productsCountries of originSource of ReportingOther (specify to the right)

D.

Of the suspected/confirmed counterfeit parts detected by or reported to your company, state the percent for which the products were both in and out of production at your company at the time the incidents were reported.

2005 2006 2007 2008 (est.)In Production

Out of Production

Comments:


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Previous Page Table of Contents Next PageSection 4.a Inventory Control - General

[Answer ALL Questions - Surveys With Blank Responses Will Be Returned For Completion]A. Does your company accept returns from its customers?B. Does your company buy back excess inventory from its authorized distributors?C. Does your company buy back excess inventory from individual customers?D. Does your company restock/recirculate returns and product it buys back from its customers?E. Has your company documented cases of its authorized distributors returning counterfeit products?F. Has your company documented cases of its individual customers returning counterfeit products?

G.Indicate if your company has documented cases of suspected/confirmed counterfeit component parts being sold by the following entities:

OCMsOEMsAuthorized DistributorsIndependent DistributorsBrokersContract ManufacturersIndividualsInternet-Exclusive SourcesPrime and Sub ContractorsU.S. DOD DepotsDLAOther U.S. National Security AgenciesOther U.S. Federal AgenciesU.S. State & Local GovernmentsOther (specify to the right)

Comments:


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Previous Page Table of Contents Next PageSection 4.b Inventory Control - Internal


A. Does your company perform audits of its inventory to check for the presence of counterfeit products/parts?If "Yes," how often?

B. Who conducts your company's inventory audits for counterfeit products?

Independent AuditorsCompany StaffOther (specify to the right)

C. Are your company's auditing practices and processes for counterfeit products reviewed by independent authorities?

D.Which forms of inventory auditing does your company perform to check for the presence of counterfeit product?

Visual InspectionElectronic TestingPhysical EvaluationOther (specify to the right)

Comments:


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Previous Page Table of Contents Next PageSection 4.c Inventory Control - Internal (continued)


A.

Identify the number of part models for which your organization ordered the following inspection and/or testing procedures.

Examination Method

2005 2006 2007 2008 (est.)

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Visual InspectionElectronic TestingPhysical Evaluation

B.

Identify the level of testing your company performs on individual part models to check for counterfeit products - by sampling rate.Visual Inspection Electronic Testing Physical Evaluation

DiscretesMicrocircuits

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Previous Page Table of Contents Next PageSection 4.d Inventory Control - Internal (continued)


A.What does your company look for when it performs package-level visual inspection and non-invasive screening to check for the presence of counterfeit products/parts?

TrademarksPart NumberSerial NumberSufrace TextureHologramBar CodingPlace of ManufactureDate of ManufactureMarking TechniquesCovert MarkingsRFIDEmbedded Authenticity Data in Product Circuitry/Encrypted CodeOther (specify to the right)

B.State the number of testing facilities your company operates and the number of contractor-operated testing facilities it uses to detect counterfeit products at U.S. and Non-U.S. locations.

U.S. Non-U.S.

Company Operated

Contractor Operated

C.

Has your company experienced any problems with contractor-operated testing facilities? U.S. Non-U.S.

If "Yes," please decribe these problems.

Comments:


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Previous Page Table of Contents Next PageSection 4.e Inventory Control - Authorized Distributors


A. Does your company audit its authorized distributors to check for the presence of counterfeit products?If "Yes," how often?

B. Who conducts your company's audits of its authorized distributors for the presence of counterfeit products?

Independent AuditorsYour Company StaffAuthorized Distributor StaffOther (specify)

C. Are your company's auditing practices of its authorized distributors reviewed by independent authorities?

D.State the forms of auditing your company performs on its authorized distributors' inventory to check for the presence of counterfeit product.

Visual InspectionElectronic TestingPhysical EvaluationOther (specify)

E.

Does your company have a legal agreement with its authorized distributors regarding counterfeit products?

If "Yes," state what the legal agreement requires of its authorized distributors:

Perform Inventory ChecksKeep Logs of Counterfeit ProductsNotify Your Company of Counterfeit ProductsNotify Federal Authorities of Counterfeit ProductsOther (specify)

Comments:


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Previous Page Table of Contents Next PageSection 4.f Inventory Control - Counterfeit Handling


A.

Identify the steps your company takes once it is notified that counterfeit versions of its products are being circulated.

Wait for additional complaintsInform authorized distributorsTrace part supply chain pathPerform random testingPull back inventory for checkLocate select inventoryNotify internal company authoritiesNotify federal authoritiesNotify industry associationsNo steps are takenOther (specify)

B.

Once your company has physical possession of suspected/confirmed counterfeit parts, what steps does it take?

Issue credit to distributor or manufacturing end-user upon receipt of suspect counterfeit partsRetain samples of counterfeit parts for future referenceTest part/send the part to a testing facility for evaluationConduct random testing of parts in inventoryCheck industry and/or USG databases for similar problemsEnter incident into industry and/or USG databasesEnter incident into company databaseDispose of parts almost immediately after customer ships them back to the companyLeave disposal of the counterfeit part to the party filing the complaintQuarantine parts away from regular inventory; awaits direction from law enforcement agentsTurn counterfeit parts over to law enforcement authorities for analysisTurn counterfeit parts over to law enforcement authorities after performing an analysis of samplesOther (specify)

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Previous Page Table of Contents Next PageSection 4.g Inventory Control - Counterfeit Notification


A.When your company encounters a counterfeit product in its inventory, do your personnel know what authorities to contact?

B. Once your company identifies a suspected/confirmed counterfeit product, what authorities do your personnel notify?

Defense Microelectronics Activity (DMEA)Defense Logistics Agency (DLA)Department of Energy (DOE)Department of Homeland Security (DHS) - Customs & Border Protection (CBP)Department of Justice (DOJ)Department of Transportation (DOT)Federal Aviation Administration (FAA)Federal Bureau of Investigation (FBI)Federal Communications Commission (FCC)Federal Trade Commission (FTC)Government-Industry Data Exchange Program (GIDEP)National Aeronautics & Space Administration (NASA)National Security Agency (NSA)Nuclear Regulatory Commission (NRC)Defense-Related Invesitgative Services (e.g. DCIS, NSIC, etc.)State & Local AuthoritiesNone at AllOther (specify)

C. State the number of incidents of suspected/confirmed counterfeit products for which your company notified government authorities.

200520062007

2008 (est.)

D.State how long it typically takes your company to report suspected/confirmed counterfeit products to government authorities.

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Previous Page Table of Contents Next PageSection 4.h Inventory Control - Counterfeit Notification (continued)


A.

Indicate your company's level of reporting of suspected/confirmed counterfeit products to the Government-Industry DataExchange Program (GIDEP)If your company does not report suspected/confirmed counterfeit products to GIDEP, explain why in the space below:

B.What authorities does your company instruct its authorized distributors and/or end-users to contact when they encountesuspected/confirmed counterfeit products?

My CompanyDefense Microelectronics Activity (DMEA)Defense Logistics Agency (DLA)Department of Energy (DOE)Department of Homeland Security (DHS) - Customs & Border Protection (CBP)Department of Justice (DOJ)Department of Transportation (DOT)Federal Aviation Administration (FAA)Federal Bureau of Investigation (FBI)Federal Communications Commission (FCC)Federal Trade Commission (FTC)Government-Industry Data Exchange Program (GIDEP)National Aeronautics & Space Administration (NASA)National Security Agency (NSA)Nuclear Regulatory Commission (NRC)Defense-Related Investigative Services (e.g. DCIS, NSIC, etc.)State & Local AuthoritiesNone at AllOther (specify)

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Previous Page Table of Contents Next PageSection 4.i Inventory Control - Counterfeit Notification (continued)


A.Is your company aware of any legal requirements for the management and/or disposal of suspected/confirmed counterfeit products that your company must adhere to?

B.Is your company aware of any written instructions or guidance from federal authorities on reporting suspected/confirmed counterfeit products?

C.Is your company aware of its liabilities related to the distribution, storage, and disposal of suspected/confirmed counterfeit products?

D.Does your company need guidance from federal authorities with regards to civil and criminal liability, and penalties pertaining to the distribution, storage, and disposal of suspected counterfeit products?

E.

Indicate whether your company reports counterfeit products to any of the following industry organizations.

Aerospace Industries AssociationAlliance for Gray Market & Counterfeit Electronic IndustriesAssociation of Connecting Electronic Industries (IPC)Electronic Components, Assemblies & Materials Association (ECA)Electronic Industries AssociationERAIGovernment Electronic Industries AssociationIndependent Distributors Electronics Association (IDEA)National Association of ManufacturersNational Electronic Distributors AssociationQuality Brands Protection Committee (Chinese government)Semiconductor Industry AssociationSociety of Automotive EngineersU.S. Chamber of CommerceOther (specify)My company does not notify any industry organizations.

If your company reported to any of the organizations listed above, what actions did these organizations take?

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Previous Page Table of Contents Next PageSection 5.a Reasons for Counterfeit


A.Does your company find it difficult to identify counterfeit parts?

Explain your answer.

B.Is your company better able to control the infiltration of counterfeits today than it was five years ago?

Explain your answer.

C.

In the last five years, indicate if your company discovered counterfeit products as a result of unauthorized activities in the following locations:

U.S. Non-U.S.Production design centersManufacturing centersWarehousesTesting facilities

If you answered "Yes," explain the unauthorized activities in the space below.

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Previous Page Table of Contents Next PageSection 5.b Reasons for Counterfeit (continued)


A.

Please identify the prime reasons for counterfeit products entering supply chains in the United States. Provide written comments in the box below.

Less stringent inventory management by OCMsLess stringent inventory management by authorized distributorsLess stringent inventory management by independent distributorsLess stringent inventory management by parts brokersReturn of OCM product from authorized distributors that co-mingle genuine inventory with gray market productAuthorized distributors buying gray market productsGreater reliance on contract manufacturers for procurementGreater reliance by brokers on gray market partsGreater reliance by authorized distributors on gray market partsGreater reliance by independent distributors on gray market partsGreater reliance by OEMs on gray market partsGreater reliance by contract manufacturers on gray market partsPurchase of excess inventory on open marketsInadequate parts purchase planning by OEMs with regard to market demand; part requirementsInadequate parts purchase planning by contract manufacturers with regard to customer demand; part requirementsInadequate production of parts by OCMsDelays in production by after-market manufacturersJust-in-time delivery systemsInsufficent notice to customers of part production terminationPremium prices charged by after-market manufacturersInsufficient testing of partsInsufficient buying proceduresInsufficient inventory controlInsufficient chain of accountabilityOther (specify)

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Previous Page Table of Contents Next PageSection 6 Costs of Counterfeit


A.

State the number of full-time equivalent personnel assigned specifically to matters related to addressing counterfeit issues and your company's total employment.

2005 2006 2007 2008 (est).Number of personnel assigned to counterfeit product issues.

Total company employment (including personnel assigned to counterfeits)

B.

State the legal costs in thousands of dollars (i.e. inputs of $12 = $12,000.00) your company incurred related to addressing counterfeit product issues. Also state those legal costs as a percent of total company legal costs.

2005 2006 2007 2008 (est.)Total costs for counterfeit-related legal actionsCounterfeit-related legal costs as a percent of total company legal costs:

C.

Could your company have filed more legal actions to address counterfeit product issues than it did during the years 2005 - 2008?

If "Yes," identify the reasons why your company did not pursue additional counterfeit-related legal actions.

Did not want to make the problem publicLegal costs and time requirements excessivePerpetrator(s) could not be foundChance of success was lowInsufficient support from U.S. Federal authoritiesExtent of problem was not large enough to botherOther (specify)

D. State the other costs (non-legal) in thousands of dollars (i.e. inputs of $12 = $12,000.00) your company incurred in addressing counterfeit product issues.

2005 2006 2007 2008 (est.)

Comments:


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Previous Page Table of Contents Next PageSection 7.a Anti-Counterfeit Best Practices


A.What is your company doing internally to prevent infiltration of counterfeit electronics into its inventory?

Training staff on the negative economic and safety impacts of counterfeit products

Revising company procedures for disposal of "seconds," defective parts, and production overrunsRevising procurement procedures to more carefully screen/audit/evaluate authorized returns from customersPerforming screening and testing on inventoryEmbedding new security measures in new product linesEmbedding new security measures in existing product linesAdding security markings to existing inventoryOther (specify)

B.

What is your company doing externally to combat counterfeit electronics from getting into its inventory and custmers' supply chains?

Educating customers about risks associated with gray market productsEducating customers on the negative economic and safety impacts of counterfeit productsReferring customers to authorized after-market manufacturers for parts discontinued by my companyReferring customers to companies that could identify suitable substitute product or re-engineer system componentsTightening contractual obligations of contract manufacturers with regard to disposal of "seconds," defective parts, and preventing production overrunsProhibiting authorized distributors from buying back excess inventory from their customersProhibiting authorized distributors from buying back excess inventory on the gray marketOther (specify)

Comments:


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Previous Page Table of Contents Next PageSection 7.b Anti-Counterfeit Best Practices (continued)

[Answer ALL Questions - Surveys With Blank Responses Will Be Returned For Completion]A. Does your company routinely register its patents and trademarks with the U.S. Customs Protection & Border Patrol?B. Does your company make timely international patent and trademark filings?

C.

What are the five most important best practices OCMs should adopt to limit counterfeit product from entering the supply chain?1.2.3.4.5.

D.

Does your company use outside organizations to help determine best practices for handling counterfeit products?If "Yes," please list the organizations and consultants below.

E.

Beyond current efforts, what should the federal government do to help prevent counterfeit products from entering the supply chain? Explain your answer.

F.

Has your company encountered any other incidents involving counterfeits that have not been covered by this survey?If "Yes," please explain in detail below.

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Previous Page Table of ContentsSection 8 Certification

[Answer ALL Questions - Surveys With Blank Responses Will Be Returned For Completion]The undersigned certifies that the information herein supplied in response to this questionnaire is complete and correct to the best of his/her knowledge. It is a criminal offense to willfully make a false statement or representation to any department or agency of the United States Government as to any matter within its jurisdiction (18 U.S.C.A. 1001 (1984 & SUPP. 1197))Company NameCompany's Internet AddressName of Authorizing OfficialTitle of Authorizing OfficialE-mail AddressPhone Number and ExtensionDate CertifiedIf POC is different from the above named, include below:Point of Contact NameTitle of Point of ContactE-mail AddressPhone Number and ExtensionWould you like a free copy of the final report?In the box below, please provide any additional comments or any other information you wish to include regarding your experience with counterfeit products or other related issues.

How many hours did it take to complete this survey?Previous Page Table of Contents


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