Distributors have a vested interest in stopping Asian counterfeiters because they are increasingly bypassing the traditional distributor model and supplying service providers directly.
DISTRIBUTORS MOVE THE HIGHEST VOLUME OF PRODUCTS, MAKING THEM A PRIME TARGET FOR LAW ENFORCEMENT EFFORTS.
Since distributors move the highest volume of products, they naturally are a first target for law enforcement efforts. For this same reason, the FightFakeKeys.org alliance is concentrating our earliest efforts on distributors. Distribution of counterfeit goods across state lines is also a federal crime.
Since distributors routinely ship products to consumers throughout the country, offenders could face additional charges.
U.S. DISTRIBUTORS HAVE TURNED TO OVERSEAS CONTRACT MANUFACTURERS TO DEVELOP “HOUSE BRANDS”.
Some U.S. distributors have turned to overseas contract manufacturers to develop “house brands” for them. These U.S. distributors may be exposing themselves to significant risk because of the manufacturer’s lack of due diligence to comply with legal and regulatory requirements to sell their products in the United States. Besides failing to obtain FCC certification, these house brands may violate copyright laws by using stolen firmware.
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ADOPT A SUPPLIER CODE OF CONDUCT
Our free market system is built on the trust we place in those we do business with. Companies spend decades building their reputations. Their brands’ value is are reflection of the trust they’ve established with their customers.
When a customer receives a counterfeit key because of the actions of a rogue supplier, it can reflect poorly on the distributor, retailer, or auto dealer that hired them. Industry leaders can protect their brands and encourage a culture of compliance by establishing Supplier Codes of Conduct.
Codes of Conduct help companies communicate their expectations to their supply chains. They should include a commitment to only do business with suppliers that demonstrate high standards for ethical behavior and operate in full compliance with governing laws and regulations, including Trademark and Copyright laws.
Examples of supplier codes of conduct can be found on our resources page.
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