Cisco Systems the American multinational technology conglomerate won a temporary injunction against four Chinese companies that were counterfeiting its transceivers.
The case against Chinese companies was filed in a federal court in New York. It was mentioned in the suit that the counterfeit gear threatened U.S national security and health systems because they were not secure and would fail frequently.
Cisco’s transceivers are used in networks to pass data involving corporate data centers, hospitals, and military bases. The injunction would stop Amazon and Alibaba Group Holding from selling phony devices.
According to the Wall Street Journal, “Cisco is trying to use the ruling to motivate other suppliers to build an industrywide effort to curb the sale of fakes.” The injunction targeted four Chinese manufacturers namely Shenzhen Tianheng Network, Gezhi Photonics Technology, Shenzhen Sourcelight Technology, and Dariocom.
According to a San Francisco based consultancy, “The four Chinese companies account for more than half of the fake transceiver market.” An industry report states that the global transceiver market is estimated at around $7 billion in 2018. As per counterfeit experts, the counterfeits account for around 5% or more of the tech equipment sales.
Besides freezing fake Cisco products on Alibaba, Amazon, and eBay, “the injunction also freezes assets owned by Chinese companies.” The duplication of Cisco products goes back to the year 2003 hen the company took action against Huawei for counterfeiting its router software. Later the patent infringement suit was dropped but later Huawei admitted that some software was copied from Cisco.”
In 2010, the Justice Department and Department of Homeland Security confiscated worth $143 million of fake Cisco networking gear manufactured in China.” In the recent case engineers from Cisco tested transceivers from the four companies and determined they were fake.