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Agencies Target Counterfeits in DoD & Other Supply Chains

The National Intellectual Property Rights Coordination Center (IPR Center) has announced "Operation Chain Reaction," a new comprehensive initiative targeting counterfeit items entering the supply chains of the Department of Defense and other U.S. government agencies.

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(Nine of the 18 IPR Center members are participating in "Operation Chain Reaction," including U.S. Immigration and Customs Enforcement (ICE), U.S. Customs and Border Protection (CBP), Federal Bureau of Investigation (FBI), etc.)

First Time IPR Center Participants to Collectively Address Issue

While individual agencies have focused in the past on counterfeit and misbranded items entering the federal supply chain, "Operation Chain Reaction" is the first time that IPR Center participants have come together to collectively address this ongoing problem.

Some examples of recent investigations involving counterfeit products entering the federal supply chain include:

  • An investigation uncovered the purchase of counterfeit Cisco Gigabit Interface Converters by an individual -- since sentenced to prison -- who intended to sell them to the DoD for use by the Marine Corps to transmit troop movements, relay intelligence and maintain security for a military base.
  • An investigation uncovered a global procurement and distribution network based in California that provided counterfeit integrated circuits to various governmental agencies, including the military and prime DoD contractors. Agents conducted undercover purchases from individuals within the company under official Navy contracts and were provided counterfeits for weapons platforms.
  • An investigation identified a Florida-based electronics broker providing counterfeit integrated circuits to DoD prime contractor fulfilling a Navy contract for components destined for implantation into ship and land-based antenna.

Senate Initiated Investigation into Counterfeit Electronics in DoD Supply Chain

The Senate Armed Services Committee has initiated an investigation into counterfeit electronic parts in the DoD's supply chain, which the Committee states can pose a risk to national security, the reliability of weapons systems and the safety of the military. The Committee notes that the presence of counterfeit electronic parts in the DoD's supply chain is a growing problem and that it looks forward to the cooperation of DoD and the defense industry to help determine the source and extent of this problem and identify possible remedies for it.