Counterfeit components continue to be a growing concern as increased numbers of substandard quality parts enter the manufacturing process, resulting in increased failures and other reliability issues. These products bear an unlicensed trademark that is similar to the trademark legitimately registered or that cannot be differentiated in its key qualities from the licensed brand. Counterfeiting occurs as a means of profiting by avoiding the costs of research, production, marketing and, in certain cases, the quality and dependability of the genuine product.
Counterfeit electronics are mostly detected in computers and telecommunications goods, as well as avionics, vehicles and also military electronic products. Such forgery and fakery occur whenever an item can be manufactured far cheaper than the real product. As per the association for Gray Market and Counterfeit Mitigation, counterfeiting costs legal electronics firms over $100 billion in global sales each year.
For the user, counterfeiting-related electronics system failures might result in safety and security concerns. Even when the counterfeit part initially functions well, it still raises dependability issues since it has not been subjected to the real manufacturer's stringent quality assurance methods. Moreover, if counterfeit components find their way into safety-critical applications, system makers face risks because the counterfeit part's original manufacturer may not be recognized or put into any legal or regulatory framework.