COUNTERFEIT/SUBSTANDARD MOBILE PHONES

Transcription

1 COUNTERFEIT/SUBSTANDARD MOBILE PHONES A RESOURCE GUIDE FOR GOVERNMENTS 1 INTRODUCTION There has been a proliferation in recent years in the manufacture, distribution, and sale of black market mobile phones (commonly referred to as counterfeit and substandard phones). While this problem has measures. on in order to understand the problem and to assist information educating consumers about the risks of purchasing black market cell phones. The goal of this topic. The Mobile Manufacturers Forum (MMF) has collected guide and as such this guide subjects such as information on the scope of the risks to society, and benchmarking information on technical solutions. 2 WHAT IS THE DIFFERENCE BETWEEN COUNTERFEIT AND SUBSTANDARD MOBILE PHONES? 1 ) are the same in the 2 ; both counterfeit and substandard mobile phones intellectual right holders; both use inferior or used chipsets and other components; and, both fail to that are designed to control the distribution of both categories of handsets. counterfeit mobile phone explicitly infringes the trademark or design of an phone copies the trademark (brand) of an original phone is an identical copy of the original brand or similar to the original brand (in terms of copying the trademark or the design) for all practical purposes 1 2 1

2 substandard mobile phone, on the other hand, similar in form factor to the authentic brand, but carry no explicit branding (i.e. do not explicitly other brands or form factors from original products. mobile phone is essentially the same as a counterfeit mobile phone in all other respects. There is mobile phones present the same societal challenges. 3 QUANTIFYING BLACK MARKET COUNTERFEIT/SUBSTANDARD DEVICE PROBLEM: THE TIP OF THE ICEBERG market in the mobile phone sector. This is because many black market mobile phones are physically amount is expected to be 148 million units in 213. only represent those products sold in traditional 21% 6% 1% 11% 1% 5% retail channels and do not capture those sold in the it is reasonable and logical to assume that the data trademark infringements. smuggled in 3 4 Force, and that does not include the thousands problem that exceeds 6 billion dollars USD. Asia Pacific Eastern Europe Latin & Central America Middle East & Africa North America Western Europe 3 html 4 2

3 furthermore estimates counterfeiting and piracy costs 4 WHAT IS THE NEGATIVE IMPACT OF COUNTERFEIT AND SUBSTANDARD MOBILE PHONES ON SOCIETY? substandard mobile phone problem manifests itself A : WHAT IS THE IMPACT ON CONSUMERS? 1 : HAZARDOUS SUBSTANCES IN COUNTERFEIT/ SUBSTANDARD MOBILE PHONES cadmium) in both internal and external components at concentrations much higher than the maximum Figure A internal and external components of the tested mobile phones. models (3 nos. for each model) from the stores and components) comprising all handsets. FIGURE A: Test: Hazardous substances Chemical analysis Lead (Pb) Chemical analysis Cadmium (Cd) Chemical analysis ,2,2 Lead (Pb) % Cadmium (Cd) %,1.1 Antenna PCI-SD card Material IC 1 PCI base Panel Black PCI connector Gold PCI connector Antenna mobile phones. 3

4 FIGURE B: High Lead (Pb) content found in all handsets tested - clearly amplifying their substandard character 4, More than 39 times than the acceptable Pb limit 39,236 38,737 Figures in PPM 3, 2, 1, , SIM slot 19,56 37 Memory card slot 5672 Charging connector 3, ,39 31, Camera 1395 Back cover 16,14 13,22 23, PCB 14, Battery connector 11, Chip component 22, ,613 Microphone Speaker 19,617 25,132 LED light G5-C (G-Five) F-N (Forme) W-M (Wing) SE-X (Suny Ericson) YX (YX Tel) found to contain alarmingly high proportions of therefore safe for consumer use. Figure B Figure C 2 : OTHER SAFETY ASPECTS substandard mobile phones is not the only safety compliance assessments before they can be sold. in most countries, mobile phones must be type things, ensures that the mobile phone performs the functions it purports to be able to perform, tests for accessories such as battery chargers and batteries FIGURE C: Parts of the cell phone where hazardous substances are found Chip component LED manual soldering point Memory card slot Mic soldering point Battery Connector SIM Connector 1 SIM Connector 2 SPK manual soldering point 4

5 3 : QUALITY OF SERVICE A : GSMA of 18 counterfeit smartphones alongside 3 genuine sector labs for compliance to any legal or industry standards. and data capacity loss, data transmit speeds and stations to rectify the problems. These results highlight the considerable impact for B: INdT STUDY 8 existence of counterfeit and substandard phones in testing protocols in order to compare the measures that are needed in order to make up for the (i.e., more antenna installations, base stations and the need for more spectrum). 4 : COUNTERFEIT/SUBSTANDARD PHONES ARE SOLD WITHOUT WARRANTY function. 8 5

6 5 : SECURITY ISSUES (CYBER SECURITY, THEFT OF STOLEN PHONES, DATA-PROTECTION, ETC.) They use them to shoot, store, and share photos and the security related risks that arise from mobile phones need to be taken seriously. numbers, social security numbers, bank account information, and other types of information. There is these mobile phones are not continuously scanning the information the consumer inputs on the phone money or their identity. capacity to act as a logger of information including remote phone monitoring, logging of incoming and address books, and other data. phones cannot be underestimated. This is a huge through the creation of blacklists and other similar measures. interests, and crime control are a cornerstone of the most important public policy debates societal problems is not in the crosshairs of most much more important threat than other counterfeit products because it is perhaps the most important mobile phones present. This is a threat that must be taken seriously. B : WHAT IS THE IMPACT OF COUNTERFEIT/SUBSTANDARD DEVICES ON GOVERNMENTS? any country is the existence of a legal protection of rights of legitimate business and the promotion in the loss of potentially billions in direct and indirect 6

7 C : IMPACT ON PRIVATE INDUSTRY: COUNTERFEIT/SUBSTANDARD PROBLEM RESULTS IN LOSSES FOR RIGHTS HOLDERS Most major manufacturers employ tens of thousands of sales as result of these black market products produced rather easily and cheaply. enables black market manufacturers to create and distribute counterfeit and substandard phones much easier than in the past. of mobile phones and black market manufacturers them. To compound this problem, these black market manufacturers pay no intellectual property royalties. of turnkey solutions, counterfeit and substandard mobile phones can be produced incredibly cheap 5 WHAT CAN GOVERNMENTS DO TO CONTROL THIS PROBLEM? the MMF discusses potential solutions to the problem A : NETWORK BLOCKING SOLUTIONS right one for a certain country. 1 : COUNTERFEIT/SUBSTANDARD FINGERPRINTING BLOCKING SOLUTIONS number because the technology may not be able does not guarantee that the model is not counterfeit or substandard. The GSMA for example, does not check the legitimacy of the device before issuing an IMEI number. One technological solution (referred to as 7

8 a. to determine if the capabilities of the phone match the listed capabilities. The technology capabilities stored in the capability database (database creation is based on information The capability database can also, for example, use b. capability crosscheck failed. c. considering this approach. 2 : IMEI NETWORK BLOCKING SOLUTIONS employed by some countries is perhaps best The solutions used in both countries establish purposes. 1 The blacklist is focused on stolen and lost lists to determine if the mobile phone is blocked or not. This solution has the potential of screening out 3 : NETWORK BLOCKING BASED ON TYPE APPROVAL B : IMPORTATION BLOCKING SOLUTIONS not block those handsets that are imported as contraband (outside the customs process). 11 C : DEVELOPMENT OF A COMPREHENSIVE PLAN more traditional measures should also be a focus. should include, among other things, consumer 8

9 1 : INCREASED CONSUMER AWARENESS a critical component of any strategy. The demand problems posed by these products such as the safety and health threats, the poor performance of the important the security threats particularly in the 2 : INCREASED ENFORCEMENT must include increased resources in the form of focus on the huge black markets that exist in all problem impacts and cuts across a number of industry representation is necessary. The MMF action plans and the allocation of appropriate and sustainable funding mechanisms. 3 : LEGISLATIVE/REGULATORY REFORMS substandard mobile phones are out of the reach of products that are being shipped to a third country. CONCLUSION of the mobile phones and their importance in dollar industry for illegal manufacturers and it is must occur in order to adopt a solution that best suits other resources. For more information on this important issue, help consumers learn more about the dangers before they buy them. 9

10 ANNEX 1 TEST CATEGORY #1 AND #2: Access Failure and Dropped Calls Access Failure: This category measures call Dropped Calls: This category measures ongoing calls that are undesirably interrupted Results: Access Failure Rate (%) Access Failure 26.% Substandard.% Original Drop Call Rate (%) Dropped Calls 24.% Substandard 3.3% Original TEST CATEGORY #4: Transmission Power Capabilities: Minimum received power Maximum transmission power to be listened by antenna. Bit Error Rate (%) Minimum Received Power 2 times (13dB) Received Signal Level (dbm) Original Substandard TEST CATEGORY 3: Handover Performance to another. This mechanism is called handover and should (ie. dropped). Power (Watts) Maximum Transmitted Power GSM 85 EGSM (9) DCS (18) PCS (19) Original Substandard Handover Time (s) How mobility works TEST CATEGORY #5: Transmission Power Control: Should my phone transmit high or low? Handover Time.53% +41% time delayed Substandard.37% Original Handover Failure Rate (%) Handover Fail 34.2% Substandard 1.8% Original needs to be controlled. needs to be executed phones and if transmits Power Control Time (s).4.2 Transmission Power Control time.49 Substandard +55% more delay.31 Original High Power Low Power 1

11 TEST CATEGORY #6: How fast is my internet access? The speed of internet access is related to technology Most substandard phones tested do not support Speed Data Rates Data Speed (Kbps) 2 EDGE 1 GPRS Received Signal Level (dbm) Distance Estimated (meters) Original Substandard 7 Diamant Building Boulevard Auguste Reyers 8 13 Brussels Belgium Telephone Facsimile Av. Paulista, 23 Piso Pilotis CEP São Paulo/SP Brazil Telephone Facsimile th Floor, 1 Queen s Road Central, Central, Hong Kong Telephone Facsimile