1. Counterfeiting is not new....since we were born we have been seeing dupli's and counterfiets of Reebok,nike,hmv etc...the list is actually endless....this endless list is now augmented with IT inventory....to cite you an example which has rocked the nations across is about OPERATION CISCO RAIDER.
2. Relevant original EXTRACT FROM http://www.coastnetwork.com is produced below :
" Cisco made a decision a decade ago to manufacture product in China as a way of cutting production costs. A great deal of Cisco manufacturing is now done overseas, specifically in China. What has happened is that many of the companies that do the outsourcing for Cisco now run an extra shift and sell the now counterfeit hardware out the back door. After all, they have the manufacturing capability, the expertise and the full blessing of Cisco. The result? More and more counterfeit Cisco hardware is now showing up on American shores. Part of the problem is that China does not have strong intellectual property protection laws. This is a situation that Cisco and many other companies are still struggling to solve and one that does not promise to be resolved soon.
Warning signs of a possible counterfeited item:
If you are getting discounts of 40-55% off the list price for brand new hardware, i.e. sealed boxes, then it is a red flag. The largest of Cisco’s customers – the Bank of Americas, Ford Motor Company, United Airlines, AT&T, etc. get these discounts. You don’t. If it is any consolation, even dealers do not get the top corporate discounts.
While it is flattering and tempting to receive big discounts for new Cisco hardware, it is also unrealistic and should be treated with the utmost caution.
Ask what the retail price is and compare it to the price you are being quoted. If you are getting a 15-25% discount from the list price for new/sealed hardware, then you are being quoted a fair and realistic price. Expect a reasonable discount, however; too big a discount often spells trouble.
Another sign to be aware of is the receipt of unsolicited email from unknown dealers offering you Cisco hardware at very good prices. This warning is doubly true if the email or company originates from mainland China.