Mobile Counterfeiting

Counterfeit devices are a significant problem worldwide. According to a recent European Union Intellectual Property Office Study issued in February of 2017, counterfeit devices result in an estimated 45.3 billion EUR in lost sales to genuine manufacturers each year. Additionally, according to recent MWF (Mobile and Wireless Forum) estimates, as of March 2021, the loss of sales has now surpassed 50 billion EUR.

Due to the scale of negative impacts caused by counterfeit devices to society as a whole and to any country's economy in particular, governments and the mobile industry are increasingly interested in creating solutions to address this growing problem.

Governments are motivated to implement regulations to assist in controlling the counterfeit device market, which will then address a range of issues, including but not limited to: the protection of tax revenues, national security, consumer safety, and maintaining mobile network quality.

Counterfeit devices negatively impact the legitimate economy and impose a threat to public security. These devices hide behind the identity of a genuine brand. Oftentimes, counterfeit devices use fraudulent device identifiers and also come pre-installed with malware that steals users private and personal information.

Additionally, counterfeit devices have degraded radio performance, resulting in lower network capacity—which directly affects mobile network operators.