New Delhi: Recently, a devastating incident in Lebanon involving counterfeit communication devices linked to Hezbollah has sparked a critical probe into the unregulated market of aging technology. The tragedy, which claimed 37 lives and injured 3,000, exposes the darker side of an industry plagued by lax oversight and counterfeit risks. As investigators dig deeper, concerns mount over the safety of outdated electronic devices, where consumers often unwittingly gamble with authenticity and security. Chaotic market for old technologyExperts point out that while modern supply chains for high-end electronics are carefully controlled, the same cannot be said for older devices. These products often flow through murky channels, characterized by counterfeiting, surplus stock and complex manufacturing agreements. This situation complicates efforts to trace the origins of specific devices. Analysts emphasize that this unregulated environment creates opportunities for counterfeit goods to infiltrate legitimate markets.Companies scramble for answersThe companies implicated in this crisis are facing immense pressure to determine how their products were weaponized. Gold Apollo, a Taiwanese manufacturer, has directed blame toward a European licensee for its pagers. This has led to investigations in several countries, including Hungary, Bulgaria, Norway, and Romania, to trace the roots of the deadly devices.Meanwhile, Icom, a Japanese company known for its walkie-talkies, initially expressed uncertainty about the authenticity of its products in the market, which is rife with counterfeits. Icom later stated it was highly unlikely that the exploded devices were genuine, citing comments from Lebanese Telecom Minister Johnny Corm that indicated these items were not imported through authorized channels. Instead, he noted that counterfeit versions of the same model were being smuggled in from other countries.Challenge of identificationA thorough physical examination of the exploded devices is required to confirm whether they are genuine Icom products. However, based on the information available, Icom assessed the likelihood of these being their products as extremely low. David Fincher, a technologist and consultant based in China, underscored the ease with which counterfeit products can be modified to include explosives. He stated, If the supply chain was compromised to put explosives inside ... its incredible engineering to do that. But the actual supply chain compromise is not that hard.Hezbollahs acquisition of devicesAccording to a security source, Hezbollah acquired these devices approximately five months before the incident. The armed group believed it was purchasing legitimate pagers from Gold Apollo. The hand-held radios, which were bought simultaneously, bore Icoms name and claimed to be Made in Japan, as seen in images of one of the detonated devices.Both Gold Apollo and Icom have categorically denied that any components used in the devices were manufactured in their respective countries. Taiwans Economy Minister Kuo Jyh-huei also confirmed that the parts involved in the explosions did not originate from Taiwan.Preliminary investigationsPreliminary inquiries conducted by Lebanese authorities suggest that the explosives were implanted in the devices before they reached Lebanon. This revelation was communicated in a letter to the U.N. Security Council by Lebanons mission to the United Nations.However, the investigation is still early and key questions remain unanswered. It is unclear how and when these devices were modified for remote detonation, adding another layer of complexity to the case.Counterfeit electronics epidemicThe issue of counterfeit electronics is not new, particularly among smaller brands that often lack the resources to combat such fraud. Joe Simone, a partner at the Chinese intellectual property firm East IP, highlighted that these brands tend to invest less in counterfeit policing due to the associated costs, which can threaten their profitability.The authorities are willing to address low-tech counterfeits, but the IP owners must monitor and take action, which often doesnt happen as rigorously as it does for larger, high-tech brands, Simone explained.Risk of outdated modelsFor Icom, the challenge is compounded by the fact that the IC-V82 model has not been produced for over a decade. The company introduced holographic stickers as a measure against counterfeiting during that time. Icom has long cautioned consumers about imitation products, especially those about older models.The Japan Patent Office reported that over 7% of companies in Japan experienced business losses due to counterfeiting in 2020, with about a third of those cases linked to Chinese manufacturing. Icom has consistently urged customers to utilize its official distributor network to ensure they are purchasing genuine products.Availability of counterfeitsDespite these warnings, Icom-branded walkie-talkies, including the IC-V82 model, are readily available on Chinese e-commerce platforms like Alibaba, Taobao, JD.com, and Pinduoduo. Reports indicate that various vendors, none of whom are official distributors, claim to sell authentic products, raising concerns about the authenticity of what consumers might be purchasing.The IC-V82 model is also being sold on e-commerce sites in Vietnam, showcasing the widespread availability of counterfeit electronics across multiple regions.Unraveling the counterfeit supply chainGold Apollos brand licensing to Budapest-based BAC has complicated the investigation, leading to a convoluted supply chain that authorities are now striving to untangle. Diganta Das, a researcher at the University of Marylands Center for Advanced Lifecycle Engineering, noted the troubling reality of counterfeiting, saying, The widespread availability of cheap, second-hand manufacturing equipment has enabled counterfeiters to produce entire products, not just single components. He asserted that this phenomenon has evolved beyond mere counterfeiting to what he describes as illegal manufacturing.
