presenter notes - ucds.ru · is a dirty business that does enormous damage to companies and people....
TRANSCRIPT
Presenter Notes
Note to presenter: This presentation is designed to provide guidance and information to Cummins® distributors, dealers and employees to help protect the Cummins® brand. You will find information about the impact of counterfeit activity on Cummins business and will learn what you can do to help combat the activity. Reference documents for Packaging Standards, Technical Analysis, Incident Report and a Glossary of Terms are included. (See tabs)
Thank you for allowing me to talk with you about the important role you play in protecting the value of the Cummins® brand. The goal of this guide is to provide:
■ Awareness of the inappropriate and fraudulent use of Cummins® name and the Cummins®
brand
■ Training on how to identify counterfeit products
■ Examples outlining the benefits of Genuine Cummins® products and the risks of counterfeit products
■ Guidance on how and where to report suspected counterfeit
Every™ Part. Genuine.Awareness Guide For Counterfeit Products
©2008 Cummins Inc. All Rights Reserved.
Presenter Notes
What are trademarks, service marks and brand names?
A trademark’s purpose is to identify and distinguish the origin or source of particular goods of a specific party. A trademark can be a word, a design, a symbol or a logo, and certain trademarks when properly used over time can even acquire fame.
Throughout this guide, you will see the registered trademark symbol used much more frequently than it would normally appear in marketing literature. The reason is that we want to point out the significance of the symbol in protecting and in identifying Genuine Cummins® products.
The Value Of The Cummins Brand■ Cummins® – the registered trademark symbol
■ Cummins® CELECT™ injector
The registered trademark and TM symbol are helpful in protecting and identifying Genuine Cummins® products. Counterfeit Cummins products should never carry the symbol.
Presenter Notes
Perceived quality is the overall perception of quality and image attributed to a product, independent of its physical features.
Years of marketing, image building, brand nurturing, quality manufacturing and dependable service has led customers to experience a high level of quality and dependability in Cummins® products.
®
The Value Of The Cummins® Brand
The Cummins® name signifies high quality, value and dependability. Customers know Cummins® is the brand they can depend on.
®
Presenter Notes
To put the cost into perspective, counterfeit goods are estimated to be a $500 billion (USD) per year industry – an amount equal to 7% of global trade. The negative impacts to society are significant. Remember, counterfeiters often utilize child labor, provide unsafe products, support organized crime and even fund terrorism. Besides being the 11th largest economy on earth, larger than the GDP of India or Korea, the counterfeit business is a dirty business that does enormous damage to companies and people.
Many companies, like Cummins, have found it difficult to quantify the impact of counterfeit goods.
If 1% of Cummins® business is lost to counterfeiters, the dollar cost in sales will exceed $100 million.
If customers and dealers lost confidence in Cummins to police and control the sale and distribution of their parts, billions of dollars would be lost to competitors.
Nearly 10,000 people, not including dealers and supporting organizations, could be out of a job due to the loss of parts sales. (Parts make up over 20% of sales; 20% of our workforce is 7,000 people.)
Why Fight Counterfeit?■ Counterfeit products take about $500 billion (USD) in revenue from global
companies each year – 1% of Cummins annual sales lost to counterfeit represents $28M*
■ Counterfeit activity can damage legitimate brand reputations and increase liability
■ Counterfeiters are often involved with organized crime
■ Legitimate brand owners demonstrate social responsibility:
– Pay taxes – Comply with labor and safety regulations – Engage in community and customer service
*Total annual global market potential per the parts consumption model = $2.8B
Presenter Notes
A counterfeit is something made in imitation of something else, with the intent to deceive.
Other related terms…
■ Counterfeiting – imitation of genuine brands with intent to defraud
■ Piracy – unauthorized reproduction or use of a copyright, patent or trademark; “act of robbery”
■ Refilling – act of reusing genuine packaging to distribute counterfeit goods
■ Simulation – imitation or false representation (sugar pill in the shape of pharmaceutical drug)
■ Diversion – purchase of genuine products in one market for resale in a market apart from the brand owner’s channel (gray market)
■ Tampering – interfere with a genuine product in a harmful manner (add a foreign substance)
■ Commingling – mixing counterfeit product with genuine product in the same distribution channel to avoid detection
■ Supply chain integrity – suppliers selling in the aftermarket
■ Warranty fraud – undetected counterfeit product failures replaced under warranty
What Is Counterfeit?■ Counterfeit is a kind of forgery – Something is copied so as to defraud by
passing it for the original or genuine article
■ Counterfeiting is punishable by fines, confiscation and prosecution
■ Counterfeit activity is illegal – Imitation – Piracy – Refilling – Simulation – Diversion – Tampering – Commingling – Etc.
Presenter Notes
There are two types of counterfeit:
■ Those that are obviously cheap fakes, like a $10 designer bag. Those do not fool anyone nor do they really attempt to, and most purchasers know what they are getting.
■ Those that appear to be genuine and are intended to deceive. Very few people willingly purchase, for their own use, counterfeit blood pressure medicine. Engine parts are clearly in this category. No one would risk damaging an expensive engine or generator by purchasing a counterfeit gasket or other imitation part. It is probably fair to conclude that most people who are deceived into purchasing counterfeit parts for Cummins® engines have unknowingly purchased the fake.
Two Types Of Counterfeit■ Obviously cheap fakes that do not fool anyone
■ Those that appear to be genuine and are intended to deceive
“Who do you think you are fooling?”
Presenter Notes
There are many ways counterfeit activity can cost Cummins and you money.
The problem is greater than just hard parts. Be on the lookout for illegal use of the Cummins name and logo.
Become familiar with Cummins brand standard guidelines(brandstandards.cummins.com) and follow them.
Seemingly harmless activities such as purchasing unauthorized promotional merchandise with the Cummins name or logo can weaken the Cummins® brand.
How Do Counterfeiters Operate?■ Counterfeit parts are non-genuine parts that
illegally make use of Cummins trademarks, copyrights and/or patents
■ Any unauthorized use of the Cummins name or the Cummins “C” (logo) on the package, part, web site, merchandise, promotional literature, etc., is considered counterfeiting
Presenter Notes
You can find counterfeit products for sale on street corners in major cities, at house parties, out of the trunks of cars or perhaps from behind the counter or “under the table” at legitimate stores. Beware of products that are not sold by authorized representatives.
There are many street vendors and shops where one can purchase counterfeit or knockoff Cummins products.
Remember, if it is counterfeit, it is a crime.
Sources Of Counterfeit Products
■ The Internet has dramatically changed how counterfeit products are sold and distributed. The Internet offers criminal enterprises a powerful medium where they can anonymously advertise their ability to manufacture, sell and distribute counterfeit products. End users of Cummins® products are tempted to buy through very legitimate-looking web sites that advertise their lower-priced counterfeit products
■ Industry trade shows are another excellent source used by counterfeit manufacturers to promote their illegal products
■ Counterfeit marketing teams also use direct sales, e-mail and telephone solicitation to promote their products
Presenter Notes
While we believe we must keep close watch in all areas, as counterfeit activity is a growing problem everywhere, it seems that counterfeiters do target specific markets.
■ Truck, bus and construction markets have the highest occurrence of counterfeit Cummins products
■ Counterfeit is most common in MidRange and Heavy-Duty engines
There is no special concentration of parts.
Our Research Shows…
■ Truck, bus and construction markets have the highest occurrence of counterfeit Cummins products
■ Counterfeit is most common in MidRange and Heavy-Duty engines
■ There is no special concentration of parts
■ Counterfeit parts are typically priced significantly lower than Cummins standard part prices
Presenter Notes
Look at the package. Cummins follows packaging standards (referenced in this guide and on the brand standards web site (brandstandards.cummins.com). The package should be sized to fit the part. A package that is seemingly much too large for the part is cause for concern. Has the package been opened? If so, check all parts to ensure there has been no commingling of Genuine Cummns® and counterfeit parts.
How To Spot Counterfeit Parts■ Look at the packaging – Color – Size – Logo – Printing/graphics – Labels – Has it been tampered with or opened
■ Look at the product – Material – Workmanship – Does it look like the original
■ Look at the price – Is the price significantly below market
Presenter Notes
Tell me what you see in this photo that does not look like Cummins packaging?
Expected response:
■ There is no Cummins® logo: The logo looks similar to the Cummins® logo turned backwards…Cummins is not written in the logo
■ The packaging does not contain the words “Genuine Parts”
■ Misspelled words or missing letters on the packaging
The International Anti-Counterfeiting Coalition offers consumers five tips to help avoid purchasing counterfeit goods. Watch for:
1. Labels that are blurred or torn.
2. Product names that are misspelled or altered.
3. Unannounced changes in product content, color, smell or packaging.
4. Missing codes, 800 consumer numbers or trademarks.
5. Products lacking the usual guarantees and/or licensing agreements.
Presenter Notes
Tell me what you see in this photo that could cause you to question the authenticity of the parts?
Often the counterfeiters are very good at copying the exact packaging specifications. You may not be able to easily identify a counterfeit part simply by looking at the package or the specific part. (See the Packaging Standards section in this presentation.)
Your best defense is to purchase Cummins® products only through the authorized Cummins channel (distributors and dealers).
Look for the registered trademark symbol.
Look for the label placement according to Cummins specifications. As new packaging is released, look for new brand colors (no more blue). Currently, packages that meet the old standard are still in circulation.
Sta
ndard
s / Packagin
g / D
esig
n E
lem
ents / C
um
min
s Bra
nded
The brand design standards for Cum
mins packaging create a consistent look and feel for
corrugated and chipboard boxes, poly bags, envelopes, pallet cartons, corrugated backer boards, blister pack labels and part num
ber labels. Text such as “This End U
p” and “Do N
ot Stack” m
ay be added if necessary, but adding additional elem
ents such as taglines, Web addresses, etc., is
prohibited.
Leroy Shirk, M
anager, Cum
mins W
orldwide P
ackaging FE, is in charge of the creation of new
artw
ork, the choice of carton suppliers and the specific procedure to be followed w
hen initiating new
packaging.
Note: A
central arch
ive of dig
ital art for each p
ackage in
the C
um
min
s system is b
eing
created
, so art is not to b
e created reg
ionally as in
the p
ast. An
y carton art or p
rintin
g
created ou
tside of th
e app
roved p
rocess that d
oes not con
form to p
recise packag
ing
b
rand
stand
ards w
ill be red
one, an
d th
e costs absorb
ed b
y the p
arties involved
.
To order artwork or initiate new
packaging, refer to the “Order A
rtwork” section.
Represented below
are the graphics created for the majority of packages.
The basic design elements are:
1. Cum
mins
® log
o2. G
enuine Parts translatio
n in seven languag
es3. G
enuine Parts b
anner4. B
ox num
ber and
recyclable sym
bo
l (if app
licable)
5. Label p
lacement m
ark6. P
art numb
er label5
4
1
3
2
6
Sta
ndard
s /
Packagin
g /
Desi
gn E
lem
ents
/ R
eC
on
® P
art
s
To re
duce
the
amou
nt o
f box
num
bers
, add
ition
al c
arto
ns w
ill no
t be
prin
ted
for
ReC
on® p
arts
.
ReC
on® p
arts
are
to b
e id
entif
ied
by a
labe
l with
a b
lack
str
ipe
inst
ead
of re
d.Th
e bl
ack
strip
e is
rese
rved
for
use
on R
eCon
labe
ls o
nly.
Sta
ndard
s / Packagin
g / P
ackage Typ
e / C
orru
gate
d C
arto
ns
Corrugated cartons show
the Cum
mins
® logo and Genuine P
arts banner on the front and back panels. The front panel also show
s a corner mark to guide label placem
ent. The side panels show
the Cum
mins
® Genuine P
arts message in seven languages. The label placem
ent mark is located
in the upper-left corner of the front panel. Tops of boxes are to be free of graphics in most cases,
although on some boxes, such as “pizza style” boxes, the top m
ay be the only area large enough for the prim
ary graphic elements.
In the placement of graphic elem
ents, care has been taken to allow tape to continue onto the box
sides without covering graphics.
All corrugated cartons are brow
n with solid black graphics.
Sta
ndard
s /
Packagin
g /
Package T
ype /
Chip
board
Boxe
s
Chi
pboa
rd b
oxes
sho
w th
e C
umm
ins®
logo
and
Gen
uine
Par
ts b
anne
r on
the
front
and
bac
k pa
nels
. The
fron
t pan
el a
lso
show
s a
corn
er m
ark
to g
uide
labe
l pla
cem
ent.
Due
to th
e sm
all
size
of s
ome
boxe
s, th
e la
bel m
ay w
rap
arou
nd tw
o si
des.
The
sid
e pa
nels
sho
w th
e C
umm
ins®
G
enui
ne P
arts
mes
sage
in s
even
lang
uage
s. T
ops
of b
oxes
are
to b
e fre
e of
gra
phic
s in
mos
t ca
ses,
alth
ough
on
som
e bo
xes,
suc
h as
“pi
zza
styl
e” b
oxes
, the
top
may
be
the
only
are
a la
rge
enou
gh fo
r th
e pr
imar
y gr
aphi
c el
emen
ts.
All
chip
boar
d bo
xes
are
whi
te w
ith s
olid
bla
ck g
raph
ics.
Sta
ndard
s / Packagin
g / P
ackage Typ
e / P
oly B
ags
Poly bags show
the Cum
mins
® logo, Genuine P
arts banner and Genuine P
arts message in seven
languages. The graphics are black on a white printed panel, centered on a clear plastic bag. The
panel leaves enough room on the sides, top and bottom
to see the parts inside.
Labels may be attached to tags or to the back of the bag.
Refer to the “S
pecification Standards” for available sizes and package num
bers.
Sta
ndard
s /
Packagin
g /
Package T
ype /
Enve
lopes
Pap
er e
nvel
opes
for
part
s sh
ow th
e C
umm
ins®
logo
, Gen
uine
Par
ts b
anne
r an
d G
enui
ne P
arts
m
essa
ge in
sev
en la
ngua
ges.
The
gra
phic
s ar
e bl
ack
on a
bro
wn
enve
lope
.
Labe
ls m
ay b
e at
tach
ed to
tags
or
to th
e ba
ck o
f the
env
elop
e.
Ref
er to
the
“Spe
cific
atio
n S
tand
ards
” fo
r av
aila
ble
size
s an
d pa
ckag
e nu
mbe
rs.
Sta
ndard
s / Packagin
g / P
ackage Typ
e / C
orru
gate
d
Backer B
oard
s
Corrugated backer boards are available in a single uncut size or 40 in x 40 in (1 m
x 1 m). These
pads can be cut to various sizes and used as a backer for gaskets and other flat material to be
shrink-wrapped.
The repeat pattern shows the C
umm
ins® logo and G
enuine Parts banner. B
ecause of the need for a sm
all pattern, the Genuine P
arts message in seven languages is not included for reproduction
reasons.
Refer to the “S
pecification Standards” for the package num
ber.
Entire pad
Portion of pad
Sta
ndard
s /
Packagin
g /
Package T
ype /
Pre
-Pack L
abels
Sta
ndar
d pr
e-pa
ck la
bels
mea
sure
3 1
/4 in
x 2
in (8
3 m
m x
51
mm
).
Impr
inte
d ty
pe c
an v
ary
in s
ize,
but
sho
uld
follo
w th
e fo
rmat
sho
wn
in th
e sa
mpl
e be
low
with
the
part
num
ber
alw
ays
in th
e fir
st p
ositi
on in
a la
rger
siz
e an
d th
e de
scrip
tion
alw
ays
at th
e bo
ttom
of
the
labe
l. C
onsi
sten
t pla
cem
ent o
f the
se tw
o el
emen
ts m
akes
labe
l rea
ding
eas
ier.
Use
Hel
vetic
a N
eue
55 R
egul
ar, f
lush
left
in a
ll ca
ps fo
r th
e w
ords
“PA
RT
NU
MB
ER
,” “D
ES
CR
IPTI
ON
,” et
c., a
nd H
elve
tica
Neu
e 85
Hea
vy fo
r th
e ac
tual
par
t num
ber,
nam
e of
par
t, et
c.
Impr
ints
can
be
mad
e us
ing
Aria
l if H
elve
tica
is n
ot a
vaila
ble.
The
pre
prin
ted
red
strip
e re
pres
ents
ne
w p
arts
, whi
le th
e bl
ack
strip
e is
use
d on
ly fo
r R
eCon
® p
arts
.
If m
ore
room
is n
eede
d fo
r ad
ditio
nal i
nfor
mat
ion
or tr
ansl
atio
ns, u
se a
larg
er s
tand
ard
size
or
crea
te a
larg
er la
bel u
sing
the
sam
e de
sign
. If a
sec
ond
labe
l is
need
ed, i
t sho
uld
be p
rinte
d on
a
blan
k w
ithou
t the
str
ipe
and
logo
and
pla
ced
dire
ctly
und
er o
r to
the
right
of t
he fi
rst l
abel
.
Bla
nk p
repr
inte
d la
bel
Sam
ple
labe
l with
impr
int
Sta
ndard
s / Packagin
g / P
ackage Typ
e / K
it Labels
Standard labels m
easure 4 in x 6 1/2 in (102 mm
x 165 mm
) and are available in both verticaland horizontal form
ats. These labels are used for kits and packing cartons with m
ultiple parts.
Imprinted type can vary in size, but should follow
the format show
n in the samples below
with the
part number alw
ays in the first position in a larger size, and the description always at the bottom
of the label. Consistent placem
ent of these two elem
ents will m
ake label reading easier.
Use H
elvetica Neue 55 R
egular, flush left in all caps for the words “PA
RT N
UM
BE
R,”
“DE
SC
RIP
TION
,” etc., and Helvetica N
eue 85 Heavy for the actual part num
ber, name of part, etc.
The preprinted red stripe represents new parts, w
hile the black stripe is used onlyfor R
eCon
® parts.
Blank preprinted label
Sta
ndard
s /
Packagin
g /
Package T
ype /
Blist
er
Pack
Spe
cial
pac
kagi
ng, s
uch
as a
blis
ter
pack
, tha
t is
mor
e re
tail
in a
ppea
ranc
e ca
n be
cre
ated
as
need
ed.
Sim
ilarit
ies
to o
ther
Cum
min
s pa
ckag
es, s
uch
as ty
pest
yle,
pla
cing
the
logo
on
a re
d ba
ckgr
ound
in
the
uppe
r-rig
ht c
orne
r an
d pu
ttin
g em
phas
is o
n ea
sy-t
o-re
ad p
art n
umbe
rs a
nd d
escr
ipto
rs,
mus
t be
mai
ntai
ned
as m
uch
as p
ossi
ble
to c
reat
e a
look
com
patib
le w
ith o
ther
Cum
min
s pa
ckag
ing.
To o
rder
art
wor
k or
initi
ate
new
pac
kagi
ng, r
efer
to th
e “O
rder
Art
wor
k” s
ectio
n.
Sta
ndard
s / Packagin
g / Typ
e F
ont
Consistent use of type fonts is an im
portant part of maintaining a com
mon standard look for all
Cum
mins packaging. Listed below
are the specific type font standards for the elements illustrated
on the right.
The “Genuine C
umm
ins Parts” type is set in
Helvetica N
eue 95 Black, flush left. S
ubstituting other fonts is not perm
itted. This type is set in seven languages. R
efer to the “Translations” section for exam
ples of all language translations.
The “GE
NU
INE
PAR
TS” graphic is set in
Impact, all caps. This is the only perm
itteduse of this font on C
umm
ins packaging. S
ubstitute fonts and alterations to the proportions or letterspacing are not perm
itted.
The standard fonts for imprinted type on
labels are Helvetica N
eue 55 Regular and
Helvetica N
eue 85 Heavy.
Substitutions for the fonts are allow
ed, but only fonts that resem
ble Helvetica, such as A
rial or U
nivers, should be used.
Additional copy such as “TH
IS E
ND
UP
” is set in H
elvetica Neue 65 M
edium, all caps.
When placed in the center of a lid, the type is
centered. If used in a corner, the type is flush left. S
ubstituting other fonts is not permitted.
Sta
ndard
s /
Packagin
g /
Colo
r
With
sev
eral
hun
dred
diff
eren
t pac
kage
siz
es, t
he c
ost o
f mul
tiple
ink
colo
rs is
pro
hibi
tive
and
sinc
e re
d ca
n’t b
e us
ed to
prin
t the
Cum
min
s lo
go, b
lack
is th
e ap
prov
ed in
k co
lor
for
cart
ons,
chi
pboa
rd
boxe
s, p
oly
bags
and
env
elop
es.
The
mos
t cos
t-ef
fect
ive
pack
age
mat
eria
ls a
re b
row
n co
rrug
ated
and
whi
te c
hipb
oard
, whi
ch a
re
the
appr
oved
col
ors
for
cart
ons
and
boxe
s.
Red
is u
sed
on la
bels
for
new
par
ts a
nd b
lack
is u
sed
for
labe
ls o
n R
eCon
® p
arts
.
Onl
y br
own
or c
lear
box
tape
is a
ppro
ved
for
use.
Sta
ndard
s / Packagin
g / L
anguage Tra
nsla
tions
The message “G
enuine Cum
mins P
arts” appears on packaging in English, P
ortuguese, Germ
an, S
panish, French, Mandarin C
hinese and Arabic. The type m
ay be arranged in two or three
columns, if necessary, to fit different-shaped boxes and to avoid being covered by tape, but should
not be changed in any other way from
the example show
n below. This is an art elem
ent that must
not be recreated with different letterspacing or fonts.
The Genuine C
umm
ins® P
arts message should alw
ays be used unless there is insufficient room,
or unless the type is too small to be legible. R
emoving the C
umm
ins logo and Genuine C
umm
ins P
arts graphic is not permitted.
Sta
ndard
s /
Packagin
g /
Specif
icati
on S
tandard
s
Det
aile
d sp
ecifi
catio
ns fo
r m
ater
ials
, str
engt
h re
quire
men
ts, s
izes
, par
t num
bers
, prin
ting
requ
irem
ents
and
pro
cedu
res
for
all C
umm
ins
pack
agin
g ar
e co
ntai
ned
in th
e P
acka
ging
S
peci
ficat
ion
Sta
ndar
ds. C
onta
ct L
eroy
Shi
rk, M
anag
er, C
umm
ins
Wor
ldw
ide
Pac
kagi
ng F
E,
for
a co
py.
Ord
erin
g an
d co
ntac
t inf
orm
atio
n ar
e in
clud
ed.
Sta
ndard
s / Packagin
g / O
rderin
g A
rtwork
A central database for all C
umm
ins packaging artwork is being created to control costs, lim
it duplication of sizes and ensure that brand design standards and specifications are m
et.
Regional creation of artw
ork for packaging is no longer permitted.
Procedures are in place to sim
plify the process of creating and initiating the production of packaging and are contained in the P
ackaging Specification S
tandards. Contact Leroy S
hirk, M
anager, Cum
mins W
orldwide P
ackaging FE, for a copy.
Note: A
ny carton
art or prin
ting
created ou
tside of th
e app
roved p
rocess that d
oes not
conform
to precise p
ackagin
g b
rand
stand
ards w
ill be red
one, an
d th
e costs absorb
ed b
y th
e parties in
volved.
Presenter Notes
Cummins performed technical analysis on counterfeit parts gathered from the field. In general, the counterfeit parts were visually difficult to differentiate from Genuine. However, upon further investigation of the counterfeit parts, we found evidence of poor design and inferior manufacturing processes and materials. The parts failed to meet Cummins specifications.
The next few pages explain a few of the differences we identified. Refer to the “Technical Analysis” section of this guide for more detail.
Presenter Notes
Cummins® pump springs have better coating – important for rust protection, especially when fuel is less than perfect. This is important for preventing stress damage.
Cummins uses Zn plating to protect the spring and extend the pump life.
Pump Springs■ Cummins® pump springs have better coating – important for rust
protection, especially when fuel is less than perfect. Also important for preventing stress damage.
Genuine Cummins® Counterfeit
Presenter Notes
■ Cummins® pump has a retainer for the shaft seal – the counterfeit pump does not. Cummins® pump with the retainer is a better, more robust design
■ The counterfeit part has some machining defects in the bottom that may promote stress and damage
■ Cummins® pump has locktide
■ Cummins® hand-primer rubber boot quality is better – more damage resistant. Boot prevents dirt from entering the pump
What Did Our Analysis Show?■ The Cummins® pump has a retainer for the shaft seal – the counterfeit
pump does not
The defect is most likely the result of poor machining technique and
promotes stress damage
Presenter Notes
■ Cummins® pump has a weep hole to indicate when the seal might need to be replaced. The counterfeit pump does not
■ Cummins® pump has a release valve. The counterfeit pump does not. The release valve prevents the pump from overpressurizing and oversupplying the fuel. If enabled, it prevents the piston from moving
Counterfeit Pump Does Not Have A Weep Hole
Cummins® pump has a weep hole to indicate when the seal might need
to be replaced
There is no similar feature on the counterfeit pump
Presenter Notes
■ Cummins® fittings are made of better-quality material
■ Cummins uses superior-quality materials for all seals. Counterfeit pumps use less suitable materials for seals. This will shorten the pump life and require premature repair/replacement
Why Buy Genuine Cummins® Products?■ Cummins® fittings are made of better-quality material
Cummins uses coated steel seals with long-lasting durability
Counterfeit seals are rubber and less suitable for this application, resulting in premature failure
Presenter Notes
■ Counterfeit pump piston bore cleanliness does not meet Cummins and industry standards outlined in ASTM/ISO and company documents
■ Counterfeit pump piston surface is rough
■ Cummins® pump has a shaft seal retainer to assure robustness of the pump assembly – counterfeit pump does not
Why Buy Genuine Cummins® Products?■ Counterfeit pump piston bore cleanliness does not meet Cummins and
industry standards outlined in ASTM/ISO and company documents
Cummins® piston has fine machining lines
Counterfeit surface is very rough and not acceptable
Presenter Notes
■ The counterfeit product does not meet acceptable standards for quality and precision of the cross drillings
Why Buy Genuine Cummins® Products?■ The counterfeit product does not meet acceptable standards for quality
and precision of the cross drillings
Does not meet Cummins standards
Presenter Notes
We performed a visual inspection of a counterfeit gasket kit to match the parts to our corresponding Genuine Cummins® parts. The counterfeit head gaskets were packaged with white cardboard and imprinted with the Cummins logo with text reading “FZ KANGMINGSI.”
DIMENSIONAL MEASUREMENT
■ Four gaskets with known part numbers were taken from the counterfeit gasket set and the thickness of the parts were measured to determine compliance to the Cummins print for each part
■ From the four gaskets examined, the following counterfeit parts had the TS-9001 print on the gasket material:
1. Rear cover gasket PN 3938159
2. Gear housing gasket PN 3938156
3. Oil pan gasket PN 3959052
■ The approved Cummins material for these gaskets according to CES 24210, which covers an aramid fiber blend and neoprene binder, is the MP-15 material supplied by Armstrong. This material replaced the TS-9001 material previously used because of its expected benefits for sealability, rigidity and material strength
■ The filter head gasket PN 3929792 had two approved compounds (RCM5317 and VP-1012-SF) according to CES 24196 which covers a chemically blown, closed microcellular, nitrile foam rubber which is bonded on both sides of an SAE 10101 steel core
■ The gaskets were sent to the Cummins gasket supplier to determine authenticity of the TS-9001 imprint on three of the counterfeit parts. According to the gasket supplier representative, “The parts are not dimensionally accurate and would be rejected in our system. The material is Iangpeng TS-9001”
■ Based on the gaskets not meeting the thickness requirements of the print, better sealing, rigidity and material strength of the Cummins MP-15 material, we expect the counterfeit parts may not perform as well as Genuine Cummins® Parts
Counterfeit Gasket Set
What Did The Analysis Show?■ Gaskets are not dimensionally accurate and would be rejected
by Cummins
Presenter Notes
■ Counterfeit bushing is not round and has tri-lobeness. This means that the real diameter would have greater variation
■ In fact, roundness variation exceeds Genuine Cummins® by more than 2 times. This leads to improper fit and potential damage to the bushing
What Did The Analysis Show?■ The counterfeit bushing is not round and has tri-lobness
■ Roundness variation exceeds Genuine Cummins® by more than 2 times
■ This leads to improper fit and potential damage to the bushing
Presenter Notes
Conterfeit Defects
■ Significant de-bond was observed in the top view of the counterfeit parts under ultrasonic C-scan test
■ Known defects, consisting of slots, were drilled between the piston and the insert. These known defects are set at 90% screen height or FSD (full-scale deflection), producing a red color
■ Sharp bowl edge – will reduce strength and promote piston cracking
■ No profile observed on the second ring land – will increase oil consumption
■ Pin bore does not have a profile – increased chance for the pin bore cracking
What Did The Analysis Show?■ Alfin bond in Cummins® pistons was uniform and linear without porosity in
surrounding regions
■ The counterfeit parts showed bumpy structure of the alfin bond and some non-uniformity and shrinkage porosity in surrounding regions, which lowers the integrity and strength of the bond with the Ni-Resist ring carrier
CounterfeitGenuine Cummins
Top Ring■ Coating SEM analysis – Chrome coating is not satisfactory on counterfeit part; it is not uniform
■ Microstructure analysis – Coating is very thin at 0° and thick on the angle profile. Angle profile
itself does not meet the design requirements on the counterfeit part■ Micro hardness analysis – Cummins® Genuine has a tempered martensite matrix vs. ferrite-pearlite
matrix on the counterfeit part
Top Ring■ Summary of performance differences – Counterfeit part is structurally weaker which may lead to possible
breakage – Coating that is not satisfactory in structure and the deposited amount
may lead to premature wear and increased oil consumption and additional emissions, due to the counterfeit part
– Dimensional non-compliance may cause engine with counterfeit compression ring to consume more oil
Second Rings■ Hardness – Genuine Cummins® part is at least twice as hard as the counterfeit part
(which does not meet specification requirements)
Counterfeit Genuine
Second Rings■ Microstructure – Cummins utilizes Type E graphite vs. Type A or Type V graphite found
in counterfeit parts. Cummins has a matrix of tempered martensite as required per specification. Counterfeit parts have ferrite and pearlite matrix with network of steadite
■ Significance – Counterfeit parts matrix with steadite network makes the rings prone to
cracking due to brittleness of the structure
Second Rings■ SEM analysis of coating – Cummins® rings are phosphated per specification. The counterfeit part
does not have a coating. Phosphate retains oil and improves durability of the ring. Thus, the counterfeit part will have a higher rate of wear and increased oil consumption and a higher level of emissions
■ Chemistry – The counterfeit part has high carbon, low silicon and high phosphorous
and copper content. This makes the counterfeit ring brittle and weaker
Second Rings■ Summary – The counterfeit second ring is more brittle and has less strength than
required for the application. Premature failure is likely – The counterfeit ring does not have the required coating. This results in
premature wear and increased oil consumption
Oil Ring■ SEM analysis and coating – Genuine Cummins® ring is coated with Cr on the OD and phosphate on
the sides. The counterfeit ring is not■ Significance – Cr coating improves durability and increases ring life. Phosphate coating
improves durability by reducing damage during breaking period
Oil Ring■ Summary – Counterfeit rings demonstrate lower strength, inferior material properties
and lack of required coatings – Counterfeit rings demonstrate premature breakage, high wear, and
higher oil consumption with an increase in emission of particulates and HC
Dimensional Review■ The counterfeit bushing is not round
and demonstrates trilobness■ Actual diameter contains greater
variation. Roundness variation exceeds Genuine Cummins® by two times
■ Flaws within the counterfeit part will lead to improper fit and potential damage to the bushing
Dimensional Review■ Some dimensions on the counterfeit part vary from the Genuine
Cummins® spec by as much as 0.3 mm. This may result in improper installation, improper oil lubrication, bushing spinning and component damage
Manufacturing Practices
Large burrs left at the drill holes will be detached and may lead to scuffing or seizures
Cam Bushing Macro Analysis■ Note the difference in the clinch joint design and the poor manufacturing
of the counterfeit drill holes. Cummins has proven and validated design for superior performance and long life
Genuine Cummins® Counterfeit
Cam Bushing Macro Analysis■ Note the difference in the component part number stamp and the date
code. Counterfeit date code indicates manufacture in 2008
Genuine Cummins® Counterfeit
Cam Bushing Microstructure Analysis■ Genuine Cummins®
– Thicker bearing layer than the counterfeit – Thinner bearing layer may lead to premature wear and failure■ The Cummins® bearing is softer than the counterfeit. A softer bearing
allows particles to be embedded in the bearing without damaging the part. A harder bearing may result in damage and potential seizure. The Cummins® part has better seizure and emergency lubrication performance
■ Hardness data is consistent with chemical analysis; material in the counterfeit part is a strong brass instead of a soft bronze leading to premature failure
Genuine Cummins® Counterfeit
Conclusions■ Poor manufacturing practices (burrs) lead to potential seizure and damage
to the bushing and other components■ Cummins® lock design is proven and validated for best performance and fit.
The counterfeit lock design is not as robust ■ Chemical composition of the counterfeit part will result in premature failure
due to low lead content■ The counterfeit part will not last as long due to a thinner bearing layer ■ The counterfeit part marking is incorrect, which could lead to misapplication
or wrong installation
Presenter Notes
■ Trust only the Genuine Cummins® product – A counterfeit product can prove to be dangerous when installed in your engine. Every
Cummins® product is carefully designed to meet or exceed the original equipment manufacturer’s (OEM) performance requirements, thereby protecting the equipment
■ Purchase all your Cummins® products from authorized distributors and dealers– Minimize the risk of customers expecting warranty coverage on non-genuine parts
■ A counterfeit product may be a poor-quality product– Cummins® products are made of the highest-quality materials and manufactured
under the strictest quality standards. If the product you are using appears to lack this quality, you may have purchased a counterfeit product without knowing it
■ Check the warranty! – Cummins offers the best product warranty coverage
in the industry and is proof that you have purchased a quality Cummins® product. Be sure to verify that the warranty provided with your product is an authentic Cummins warranty for that product. If it is not authentic, beware – you are not buying a Genuine Cummins® product!
Protect Yourself And Your Customer ■ Purchase all your Cummins® products from authorized
distributors and dealers
■ Trust only Genuine Cummins® Parts
■ Cummins® products are made of the highest-quality materials and are manufactured under the strictest quality standards
■ Best product warranty coverage in the industry
Presenter Notes
Teach customers that their best deals come from an authorized distributor/dealer
■ Refer to cummins.com distributor/dealer locator
■ Call your nearest authorized Cummins® distributor and inquire
■ Look for proper signage or accreditation plaque
■ Review posted training certificates
■ Ensure parts are packaged according to Cummins packaging standards
If price is “too good to be true,” it is probably counterfeit or will-fit
Inform Customers To Use cummins.com To Find The Nearest Authorized Parts Location
Use Cummins service locator to ensure that you purchase parts from authorized representatives worldwide
cummins.com
Presenter Notes
To stay up-to-date on where Genuine Cummins® products are made, visit us on the Web at cummins.com. Cummins has manufacturing locations in many areas around the world. Check the annual meeting minutes for the latest in worldwide locations.
Where Are Genuine Cummins® Products Made
For a list of Cummins locations, visit our web site cummins.com. Select “About Cummins,” choose “Annual Meeting Minutes” and select the annual report. It contains a list of worldwide locations.
Click here
Presenter Notes
Report suspected counterfeit activity.
■ Cummins has developed a “Suspected Counterfeit Incident Report” which is found in this presentation
■ Report counterfeit activity…even if it seems to be a small issue, such as unauthorized use of the Cummins® logo in advertising
For more information, contact: J. Bruce Schelkopf, Chief Counsel, Global Intellectual
Property • 317-610-2462 • [email protected]
Help Stop Counterfeit Activity Report suspected counterfeit activity: ■ Complete the Suspected Counterfeit Incident Report (see document in the
“Incident Report” section)
■ Report suspected counterfeit activity to:– Your manager– The parts marketing leader at your local Cummins® distributor– Your Cummins® regional parts marketing representative– Local law enforcement officer
Never personally confront a suspected counterfeit dealer.
For more information, contact: J. Bruce Schelkopf, Chief Counsel, Global Intellectual Property • 317-610-2462 • [email protected]
Presenter Notes
The impact of counterfeit activity on our business is sufficient to warrant putting processes in place to mitigate counterfeit sales
■ Risks to Cummins– Lost sales and market share • Theft and abuse of Cummins intellectual property– Damage to our brand and reputation– Potential liability for cost of coverage or personal injury
■ Risks to our customers– Poor quality and durability of parts leading to: • Higher operating costs (fuel and oil consumption) • Increased downtime • Excessive repair costs due to potential progressive damage to your engine and
equipment– Potential safety hazards
What Is The Payback?
■ Gain business (reduce lost sales)
■ Reduce risk of product liability
■ Differentiate our brand (dependability)
■ Reduce costs (warranty)
■ Manage the supply chain and distribution channel
■ Social responsibility
Presenter Notes
We encourage you to learn as much about combating counterfeit activity as you can. Here is a list of industry and trade associations active in the fight against counterfeiting. You can find more information on their web sites. (Type the association’s name in the Web search engine of your preference to easily locate their web site.)
Industry And Trade Associations
■ CACP – Coalition Against Counterfeit and Piracy
■ Brand Protection Council – Automotive Aftermarket Suppliers Association
■ United States International Trade Commission
■ U.S. Embassy – Beijing, China
■ stopfakes.gov web site
■ U.S. Copyright Office
■ United States Patent and Trademark Office
■ U.S. Customs and Border Protection
■ International Trademark Association
■ United States Department of Justice
■ IACC – International Anti-Counterfeiting Coalition
■ QBPC – Quality Brand Protection Committee
Presenter Notes
Cummins has invested millions of dollars in designing, developing and testing the best products to support our customers. Cummins intellectual property represents an asset of our company and it is important that we protect our intellectual property from unauthorized use.
Cummins has worked for over 88 years to establish a brand that equals “Dependability.” We have invested in the best technology, manufacturing processes and people to help us build a strong brand.
Time & Investment
RevenueCounterfeitersTHEFT
Genuine Brands
■ Build trust and respect
■ Define customer needs and objectives
■ Develop the right products to address needs
■ Provide value
Cummins has invested millions of dollars in designing, developing and testing the best products to support our customers. Cummins intellectual property represents an asset of our company, and it is important that we protect our intellectual property from unauthorized use.
Time & Investment
RevenueCounterfeitersTHEFT
Presenter Notes
Many companies use reverse engineering processes to “copy” genuine brand products. However, if there is no attempt to represent the copied product as a genuine brand, then there is no illegal activity.
Legal reproductions often bear the manufacturer’s name.
Cummins has many “will-fit” competitors that claim their products work in Cummins® engines. Our experience is that will-fit products, while legal, usually do not meet Cummins specifications and do not perform as well or carry the same warranty as Genuine Cummins® Parts.
What Is Not Counterfeit?
Not all copies are counterfeit. Many companies produce legal copies and replicas of products.
Presenter Notes
Will-fit products are aftermarket products sold as items that can be used in place of the original. There is no intent to defraud consumers by giving the perception that the products are genuine.
The activity is legitimate. Many times, companies which specialize in the production of will-fit products also strive to build a strong brand identity for the will-fit product. They can even be victims of counterfeit activity themselves.
Will-Fit Injector
Comparing Counterfeit And Will-Fit■ Will-fit is competition by legitimate companies
■ Will-fit competition provides parts that are non-genuine, yet fit Cummins® engines
■ They are sold legally – There is no violation of Cummins
name, trademarks, logos or patents – Cummins cannot take legal action
against will-fit parts that do not violate Cummins trademarks, copyrights and/or patents
Cummins® CELECT™ Injector
Presenter Notes
Do not confuse will-fit with counterfeit. While it is important to understand the competition and to counter their activity to retain market share, Cummins cannot take legal action to protect our markets against the forces of legitimate competition.
Cummins can and will take legal action against counterfeit activity.
Know The Difference
■ Will-fit products are produced by legitimate companies
■ These companies exercise the right of fair competition
■ Cummins competes by providing superior value – The manufacturing processes for Genuine
Cummins® Parts are carefully controlled to ensure that each part is produced to exacting specifications – no one else can do this
Glossary Of Terms Counterfeit: Counterfeit parts are non-Genuine parts that illegally make use of Cummins trademarks, copyrights and/or patents. Examples of counterfeit parts would include:
1. A non-Genuine part with a Cummins® logo or name being used on the part or the packaging. 2. A non-Genuine part being sold with the intention of imitating a Genuine Cummins® Part,
without Cummins authorization (again, including the use of Cummins name or trademark).
Will-Fit: Will-fit competition is different from counterfeit competition:
1. Will-fit parts are non-Genuine parts that are sold legally. There is no violation of Cummins name, trademarks or patents.
2. Will-fit aftermarket competitors typically use reverse engineering methods to manufacture parts that fit into Cummins® engines.
Copyright: A protected work of authorship, such as writings, music and works of art that have been tangibly expressed. Failure to clearly identify in a statement that a work is copyrighted could result in loss of copyright protection for the entire work.
Glossary Of Terms Diversion: Suppliers are contractually obligated to supply parts (usually with a trademark). Diversion takes place when a supplier overproduces and sells OEM non-conforming product directly or indirectly into the aftermarket. The irony is that the trademark holder then ends up competing against their own product made from their engineering and tooling.
Gray Market: When legitimate product is discounted for sales considerations in a particular geographic region but sold contrary to that purpose. Gray market trade causes unfair competition between sales regions and hard feelings between regional sales personnel and customers.
Intellectual Property: Creations of the mind – creative works or ideas embodied in a form that can be shared or can enable others to recreate, emulate or manufacture them. The most common ways to protect intellectual property include patents, trademarks, copyrights and trade secrets.
U.S. Patent: A property right granted by the U.S. government to an inventor to “exclude others from making, using, offering for sale or selling the invention throughout the United States or importing the invention into the U.S.” for a limited time in exchange for public disclosure of the invention when the patent is granted.
Glossary Of Terms Patent Infringement: Unauthorized making, using, offering to sell, selling or importing into the United States any patented invention.
Trade Secret: Information that companies keep secret to give them an advantage over their competitors.
Trademark: Words, names, symbols, sounds or colors that distinguish goods and services from those manufactured or sold by others and used to indicate the source of the goods. Trademarks, unlike patents, can be renewed forever as long as they are being used in commerce.
Some of these definitions are from the U.S. Patent and Trademark Office Online Glossary: www.uspto.gov/main/glossary/index.html
Attorney/C
lient Privileged D
ocument
Internal Cum
mins U
se Only
Cum
mins C
onfidential
Suspect Counterfeit/Tradem
ark Infringement
Incident Report
The purpose of this form
is to internally collect and report information to the C
umm
ins Intellectual Property G
roup regarding possible counterfeiting or tradem
ark infringement of brands, m
arks or products of Cum
mins. T
his report is being prepared by you for legal investigation by C
umm
ins Counsel – IP
and is an attorney/client privileged document. P
lease provide as m
uch detailed information as possible regarding a specific or suspected problem
. This inform
ation will assist in
expediting the process in response to the problem. W
here information is not com
pletely available, please also identify areas w
here assistance is needed to further determine m
issing data. The use of photos or Pow
erPoint charts to further describe the problem
is encouraged.
Please return this questionnaire and address all questions to:
Cum
mins Inc.
Attn: J. B
ruce SchelkopfC
hief Counsel, G
lobal Intellectual Property
One A
merican Square, Suite 1800
Indianapolis, IN 46282
E-M
ail: j.bruce.schelkopf@cum
mins.com
Tel: 317-610-2462Fax: 317-610-2526D
ate:
Reported by:
Nam
e:T
itle:A
ddress:C
ity/St/Ctry:
Telephone:Fax:E
-Mail:
Nam
e:T
itle:A
ddress:C
ity/St/Ctry:
Telephone:Fax:E
-Mail:
1. D
escribe the problem in detail (is it a counterfeit or tradem
ark infringement problem
, when and how
did you first becom
e aware of the problem
, what m
ark/region is the problem in, w
hat brand or product is at risk, what are the
trademark elem
ents infringed (i.e., are there any similarities betw
een the suspected product and the genuine product in term
s of logos, packaging layout, color scheme, etc.), how
long has this been taking place, etc.?).[Insert response.]
2. P
referably provide four samples of the counterfeit/infringed product w
ith packaging and receipt of purchase. If the m
aterial is electronic, provide an original electronic document from
the source if available. Indicate who purchased
the samples and w
here (include name and address w
here the counterfeit/infringed goods were purchased if different
from receipt).
[Insert response.]
3. P
referably provide four samples of the genuine product w
ith packaging from the sam
e market.
[Insert response.]
4. D
escribe the suspected distribution chain of the suspect products. Include contact information of suspected or
known vendors, distributors, w
arehouses, and manufacturers.
[Insert response.]
Att
orne
y/C
lient
Pri
vile
ged
Doc
umen
tIn
tern
al C
umm
ins
Use
Onl
yC
umm
ins
Con
fide
ntia
l
5.
Des
crib
e ho
w th
e su
spec
ted
coun
terf
eit p
rodu
cts
can
be d
iffe
rent
iate
d fr
om g
enui
ne p
rodu
cts
(i.e
., hi
ghlig
ht
dete
ctab
le d
efic
ienc
ies
or c
hara
cter
isti
cs, e
tc.)
.[I
nser
t res
pons
e.]
6.
Pro
vide
gen
uine
pro
duct
sal
es in
form
atio
n fo
r th
e m
arke
t (in
clud
e sa
les
figu
res
prio
r to
the
coun
terf
eiti
ng/
infr
inge
men
t pro
blem
, cur
rent
sal
es, t
arge
ted
sale
s, et
c.)
and
an o
rigi
nal,
Gen
uine
Cum
min
s of
feri
ng o
f the
sub
ject
of
feri
ng.
[Ins
ert r
espo
nse.
]
7.
Pro
vide
the
pric
e pe
r un
it o
f the
gen
uine
pro
duct
ver
sus
susp
ect p
rodu
ct.
[Ins
ert r
espo
nse.
]8.
P
rovi
de a
n es
tim
ated
loss
of s
ales
due
to th
e su
spec
t pro
duct
or
iden
tifi
ed p
robl
em (
fact
or in
com
peti
tion
in th
e m
arke
t, ad
vert
isin
g, e
cono
my,
or
othe
r va
riab
les
that
impa
ct s
ales
).[I
nser
t res
pons
e.]
9.
Est
imat
e po
tent
ial n
egat
ive
sale
s im
pact
that
the
susp
ect p
rodu
ct o
r id
enti
fied
pro
blem
may
hav
e on
the
sale
of t
he
genu
ine
prod
uct i
f no
real
impa
ct h
as b
een
obse
rved
yet
.[I
nser
t res
pons
e.]
10.
Lis
t the
rel
evan
t Cum
min
s di
stri
buto
rs/im
port
ers/
sale
s pe
rson
nel i
n th
e m
arke
t. D
escr
ibe
how
they
hav
e ac
tual
ly
been
or
may
be
affe
cted
by
the
prob
lem
.[I
nser
t res
pons
e.]
11.
Des
crib
e an
y po
tent
ial l
iabi
lity
conc
erns
that
may
be
enco
unte
red
wit
h th
e su
spec
t pro
duct
. Why
, in
your
opi
nion
, is
the
coun
terf
eit/
infr
inge
d pr
oduc
t lik
ely
to c
ause
inju
ry to
peo
ple
or c
ause
pro
pert
y da
mag
e du
e to
infe
rior
w
orkm
ansh
ip, d
esig
n or
mat
eria
ls?
[Ins
ert r
espo
nse.
]
12.
Des
crib
e an
y ac
tual
or
belie
ved
exam
ples
of c
usto
mer
con
fusi
on b
etw
een
the
susp
ect p
rodu
ct a
nd g
enui
ne p
rodu
ct.
Ple
ase
incl
ude
cust
omer
con
tact
info
rmat
ion
for
poss
ible
follo
w-u
p.[I
nser
t res
pons
e.]
13.
Pro
vide
a li
st o
f con
tact
s an
d th
eir
rela
tion
ship
wit
h C
umm
ins
who
may
pro
vide
add
itio
nal i
nfor
mat
ion
rega
rdin
g th
is p
robl
em fo
r po
ssib
le fo
llow
-up.
The
se c
onta
cts
wou
ld b
e ex
pect
ed to
coo
pera
te if
con
tact
ed.
[Ins
ert r
espo
nse.
]
14.
Ple
ase
prov
ide
any
addi
tion
al in
form
atio
n th
at y
ou fe
el is
rel
evan
t to
this
pro
blem
.[I
nser
t res
pons
e.]
Tha
nk y
ou v
ery
muc
h fo
r ta
king
the
tim
e to
com
plet
e th
is r
epor
t. W
e ce
rtai
nly
appr
ecia
te y
our
tim
e an
d ef
fort
gat
heri
ng a
nd
repo
rtin
g al
l of t
he r
eque
sted
info
rmat
ion.
Thi
s da
ta is
nec
essa
ry fo
r us
to u
nder
stan
d th
e is
sue
and
it w
ill h
elp
in d
evel
opin
g an
app
ropr
iate
str
ateg
y to
add
ress
the
iden
tifi
ed is
sue.