COUNTERFEIT/SUBSTANDARD

MOBILE PHONES
A RESOURCE GUIDE FOR GOVERNMENTS

1 INTRODUCTION 2 WHAT IS THE DIFFERENCE

There has been a proliferation in recent years in the BETWEEN COUNTERFEIT AND
manufacture, distribution, and sale of black market SUBSTANDARD MOBILE PHONES?
mobile phones (commonly referred to as counterfeit
and substandard phones). While this problem has

1) are the same in the

2;
measures. both counterfeit and substandard mobile phones

intellectual right holders; both use inferior or used

chipsets and other components; and, both fail to
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

that are designed to control the distribution of both

categories of handsets.
topic. The Mobile Manufacturers
Forum (MMF) has collected counterfeit mobile phone
explicitly infringes the trademark or design of an

guide and as such this guide phone copies the trademark (brand) of an original

subjects such as information

on the scope of the
phone is an identical copy of the original brand or
risks to society, and similar to the original brand (in terms of copying the
benchmarking trademark or the design) for all practical purposes
information on

technical
solutions.

1 2

1
 substandard mobile phone, on the other hand, retail channels and do not capture those sold in the

it is reasonable and logical to assume that the data

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.

trademark infringements.
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 smuggled in3

4
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 2013.

Force, and that does not include the thousands

only represent those products sold in traditional

1%

11%

21% 50%
problem that exceeds 6 billion dollars USD.

6%
10%

3
Asia Pacific Middle East & Africa html
4
Eastern Europe North America 2
Latin & Central America Western Europe
furthermore estimates counterfeiting and piracy costs

4 WHAT IS THE NEGATIVE cadmium) in both internal and external components

at concentrations much higher than the maximum
IMPACT OF COUNTERFEIT Figure A
AND SUBSTANDARD MOBILE
PHONES ON SOCIETY? internal and external components of the tested
mobile phones.

substandard mobile phone problem manifests itself

A : WHAT IS THE IMPACT

ON CONSUMERS?
1 : HAZARDOUS SUBSTANCES IN COUNTERFEIT/
SUBSTANDARD MOBILE PHONES

models (3 nos. for each model) from the stores and

components) comprising all handsets.

FIGURE A: Test: Hazardous substances Chemical analysis

Cadmium (Cd)
Lead (Pb) Chemical analysis Chemical analysis

3.01 2.7 0,02

0,02
Cadmium (Cd) %

2.1
Lead (Pb) %

2.01 1.9
1.8

1.2 0,01

1.01
0.6

0.01 0
Antenna PCI-SD Material PCI base Black PCI Gold PCI Antenna
card IC 1 Panel connector connector

mobile phones.
3
 FIGURE B: High Lead (Pb) content found in all handsets tested - clearly amplifying their
substandard character

39,236

38,737
More than 39 times
than the acceptable
40,000 Pb limit

31,613
31,466
30,154

25,132
30,000

22,705
Figures in PPM

19,617

19,056

19,617
16,140
20,000

14,039

14,505
13,022
23,076

11,879
9846
9248
8573
9202

8575
10,000

5764
5672

4866
1395

1706
1217
307
483

0
0
0
0

0
0

0
0
0
0
0
0
0
0

0
0
0
0
0

0
0
0
0
0

0
SIM slot Memory Charging Camera Back cover PCB Battery Chip Microphone Speaker LED light
card slot connector connector component

G5-C2-02012012 (G-Five) F-N71-05012012 (Forme) W-M25-09012012 (Wing)

SE-X5-11012012 (Suny Ericson) YX-88-110120012 (YX Tel)

2 : OTHER SAFETY ASPECTS

found to contain alarmingly high proportions of
substandard mobile phones is not the only safety

compliance assessments before they can be sold.

in most countries, mobile phones must be type

therefore safe for consumer use. Figure B

Figure C
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 SIM SPK manual
Connector 1 Connector 2 soldering point
4
 B: INdT STUDY

existence of counterfeit and substandard phones in

3 : QUALITY OF SERVICE
testing protocols in order to compare the

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 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

stations to rectify the problems.

These results highlight the considerable impact for function.

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5 : SECURITY ISSUES (CYBER SECURITY,
THEFT OF STOLEN PHONES,
DATA-PROTECTION, ETC.) phones cannot be underestimated. This is a huge

through the creation of blacklists and other similar

They use them to shoot, store, and share photos and measures.

interests, and crime control are a cornerstone

of the most important public policy debates

societal problems is not in the crosshairs of most

the security related risks that arise from mobile
phones need to be taken seriously.
much more important threat than other counterfeit
products because it is perhaps the most important

numbers, social security numbers, bank account

information, and other types of information. There is mobile phones present. This is a threat that must be
taken seriously.
these mobile phones are not continuously scanning
the information the consumer inputs on the phone B : WHAT IS THE IMPACT OF
COUNTERFEIT/SUBSTANDARD
DEVICES ON GOVERNMENTS?
money or their identity.

any country is the existence of a legal protection

of rights of legitimate business and the promotion

capacity to act as a logger of information including

remote phone monitoring, logging of incoming and

address books, and other data.

in the loss of potentially billions in direct and indirect

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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
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a.
to determine if the capabilities of the phone
match the listed capabilities. The technology
lists to determine if the mobile phone is blocked or
capabilities stored in the capability database not. This solution has the potential of screening out
(database creation is based on information

The capability database can also, for example, use

b.
3 : NETWORK BLOCKING BASED
capability crosscheck failed. ON TYPE APPROVAL
c.

considering this approach.

B : IMPORTATION BLOCKING
2 : IMEI NETWORK BLOCKING SOLUTIONS 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

employed by some countries is perhaps best

The solutions used in both countries establish

purposes.10 The blacklist is focused on stolen and lost

8
1 : INCREASED CONSUMER AWARENESS CONCLUSION

a critical component of any strategy. The demand

of the mobile phones and their importance in

problems posed by these products such as the safety

and health threats, the poor performance of the
dollar industry for illegal manufacturers and it is
important the security threats particularly in the

2 : INCREASED ENFORCEMENT

must occur in order to adopt a solution that best suits

must include increased resources in the form of

other resources.
focus on the huge black markets that exist in all

problem impacts and cuts across a number of

industry representation is necessary. The MMF For more information on this important issue,

action plans and the allocation of appropriate and

sustainable funding mechanisms.
help consumers learn more about the dangers
3 : LEGISLATIVE/REGULATORY REFORMS

before they buy them.

substandard mobile phones are out of the reach of

products that are being shipped to a third country.

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 ANNEX 1

TEST CATEGORY #1 AND #2: TEST CATEGORY #4:

Access Failure and Dropped Calls Transmission Power Capabilities:

Access Failure: This category measures call

Dropped Calls: This category measures
ongoing calls that are undesirably interrupted Minimum received power
Maximum transmission power to be listened by
Results: antenna.

Access Failure Dropped Calls

30 30 Average Minimum Received Power
26.0%
24.0%
Access Failure Rate (%)

20 times (13dB)
Drop Call Rate (%)

Bit Error Rate (%)

20 20
3

10 10 2

3.3% 1
0.0%
0 0
0
Substandard Original Substandard Original
Average Average Average Average -60 -62 -64 -66 -68 -70 -72 -74 -76 -78 -80 -82 -84 -86 -88 -90 -92

Received Signal Level (dBm)

Original Average Substandard Average

Average Maximum Transmitted Power

2.0
TEST CATEGORY 3: 1.81
Handover Performance 1.35
Power (Watts)

0.96
1.0
0.72
0.51
to another. 0.37
This mechanism is called handover and should 0.13
0.09
0.0
GSM 850 EGSM (900) DCS (1800) PCS (1900)

Original Average Substandard Average

(ie. dropped).

How
mobility
works TEST CATEGORY #5:
Transmission Power Control:
Should my phone transmit high or low?
Transmission Power
needs to be controlled. Control Average time
Average Handover Time Handover Fail
0.49 +55% more
Power Control Time (s)

0.53% +41% time delay

Handover Failure Rate (%)

delayed
30 34.2%
needs to be executed 0.4
Handover Time (s)

0.31
0.4 0.37%
20
0.3 0.2

0.2 10
0.1 0
1.8% phones and if transmits Substandard Original
0.0 0
Average Average
Substandard Original Substandard Original
Average Average Average Average

High Low
Power Power

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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

200
Data Speed (Kbps)

EDGE
100

GPRS
0
-62 -65 -68 -71 -74 -77 -80 -83 -86 -89

Received Signal Level (dBm)

125 300 700

Distance Estimated (meters)

Original Substandard

Diamant Building Av. Paulista, 2300 Piso Pilotis 15th Floor, 100 Queens Road Central,
Boulevard Auguste Reyers 80 CEP 01310-300 So Paulo/SP Brazil Central, Hong Kong
1030 Brussels Belgium Telephone +55 11 2847-4610 Telephone +852 3180 9375
Telephone + 32 2 706 8567 Facsimile +55 11 6847-4550 Facsimile +852 3180 9399
Facsimile + 32 2 706 8569
www.mmfai.org

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