Hynix settles over counterfeit chips
Memory maker agrees terms with two UK distributors discovered selling re-marked products
Memory manufacturer Hynix has agreed to settle out of court with two UK distributors, after they were discovered selling counterfeit memory chips.
The distributors, Newbury-based Rombyte and Surrey-based First Choice Components, have both signed contractually binding agreements to "cease and desist from importing and marketing counterfeit memory chips stamped with the Hynix brand name, but not manufactured or marketed by Hynix".
The counterfeit chips seized from Rombyte and First Choice by police and trading standards officers earlier this year contained low-grade dye produced by other memory manufacturers and were packaged in Taiwan with irregular Hynix markings. The chips had been purchased from Taiwan-based suppliers, with Hynix brand markings on third-party SDRam modules.
Since the case Hynix has launched its own investigation into the suppliers identified, in an attempt to stop the counterfeiting at its source.
Richard Lindo, a representative of Hynix Semiconductor Europe, said: "We believe that a bona fide memory distributor should be capable of identifying counterfeit products, and we also want to protect the interests of our authorised distributors and end-users of our products."
A representative of First Choice Components told CRN: "Only one piece of Hynix memory, with a value of £15, was discovered at our premises out of the thousands of products we had in stock. We were not fined or punished in any other way by Hynix."
The other distributor, Rombyte, refused to comment.
Dave Flack, sales and marketing director at distributor Memory Plus, said: "These two companies are not the only ones trading in re-marked chips; they are just the ones that got caught. Although they have not been prosecuted, they will be paying the price, when other manufacturers cease to support them with memory products."