Counsel to Counsel - May 2008 - (Page 10)

best practices responding to Counterfeit Products MICHAEL O’NEILL AND KEVIN HUGHES | LENOVO Michael O’Neill is senior vice president and general counsel at Lenovo, a global leader in the personal computer market. He recently co-chaired a Counsel to Counsel session in Los Angeles on delivering corporate legal services worldwide. You can reach him at moneill@lenovo.com. Kevin Hughes is one of the company’s assistant general counsels. He can be reached at kchlegal@lenovo.com. Counterfeiting is a significant, ongoing threat to the global marketplace. In addition to undercutting sales, counterfeit products are often unsafe, leading to safety incidents, bad publicity and even government investigations. That, in turn, can sully a company’s carefully cultivated reputation for years to come. situation implementation steps • Make business partners’, field sales’ and customers’ complaints part of your early-warning system. • Identify in-country legal and investigative resources in key markets before counterfeit issues arise. • Establish product engineering, supply chain and safety teams for product analyses and expert affidavits. • Evaluate suspected quality and safety defects quickly. • Engage sales and PR to address customer and media concerns. • Support partner, competitor and industry group anti-counterfeiting activities. As the company’s legal representative, inside counsel must ensure that processes are in place to watch for and identify counterfeit items early on, aggressively pursue and prosecute counterfeiters, and reassure partners, the public and government regulators that the company’s products are trustworthy. challenge in-house counsel Counterfeiting is especially risky for the personal computer industry because AC adapters, lithium-ion batteries and other standard-issue components must meet safety standards often ignored by counterfeiters. approach adopted Since counterfeiting often crosses national boundaries, Lenovo legal and security teams have retained in-country legal and investigative resources familiar with the various legal systems within our markets. We also train port-of-entry law enforcement and customs agencies on how our products are manufactured, packaged and shipped to improve their ability to identify counterfeits. When necessary, security engages local or national law enforcement agencies on Lenovo’s behalf. Our sales and public relations teams may be brought in to calm customer concerns and respond to media inquiries. Finally, as a major industry player, we strongly support competitor, business partner and industry anti-counterfeiting efforts. These same groups are there for us if and when we need assistance. Lenovo has created an effective counterfeiting monitoring and response process that leverages existing internal resources to quickly identify and resolve counterfeiting challenges. As part of its ongoing market research, our product group also monitors Internet-based selling points like eBay for suspicious Lenovo product descriptions or pricing. Further, in-country field sales representatives and resellers regularly report products being sold at suspicious, “impossibly low” prices. Our customer support teams monitor customer complaints to identify unusually high component failure rates. Safety-related complaints are investigated quickly to determine what failed and whether a counterfeit component is involved. If counterfeiting is suspected, Lenovo arranges to purchase the suspected product for field and laboratory analyses. Lenovo teams also conduct customer and reseller interviews. If legal action is warranted, outside counsel and in-house lawyers from our operations and IP teams develop the litigation strategy, with product engineering, supply chain and safety teams providing product analyses and expert affidavits. Identifying and resolving counterfeiting quickly benefits your company and its customers, suppliers and resellers. Customer confidence and satisfaction is enhanced because low-quality or unsafe products are removed from the marketplace. Reseller satisfaction is enhanced because you are willing and able to protect and defend your product. Lost sales are eliminated, positively impacting your bottom line. And, perhaps most importantly, the respect given to your brand and reputation remains intact. measuring success 10 LexisNexis® Martindale-Hubbell®

Table of Contents Feed for the Digital Edition of Counsel to Counsel - May 2008

Counsel to Counsel - May 2008 Contents Harassment Policies NEC Corporation of America and Duane Morris LLP Lost or Stolen Data: Minimizing Fallout On-Boarding the Board Drafting Fair, Efficient and Enforceable Arbitration Agreements Responding to Counterfeit Products Crafting an English-Only Workplace Policy Distressed Debt: New Players, Global Sophistication Make Restructuring More Complex IP Confidential: Plan Ahead, Act Fast to Protect Your Trade Secrets Adverse Changes: Think Ahead in a Strained M&A Market Optimizing Web 2.0 Technology: Expanding Your Professional Network Union Pacific Railroad Company and Patton Boggs LLP Warming Warning: Develop Your Climate Change Strategy Now Risk Sharing: Expect New Obstacles and Expenses in Syndicated Loans E-Discovery in Action Diversification at the Gate Energy

Counsel to Counsel - May 2008

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