Regulators May Propose Anti-Counterfeiting Rule Regulators are considering whether federal contractors should join the fight against counterfeit computer hardware and software. The Federal Acquisition Regulations councils said, “”The Councils believe requiring contractors to represent that the IT products they sell to the Government are authentic will aid in efforts to combat counterfeit IT products.” They are asking for public comment on whether a rule is needed and, if so, what it should say. Among the issues raised in the notice of proposed rulemaking are: What is a contractor’s liability if it sells counterfeit products to the government? Should resellers and distributors be required to represent that they are authorized by the manufacturer to sell to the government? Should the same requirements be extended to other products besides IT? Should the rule apply when IT is part of a system or assembled product? Noting the government’s heavy dependence on IT for everything from cars to air traffic control to military communications, the councils commented, “Counterfeit network hardware and [integrated circuits] pose a risk in that they frequently do not meet the quality standards of genuine equipment. Various information indicates that these products have a higher failure rate than genuine equipment, and often fail upon installation, or weeks or months after installation. Thus, these counterfeit IT products pose a threat to the national security and consumer safety because when they fail, the entire systems in which they are embedded may also fail.” A public meeting is scheduled for Dec. 11 in Washington. Written comments are due by Jan. 20. The notice, including a draft of a proposed rule, is FAR case 2008-019 in the Nov. 18 Federal Register.