Fake batteries plague digital camera makers

Canon, Nikon and other makers of digital cameras are contending with a growing availability of counterfeit batteries for their cameras. There are fears that these counterfeits, which are currently most prevalent within Chinese market, could soon enter the Japanese market in force, with the further possibility of the problem spreading worldwide.

The biggest concern associated with the sale of these products is the possibility that they might explode and injure users. According to the Japan Dry Battery Industries Association, there have been several cases of this, predominantly in China and Southeast Asian countries, in which people have suffered burns or other injuries caused by fake lithium-ion batteries for digital cameras or video recorders.

Also worrying the camera makers is the notion that consumer confidence in the original brands will be damaged by the proliferation of sub-standard products that have been passed off as genuine.

The rise of the phenomenon has left digital camera companies grappling with strategies aimed at combating the problem. Canon has stationed two intellectual property staff in Beijing to work with the Chinese police and regulators in order to detect makers of fake batteries. Through these efforts the company expects that it will have unearthed about 100 illegitimate producers in China during 2004, a figure that represents an increase of about 40 since last year.

Both Canon and Nikon are also focusing on the incorporation of holograms into the packaging of their genuine products to enable people to distinguish them from copies. Many manufacturers have also issued warnings on their websites explaining that counterfeit batteries are prone to explode, in a bid to alert consumers’ attention to the dangers of using them.

By far the most radical approach taken against the counterfeiters is Nikon’s decision to incorporate in its Coolpix digital camera range, a technology that prevents users from operating the digital camera with batteries other than Nikon’s own.

It appears that the company has taken these costly measures in an effort to combat counterfeits and so far this has been the most effective method used in this arena. However, many makers are sceptical about this method, fearing it might be judged to be violating the Anti-Monopoly Law by pushing legitimate batteries made by non-digital camera firms out of the market (comparisons could be made between this activity and “smart chip” issues in remanufacturing). Nikon officials counter this argument, claiming that its approach leaves sufficient room for such compatibles to remain on the market.