It's been an exciting month for us with the launch of the new website and enhanced features.  We wanted to take a moment to make you aware of a few of the latest benefits that ERAI membership has to offer:

Part Sourcing is open for all ERAI Members.

Participation in the MIS program is no longer required.  You can now upload your inventory files at http://www.erai.com/PostInventory (Profile -> Post Inventory) or via email. Availabilities/OEM excess files can be sent to inv@erai.com and SDS stock files to sds@erai.com. Further your relationship-driven model by sourcing from companies also using ERAI's services.

Nonconformance Photo Library

The Library is a new training and education tool in the fight against high-risk and suspect counterfeit parts. The library is a search engine that allows members to search through the ERAI High Risk & Suspect Counterfeit Database to find images of specific parts as well as specific types of nonconformances that those parts exhibit. Photo Library images can be used for staff training and as a testing reference tool providing members with different examples of potential nonconformance(s) they should be looking for when examining electronic components. Access the Library now at: 

http://www.erai.com/Nonconformance_Photo_Library

The first 100 individuals to register will be entered into a drawing for a complimentary conference pass!

Registration Includes:

• Full program access: Participate in all featured presentations, workshops and panel discussions
• Program agenda: Provided to all attendees (Look for our agenda coming in January)
• Digital copies of featured presentations & workshop materials: Downloads available containing all lecture and training materials provided to all attendees
• Meals included: Breakfast, refreshments and cocktail receptions provided both days.
• Best rate – onsite accommodations: Attendees automatically qualify to receive best rate for onsite accommodations.

Member discounts and early bird rates are available. Sign up now!

Accommodations

The 2015 ERAI Executive Conference will be held at the Hilton San Diego Bayfront Hotel located at:

Hilton San Diego Bayfront Hotel
1 Park Boulevard
San Diego, California 92101
Phone: 619.564.3333
http://www.hiltonsandiegobayfront.com

ERAI has arranged for a room block with a limited number of rooms available at a discounted rate of $249.00 per night for single/double occupancy plus sales and hotel occupancy taxes of 20.64%. Additional recommended services fees are $10.00 porterage per person (including both check-in and check-out) and $3.00 attendant fee per room, per day. Please note: high speed internet is included in the room rate.

Reservations can be made by either calling 1-800-HILTONS (1-800-445-8667) and referencing the group code ERAI or online at following the link: https://resweb.passkey.com/go/ERAI2015. Discounted rooms will be offered through March 22, 2015.

Sponsorship & Advertising Opportunities

ERAI's Executive Conference lets you reach critical influencers and key decision-makers throughout the global supply chain of electronics. These exclusive opportunities are offered on a first come, first served basis, so act now and reserve your place! This year we are increasing exhibitor-attendee face time by adding on a Meet and Greet Exhibitor Crawl on April 21 in the exhibit hall as a complement to our Networking Social on April 22.

See what opportunities are available at:
http://www.erai.com/CustomUploads/Conference/2015/ERAISponsorOpportunities2015.pdf

Please contact Anne at 239-261-6268 if you are interested in a sponsorship opportunity or have questions regarding the planned activities.

Anne-Liese Heinichen, ERAI

On November 4, 2014, the Turkish Supreme Court ruled that online service providers can be held liable for contributory infringement when they knowingly host websites or online listings that sell counterfeit products. This case between a cosmetics company and a hosting provider found that online service providers bear legal responsibility if they have received notice that a vendor is selling counterfeit products but refuse to or fail to take any action against the vendor and/or listing.

In China, laws also exist to hold online providers liable for trademark infringements if the provider is aware of the activity and does nothing to stop the activity. Similar rulings in the European Union assert that service providers also bear responsibility once they become aware of counterfeit activity from either direct notification; during optimization of listings and during monitoring activities.

U.S. courts have upheld a similar stance. The decision reached in Tiffany (NJ) Inc. v. eBay, Inc. a decade earlier reflected similar reasoning. In this case, the courts ruled the defendant could not be held responsible because Tiffany could not prove that a majority of the products for sale on eBay were in fact counterfeit nor did Tiffany provide eBay with specific examples of infringing vendors and listings. Tiffany also did not participate in a program implemented by eBay under which a brand owner could notify eBay of suspect counterfeit products and request that eBay remove the listing. Therefore, eBay's general knowledge of their users' activities was not enough to hold them accountable without specific examples of violations which Tiffany had failed to do.

Louis Vuitton Malletier, S.A. v. Akanoc Solutions Inc. further solidified the courts' viewpoint by awarding Vuitton $32.4 million in damages after demonstrating that despite numerous letters to Akanoc notifying them of trademark infringements on websites hosted by Akanoc, Akanoc failed to shut down the counterfeiters' websites.

In the more recent Kering S.A. v. Alibaba Group Holding Ltd., filed prior to the initial public release of Alibaba's stock in the New York Stock Exchange, Kering asserted fakes of their luxury goods brands were being openly sold on Alibaba, China's largest e-commerce website. However, the lawsuit was withdrawn after Alibaba agreed to work with Kering to prohibit counterfeiting activities on its platform.

These rulings show that the US courts have expectations for both the IP holder and online service providers when it comes to trademark infringements. Brand owners are expected to be proactive in monitoring and reporting to online platforms; online service providers should have policies and procedures in place to remove violators' listings and/or websites and should actively monitor content and activities on their platforms. Willful blindness is not acceptable as an excuse for failing to stop online counterfeit activities.

What this means to our Members and the industry

While sites such as Alibaba and Taobao have demonstrated cooperative efforts, hundreds, if not thousands, of other portals provide counterfeiters with access to the global marketplace. Websites, not just in China, but in India, Indonesia, Canada and even the US, also market not just counterfeit consumer goods but electronic components as well. As buyers, ERAI Members should be wary of purchasing from online portals as laws on contributory infringements vary from country to country and prosecution is many times difficult, if not impossible, making returns and refunds impossible.

It is no secret that counterfeits are prolifically sold on online platforms. The United States Government Accountability Office Report from February 2012 states that all 16 of the parts purchased for the report were either suspect counterfeit or bogus and even four bogus parts that were requested were supplied!

Despite knowing their members are supplying suspect counterfeit parts, many providers are failing to take direct action, leaving them and you at risk. Anyone sourcing parts online should expect and demand that providers routinely and proactively monitor all suppliers, their listings and activity and initiate immediate action when they receive reports of suspect counterfeit parts. This includes a system of verification to avoid repeat offenders from re-accessing the site under multiple identities.

Behind the scenes, data collection and verification are a large part of ERAI's staff duties. ERAI maintains thousands of company profiles including hundreds of thousands of contacts and notes on relationships between entities. We look for connections between companies, addresses, phone and fax numbers, contact names, cage codes and banking information to identify bad actors.

If you come across suspicious activity or have a tip for ERAI, please let us know by calling our office at 239-261-6268 or via email at eraiinfo@erai.com.

United States Government Reports:

February 2012 Government Accountability Office Report: Suspect Counterfeit Electronic Parts Can Be Found on Internet Purchasing Platforms
http://gao.gov/assets/590/588736.pdf

2013 United States Trade Representative Report: Out-of-Cycle Review of Notorious Markets
http://www.ustr.gov/about-us/press-office/press-releases/2014/February/Notorious-markets-list-focuses-fight-against-global-piracy-and-counterfeiting

2014 United States Trade Representative Report: Special 301 Report
http://www.ustr.gov/sites/default/files/USTR%202014%20Special%20301%20Report%20to%20Congress%20FINAL.pdf

Sources:

http://www.jonesday.com/files/Publication/cb405aa3-30fc-45b0-a025-6bd42493221c/Presentation/PublicationAttachment/b60b2502-8558-42ba-b2f3-447269e2d6b6/CombatingContributoryInf.pdf

http://www.bloomberg.com/news/print/2014-08-11/alibaba-cooperates-with-kering-after-fakes-suit-withdrawn.html

http://jipel.law.nyu.edu/2010/04/contributory-liability-for-trademark-counterfeiting-in-an-ecommerce-world/

DARPA technology uncovers counterfeit microchips
http://www.networkworld.com/article/2690353/security0/darpa-technology-uncovers-counterfeit-microchips.html

War on Counterfeit – 5 ways the fight against counterfeit components is evolving
http://www.penton.com/esb/PDF/DistribResource_1014_DE

Former Simi Valley Businessman Sentenced to Over 7 Years in Prison for Selling Knock-Off Batteries to Navy for Use on Warships
http://www.dodig.mil/IGInformation/IGInformationReleases/batteryfraudDeNier.pdf

Issues in Solvent Testing for Counterfeits
http://www.us-tech.com/RelId/1337592/ISvars/default/Issues_in_Solvent_Testing_for_Counterfeits.htm

SAE Anti-Counterfeit Standard Adds Teeth to Legal Protection
http://www.ebnonline.com/author.asp?section_id=1162&doc_id=275589&itc=ebnonline_gnews

Crackdown on counterfeits as grey market threat spreads
http://www.electronicsweekly.com/news/business/distribution/crackdown-counterfeits-grey-market-threat-spreads-2014-12/

Virtual lab advances DOD's ability to test critical microelectronics
http://phys.org/news/2014-12-virtual-lab-advances-dod-ability.html?__scoop_post=0a3ba450-8221-11e4-f206-842b2b775358&__scoop_topic=2810678#__scoop_post=0a3ba450-8221-11e4-f206-842b2b775358&__scoop_topic=2810678

Owner of Rhode Island electronics parts company admits defrauding customers.
http://www.justice.gov/usao/ct/Press2014/20141212-2.html

Defense Logistics Agency Launches DNA Marking Capability to Strengthen Microcircuit Supply Chain
http://www.prnewswire.com/news-releases/defense-logistics-agency-launches-dna-marking-capability-to-strengthen-microcircuit-supply-chain-300009908.html?__scoop_post=66a5a7c0-8539-11e4-e1bb-842b2b775358&__scoop_topic=2871145#__scoop_post=66a5a7c0-8539-11e4-e1bb-842b2b775358&__scoop_topic=2871145

Combating Counterfeit Products Act is now law
http://www.hpacmag.com/news/combating-counterfeit-products-act-is-now-law/1003391301/?er=NA&__scoop_post=79c82d00-82b9-11e4-f1ed-001018304b75&__scoop_topic=2871145#__scoop_post=79c82d00-82b9-11e4-f1ed-001018304b75&__scoop_topic=2871145

Damir Akhoundov, ERAI

At ERAI we are constantly working on creating new ways of providing our members with useful and meaningful information to enable them to make educated business decisions. In the latest release of www.erai.com we are unveiling an exclusive feature that provides new training and education tools in the fight against high-risk and suspect counterfeit electronics - the Nonconformance Photo Library. The library is a search engine that allows members to search through the ERAI High Risk & Suspect Counterfeit Database to find images of specific parts as well as specific types of nonconformances that those parts exhibit. The Photo Library images can be used for staff training and as a testing reference tool providing members with different examples of potential nonconformance(s) they should be looking for when examining electronic components.

This new feature was made possible by the enhanced reported parts description database created in 2013 that allows a description of non-conformance for any electronic part to be built from over 80 types of specific non-conformance categories that can be identified using 15 industry-standard testing techniques. The system was designed to not only allow ERAI to assign non-conformance categories to a part being reported, but links specific images of that part to assigned categories, thus creating a database of images that illustrate the non-conformances themselves.



Images searches can be performed using several different criteria. Images can be found for a particular part number (either full or partial) or part number and manufacturer combination and/or by selecting specific nonconformance category (or categories). So if a resistance to solvents test was done using acetone, a member can look for images that correspond to that specific category:

Remarking & Resurfacing Testing Revealed:
Parts Failed Resistance To Solvents (RTS) - Acetone
Surface material was removed using acetone (e.g. CAS Registry Number 67-64-1)

Resulting in 400 images.



Additional filtering can be added either by part number or manufacturer to refine the image search results:

Remarking & Resurfacing Testing Revealed:
Parts Failed Resistance To Solvents (RTS) - Acetone
Surface material was removed using acetone (e.g. CAS Registry Number 67-64-1)
AND
Manufacturer = MAXIM INTEGRATED PRODUCTS

This will result in 8 images.



Alternately, members can search images simply by entering the part number to view examples of nonconformances identified in a specific part number.

By using this library, ERAI members can:

• View photographic example(s) of nonconforming parts for a specific part number
• View photographic example(s) of nonconforming parts made by a specific manufacturer
• View specific type(s) of nonconformances found in specific parts made by a selected manufacturer
• View examples of specific nonconformances throughout various part types
• View detailed reported part profiles for parts associated with the images and see what other non-conformance traits were identified in those parts together with the specific nonconformances displayed in the image(s)
• Review incidents associated with the part that contains the image that was located through the Nonconformance Photo Library

The search results will specify the nonconformance category displayed along with a details button that links to the reported part alert issued by ERAI.

The Nonconformance Photo Library will become a useful tool in both identifying suspect counterfeit parts and educating our members in methods of prevention of counterfeit part escapes. This training and reference tool will soon become a welcome enhancement to members' incoming visual inspection procedures.

We welcome your comments and suggestions of how to further improve this and other ERAI tools. Our programming team is always ready to implement any new ideas from our Members to assist them in preventing high risk and suspect counterfeit parts from entering the supply chain.

View from RJO: A Standards-Based Way To Avoid Counterfeit Electronic Parts Why you should read it: Robert Metzger argues that government regulations should be based on risk-based principles with reliance on standards-based practices. ERAI Insight: Mr. Metzger establishes that although the final rule for DFARS Case No. 2012-D055 was published in May 2014, the guidelines remain ambiguous. Even though the rules apply only to contractors that are subject to Cost Accounting Standards (CAS), the regulations are actually designed to be flowed down throughout the DoD supply chain. Mr. Metzger argues that as contractors and the global supply chain as a whole adapt their systems to meet the DFARS requirements, these systems still need to remain practical and affordable and that best practices found in current industry standards (such as SAE's AS5553, AS6081, AS6171, AS6496, ARP6178 and others being developed by JEDEC) should be used as assessment benchmarks. http://www.erai.com/CustomUploads/ca/wp/2014_13%20Robert%20Metzger%20-%20Standards-Based%20Approach.pdf

What is the Electronics Industry doing about the threat of counterfeit components? Why you should read it: Read a summary of efforts to stem counterfeit components through the use of trade organizations, component databases and standardization efforts from the Component Obsolescence Group. ERAI Insight: This paper provides a concise summary that can be used as a reference tool which provides a list of different organizations engaged in the fight against counterfeits along with government regulations, standards efforts, counterfeit part databases and trade associations. http://www.itrilabs.co.uk/electronics-industry-anti-counterfeiting-nov-2014-update/

On December 12, 2014, Jeffrey Warga, former president of Bay Components LLC, waived his right to indictment and pleaded guilty to conspiracy to commit wire fraud in violation of Title 18, United States Code, Section 1343, which states:

to defraud, or for obtaining money or property by means of false or fraudulent pretenses, representations, or promises, transmits or causes to be transmitted by means of wire, radio, or television communication in interstate or foreign commerce.

The plea agreement contends Warga and his co-conspirators sent emails to a company in Connecticut in which he: (1) misrepresented the origin of the goods by stating the parts were not sourced from Asia; (2) sold used parts misrepresented as new; and (3) stated the parts were authentic, “when, in fact, Warga and his co-conspirators knew the parts were counterfeit parts”.

This charge carries a maximum term of imprisonment of 20 years; however, a sentencing date has not yet been scheduled.

Warga's case once again highlights the US Government's willingness to prosecute suppliers that are "willfully and knowingly engaged in a scheme and artifice to defraud their business customers by means of materially false and fraudulent representations". Similar to Peter Picone's indictment highlighted in our second quarter newsletter, misrepresenting the condition or origin of goods, even via e-mail, can result in serious legal and criminal repercussions.

If the parts are sourced from the open market or traceability to the manufacturer or an authorized source is not available, disclose this to your customer. If the parts' supply chain traceability has been broken and thus risk is introduced, disclose it. Misrepresentation no longer results just in the loss of a customer.

Additional links:

Jeffrey Warga Indictment
http://www.erai.com/customuploads/WARGA Jeffrey information.pdf

Jeffrey Warga Guilty Plea
http://www.erai.com/customuploads/WARGA Jeffrey plea agreement.pdf

Smith's annual survey explores supply chain challenges, component demand and growth, the impact of counterfeiting, and the evolving role of independent distributors

The annual Smith and Associates Global Supply Chain Survey was begun a few years ago in order to provide unique insight to issues affecting the semiconductor and electronics industry. As the industry continues to expand across market sectors and regions, the issues that affect the global supply chain show increasingly different trends based on a person's position and a company's function. While this insight may seem obvious, how exactly these differences are experienced and expressed is not always intuitive, particularly as we see changes over time depending on external industry forces. The Smith survey report, provided free of charge during the end of the first quarter, offers comprehensive reviews of the findings taking into consideration market events and Smith's experiences to help frame and understand the survey response trends.

Understanding supply chain shifts

Smith continues to focus on the key industry topics that our customers have highlighted and that we have seen rise in importance: opportunities and challenges in forecasting, component demand and growth (past year and forecasted), effectiveness of counterfeit mitigation strategies, and the evolving role of independent distributors, to name a few. Respondents represent the main industry sectors such as: consumer electronics, medical, automotive, oil & gas, and industrial equipment manufacturers. Respondents represent key positions and functions along the supply chain: Distributors, Electronics Manufacturing Services (EMS), Original Equipment Manufacturers (OEMs), Original Design Manufacturers (ODMs), and Contract Manufacturers (CMs).

This year's revised survey targets respondents' experiences and forecasts relating to the semiconductor and electronics industry. The insights range from individual component demand trends and forecasts, to supply chain events and strategies, and the opportunity to explore how different respondents' perspectives and strategies differ across company types. Also of interest is the historical view that Smith provides by comparing the results to previous years. The historical perspective helps point out emerging shifts across sectors and what might be influencing the direction of these shifts. Among the major topics covered in the survey are the following:

• Key challenges and concerns for the global supply chain
  
• The role of Independent Distributors
• Sustainability and climate disruptions
• Forecast: Technologies and component views
• Counterfeit exposure and mitigation strategies

By considering these topics through different viewpoints, Smith hopes to provide additional data to understand the major shifts and demands that (re-)shape our global supply chain. Smith recognizes that the most successful supply chain strategies demand agile and customized solutions. We encourage you to take our survey at:
https://www.surveymonkey.com/s/smith_GlobalSupplyChainSurvey_2014.


For more information, contact:
Mark Bollinger
Smith & Associate's V.P. of Marketing
+1 713.430.3000
mbollinger@nfsmith.com

Presented by Bill Cardoso, Creative Electron

Please note: Feature only available to ERAI Members; a username and login is required to view this video.
The video can be accessed in ERAI by clicking on Toolbox, Counterfeit Awareness, Videos.
Published on Nov 25, 2014

The availability of counterfeit electronic components has dramatically increased in the past few years. Electronics waste, budget cuts, and rapid technology replacement are a few of the drivers behind this multibillion-dollar industry. In this presentation we will give you an overview of the counterfeit epidemic and how x-ray inspection systems can be utilized to fight it.

Courtesy of SAE International
Author: Kirsten M. Koepsel

Electronic parts are used throughout industry to run everyday products, such as cell phones, and also highly technical products, such as aircraft, missiles, and spacecraft. Unlike cell phones, which are often replaced every year, the highly technical products may remain in service from 20 to more than 80 years. But what happens if the original electronic part, with a life cycle of 18 months, is no longer available? Some manufacturers have discovered that they have unwittingly purchased counterfeit ones.

Counterfeit Electronic Parts and Their Impact on Supply Chains examines how these items are negatively affecting the aviation, spacecraft, and defense sectors and what can be done about it.

As the inflow of counterfeit electronic parts does not appear to be slowing down, Counterfeit Electronic Parts and Their Impact on Supply Chains investigates the possible solutions to combat the issue, including legislation and standards, and other solutions that are government driven but that may be impacted by continuing budget cuts.

The book also presents a high-level compilation of supply chain best practices identified in a survey of electronic parts manufacturers and government contractors.

It is a must-read for those interested in a comprehensive review of the challenge of counterfeit electronic parts and the consequences of their use in both consumer and industrial products.

Published on 2014-10-20 by SAE International

Purchase at: http://books.sae.org/t-130/

SAE has provided updates for two standards pertaining to the electronics supply chain:

• AS6081 was published on November 7, 2012; revision A is underway with an anticipated ballot date in the first quarter of 2015.
• AS6171, currently classified as a work in progress, has an anticipated ballot date of January 2015.

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AS6081 - Fraudulent/Counterfeit Electronic Parts: Avoidance, Detection, Mitigation, and Disposition - Distributors.

Scope: This SAE Aerospace Standard standardizes practices to: a. identify reliable sources to procure parts, b. assess and mitigate risk of distributing fraudulent/counterfeit parts, c. control suspect or confirmed fraudulent/counterfeit parts, d. and report suspect and confirmed fraudulent/counterfeit parts to other potential users and Authority Having Jurisdiction.

Revision A Highlights Currently Include:

• New title: Counterfeit Electrical, Electronic and Electromechanical (EEE) Parts: Avoidance, Detection, Mitigation, and Disposition – Independent Distribution
• Minimized use of the term "fraudulent".
• Updated terms and definitions in accordance with G-19T work in progress. (Note: G-19T is a sub-committee working on the standardization of terms and definitions used by the G-19 committee as a whole in all standards, recommended practices and publications.)
• The Distributor’s Customer is more engaged in the risk determination process for purposes of establishing inspections and tests in the revised section, "Verification of Purchased/Returned Product".
• Supplier Approval and Source Selection has been updated and includes a Supplier Classification Table (formally called a Risk Classification Table).
• Verification of Purchased/Returned Product has been completely updated and replaced with AS6171, Test Methods Standard; General Requirements, Suspect/Counterfeit Electrical, Electronic, and Electromechanical Parts.
• Material Control has been enhanced with a better defined "Returned Product" section.
• Reporting has been completely updated with specific sections on:
• Responsibility for reporting
• Report form, format and information
• To whom to report (in a specific order)
• Organization Actions in Response to Data Reporting Center Alerts or Reports
• Includes a new section on "Product Impoundment and Financial Responsibility" created from previous Appendix Contract Clause.
• Includes a new section on "Internal Awareness and Improvement".
• Includes new section on "Compliance Verification Criterion for SAE AS6081", based on updates of the released document, AS6301.

Status of Revision A: The balloting process is expected to start early in the first quarter of 2015.

To purchase current version: http://www.sae.org/technical/standards/AS6081

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AS6171 - Test Methods Standard; General Requirements, Suspect/Counterfeit Electrical, Electronic, and Electromechanical Parts Scope: Provide uniform requirements, practices and methods to mitigate the risks of receiving and installing suspect counterfeit Electrical, Electronic and Electromechanical (EEE) parts. Current Test Methods Covered Under the First Release:

• External Visual Inspection (Including Scanning Electron Microscopy (SEM)
• Radiological
• X-Ray Fluorescence (XRF)
• Delid/Decapsulation Physical Analysis
• Electrical Test
• Acoustic Microscopy
• Fourier Transform Infrared Spectroscopy (FTIR)
• RAMAN Spectroscopy
• Thermo-gravimetric Analysis (TGA)
• Design Recovery
• Selected Environmental (Seal, Temp Cycling, Thermal Shock, Latency Mitigation / Burn-in)
• Risk Criteria and Sampling Plans
• Personnel Certification Requirements

Status of Release: All the sub-group documents have been balloted. One document is being re-balloted; the rest of the sub-groups have successfully gone through initial ballot and re-ballots. The main document has gone through balloting and we are now addressing the comments received. Re-ballot is anticipated for a January 2015 time frame.

Additionally, there are three sub-groups addressing future revision items:

• Packaging
• Electromechanical Parts; includes Motors, Generators, Hard Drives, Circuit Breakers, Relays; Wire, Cables, Connectors, Antennas etc.
• Electrical (e.g. wire & cable)
• Tampering related – addresses the latest DFARS regarding embedded software and firmware

Learn More: http://standards.sae.org/wip/as6171/

Below is a recent update to rules affecting the US Export Administration Regulations of specific interest to ERAI Members. For more information, please contact the Bureau of Industry and Security, U.S. Department of Commerce or your legal counsel.

Source: http://www.bis.doc.gov/index.php/regulations/federal-register-notices#79fr61571

79 FR 75044
12/17/2014

Expansion of the Microprocessor Military End-Use and End-User Control
http://www.bis.doc.gov/index.php/forms-documents/doc_download/1111-79-fr-75044-microprocessor-rule


This rule expands the scope of § 744.17 of the EAR. In addition to the license requirements set forth elsewhere in the EAR, you may not export, reexport or transfer (in-country) microprocessors ("microprocessor microcircuits," "microcomputer microcircuits," and microcontroller microcircuits having a processing speed of 5 GFLOPS or more and an arithmetic logic unit with an access width of 32 bit or more, including those incorporating "information security" functionality), or associated "software" and "technology" for the "production" or "development" of such microprocessors without a license if, at the time of the export, reexport or transfer (in-country), you know, have reason to know, or are informed by BIS that the item will be or is intended to be used for a 'military end use' or 'military end user,' in a destination listed in Country Group D:1. In addition, this rule adds a prohibition on the use of license exceptions (including License Exception ENC) for transactions meeting these criteria.