DOD Anti-Counterfeit Rule Raises Safe Harbor Concerns

Law360, New York (May 16, 2013, 8:28 PM EDT) -- A long-awaited U.S. Department of Defense regulation lays out additional steps contractors must take to prevent counterfeit electronics from making their way into defense technology, but questions remain about the implementation of the new rules, especially concerning the scope of a safe harbor provision for DOD-approved anti-counterfeiting practices.

The DOD's proposed rule, published in Thursday's Federal Register, contains a stark contradiction between the text of the regulation and the preamble that describes the safe harbor.

The preamble says contractors can't bill for the costs of replacing...
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