Dr James Hayward on the National Defense Authorization Act, $APDN
Dr. James A. Hayward is Chairman, President, and CEO of Applied DNA Sciences (OTCBB: APDN). With over 20 years of experience in the biotechnology, pharmaceutical, life science and consumer product industries, Dr. Hayward is actively involved in the global effort to ensure the authenticity of products and the protection of global supply chains from counterfeiting and diversion.
Over the new year, President Obama signed a $700 billion National Defense Authorization Act which has caused an uproar. In a recent email and press release Hayward stated stated:
"I would like to call your attention to a part of the Act that is a straight-out positive, even game-changing event for the national security and economic life of the country, and ought to be heard above the noise.
It is the stunning piece of news that, packed into the Act, is an amendment which requires defense contractors to eliminate counterfeit parts from their operations. Companies are legally and financially liable if they sell counterfeits into the military supply--even if they did not produce the fakes, and even if that sale was inadvertent. In the language of the amendment, contractors have to detect them, avoid them, and if not, pay for their replacement and rework, or even face debarment.
We believe this legislation will shake up the semiconductor, aerospace, and other industries in a dramatic way. And our company is already there with a solution and expertise to help those industries. I hope you will take some time to read this, and consider helping us publicize this critical development."
The full press release states:
"The bipartisan amendment is a result of a Senate Armed Services Committee (SASC) hearing on November 8, 2011 that exposed upwards of a million counterfeit parts in U.S. military supply chain. At the hearing, SASC Chairman Carl Levin (D-Mich) vowed to work with Senator John McCain (R-Ariz) in a bipartisan effort to legislate a solution to this "clear and present danger."
Here is a news report of that hearing:
Highlights of the legislation can be found here, and include the following:
- Require the Secretary of Homeland Security to establish a program of enhanced inspection of electronic parts imported from any country that is determined by the Secretary of Defense to be a significant source of counterfeit parts in the DOD supply chain. Authorize information sharing with original component manufacturers, to the extent needed to determine whether an item is counterfeit. (HR. 1540, SEC. 818)
- Require covered contractors that supply electronic parts or systems that contain electronic parts to establish policies and procedures to eliminate counterfeit electronic parts from the defense supply chain. (HR. 1540, SEC. 818)
- Require DOD to adopt policies and procedures for detecting and avoiding counterfeit parts in its own direct purchases, and for assessing and acting upon reports of counterfeit parts from DOD officials and DOD contractors. (HR. 1540, SEC. 818)
Applied DNA sells patent-protected DNA security solutions to protect products, brands and intellectual property from counterfeiting and diversion. SigNature DNA is a botanical mark used to authenticate products in a unique manner that essentially cannot be copied, and provide a forensic chain of evidence that can be used to prosecute perpetrators.
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