Channel Partner Protection Audits (CPPA)

CPPA HP Business Partner

Guide1
At HP we care about protecting our partners and customers against the purchase of HP Anti-counterfeiting and Fraud (ACF)
unauthorized printing supplies and counterfeit products. Program for the Americas
hp.ams.anticounterfeit.program@hp.com
At HP, we make it a priority to maintain the integrity of our supply chain and protect our partner
http://www.hp.com/go/anticounterfeit
throughout the Americas region, and that is why we are introducing the “Channel Partner
Protection Audits” (CPPA) program.

What is a ‘Channel Partner Protection Audit’?

HP will randomly select channels for CPPA to carry out unannounced visits by a HP product expert
auditor at the partner’s facilities, in order to conduct physical audits of HP printing supplies stored
in warehouses. “Warehouses” are defined as the facilities (either leased or owned) where HP PPS
products are stored prior to being sold. This includes corporate, headquarters, branches and
storage facilities, as well as any other kind of third-party storage facility where the partner has
stored HP supplies.

Why will HP conduct these Channel Partner Protection audits?

(CPPA)
• It will allow us to provide support for identifying counterfeit or unauthorized products that may
have infiltrated into a partner’s inventory.
• It will provide protection for honest partners who have nothing to fear from the audit, and who
will benefit from HP’s measures against illegal trade or that of unauthorized products in the
region.
• It will prevent dishonest partners from ordering and marketing counterfeit or unauthorized
products in the region.
• It will allow for the flow of information regarding the manufacturing of counterfeit products,
which use the brand illegally or carry out imports of unauthorized products in the region.
• It will show that HP is taking action against the counterfeiting of its products.
• It will allow partners with positive audit results to inform their clients, thus showing that HP has
confirmed that their supplies are genuine and authorized for sale by HP.

CPPA is a program benefitting both our partners, our clients and HP.

How does HP decide which clients will be audited?

All HP Partners are subject to undergoing a CPPA if selected, as mentioned in the following
verbiage included in the HP Partner First terms and conditions:

HP reserves the right to perform periodic audits to oversee compliance with the program’s terms
and conditions, which covers (without limitation) HP system records, demand generation
investment verification, etc. A Partner’s location selected for an audit will receive a notification
from HP or its designated auditor regarding audit procedures and the items to be audited, prior to
the audit visit.

[Translation of] Spanish version

1 Channel Partner Brand Protection Audits or, formally, Channel Partner Anti-counterfeit Audits (CPAAs)
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Lack of compliance with the terms and conditions of the program and/or of the terms set forth in
the HP Partner First Program Guide may lead to suspension or recovery of benefits, suspension or
recovery of all applicable agreements and/or civil or criminal claims.

HP will randomly select partners to undergo the CPPA. In order to protect the integrity of the
process, local HP contacts will NOT be notified in advance when a partner is selected for an audit.

Who will conduct the audits?

HP has a group of auditors who are experts on HP printing supplies, and they are the ones who will
conduct the audits on behalf of HP. If confirming the identity of your auditor with HP is required,
please contact your local HP representative (the representative will be notified of the audit at the
start of the audit, not in advance).

What can partners expect during CPPA?

CPPA will be conducted by trained auditors during normal business hours. Auditors will arrive
without prior notice and will explain the reason for their visit, which is to conduct a CPPA. He/She
will provide the following upon arrival at the facilities:

• A copy of an HP certificate, stating that he/she is a trained HP printer cartridge expert.

• A letter by HP stating that the partner has been selected for the CPPA.
• A copy of this Channel Partner Protection Audit Guide.
• He/She will provide a photo ID to confirm his/her identity.

The auditor will ask for the facility manager, who must provide immediate access to company
facilities, including storage areas, warehouses, office areas and personnel facilities, including
bathrooms, kitchens, etc. In case the manager is not available, the person in charge at the location
must provide access to the auditor.

The auditor is expected to have full access to the facilities within the first 15 minutes from the time
his/her arrival was announced, the auditor may wait for access for 15 minutes. During the course
of the CPPA, the auditor will examine HP products found in the facilities in order to verify that all
products with the HP logo, whether in the facilities or ready to be shipped, are genuine and
authorized for distribution in the region. CPPA requires access to all partner facility areas;
however, every effort will be made to minimize inconveniences or disruptions that could be causes
to you and your company.

It is important to mention that, under certain circumstances, the auditor will need to return to the
facilities on the following day, therefore, you must grant the same access to the facilities that you
granted the day before.

If you fail to provide access to your HP printer cartridge inventory for inspection, it may result in
failing the audit. From that time, communication with the country level HP representative will be
initiated, since your partner status is at risk.

Our auditors will be polite, discreet and professional during the visit to your facilities. If the
auditor deems it necessary, he/she may open sealed packages or containers for inspection. These
will be opened only when essential to the conducting of the audit, and with the necessary care.

A situation may come up where the auditor may need to take samples or photographs, if the
product is suspected of being counterfeit or unauthorized for distribution in the region. If samples
are taken, an official receipt for suspect products will be given. Any products found to be
counterfeit or unauthorized for distribution in the region will not be replaced, and no
reimbursement for such products will be made. Likewise, if counterfeit or unauthorized product
for distribution in the region is found, HP will ask its partners for all relevant information in order
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to fight counterfeiting and the gray market. If suspect products are removed, but are ultimately
confirmed to be genuine or authorized, the respective products will be returned or reimbursed.

In order to protect HP’s Intellectual Property, our auditors will not be at liberty to discuss the
reason why specific packages or containers were opened, or to remove any samples, with the
partner’s representatives.

HP reserves the right to contact the pertinent authorities regarding audit findings.

When the CPPA audit is finished, the auditor will inform the partner that the inspection has been
completed and will hand him a written communication confirming that the process has been
finalized, and he/she will leave the facilities.

Special cases: Security access requirement.

If HP printing supplies are stored in facilities that require prior notice on account of security
(military or government buildings), it is the partner’s representative’s responsibility to notify HP
in advance, so that this special procedure may be followed. If your inventory is located in such a
facility, please contact HP immediately by sending an e-mail to:
hp.ams.anticounterfeit.program@hp.com.
Bear in mind that these procedures are only followed for goods stored in government or military
facilities, in all other cases, immediate and regular access is expected.

Special cases: Third-party storage

If a partner stores its HP printing supplies in a warehouse operated by a third party, it is the
partner’s responsibility to notify HP so that the special case procedure can be followed. If your
goods are in a warehouse operated by a third party, you should send a copy of the letter sent to
you communicating this audit process to your warehouse partner, to the following e-mail:
hp.ams.anticounterfeit.program@hp.com.

The partner is obligated to point out exactly which products belong to them, without exception.

What is expected of partners and authorized distributors?

Compliance with the CPPA program is one of the stipulations in the terms and conditions of partner
programs and/or HP contracts, therefore, total cooperation with our auditors is expected,
including full and immediate access to all areas in your facilities, as mentioned above. The partner
or authorized distributor is allowed to designate a representative who will accompany the auditor
during the audit to observe the process, provided they do not participate in the audit or delay the
process of starting the audit for a maximum of 15 minutes after the auditor’s arrival.

If unauthorized products for distribution in the region or counterfeit products are identified,
partners are expected to provide HP with all available information related to the purchase of these
products, including vendor details and copies of relevant administrative paperwork.

Support to our auditor is also expected if he/she requests a list of your HP ink cartridge and toner
inventory or to take photographs of suspect products, if necessary.

Partners are expected to treat the auditors respectfully, professionally, and especially, in a
helpful manner regarding their needs, as described above.
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Failing to comply with CPPA requirements or to grant the necessary assistance and cooperation for
conducting the audit will result in a breach of HP terms and conditions and/or contracts, which
could cause loss of the ‘PartnerOne’ certificate.

What happens when the CPPA process has ended?

Soon after the CPPA process has ended, HP will contact you by letter. This letter will state that HP
‘carried out a CPPA at the partner’s facilities (company name) located at Facilities (all inspected
facilities), on (date when CPPA was conducted) and (quantity) of counterfeit or unauthorized HP
product found at the establishment (if any)’

If the audit confirms that no counterfeit or unauthorized product for distribution in the region was
found in the partner’s facilities, the letter will state that ‘0 counterfeit or unauthorized products
for distribution in the HP region were found in the facilities’ and it will confirm your status as
partner.

Products marked as suspect will undergo a full investigation with the appropriate legal action. If
counterfeit or unauthorized products for distribution in the region are found, HP’s country
representative will provide a letter to the partner indicating the breach or termination of the
contract. This will depend on the amount of counterfeit or unauthorized product for distribution in
the region that is found and on the partner’s cooperation during and after CPPA.

HP will communicate the results of all CPPAs that have been conducted through information
bulletins. When no counterfeit or unauthorized products are found, these bulletins will
acknowledge that your company has passed the CPPA. If a partner is found to have counterfeit or
unauthorized products for distribution in the region, information bulletins will only disclose the
country where such products were found.

More information about HP’s Anti-Counterfeiting Program at:

http://www.hp.com/go/anticounterfeit