Next step in pirating: Faking a company - Technology - International Herald Tribune

Next step in pirating: Faking a company - Technology - International Herald Tribune: "Evidence seized in raids on 18 factories and warehouses in China and Taiwan over the past year showed that the counterfeiters had set up what amounted to a parallel NEC brand with links to a network of more than 50 electronics factories in China, Hong Kong and Taiwan.

In the name of NEC, the pirates copied NEC products, and went as far as developing their own range of consumer electronic products - everything from home entertainment centers to MP3 players. They also coordinated manufacturing and distribution, collecting all the proceeds.

The Japanese company even received complaints about products - which were of generally good quality - that they did not make or provide with warranties.

NEC said it was unable to estimate the total value of the pirated goods from these factories, but the company believed the organizers had 'profited substantially' from the operation.

'These entities are part of a sophisticated ring, coordinated by two key entities based in Taiwan and Japan, which has attempted to completely assume the NEC brand,' said Fujio Okada, the NEC senior vice president and legal division general manager, in written answers to questions.

'Many of these entities are familiar with each other and cooperate with each other to develop, manufacture and sell products utilizing the NEC brand.'

NEC declined to identify the companies for legal reasons.

Officials from branch offices of the Chinese State Administration of Industry and Commerce in southern China confirmed that counterfeit goods carrying the NEC brand had been seized in raids on a number of factories and that investigations were continuing.

Some technology companies have been criticized for piecemeal and half- hearted attempts to protect their intellectual property, but Okada said NEC was prepared to take proactive measures to defend its brand.

NEC had not previously made public the"