It all began when company representatives visited the Chinatown-area stores on "multiple occasions over several weeks," where they bought and examined the items, described in court records as "exact duplicates" of their authentic counterparts. On July 27th, Apple executed a few ex parte seizure warrants, which allowed authorities to seize any goods bearing its logo. US District Judge Kiyo Matsumoto has already granted an injunction to stop the stores from selling the alleged knockoffs, but hasn't yet decided whether Apple Story will have to change its name. The complaint also seeks undisclosed monetary damages and asks that all existing counterfeit goods be destroyed, though court documents suggest that both sides are close to reaching a deal. Neither Apple nor the defendants have commented on the accusations, but we'll let you know as soon as we learn more.
In the meantime, check out this KIRF "iPhone 5" we found in Beijing -- a Java-powered handset that's slimmer than the Galaxy S II and a bit laggy, but boasts a multitouch capacitive screen. Asking price? ¥680, or about $106.