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Apple strikes settlement with NYC vendors accused of selling counterfeit products
Remember that lawsuit Apple filed against a pair of Queens stores accused of selling fake iDevice accessories? Well, it looks like it's coming to a close. According to Reuters, Cupertino has reached a settlement with the two Chinatown-area retailers, both of which have agreed to hand over all products emblazoned with the Apple name or logo. If the settlement is approved, the two vendors, Fun Zone and Apple Story, will have five days to clear all counterfeit iPod and iPhone accessories from their inventories, along with any allegedly trademark-infringing promotional materials. The defendants, who maintain their innocence, would also be barred from destroying any records of sales, manufacturing or distribution of the unauthorized cases and headphones -- presumably as part of Apple's ongoing crusade against counterfeiters. Apple Story, meanwhile, would have to change its name, which bears an obvious similarity to another well-known outlet. The proposed settlement was filed with a Brooklyn District Court on Thursday and now awaits the approval of US District Judge Kiyo Matsumoto. Neither Apple nor the defendants have commented on the case.
WikiLeaks cables shed light on Apple's battle against counterfeit wares
Imitation may be the sincerest form of flattery, but if you're Rolex, Gucci or Apple, you probably aren't very interested in being flattered. Due to Apple's intense popularity, an entire industry has arisen that thrives on knocking off the iconic wares Designed in Cupertino. We've seen plenty in our day, and while it may strike some as if Apple's doing absolutely nothing to curtail the aping, a new WikiLeaks release confirms otherwise. According to an electronic memo from the Beijing embassy dated September 2008, Apple began to put obvious and deliberate pressure on China to act against businesses who were copying its wares a few years back. As it turns out, knocking out the knockoffs isn't exactly high on China's list of governmental priorities, and progress on halting the KIRF extravaganza has been sluggish at best. The entire story is quite the exhausting read, but it's worth delving into if you're curious -- per usual, you can get educated in the links below.
Apple cracks down on counterfeit products sold in NYC, files lawsuit against Queens vendors
There may be more than a few fake Apple Stores in China, but for the moment, Cupertino's anti-KIRF crusade seems focused squarely on New York City. According to Reuters, Apple has filed a trademark infringement lawsuit against two stores in Queens, alleging that they sold unauthorized cases, headphones and other accessories for the iPhone, iPad and iPod. In the complaint, the company claims that the products in question were all emblazoned with its familiar fruit logo, along with the phrase, "Designed by Apple in California. Assembled in China." The suit also demands that one of the stores, called Apple Story (seriously), change its name to avoid confusion with the real retail outlet and that both vendors disclose full lists of people who both supplied and purchased the goods. 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. %Gallery-131124%
Two more fake Apple Stores spotted by officials in China, two get the smackdown
Imitation is the sincerest form of flattery, but that didn't go down too well with the three KIRF Apple Stores in Kunming, China. In fact, after American expat BirdAbroad made her local stores famous last week, local officials have since been combing through the city's 300-plus gadget shops on behalf of Apple China, and managed to dig up two more "Apple" stores. It's not exactly clear if these new offenders are at the same severity as the ones spotted by BirdAbroad, but the authorities have confirmed that none of the five stores are Apple Authorised Resellers, let alone having its permission to use its logo on their store front. Additionally, two out of the five stores have since been shut down due to unlicensed retail operation. The fate of the remaining three is still unknown -- the officials have only concluded that no KIRF products have been found in the stores, though details such as the decor and staff uniform are certainly very similar to those of the real deal. Well, we're glad they agree, but this is only just the beginning -- BirdAbroad has since gathered photos of more sketchy Apple stores across the world, so go take a gander. Oh, and for those who have been out of the loop, there's a hands-on video of one of the Kunming stores after the break.
WRUP: That totally safe theme park we're working on
Every week, just at the start of the weekend, we catch up with the WoW Insider staff and ask them, "What are you playing this week?" -- otherwise known as WRUP. Join us to see what we're up to in and out of game, and catch us in the comments to let us know what you're playing, too! Earlier this week, we reported on World Joyland, the counterfeit Blizzard theme park that recently opened in China. It's got not just one cheap knock-off Arthas, but two cheap knock-off Arthases. You can visit Silvermoon City or even get your picture taken in front of a half-draenei, half-dwarf who is allied with the Horde. It looks super confusing. That got us here at WoW Insider thinking about a real, non-counterfeit World of Warcraft theme park with actual safety standards. A delicious lunch at The Mage Table. People dressed in boomkin costumes earning minimum wage. A fun swim in Thousand Needles! (Too soon?) So this week, in addition to the usual "what are you playing" question, I had our intrepid columnists help design our own WoW theme park. Petting zoos! Fire! It's all there! Care to sign a waiver before following me after the break? Totally routine, I assure you.
The ultimate KIRF: fake Apple Store spotted in China
This Apple Store looks so real we still can't quite believe it isn't. The KIRF-ers have excelled themselves this time: mimicking or at least reinventing everything from the Brave New World posters down to the dog-tags and "We live here" demeanor worn by the staff. There were a few giveaways, however, which led observant blogger BirdAbroad to whip out her camera and start gathering evidence: slight imperfections in the decor, a lack of individual names on staff badges, plus an unlikely location in the Chinese Backwaterville of Kunming. Hey Apple, we feel your pain. You'll find further unbelievable pics after the break and over at BirdAbroad's blog.
Something isn't rite with this DS lite
Tales of counterfeit DS games are nothing new, but 1UP's Jeremy Parish believes he's come across a counterfeit DS Lite. With the news that the handheld will soon disappear from retail shelves, Parish set about procuring an Apple Green unit. Ordering what appeared to be a legitimate system from a reputable eBay seller, Parish received the unit weeks later only to discover several small but significant flaws ranging from misaligned text to a warped GBA slot. The verdict: this was not a stock Nintendo DS Lite, though it does play DS and GBA games with no problems. While Parish believed it to be a complete counterfeit, some 1UP readers have pointed out that it could simply be a broken DS that someone repaired, outfitted with an aftermarket replacement shell and sold as new. Either way, let the story stand as a warning to anyone looking to procure a DS Lite as its lifespan comes to a close.
Microsoft asks state lawmakers to make domestic companies pay for foreign firms' software piracy
Microsoft's pirated software police have been going after companies abroad for years, but getting those far-away folks into US courtrooms isn't easy. What is easy, however, is suing the folks in your own back yard -- which is why Microsoft is lobbying to get laws passed in several states that'll put US businesses on the hook for the pirating ways of their foreign suppliers. For example, if a manufacturer uses pirated software in the "manufacture, distribution, marketing, or sales" of products sold in Washington, Microsoft could sue the vendor of those products and get an injunction to stop the goods from being sold. So Washington widget retailers would be liable for the piracy of their foreign widget manufacturers, even if the illicit act was merely creating the sales invoice on a counterfeit copy of Word. The Washington state Senate and House have already approved different versions of the bill, and the legislature is in the process of merging the two together for final approval. Louisiana passed a similar law last year, and analogous bills have been proposed in Oregon and several other states as well. Numerous companies -- including Dell, IBM, Intel, and HP -- oppose the laws, as they see them giving Microsoft the power to not only drag them into court, but also futz with their supply chains. (There's bound to be some counterfeit software being used in Shenzhen, right?) As Microsoft's latest anti-piracy scheme unfolds, there should be plenty more legislative action to come. Evidently the crew in Redmond doesn't see piracy as a problem to be fixed by lowering prices.
Fake iPhones seized from LA warehouse
Police in the port of Los Angeles have seized what they say is over $10 million worth of counterfeit Apple devices from a warehouse. The fake iPods, iPhones and iPod touches were reportedly brought in from Asia recently, and they were supposedly going to be sold around CES this past year, duping customers into thinking they were buying real Apple products for cheap. Not that cheap, though -- the cops also reportedly found receipts in the warehouse, along with other stolen and counterfeit merchandise, that pointed to the whole facility bringing in around $7 million in profit. Two brothers have been arrested, and the two of them face a total of four felony counts for the sale of counterfeit goods. The seizure was the result of an ongoing stolen cargo investigation that had the Port Police looking around warehouses in Los Angeles and Vernon, CA late last year.
Counterfeit version of open source game Lugaru HD being sold on Mac App Store
Another developer is offering Wolfire Game's Lugaru HD title on the Mac App Store for 1/5 of what the official game is selling for. How? As per the terms of the Humble Indie Bundle a while back, Wolfire decided to open source the game, though not its assets or characters, and the other version on the Mac App Store is an outright copy with assets included. Kotaku tracked down the developers, who apparently don't believe they've done anything wrong, saying that "we have every legal right to market and sell the software, and we feel that $1.99 is a fair price." The official version sells for $9.99. The worst part here is that Apple obviously approved the app, and as of this writing has not yet taken the app down. Wolfire hasn't yet heard back from Apple, and a spokesperson from the company says only that it's looking into the matter. Then again, issues of intellectual property are often left to developers to negotiate outside the App Store. This is an unfortunate instance where the App Store could clamp down on obvious infringement. The case seems pretty clear-cut -- Wolfire did open source its title, but it also made clear that it retained rights to all of the assets. Since it's fairly apparent that those are being used in the "unofficial" release, I'd expect Apple to take the offending version off of the store soon enough.
Keepin' it real fake: Nokia's Android N8
Can you believe we've waited on the N8 long enough for (at least) three KIRF versions to beat it to market? This latest one's pretty special too, as it gives us a glimpse into one of the fevered dream of Engadget commenters: a Nokia flagship rocking Android (2.1, in this case). The iZiNN CJ-3 copies the N8's form factor, styling, and 3.5-inch screen, but throws in an upgrade of its own by going with a higher-res 800 x 480 capacitive panel. Yeah, we're shocked too. A 5 megapixel imager, a budget Rockchip CPU, and an HDMI port fill out the rest of the known specs, while a release in China is expected some time later this month. Anyone know why this thing isn't being built and sold by a legitimate manufacturer? [Thanks, Ludger]
Newegg terminates supplier relationship over counterfeit Core i7 CPUs
This weekend, up to 300 Newegg customers who pulled the trigger on a new Intel Core i7-920 processor found themselves puzzling over a clever fake instead. Who's to blame? It's not exactly clear -- Newegg initially said that the processors were "demo units," but has now posted a statement to Facebook saying that supplier IPEX shipped counterfeit chips and has had its contract revoked. That's good news for D&H Distributing, another Newegg supplier that responded to an initial wave of finger-pointing by issuing legal nastygrams to sites covering the story, thus ruining whatever good vibes the truth's generated. Finally, here's the statement Intel just sent us, explaining in no uncertain terms that these are counterfeit parts: "Intel has been made aware of a limited number of counterfeit i7 920 packages in the marketplace, specifically Newegg, and is working to how many and/or where they are being sold. The examples we have seen are not Intel products but are counterfeits. Buyers should contact their place of purchase for a replacement and/or should contact their local law enforcement agency if the place of purchase refuses to help. Intel is getting samples to inspect and until then we can say that everything in the package appears fake. Some of the photos of the processor look like it is a casting and not even a real processor of any kind. Newegg has moved quickly to replace the suspect units." No matter who's at fault here, the damage has been done. We'll never build another PC without losing precious seconds carefully examining its CPU first. [Thanks, Cody C.]
NewEgg sells 300 counterfeit Core i7-920 CPUs, KIRFers pump their fists
Oops. Over the weekend, it seems as if 300 or so unlucky individuals were shipped a counterfeit processor from the normally reliable warehouses at NewEgg, and Hard|OCP has the images (and video) to prove it. Vincent Waller couldn't have possibly been more eager to receive the Core i7-920 that he had ordered, but upon unboxing it, he realized that he had received a well-disguised fake. After a fair bit of digging, it seems as if one of NewEgg's "long time partners" (D&H Distributing) got ahold of 300 fakes in a batch of 2,000, though not everyone's buying the "it was an honest mistake" line -- especially when you consider that said company has already issued cease-and-desist letters to the sites who published the news. At any rate, NewEgg has already arranged for an authentic CPU to be rushed to Mr. Waller, and it's purportedly working around the clock in order to make things right with any other negatively affected customers. Hop on past the break for a look at the knockoff, particularly if you just took delivery of a shiny new Core i7.
Chinese counterfeit iPhone workshop raided
It's well known that China has a significant black market problem, especially when it comes to electronics, including the iPhone. Earlier this week, Chinese officials reported raiding a factory in Huaqiangbei, Shenzhen in Southern China, where they seized 1,000 counterfeit iPhones and arrested 28 workers, according to Shenzhen Daily.* The factory was allegedly operated under the name Chuanglida Communication Tech Co. The cost of a counterfeit iPhone isn't clear, but estimates put them at 500 yuan (approximately US$74 as of this writing). Legit iPhones sell for 5,000 yuan. The report notes that Apple is sending staff to Shenzhen to learn more about the case. Last month, Apple gained control of the "i-phone" trademark in China after a long dispute with manufacturer Hanwang Technology who held the trademark for a device they briefly sold in 2003. Official iPhone sales in China have been disappointing, with China Unicom (the country's 2nd largest provider) announcing 100,000 units sold between the October, 2009 launch and December, 2009. China Unicom represents some 144 million users. [Via iPhone Savior] *Note: The Shenzhen Daily site is down as of this writing. The link included above is the Google Cache version whereas the source link below links to the original site.
Square Enix hits Final Fantasy replica dealers for $600,000 in damage
A fistful of Final Fantasy counterfeiters recently found their hit points squelched by a summon of the judicial kind. Square Enix announced that it reached a settlement in its federal lawsuit against "at least" four online retailers of unlicensed Final Fantasy knock-offs, primarily sword replicas, netting the role-playing giant a hefty 600,000 gil dollar judgment. Traffickers, which included Edgework Imports, Top Swords, Wholesale Gallery and Pacific Solutions Marketing, are barred from dealing in Final Fantasy fakery, either through their own stores or other online sites such as eBay or Amazon. Obviously shaken, the defendants issued a joint statement that they "regret" selling copies to customers, and "would not have begun importing and selling these swords if we knew that Square Enix would respond so aggressively to stop us. We will never make this mistake again." Translation: We knew what we were doing was wrong, we just didn't, you know, think Square Enix would do anything about it.
Counterfeit DS sellers busted in UK
For the first time in the nation's history, a couple have been caught selling counterfeit DS systems. The dastardly duo set up shop in Kent, and were nabbed with 40 counterfeit handhelds. The two were unloading the units on unsuspecting eBay shoppers, with Bromley Trading Standards Department and local police catching the criminals. On top of the systems, the bust also resulted in the capture of faulty power units, game-copying devices, and 150 counterfeit games for the DS and GBA. Authorities suspect the couple made upwards of £50,000 during the month of December alone, and have been at this for at least two years. Remember, kids: crime doesn't pay. Unless it's the month of December and you're willing to go to jail for a long time the following month.
DS Daily: DS-like
Okay, sure, they can catch fire and kill you or whatever, but we must confess that we are quite tempted to acquire one of the counterfeit DS consoles about which we were sternly warned. A cheaply-produced knockoff DS sounds like quite the novelty! We wouldn't mind having a stunt double for the all-DS kung-fu action movie we're working on in our spare time, either (Duel Screens, if you're curious).Despite the fact that they're basically useless, we are fascinated with knockoff stuff like the Neo Double Games system. What about you? Do you harbor a secret desire to own lousy DS-esque hardware?
British gov't warns parents about 'fake' DS Lites
In this case, the "D" in "DS" stands for "dangerous." BBC News reports that the British government is warning parents about the dangers of counterfeit Nintendo DS and DS Lite systems being imported into the UK. According to the BBC, these "fake" handhelds include power adapters prone to catching fire. Well, the DS' codename was Nitro ...HM Revenue & Customs rep, Claire Merrills, told the BBC that there could be something more sinister going on here than mere crappy adapters errupting into flames. She cautioned parents, saying that "When you buy these goods, you're not funding our economy, you're actually funding criminals in these far off places and it could be linked to terrorism." Yes, she went there.Her advice for avoiding these knockoff terror devices: Check to make sure they're real. Our advice: If it's half the price of a DS, advertised as "brand new," and called a "Nintando D-Light," pass on it, 'kay? We're dying (not by fire) to see one of these things, actually. UK readers: you have your mission. Pictures in comments if you can find one, por favor.
UK parents instructed about knockoff consoles
Knockoff electronics must be a big issue in the UK, because the BBC is airing a public service advisary from Her Majesty's Revenue & Customs that takes extra care to show parents and other potential gaming consumers the warning signs of counterfeit goods. Not only is it a danger to shoppers because it's not what they intended to purchase, but because these counterfeit devices could pose a fire hazard or some other danger to the child or children the gift is intended for. They provide a handy little checklist that allows consumers to know if they're looking at a legit Nintendo handheld or some knockoff.%Gallery-22256%
Two men arrested in Ireland for selling fake Wii consoles
In Northern Ireland, a pair of men were apparently selling counterfeit Wii consoles (no, not the Vii). When searching a car in the New Lodge Road area of Belfast, police discovered several counterfeit consoles. The men, aged 19 and 22, were then detained by police.We'd just like to take this moment to warn that it could happen to any of you. If you're still desperate for a console (you should be able to track one down at a store by now, if you check early enough every day, we would think) and using services like craigslist or eBay, take caution. The person selling the Wii could be trying to pull the wool over your eyes.
