Pirates Knock Off Not NEC's Products, But The Whole Company

from the would-you-like-to-buy-this-dvd-playarrrrrrr? dept

The International Herald Tribune has a fascinating tale of piracy today, in which the Japanese company NEC was targeted by Chinese counterfeiters. They didn't just make knock-off products, but instead stole the NEC brand, then essentially set up their own little NEC, coordinating manufacturing in 50 factories, organizing distribution and centrally collecting profits. The pirates even went so far as to develop their own line of products, which NEC says were of generally good quality, and carried NEC business cards and commissioned research in the company's name. Cases like this highlight the value of trademark law -- when it's properly applied, and not used as a tool to squash competition. Trademarks are intended specifically to address cases like this, where customers, retailers and even factory owners were tricked into thinking they were dealing with the real NEC, not to allow entities to completely prevent any mention of themselves that they may not like.

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  1. by Adam - Apr 27th, 2006 @ 10:13am

    Huh. And here I thought that trademark law was dead, except for people using it incorrectly.

    (reply to this comment) (link to this comment)

  2. Well, everybody's heard of

    by Anonymous Coward - Apr 27th, 2006 @ 10:26am

    M$, so why not say you are M$ selling a product, at a lower price than the actual company, and make a killing at it...

    (reply to this comment) (link to this comment)

  3. Typical

    by RClinch - Apr 27th, 2006 @ 11:56am

    Is there a less imaginative, less original, less capable country on the planet? China couldn't invent an original idea, or product, if they tried. But why try when you can steal?
    A country full of amoral thieves, nice going you MAOist robots.

    What ever happened to the great China of old? If they had to build the Great Wall today, they would have to look around the world to see if anyone else had built one, learn about it, steal the plans, then start work on it while denying any theft. I am sure that the official word of the Chinese government on the NEC deal is that they thought of it too, and it is just a coincidence.

    (reply to this comment) (link to this comment)

  4. by R L - Apr 27th, 2006 @ 11:59am

    Excellent points RClinch!

    Actually wait no. You haven't made any points. You've just been rambling back and forth.

    Way to condemn a whole a country without making a point.

    (reply to this comment) (link to this comment)

  5. IP Law... and a government willing to enforce it

    by David Thompson - Apr 27th, 2006 @ 12:20pm

    Good news story -- priceless how brazen some pirates are! The other problem is that not only does Trademark law have to exist, but it has to be enforced. Recent debates between IP exporters (US, EU) and IP importers (China, Vietnam, etc) have shown that many governments aren't willing to enforce foreign IP against domestic pirates. Even when the laws are formally enforced the judicial system often favors the local defendant. Maybe that's why the pirates were so brazen -- they thought they'd never get busted.

    (reply to this comment) (link to this comment)

  6. by Chris H - Apr 27th, 2006 @ 12:22pm

    It's easy for China to copy everything from other countries when they're the ones that build it anyway.

    (reply to this comment) (link to this comment)

  7. by Blitzkrieg - Apr 27th, 2006 @ 12:51pm

    Me love your brand big time.

    (reply to this comment) (link to this comment)

  8. We should start...

    by ORBVS - Apr 27th, 2006 @ 1:00pm

    ... creating brand names and products with nothing but R's and L's and see if they can copy us then...

    foorish chinese

    (reply to this comment) (link to this comment)

  9. Re: We should start...

    by Anonymous Coward - Apr 27th, 2006 @ 6:44pm

    YES! ROFL

    (reply to this comment) (link to this comment)

  10. Re: We should start...

    by Christopher - Apr 28th, 2006 @ 2:55am

    I think you are confusing the Chinese with the Japanese there. The Chinese have 'l' sounds. The Japanese can only approximate with 'R'.

    (reply to this comment) (link to this comment)

  11. piracy

    by r. panjabi - Apr 28th, 2006 @ 5:47am

    (reply to this comment) (link to this comment)

  12. Re: Re: We should start...

    by Wizard Prang - Apr 28th, 2006 @ 7:27am

    You mean "Apploximate" :)

    (reply to this comment) (link to this comment)

  13. Chinese Theifs

    by Jim Wilson - Apr 28th, 2006 @ 10:28am

    these people are lowlife and scum....is this how they are becoming a global Country..by stealing everyone elses products and ideal...damn...send them back to the laundries....HOPSING

    (reply to this comment) (link to this comment)

  14. I think that...

    by JS - Apr 28th, 2006 @ 4:23pm

    ...the blatantly racist comments in this thread are due to the fact that a lot of Americans have suddenly realized that soon they will not be the only superpower in the world anymore, both in economic and military terms.

    Sure, the copyright infringement is bad. Compared to what the US has done around the world to maintain and further its power base it is not that bad though. I am thinking about things such as starting wars, toppling democratic regimes and supporting dictators, amongst others. Not that China is any better in this regard though.

    Unfortunately, powerful countries often do bad things to maintain and further their power. What the US really should worry about is when the Chinese start making better quality products than they do. Like Japan has, for instance. It's no wonder American car manufacturers are struggling. They live on past glory, while the Japanese actually care about things like quality control. Believe you me, your grandchildren will probably study mandarin in high school instead of French.

    (reply to this comment) (link to this comment)

  15. Re: I think that...

    by RH - Apr 29th, 2006 @ 12:39pm

    “blatantly racist”, I think not. Certainly a health dose of nationalism though. Modern folks often confuse the two.

    China ignores trademarks and copyrights simply because it is in its national interest to do so. When it ceases to be in its national interest China will stop (witness South Korea). Countries normally do not act morally or ethically unless it is to their advantage (in their national interest). Almost all governments lie (frequently) and will certainly lie to advance their own agenda.

    This will change only when their people hold their leaders and bureaucrats (individually and collectively) to the same standards they hold their friends. But alas we are sheep and fear power, torture, death, persecution, harassment and even inconvenience. Many don't care and others are in favor of being advanaged at nearly any cost. So it is.

    No doubt China is a rising power. IMHO the US is a falling one. The fall will probably be slow and happen over a few generations. Powers rise and powers fall – “same as it ever was.”

    I'm glad they shut them down (the NEC fakes). They had stolen the work of others and caused harm. The wrongness of one action (war in Iraq, support for dictators, etc.) does not justify a completely independent wrong (and normally not even a dependent one).

    RH

    (reply to this comment) (link to this comment)

  16. Unbelievable...

    by Jake - May 4th, 2006 @ 10:28am

    ... how many xenophobic and racist comments was sent here. Calling all Chinese "scum" and "incapable of anything"... and you didn't actually read the whole article (first link on top of this page). This piracy business was organized by Japanese (!!!) and Taiwanese criminals, and factories in China didn't actually know that they were not dealing with "real" NEC. NEC officials also said that pirated products were "generaly of good quality". Do you think this would be the case, it the whole operation was organized by Chinese? :)

    (reply to this comment) (link to this comment)

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