$1 Million Worth of Fake Nintendos Seized

Paraguayan customs officials, at the urging of video game giant Nintendo Co., seized a $1-million shipment of counterfeit Nintendo software and joysticks, the second big bust in a month. Nintendo executives in Palo Alto said they believe the counterfeit products, seized July 10 in the port city of Ciudad del Este, were made in Taiwan and were destined to be distributed throughout Latin America and other regions. Nintendo would not identify the Taiwanese company suspected of manufacturing the fake products, nor would the company identify who was to receive the shipment. It was the second big capture of phony Nintendo goods in the last few weeks, Nintendo said. The products in each bust would have sold for about $1 million on the street. As with the rest of the industry, Nintendo suffers huge losses to counterfeiters, particularly in Asian countries. Nintendo says it loses $810 million in potential sales each year to fakes. It had $3.51 billion in sales last year. A Nintendo spokeswoman said the company is studying its legal options against the suspects. The company also has asked for help from the U.S. trade representative’s office. Nintendo said Paraguayan customs officials have a standing court order to notify the company whenever they process a shipment from Taiwan, where many of the copies are made.