Roger Parloff wrote Not Exactly Counterfeit for Fortune, a great article about unauthorised production by otherwise authorised contractors. These so called third-shift activities exist out of night shifts and production after termination of contract.
Parloff illustrates the phenomena by the New Balance case. The conclusion of New Balance's ordeal is, that even if a company takes all preventive measures necessary, it still can go wrong. Dan Harris of China Law Blog wrote an interesting comment about it, read here and Jeff Trexler who wrote the Knockoff News nr. 16 for Counterfeit Chic has the picture of a New Balance and a 'lawful knockoff' made by a former supplier called Henkee.
Read Parloff's article here.
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