Anybody in Japan or know Japanese well?

It would require a physical inventory count, something that is typically done only on a monthly basis due to the expense.

So if your records show 10k units produced, and another 3k WIP, and that's what your monthly inventory count shows, you probably have no idea that there was another 5k produced during "down time."

The bootleggers make money because all they pay is raw material and direct labor costs- they don't pay any money to the holders of the copyrights or the artists. Heck, the companies being robbed even pay for capital investment, physical plant, and whatever passes for perks- all costs the bootleggers ignore and turn into profits. As such, they don't even have to produce huge numbers to be hugely profitable.

To be fair to China- its a worldwide problem that dates back to the 60s at the very least. (It was even the subject of an episode of "Columbo" or some such back in the 1970's.) Its just that China is on a lot of copyright & patent holders' s**tlists because they are openly and notoriously ignoring international treaties. A LOT of those Chinese bootleggers have some form of state backing.
 

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I wouldn't be surprised that the factory owners are part of the system.

What is surprising is that the dvd producers are still getting their dvd's made in China.
 

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