So, here is how sex toy counterfeiting works:
Company X comes up with a great design. Maybe even something revolutionary. As they are pulling all of the means of production together, they realize "Oh, we can get this manufactured in China for substantially less than we can elsewhere." Then, they do just that. Profit is king, after all. They set up stringent standards for what they want out of certain toys, order thousands of units and a production run happens.
All good here. It's the way the world works. It's when these factories aren't making the real McCoy, or when a design is updated that counterfeiting comes into play. So, Company X got its run of 3,000 units. All were up to specification minus a few bad motors, shoddy circuits, or flawed shells/cases. Then, Factory Y? Factory Y already has the molds, the plans ... everything. Sub in the cheapest materials that fit the design, and produce 10,000 of any particular item. Then, it's just a matter of selling HUGE quantities of knockoff toys to shady distribution companies and letting them move individual units.
Or
Factory Y sells the outdated plans and molds to Factory Z, and tells Company X that all the required stuff for the old model was destroyed as requested. Then, Factory Z does its own production runs with sub-par materials.
Or
Sometimes, the product is just reverse engineered or the plans and such are outright stolen.
Those counterfeit toys are then sold through Amazon, eBay or even Alibaba.
Why Does Counterfeiting Happen?
Again, profit is king! If Company X is getting $99.95 for each unit sold, and it spends $40 to make each unit, they are making a decent chunk of change on each unit (minus taxes/import fees and the like). If Factory Y or Z can produce a toy that looks exactly the same and at least initially feels the same for $10 and then sell it for $69.95? They get the same profits for less investment. Easy business, right?
