Nintendo of America has settled its claims against Chee Mou Co., a Taiwan-based firm that has been convicted of counterfeiting Nintendo video games. Back in 1995, Taiwanese customs agents seized 4,679 counterfeit Nintendo game cartridges that were going to be shipped to Paraguay. That seizure led to a search of the Chee Mou Co. by Taiwanese officials in 1996, which uncovered more counterfeit Nintendo products. Nintendo filed action against Chee Mou Co. in Taipei District Court in 1997.

　　The agreement reached between Nintendo and Chee Mou Co. "settles all outstanding claims in litigation," Nintendo said. As part of that agreement, Chee Mou Co. apologized to Nintendo for the copyright infringement and agreed to pay a total of NT1,700,000 (US$52,000) in penalties and damages.

　　Two Chee Mou Co. executives were also found guilty of copyright infringement in charges stemming from the same incidents; both executives received suspended jail sentences.

　　Nintendo claims that counterfeit games cost the company an estimated US$866 million in sales worldwide last year.