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Suit settled between Sega and Philip Morris Copy crackdown Prompted b y a dramatic increase of illegal counterfeiting activities abroad , Capcom USA has implemented an aggressive crackdown on violations against the company 's intellectual property rights worldwide. Customs and Excise authorities in Hong Kong arrested seven individuals in mid-May in connection with the illegal manufacturing , distribution, and operation of over 500 counterfeit Street Fighter circuit boards. The company feels that this could be only the beginning in an anticipated wave of similar seizures and prosecution of additional offenders. George Nakayama , president of Capcom , said , " Illegal counterfeiting of Capcom product abroad has become a serious problem, particularly with our Street Fighter game series. We intend to take aggressive action to stop infringement of our intellectual property rights worldwide . "Our program includes the pursuit and seizure of illegal product and prosecution of individuals and companies involved in counterfeit activities . We believe the success we 've already experienced will serve as a deterrent to other violators ." Capcom has enlisted the help of the American Amusement Machine Association (AAMAl. Its executive vice president, Bob Fay, a former FBI agent who has played a vital role in directing Capcom's anti-counterfeiting program , said, " Illegal counterfeiting against Capcom has prompted severe measures to be taken. Individuals in the United States and other countries , including Southeast Asia , South America, and Mexico will soon be faced with similar consequences if they are involved in manufacturing, distributing, or operating counterfeit Capcom products ." If your Super Monaco GP looks like this, it needs to be changed. Philip Morris and Sega Enterprises have reached a settlement in a trademark infringement suit brought by Philip Morris against the Californiabased video game manufacturer. Philip Morris alleged that Sega failed to comply with a March 20, 1990, agreement to have the Marlboro cigarette brand trademarks and indicia removed from its Super Monaco GP video game. Sega denied the allegations , countering that it had been working diligently to comply with the agreement. To resolve the dispute , Sega has agreed to place full-page ads offering $200 to operators for removing the Marlboro trademarks from games in their possession or under their authority. In the advertisement , Sega offers to send a free conversion kit containing the decals , computer chips, and instructions needed to remove the Marlboro logo. The $200 payment would be made for each converted game upon receipt of the old computer chips. Sega will also provide technical assistance, should it be needed. Game boards seized in Hong Kong The South China Morning Post reported the first seizure of pirated video game boards in Hong Kong since the U.S. Customs complained about copyright infringement. The value of the boards was estimated a t $1 .3 PLAY METER 16 million. The senior superintendent of customs and excise, Vincent Poon YeungK wong , told the newspaper that the pirated games were suspected to have come from Taiwan. He further explained that JULY 1992 the games were shipped to Hong Kong, distributed into game rooms, and reexported to the United States. Yeung-Kwong 's office conducted a month-long investigation before arresting six Chinese men and one woman and one Korean man. They were all released on bail pending further investigation. They face maximum penalties of $1 ,000 for each board, in addition to one year in jail.