Fraud Prevention

Ice Seizes Fake Yu-Gi-Oh! Trading Cards Worth Millions

LOS ANGELES – U.S. Immigration and Customs Enforcement (ICE) agents executed a search warrant late last week at a Los Angeles area warehouse and seized what industry representatives say is the largest cache of counterfeit Yu-Gi-Oh! trading cards ever recovered.

Officials at the Carlsbad regional office of Upper Deck, the company licensed to distribute the popular trading card game, say the cards seized during Wednesday's operation would retail for almost $3 million if they were genuine.

The bulk of the counterfeit game cards were discovered at a warehouse in Vernon where a company called J.S.K. International rented space. ICE obtained a search warrant for the warehouse after a vendor in downtown Los Angeles offered to sell an ICE undercover agent 250 cartons of the counterfeit cards for more than $36,000. The vendor told the ICE agent he could pick up the merchandise at a warehouse at 1566 Rio Vista Avenue. Inside the warehouse, ICE agents found approximately 350 cases of the counterfeit trading cards.

"What makes this case so compelling is that the potential victims were children," said Steve Lovett, the supervisory special agent who oversees ICE's trade fraud unit in Los Angeles. "Beyond that, the profits from the sale of counterfeit merchandise worldwide often go to support other types of criminal enterprise. That is why ICE is committed to working aggressively with private industry to dismantle these schemes.”

So far, no arrests have been made in the card counterfeiting scheme, but the investigation is ongoing. ICE agents believe the bogus cards were manufactured in China. The initial lead in the probe came from investigators working for Yu-Gi-Oh!'s trademark holder, Upper Deck.

According to industry representatives, Yu-Gi-Oh! is the top-rated trading card game in the country, accounting for billions of dollars in annual retail sales worldwide. The object of the Yu-Gi-Oh! game is to win a Match by reducing an opponent's "points" from 8,000 to zero. This is accomplished through a series of turns using a deck with a minimum of 40 cards and a combination of strategy, skill, and luck.

"This seizure is part of our ongoing effort to rid the global marketplace of counterfeiting, which hurts consumers and retailers alike," said Sharon Hannis, with Upper Deck's fraud investigation team. "Not only is Upper Deck working with government agencies worldwide to protect the integrity of our name and brands, we are also partnering with consumers to identify those who illegally manufacture and distribute fake products.”

The Yu-Gi-Oh! franchise is based on the Yu-Gi-Oh!™ comic series from artist Kazuki Takahashi that first appeared in Japan in 1996. Yu-Gi-Oh!™ follows the adventures of Yugi, a young boy who possesses the "Millennium Puzzle" that allows him to transform into the "Game King" whenever he is challenged.

UPPER DECK COMPANY TO FIGHT COUNTERFEITERS TO ENSURE
AUTHENTICITY OF PRODUCTS FOR CONSUMERS

Lawsuit To Seek Damages Against Retailers and Others Who
Sell Counterfeit Yu-Gi-Oh! Trading Card Game

CARLSBAD, CA (October 2, 2003) — The Upper Deck Company, LLC, a premier sports and entertainment publishing company, today announced that it has taken the first of several steps to protect its customers and partners from illegal counterfeiters by filing a lawsuit against approximately fifty individuals and companies across the United States which include Fry's Electronics, Inc., Boingofans Auctions, Gulf Atlantic Vending, Creative Vending, Great Wall Company, Double Lucky Corp, Jays Anime, LLC and many others for marketing and distributing counterfeit starter decks, booster packs and individual cards that illegally copy the enormously popular Yu-Gi-Oh! TRADING CARD GAME. The lawsuit includes defendants from New York, Miami, Dallas, San Francisco and Seattle among others. The lawsuit seeks an injunction as well as damages, including compensatory and punitive damages, against all defendants.

Yu-Gi-Oh!, created by Kazuki Takahashi, is featured in the weekly Japanese magazine "Shonen Jump" (published by Shueisha) and is also featured in the monthly publication "Shonen Jump" in the United States. KONAMI CORPORATION is the merchandiser and manufacturer of the Yu-Gi-Oh! TRADING CARD GAME.

The lawsuit represents the first step in what will be an aggressive and unyielding offensive by Upper Deck against companies and individuals in any location, whether domestically or abroad, that advertise, manufacture, or sell counterfeit Yu-Gi-Oh! TRADING CARD GAMES. In addition, Upper Deck - the exclusive North American distributor - plans to name a significant number of additional companies and individuals as defendants to the lawsuit in the coming days. Upper Deck also plans on taking whatever additional actions are necessary, including pursuing legal action across many countries, to ensure that the counterfeit product is removed from all markets and the offending parties are sanctioned accordingly.

"Today's lawsuit will ensure that Upper Deck's retail partners and consumers alike are purchasing authentic Yu-Gi-Oh! TRADING CARDS no matter where the products are purchased," said Craig Nicholas, partner with the law firm of Wright and L'Estrange. "In addition, this lawsuit protects the integrity of the products which bear the Upper Deck name and hologram."

About The Upper Deck Company
The Upper Deck Company, LLC is a premier sports and entertainment publishing company which delivers a portfolio of relevant, innovative and multi-dimensional product experiences to collectors, sports and entertainment enthusiasts. Founded in 1988, The Upper Deck Company, LLC is located in Carlsbad, California. For more information on The Upper Deck Company and its products please visit www.upperdeck.com.