Mr. Masaya Nakamura, the chairman of JAMMA, discusses parallels:
he's worried about counterfeits but hopes for global cooperation

11 the blood, sweat and tears the industry has shed over parallel im

ports in recent years may have a good outcome for everybody, if it results in closer cooperation between Japan and the U.S. Fortunately, exactly that outcome may be in the wings. Leading trade members on both sides of the Pacific are beginning to reach out to each other for consultation and dialogue. If a new worldwide integration of coinop does come about, history may record that the highly esteemed Chairman of JAMMA (Japanese Amusement Machine Manufacturers Assn.), the honorable Masaya Nakamura, was the man who set it all in motion.

Last month, we reported that Mr. Nakamura was leading JAMMA to a stance which accepted the legality of parallels for the U.S., but called on all tradesters to work together to prevent counterfeits from flooding the market. This month, we are delighted to publish the full text of a letter written by this man - called by some "the single most important member of the coin-op industry, worldwide" - detailing JAMMA's position on parallels.

First, some needed background. In the coin-op amusement industry, a parallel import is a lawfully made video game PCB intended to be sold and operated in a foreign market ... but it is imported into the U.S. by brokers who buy them overseas (new or used), and ship them into the States for resale. Parallel brokers sell these boards to American operators from their own companies or through a network of dealers, often at discount prices and without needed artwork, control panel materials, etc. that make up complete conversion kits. Parallel board brokers

work in direct competition with the original manufacturer's authorized, copyright-protected agents and distributors, who sell these boards either in complete kit form or, on occasion, as dedicated video games.

According to the federal appeals court in Red Baron vs. Taito America, parallel imports of video games are legal to buy and sell right now ... but illegal to operate. By an act of Congress, as of Dec. 1, 1991 they will be legal to "publicly perform" (operate) as well.

Manufacturers generally dislike parallels because they usually sell for much lower prices than "authorized" goods. Manufacturers also question whether some so-called parallels may actually be counter

feit games. Operators, of course, like lower prices and also like having a choice of game configuration (dedicated or kit). But responsible operators have always condemned counterfeit games, and have usually insisted that they could be relied upon to know the difference between a legitimate, lawfully-made parallel and an illegal, counterfeit copy.

This issue bitterly divided the U.S. industry for five years, although now that Congress has spoken, AAMA and AMOA are trying to put the controversy behind them. But this still leaves a major industry sector to be heard from ... probably the most important sector of all: Japan.

Shortly after President Bush sign

JAMMA and Namco Chairman Nakamura (second from left) with his advisor Shun Ii Iki (left), JAMMA Director Mr. Kaoruttinami and Namco's PR Manager Tsutomu Kawai. The complete text of Mr. Nakamura's views on parallel PCBs begins next page.