ed the new law, RePlay contacted Mr. Nakamura to request his association's views on parallel imports. We asked several questions on issues including Japan's possible role in U.S. legislative politics, worldwide game prices, parallel sources, possible Japanese market strategies to cope with parallels, and the counterfeit problem.

Speaking for the Japanese manufacturer association, Mr. Nakamura graciously agreed to answer our questions, in consultation with his colleagues at JAMMA. We print his reply here. As you'll see, JAMMA is very concerned about the possibility of renewed counterfeiting activity which might poison the global market. That's a concern shared by many U.S. tradesters as well, including this publication.

Otherwise, the news is very encouraging. Mr. Nakamura believes the time has come for much closer East-West consultation, on all levels of the industry, in a spirit of cooperation to improve conditions for us all: Japanese, Americans, game creators, manufacturers, distributors, operators. .. and players! This call for increased communication is a suggestion that RePlay heartily endorses.

Mr. Nakamura has many friends in the U.S. trade already. But for those who have not yet had the pleasure of meeting him, we think they will find him candid, far-sighted, intellectually keen, imaginative in finding solutions to problems, and - most important - a man of unimpeachable integrity. It is our hope that this letter represents the start of a new East-West dialogue for coin-op.

Our deep thanks go to Mr. Nakamura for his kind consideration in giving us his valuable time and thoughts. Thanks are also due to Mr. A. Shunji Iki, special assistant to Mr. Nakamura, for his tireless efforts and good will as a conduit and catalyst for this communication.

Here, then, is the text of Mr. Nakamura's letter. For ease of reading and understanding, we have inserted our questions into the text of Mr. Nakamura's reply in bold type.

- the editors.

Mr. Marcus Webb Editor

RePlay Magazine

Dear Mr. Webb:

On Oct. 27, 1990, the U.S. Congress passed an amendment to HR. 5316 and it was signed by President Bush on Dec. 1, 1990. A provision of this law reversed the existing law, thereby now permitting the public performance and display of legally made copies of electronic audiovisual games intended for use in coin-operated equipment without the permission of the copyright owner of the game.

In view of the significant impact of the new law on the international coin-operated games industry, you forwarded to JAMMA several questions, the intentions of which are to determine the position of JAMMA on this issue. We herewith respond to your questions as follows in the order in which the questions were received:

1. Question: Forgive our frankness, but the people at JAMMA have never seriously tried to help their American subsidiaries and licensees who were trying to keep parallel boards out of America. Some think JAMMA is not worried about the new pro-parallel law. Exactly what is JAMMA's view now that the law passed?

1. Answer: The new law was passed by the highest legislative body in the USA, subsequent to serious deliberation by responsible members of the legislature. Accordingly, JAMMA as a foreign trade association is in no position to comment thereon. Additionally, JAMMA could be construed as interfering with the domestic affairs of another country if it assists in any effort within the USA to keep the parallel boards out of America. Accordingly, JAMMA must treat this matter with extreme care and discretion.

2. Question: The American operator's principle complaint in this whole matter has been about game prices, especially when the same game is available as a kit in for

eign markets, but only as a dedicated game here. What is your view on this, and about kit prices in various foreign markets compared to U.S. prices?

2. Answer: You have pointed out the principle problem results from the fact that in the U.S., only dedicated games are sold. However, the actual fact is that a large portion of the games which are exported from Japan to the U.S. are sold in kit form. These kits are often assembled in the U.S. by technically qualified experts into dedicated games. These activities not only assure the quality of the game itself and mechanical reliability thereof, but also contribute toward a creation of jobs in the U.S. Additionally, it should be noted that the price we obtain for new boards of any given game, whether in the U.S., European, or Southeast Asian market, is nearly identical. It also appears quite natural in a free economy to see higher prices for new rather than used boards.

3. Question: Let us be very frank. For years, and in varying amounts, parallel boards have been imported into the States. Where do the brokers get them? Do they buy them used from your domestic Japanese operators?Do they buy them brand new from some authorized distributors in the Far East? Do they even buy some directly from JAMMA members?

3. Answer: We must assume that there are numerous routes for the parallel boards to find their way into the U.S. It is also believed that more often than not, parallel boards of new games are illegal copies since it is difficult to conceive of a situation where one of our officiallyrecognized distributors in a foreign country other than the U.S. would sell parallel boards of a new game into the U.S. Additionally, Japanese manufacturers would export new games only through officially recognized distribution channels.

4. Question: Perhaps you answered this in your reply to the preceding question, but do you see