Not exactly counterfeit
Foreign contractors make more products than they're supposed to then sell the excess out the back door.
The story is about the New Balance Shoe Company finding this out and trying to shut down the factory that was making the "excess".
I post this because it relates to the iPod Industry nowadays. I believe that some of the fake iPod Shuffles, iPod Nanos, etc etc that are coming from China and Taiwan are being made by Apple's very own contractors.
Something to think about ...