Update: Bahram Zahab and Edward Zahab were found not guilty, according to court records. 

Los Angeles authorities seized more than $10 million in counterfeit iPods, iPhones and other goods from a very sophisticated warehouse in downtown LA.

The Los Angeles Port Police say that the operation was well-funded and the counterfeits looked very authentic. It shows the importance of digital authentication of devices. And it means that tech companies have to use technology to stay one step ahead of counterfeiters.

Anyone who bought the fake goods would discover that they were counterfeit when they tried, and failed, to hook up with iTunes, Ron Boyd, head of the port police, told the Los Angeles Times.

The fakes included iPhone look-alikes and clones of older models of iPods and iPod Nanos. There were also fake PlayStation Portables, or PSPgos, as you can see in the picture of the fake goods.

The older technologies are easier to clone, but it’s still a little shocking to see that goods like these were mass-produced in factories. The goods were shipped from Asia in pieces and were being reassembled in the warehouse. That was part of a scheme to disguise the counterfeiting.

The police found the warehouse as part of a stolen-cargo investigation that led them to several locations in December and January in the Los Angeles area. Police arrested Los Angeles residents Bahram Zahab, 45, and his brother Edward Zahab, 40. Apple declined comment.

[photo credit: Los Angeles Times]

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