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Some things are better described as replicas rather than knock offs - because they are made on the same production line with the same stuff by the same people. You have to take care who you contract to do your outsourcing - because they will be the first ones to rip you off.
I get more sales calls from people in China than I do from people in New England - they are willing to replicate anything you send them, provide prototypes, and do short runs. It's a smarter move to concede the market and move on to something they can't do than it is to try and compete with them.
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