Square Enix filed a federal lawsuit in the Central District of California court for infringement of intellectual property. They are suing at least four wholesalers of sword replicas that were not licensed by Square Enix. This was after Customs and Border Patrol seized a crate of counterfeit replica Final Fantasy swords.

This suit follows several smaller cases where they went after various retailers who also infringed on their rights and who had settled with Square Enix.

While this marks an aggressive trend by Square Enix to enforce it's intellectual property rights they assure us that they still

"...appreciates the enthusiasm of its fans, and values its relationship with them.." said Hasegawa.

via (Wired)