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MOTOROLA has devised a way to stop televisions, cellphones and VCRs working
if they have been bought on the “grey” market. The technique allows
manufacturers to shut down unofficially imported electronic goods. But European
free-trade rules may outlaw the system.

While manufacturers often set different prices for their goods in different
countries, unofficial importers can undercut these prices. Now Motorola’s
European research laboratory has found a way to thwart these grey imports by
fitting equipment with a device that secretly checks where it is.

The plan is to embed chips into TVs and cellphones that are either linked to
the…

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