The only law broken by the counterfeiters is trademark violation for printing the FTDI logo on their chips. That's it! Everything else they did was legal. Otherwise, Intel and AMD would be bricking CPUs right now.
Reverse engineering is legal. Emulation is legal. Creating hardware that's compatible with another vendor's software is legal. Flashing your hardware with another vendors firmware is legal. Modifying hardware you purchased from a vendor is legal. Modifying software you purchased from a vendor is legal.
etc... etc...
Does anyone even know what entity designed and made the fake FTDI chip?
I find many people don't seem to understand what making compatible chip means. It's very common to have legitimate, drop in replacement for popular ICs. But this fake FTDI chip is certainly not the case here.
:-)
It doesn't matter if it's trademarkable. The entire purpose of VIDs is to distinguish between different vendors' devices. If I'm allocated a VID it's not my responsibility to ensure my drivers interoperate with other vendors' products.
How many products using counterfeit FTDI chips don't advertise USB compliance?