OSAKA -- Osaka Prefectural Police on May 29 raided three companies here on suspicion of marketing imitation Tamagotchi.

It is the first action police have taken in connection with the distribution of fake Tamagotchi, Bandai Co.'s popular virtual pet, which "lives" on a liquid crystal display, police said. Tokyo Biken Co., of Kita Ward, allegedly retailed Tamagotchi-like toys under the name New Tamago Watch at a store in the ward's Umeda district.

The company sold two versions of the toy at 4,000 yen, police said. Characters on the LCD displays of the fake Tamagotchi are different from those of Bandai Co.'s original, but the games are very similar. Police also raided KDY Co., of Yodogawa Ward, and Eiko Co., a wholesaler in Chuo Ward.

KDY is suspected of importing New Tamago Watch games from Taiwan, and investigators questioned company officials on where they were buying the merchandise. Bandai, of Taito Ward, Tokyo, filed a damages suit with the Tokyo District Court on April 28, seeking a court order banning KDY and Eiko from marketing the products and a a total of 500 million yen to make up for lost sales.