If you pay to licence your IP and produce a functionally identical device what would you call it?
What about all the functional clones where they are not licensing the original IP?
If you're licensing the IP and producing the same product, that is really just normal traditional second sourcing. I don't call that a
clone, I just call that multiple manufacturers making the same part. A clone is something that has been designed to do the same function as some other original device, but it's often not a
licensed design.
For example, Phoenix and Award made functional clones of the original IBM PC BIOS firmware, not license the ability to put IBM's code on their own generic ROM chips, etc. AMD used to be a second source for things like 80286 and 80386 chips, where they were licensing Intel's masks and making the same chip. They later refined the process and made the 80386DX-40 that ran faster than any Intel variant but it was still the same chip. They later went on to produce functional clones and enhanced models that were compatible with the Intel offerings in the 486 and 586 world and onward, but none of those were licensed Intel designs, they certainly were functional clones though, and yet certainly not
counterfeit (unless you're talking about some actual knock-off that came off Wan-Hung-Lo's production line instead of AMD's.)