$5k under the table is a small price to pay for such potential payoff, not to mention the value of the chilling effect on competition.
It's unethical, seedy, shitty, banal, and pestilent, the kind of thing that only the most hellbound and soulless of sleazebags would ever even think of to do, but it's profitable.
Funnily enough, one of my former bosses has one or two patents on something really simple that he came up with. It's a really clever piece of tech that the military uses, stupid simple to implement too.