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The butterfly knife originated in the Philippines, where it was known as a balisong.
In many U.S. states, it is illegal to possess and/or carry such a knife in public; indeed, doing so is a felony in some states, such as Nevada.
Video footage of the techniques for using a butterfly knife:
http://www.balisong.net/en/techniques.htm
Legality checklist for various states in USA:
http://www.thehighroad.org/library/blades/knifelaws.html
Knives