As the title suggests the above item was offered for sale (and immediately sold) as 'rare' and 'original' by a well-known online Military Antique outlet. I'm not saying it's not, BUT I wonder others might think.
Original Item: One-of-a-Kind. Just purchased from a private collector, this is a fantastic experimental SIG-Bergmann MP 18 - 20 Inert Display Sub Machine Gun, designed with a VERTICAL magazine well, instead of the usual horizontal. It was built using original parts on an original BATF compliant...
www.ima-usa.com
Sorry to bump an old post but I do have an answer for you.
This is a Chinese copy of the SIG Bergmann submachine gun that is being passed off as an experimental German weapon.
In 1920, Theodor Bergmann sold the production rights to the MP 18 to SIG in Switzerland. As a result of this deal, SIG manufactured a copy of the MP 18,III - NOT the MP 18,I - and sold it for export. The difference between the MP 18,I and the MP 18,III is that the former model fed from 32-round Luger drum magazines and the latter fed from Mauser box magazines of various capacities, though most commonly 30 or 50 rounds. These magazines use a double-position feed and are not the same as the later 32-round Schmeisser patent box magazines (as used in the MP 28), which use a single-position feed.
The unusual magazine feed you are seeing is not a Sten mag housing but actually the standard type used by the SIG Bergmann and MP 18,III. It is different to the MP 28 feed as it takes different magazines.
Several sales of SIG Bergmann submachine guns were made to China, beginning in 1922. The Chinese almost immediately reverse-engineered this gun and began to produce copies at many arsenals, including Tsingtao, Dagu, Hanyang, Guangdong, Jinling, and Jiangnan. Many of these were made with vertical magazine feeds instead of the standard horizontal feed. The SIG Bergmann was hugely popular in China but is often mistaken for the MP 18 or MP 28.
This is just a Chinese SIG Bergmann. All the serial stamps are in the same places and there is nothing here to suggest it is a German or Swiss prototype.