7up,
I've always found the phrase "Nitrate Factory" to be a little strange, but here goes:
-The idea of biologigal filtration is to convert bad things (waste) to harmless things
-Ammonia is worse, followed by Nitrites and then Nitrates
-Trickle filters, crushed coral, UG filters, etc. excel at converting Ammonia to Nitrites and then Nitrates. This was great in say the 1980s, when we didn't keep animals that were bothered by moderate levels of Nitrates. When our Nitrate levels got to the point that they could bother our fish, we'd do water changes or vaccum our bare glass bottoms and all was well.
-Recently, we've discovered means of depleting Nitrates in our tanks... unfortunately, trickle filters cannot do this
The reason trickle filters, UG filters, etc. cannot convert Nitrates is that they are aerobic filtration devices. The type of bacteria that eats Nitrates are anerobic (i.e. they work without Oxygen). Unfortunately, trickle systems with their dripping and splashing don't provide a suitable environment for anaerobic bacteria. So, you've got a filter system that excels at producing Nitrates... a Nitrate factory.
At the end of the day, I guess this isn't horrible, as Nitrates are better than Ammonia. Eventually, however, you'll probably want to investigate a system that will eliminate those Nitrates at a rate that is almost as fast as you're producing them. This is especially true, if you're keeping Nitrate-sensitive fish and inverts.
Hope this helps!