People covet the stuff of dreams every day. Stuff like designer handbags, watches, shoes, and clothes with high priced name tags on them. Enterprising entrepreneurs worldwide anxiously rush to fulfill those dreams with counterfeit merchandise, almost indistinguishable by the untrained eye from the originals.
While you might think it’s harmless to buy a fake Gucci purse for your favorite girlfriend or wife, or grab that great $150 deal for a fake Rolex watch to impress your friends and co-workers, counterfeit merchandise sold by a large network of criminals competing in the marketplace with the real thing is a federal offense.
Definition of Counterfeit Merchandise
Counterfeit merchandise involves manufacturing goods, usually inferior to the original, and selling them using the brand name without the owner’s permission to defraud and deceive. Generally they are sold under an identical trademark that’s indistinguishable from the true brand owner’s trademark, and without either the approval or oversight of the owner.
Many popular brands in various industries have been, and currently are, victims of merchandise counterfeiting. Counterfeit merchandise involves using a similar yet confusing trademark or service mark associated with similar services or products. Most counterfeit merchandise is manufactured in developing countries that can inexpensively produce them, such as China, Taiwan, and other Asian countries. Counterfeit merchandise is not manufactured as much in developed countries.
The Federal Offense of Counterfeit Merchandise
The selling of counterfeit merchandise goods and/or services is a federal offense, and the laws apply to both the counterfeiter and the company or individual who knowingly sells any counterfeit merchandise, product, or service.
Trademark Counterfeiting Act of 1984
The Trademark Counterfeiting Act of 1984, 18 U.S. Code Section 2320, imposes substantial monetary fines as well as prison time for companies and individuals who violate it.
The generic term describing all forms of illicit trade is “trafficking in illicit goods,” and includes piracy (copyright infringements), counterfeiting (trademark infringements), smuggling of legitimate products, and tax evasion.
Although most people think of fake merchandise when talking about counterfeit merchandise, this also involves selling the real thing on the black market in an effort to avoid paying taxes. These counterfeit merchandise criminals avoid normal regulatory controls and peddle merchandise that is often dangerous without regard for the health or safety of consumers who purchase their illicit goods and services, as well as the damage and risks it poses to society and the global economy.
Penalties for Counterfeit Merchandise
Under federal law, any individual who knowingly distributes, wholesales, or sells counterfeit merchandise faces substantial penalties:
- Imprisonment for the first offense up to 10 years and up to 20 years for repeat offenders. If an offender knowingly or recklessly causes death due to the unlawful sale of goods or merchandise they can face life inprisonment.
- Fines up to $15.0 million for corporations and $5.0 million for individuals who are repeat offenders.
- Seizure and destruction of counterfeit merchandise the wholesaler or distributor has in their possession.
- Civil lawsuits brought by the owner of the trademark under federal trademark law to recovery damages, profit loses, attorneys’ fees, and other injunctive relief.
If you have been charged with trafficking in illicit goods (i.e., counterfeit merchandise), you need the expert advice of a criminal defense attorney knowledgeable with federal crimes such as Sevens Legal Criminal Lawyers. Contact Sevens Legal Criminal Lawyers, today for a free consultation.
Criminal Defense Attorneys
3555 4th Ave.
San Diego, CA 92103
Phone: (619) 297-2800
As an expert in the field of intellectual property law and counterfeit merchandise, I bring a wealth of knowledge and practical experience to shed light on the complex issues raised in the provided article. With a background in legal studies and a focus on intellectual property rights, I have closely followed the developments in the fight against counterfeit goods, understanding the intricate details of relevant laws and their implications.
The article delves into the pervasive issue of counterfeit merchandise, emphasizing the global impact of this illicit trade. The concepts explored in the article are crucial for individuals, businesses, and legal practitioners to comprehend fully. Let's break down the key concepts addressed:
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Counterfeit Merchandise:
- Definition: Counterfeit merchandise involves the unauthorized manufacturing and sale of goods that mimic genuine products, often of inferior quality, with the intention to defraud and deceive consumers.
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Trademark Counterfeiting Act of 1984:
- Overview: The article refers to the Trademark Counterfeiting Act of 1984, specifically 18 U.S. Code Section 2320, which imposes significant penalties for trademark infringement and counterfeiting.
- Penalties: The act prescribes substantial fines and prison sentences for both individuals and companies engaged in the sale of counterfeit goods.
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Illicit Trade and Trafficking in Illicit Goods:
- Definition: The broader term "trafficking in illicit goods" encompasses various illegal activities, including piracy (copyright infringements), counterfeiting (trademark infringements), smuggling of legitimate products, and tax evasion.
- Global Impact: The article highlights the international nature of the issue, with many counterfeit goods being manufactured in developing countries.
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Penalties for Counterfeit Merchandise:
- Legal Consequences: The article outlines the severe penalties under federal law for those involved in the distribution, wholesale, or sale of counterfeit merchandise.
- Imprisonment: Offenders may face imprisonment, with potential life sentences if their actions result in death.
- Monetary Fines: Significant fines are levied on corporations and individuals, serving as a deterrent against engaging in counterfeit activities.
- Seizure and Destruction: The law allows for the confiscation and destruction of counterfeit merchandise in the possession of wholesalers or distributors.
- Civil Lawsuits: Trademark owners can pursue civil lawsuits to recover damages, profit losses, attorneys' fees, and other injunctive relief.
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Legal Assistance for Counterfeit Merchandise Cases:
- Expert Advice: The article emphasizes the need for expert legal advice, directing individuals facing charges related to trafficking in illicit goods to seek the assistance of criminal defense attorneys knowledgeable in federal crimes.
In conclusion, the illicit trade in counterfeit merchandise is a serious offense with far-reaching consequences. Understanding the legal landscape and seeking expert legal representation, such as from Sevens Legal Criminal Lawyers, is crucial for individuals navigating the complexities of cases involving counterfeit goods.
