CALIFORNIA CRIMINAL LAWYERS

Los Angeles Manufacture or Sale of Counterfeit Marks

What is a Counterfeit Mark Charge?

A counterfeit mark charge is a serious criminal offense that involves the manufacturing, possession, sale, or attempt to sell a counterfeit trademark that is registered with the U.S. Patent and Trademark Office. This offense is heavily associated with the manufacturing and sale of luxury goods such as purses, belts, wallets, and clothing materials, among others. Some of the most commonly counterfeited brands include Gucci, Prada, Louis Vuitton, Coach, and Michael Kors, among others. Retailers often hire private investigators to gather evidence of counterfeit goods.

Undercover Investigation

The investigative process usually begins with retailers hiring private investigators who respond to online ads on sites like Craigslist posted by someone claiming to sell counterfeit goods. The investigators pose as potential buyers and purchase a small amount of the goods while secretly videotaping the transaction. They then ask whether they can buy a larger amount of the same merchandise later. The seller is unaware that they are being recorded, and the buyers do not draw any suspicion. Afterward, the investigators file a report with the relevant police department with details of the next scheduled purchase from the sellers. On the scheduled date, the sellers are arrested by armed police officers who have a search warrant.

The Government’s Burden of Proof

To prove a counterfeit mark charge beyond a reasonable doubt, the government has to prove several facts. Firstly, the sellers were in possession of counterfeit goods. Secondly, they manufactured, had the intent to sell, or did sell counterfeit goods. Lastly, the goods contain a seal that is registered with the U.S. Patent and Trademark Office.

Legal Defenses

Several legal defenses can be used against a counterfeit mark charge. Firstly, lack of possession is one such defense. The government must prove that the seller had constructive possession, meaning they had the right to exert control over the goods. This can become an issue when there are two sellers in possession of the items. Secondly, mere presence at the scene of the sale cannot result in an arrest if there is no evidence connecting the person with the counterfeit items. Thirdly, lack of intent to sell is a defense that relies on factors such as internet ads the seller placed, text conversations or recorded phone calls, selling the goods for below retail value, incriminating statements or confessions to the police, the number of items the seller has in their collection, and the amount of money the seller has, which can be consistent with a street sale. Fourthly, the authenticity of the goods can be challenged. Lastly, the items may not be considered counterfeit if they do not contain a registered seal on them.

Penalties

The penalty for a counterfeit mark charge will depend on the size of the operation, and it can result in either a misdemeanor or a felony charge. If the total number of goods is less than 1,000, the seller can be charged with a misdemeanor offense that carries a fine of up to $10,000 and a one-year jail term. If the number of goods is over 1,000 or if the seller has a prior offense, then they can be charged with a felony offense that results in a fine of up to $10,000 and up to three years in jail.

Conclusion

A counterfeit mark charge is a serious criminal offense that carries significant penalties that can hurt your reputation and hinder future employment opportunities. As such, it is vital to contact experienced attorneys to help you through the court process. Our attorneys will review the charges and determine the defense strategy to get the most successful outcome for your case. Contact us today for an initial consultation.