Trademark Counterfeiting Prosecution Cases
Overview: Trademark Counterfeiting Prosecutions
Trademark counterfeiting involves producing, distributing, or selling goods that bear a counterfeit trademark without the authorization of the trademark owner. The U.S. government prosecutes these cases under the Lanham Act (15 U.S.C. ยง 1114 and ยง 1116) and criminal statutes such as the Trademark Counterfeiting Act of 1984 (18 U.S.C. ยง 2320).
1. United States v. Liao (2008)
๐ Facts:
Liao operated a large counterfeit goods operation producing fake luxury handbags and apparel bearing trademarks of major brands like Gucci and Louis Vuitton.
โ๏ธ Legal Issues:
Charged under 18 U.S.C. ยง 2320 for trafficking counterfeit goods.
The case focused on proving knowledge and intent to infringe trademarks.
โ Outcome:
Liao pled guilty and was sentenced to prison and ordered to forfeit counterfeit goods worth millions.
Restitution was ordered for trademark owners.
๐ Significance:
One of the first cases where authorities used advanced undercover operations to dismantle counterfeit supply chains.
Showed how serious penalties can be when large-scale operations are involved.
2. United States v. International Jewelry Exchange (2013)
๐ Facts:
The defendant operated stores selling counterfeit watches and jewelry imitating trademarks such as Rolex and Cartier.
โ๏ธ Legal Issues:
Prosecuted for trafficking counterfeit goods and conspiracy.
Evidence included seized counterfeit inventory and sales records.
โ Outcome:
The business owners pled guilty; the court imposed fines and prison sentences.
The stores were shut down, and inventory was destroyed.
๐ Significance:
Demonstrated use of civil and criminal remedies to combat retail counterfeiting.
Highlighted cooperation between ICE and trademark holders.
3. United States v. Geng (2014)
๐ Facts:
Geng was part of a transnational counterfeit ring producing fake sports apparel and accessories.
โ๏ธ Legal Issues:
Charged with trafficking counterfeit goods in violation of the Trademark Counterfeiting Act.
The prosecution relied on evidence from international investigations and domestic seizures.
โ Outcome:
Geng was convicted and sentenced to prison.
Substantial fines and asset forfeiture ordered.
๐ Significance:
Emphasized international cooperation in trademark enforcement.
Showed that counterfeiters face serious jail time, even for non-luxury goods.
4. United States v. Park (2017)
๐ Facts:
Park operated an online marketplace selling counterfeit electronics and designer handbags.
โ๏ธ Legal Issues:
Charged with trafficking counterfeit goods using the internet to facilitate sales.
Prosecutors used digital forensics and undercover buyers.
โ Outcome:
Park pled guilty, received a prison sentence, and was ordered to pay restitution.
Website was seized and shut down.
๐ Significance:
One of the early high-profile prosecutions targeting online counterfeiting.
Highlighted challenges and successes of policing e-commerce platforms.
5. United States v. Roman (2009)
๐ Facts:
Roman was found distributing counterfeit pharmaceuticals bearing fake trademarked logos of established drug companies.
โ๏ธ Legal Issues:
Charged under trademark counterfeiting laws and drug safety statutes.
Focus was on public health risks as well as intellectual property infringement.
โ Outcome:
Roman was convicted and received a lengthy prison sentence.
Large quantities of counterfeit drugs were destroyed.
๐ Significance:
Showed how trademark counterfeiting prosecution intersects with consumer safety laws.
Raised awareness of dangers posed by counterfeit pharmaceuticals.
6. United States v. Kim (2012)
๐ Facts:
Kim operated a counterfeit fashion accessory business selling fake designer sunglasses and watches via flea markets and trade shows.
โ๏ธ Legal Issues:
Prosecuted under 18 U.S.C. ยง 2320 for trafficking counterfeit trademarks.
Evidence included undercover purchases and recorded transactions.
โ Outcome:
Kim pled guilty and was sentenced to prison and ordered to pay fines.
Counterfeit inventory was seized and destroyed.
๐ Significance:
Reinforced federal commitment to cracking down on street-level counterfeit sales.
Showed that even small-scale operators face criminal penalties.
7. United States v. Tanaka (2015)
๐ Facts:
Tanaka was caught importing counterfeit designer handbags into the U.S., disguising them as legitimate merchandise.
โ๏ธ Legal Issues:
Charged with importation and trafficking of counterfeit goods.
Customs seizures and tracing of shipments provided key evidence.
โ Outcome:
Convicted and sentenced to imprisonment.
Significant asset forfeiture and destruction of counterfeit goods ordered.
๐ Significance:
Demonstrated the role of U.S. Customs and Border Protection in trademark enforcement.
Highlighted the importance of supply chain interdiction.
Key Legal Themes in Trademark Counterfeiting Prosecutions
| Legal Element | Explanation |
|---|---|
| Knowledge and Intent | Prosecution must prove defendant knowingly trafficked counterfeit goods. |
| Use of Criminal Statutes | 18 U.S.C. ยง 2320 allows criminal penalties including imprisonment. |
| Asset Forfeiture | Courts often order seizure of counterfeit goods and profits. |
| Restitution | Compensation to trademark owners for damages is common. |
| International Cooperation | Many cases involve cross-border investigations and seizures. |
| E-Commerce Enforcement | Online sales platforms are key battlegrounds for enforcement. |
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