Tuesday, April 9, 2013

Buyer Beware! It May Soon Be a Crime to Buy Fakes in NY!


Manhattan councilwoman Margaret Chin is pushing for a bill that will make it illegal for buyers to buy counterfeit merchandise. Chin had tried to pass the legislation back in 2011 but was stalled and is now trying to revive the legislation.  Her law would make it a misdemeanor to buy fakes fining buyers up to $1,000 for purchasing fakes and imprisonment for up to one year.

It is already a federal crime to sell counterfeit merchandise under U.S. trademark law known as the Lanham Act (15 U.S.C § 1051), which prohibits trademark infringment and dilution.  The Trademark Counterfeiting Act of 1984 ("TCA") (18 U.S.C.§ 2320) strengthened the laws against counterfeiting by making it a federal offense to violate the Lanham Act.  The TCA made it illegal for any person to intentionally or attempt to traffic goods or services and knowingly use a counterfeit trademark when trafficking those goods or services.  Trafficking include selling or transferring for money.  Violations of the TCA includes penalties of up to 5 years imprisonment and $250,000 in fines for an individual or $1 million in fines for an entity.  There are also civil remedies available to a trademark owner.
Nonetheless, that apparently isn't enough to deter sellers.  Perhaps it is more an enforcement problem than a need to pass another law. Counterfeit products are sold openly on many street corners in NYC and those that could be enforcing these laws turn a blind eye as tourist and bargain hunters happily snatch up the discounted goods without fear of retribution.

Chin believes it's the concept of supply and demand.  By making buyers afraid to purchase fakes for fear of punishment, demand will decrease and sellers will stop selling.  However, back in 2011, the NY Post quoted a police officer saying the bill would never work because it required shoppers be caught in the act which in turn requires a lot of police to be on the look out to enforce it.  Apparently, even the police thinks there's better things to do with their time!


Read More:
WWD (subscription req'd): New Counterfeit Law for N.Y. in Works
Racked NY: Counterfeit Bill Gets Reenergized; Public Hearing to Come
NY Post: Bill would bag phony-purse buyers

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