Is It Illegal to Sell Counterfeit Goods in California?
Trademark infringement and counterfeit goods are addressed under California Penal Code 350, which forbids possessing, selling, or producing counterfeit items bearing a registered trademark.
The term "goods" includes items such as purses, handbags, wallets, sunglasses, clothing, and more. Often, these goods are produced abroad but sold within the United States.
Due to the high popularity of luxury items and well-known brands, especially in Los Angeles, there is a significant underground market for products displaying notorious logos.
In numerous Penal Code 350 cases, arrests occur when large companies hire private investigators to track down individuals who advertise on Craigslist and social media.
These investigators conduct undercover purchases and report these activities to law enforcement.
Common Example
A typical example of a PC 350 crime involves someone selling cheap sunglasses at a flea market.
To justify a higher price, they attach a well-known brand logo to make the sunglasses seem authentic, but they could be prosecuted for manufacturing and selling counterfeit marks.
It is important to note that to convict you of PC 350, a prosecutor must prove you intentionally manufactured, knowingly possessed for sale, and deliberately sold counterfeit items.
For helpful information about manufacturing or selling counterfeit goods under Penal Code 350, our California criminal defense lawyers have provided the overview below.
Defining Penal Code 350 PC
California Penal Code 350 defines the crime of manufacturing or selling counterfeit marks as "Anyone who willfully manufactures, intentionally sells, or knowingly possesses for sale any counterfeit mark registered with the Secretary of State or registered on the Principal Register of the United States Patent and Trademark Office."
To secure a conviction for PC 350 related to manufacturing, selling, or possessing counterfeit goods, the prosecutor must prove beyond a reasonable doubt all the elements of the offense:
- You were aware that you possessed counterfeit goods.
- The fake products featured a seal registered with the U.S. Patent & Trademark Office.
- You either intended to sell, or you actually sold or produced the counterfeit goods.
It is important to understand that knowingly possessing a counterfeit good means you were aware or had reason to suspect it was counterfeit. Possessing counterfeit goods alone is not illegal; the law applies if you intend to sell them.
A counterfeit mark is a fraudulent trademark identical to a registered mark, either with the United States Patent and Trademark Office or the California Secretary of State.
Penalties for Counterfeit Goods
If convicted under PC 350 for manufacturing or selling counterfeit marks, the penalty will vary based on the quantity and worth of the counterfeit goods. PC 350 is classified as a misdemeanor if:
- The number of counterfeit goods charges is fewer than 1,000 items, and
- The total value of the counterfeit goods is under $950.
A misdemeanor conviction for counterfeiting goods results in the following penalties:
- Imprisonment for up to one year in a county jail.
- A fine of up to $10,000 for individuals.
- A fine of up to $200,000 for a business.
- Summary of misdemeanor probation
Felony Penalties
If there are over 1,000 counterfeit items or the total value exceeds $950, PC 350 designates California a "wobbler," giving prosecutors the discretion to charge either a misdemeanor or a felony.
If convicted of violating Penal Code 350 by selling, manufacturing, or possessing counterfeit goods for sale as a felony, the penalties are as follows:
- 16 months, or two to three years, in a county jail.
- A fine of up to $500,000 for individuals.
- A fine of up to $1,000,000 for a business.
- Formal felony probation
If convicted of Penal Code 350, the court generally orders the forfeiture of all counterfeit marks, manufacturing or assembly machines, and vehicles used for transport—a prior conviction for PC 350 results in a harsher penalty.
What are the Related Offenses?
- Penal Code 484(a) - Petty Theft
- Penal Code 487 - Grand Theft
- Penal Code 470 - Forgery
- Penal Code 499(c) - Theft of Trade Secrets
Fighting Counterfeit Goods Charges
If you are charged with PC 350 for manufacturing or selling counterfeit goods under California Penal Code 350, our criminal defense lawyers are prepared to employ a range of strategies to achieve the best possible result.
Each case is unique and requires a thorough review of all facts and circumstances to develop an effective defense. Common defenses often include:
- Mistake of fact: Sometimes, you might not realize you possess counterfeit goods. For example, you could have been at a location that had counterfeit items without knowing, or someone may have left counterfeit goods at your place unknowingly. Similarly, you might genuinely believe the goods are authentic, as they are often so well-made that telling the difference is challenging.
- Authentic Goods or Lack of Seal: We could argue that the goods the prosecutor claims are counterfeit are actually genuine, or that it's not possible to prove beyond a doubt that they are counterfeit. Similarly, we might assert that the goods lacked a registered seal with the U.S. Patent & Trademark Office.
- Illegal Search: We may argue that the police conducted an illegal search and seizure, violating your Fourth Amendment rights, and file a motion to suppress the evidence obtained. Similarly, we might contend that any incriminating statements police obtained violated your Miranda rights.
If you're accused under Penal Code 350 of manufacturing or selling counterfeit goods, contact our criminal defense lawyers at Cron, Israels & Stark to review your case and explore your options.
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