How counterfeiting becomes a crime
Most trademark disputes are civil, but trafficking in goods bearing counterfeit marks can be prosecuted federally, and New York has its own trademark counterfeiting offenses graded by the value of the goods. Criminal trademark infringement cases generally focus on counterfeit marks, meaning copies identical to or substantially indistinguishable from a registered mark, rather than marks that are merely similar. Knowledge is usually central, and prosecutors must show more than that counterfeit goods passed through your hands. Cases often begin with a customs seizure, a complaint from a brand owner's investigators, or an undercover purchase, and civil seizures or lawsuits by the brand owner may run at the same time.
If you are contacted or searched
Do not discuss the goods, your suppliers, or your sales with investigators until you have spoken with a lawyer, and never knowingly give false information, which can become a separate offense. Preserve purchase records, supplier invoices, communications, and payment trails, because how the goods were sourced and priced often bears directly on knowledge. Do not destroy, move, or sell remaining inventory before getting advice, since that can be treated as obstruction or as further trafficking. If customs has seized a shipment, the seizure notice comes with response deadlines that are easy to miss. Non-citizens should raise immigration status immediately, because a plea can carry consequences well beyond the sentence.
Early decisions in a counterfeiting case
We look at which agency is involved, whether charges have been filed or the matter is still under investigation, and whether a civil action by the brand owner is pending or threatened. The civil and criminal sides interact, and what you say in one can be used in the other. Whether the goods are actually counterfeit, whether they were genuine goods diverted from other markets, and what you knew are reviewed early. Bring any seizure notices, letters from brand owners, and the paperwork that came with the goods.
