Counterfeit Goods

Federal Counterfeit Goods Defense Lawyer

Financial struggles are always challenging to handle. At times, economic instability leads individuals to engage in illegal activities, such as trafficking counterfeit goods.

The federal government has a financial stake in safeguarding the reputation of genuine products, particularly those associated with federally protected marks, military equipment, and medical drugs.

Federal law criminalizes trafficking or dealing in counterfeit goods and imposes strict penalties, including hefty fines and imprisonment in the Federal Bureau of Prisons.

18 U.S.C. 2320 establishes federal statutes against trafficking in counterfeit goods, encompassing various methods of violation.

In context, "trafficking" refers to the act of transporting, transferring, or disposing of goods or services for commercial purposes.

It's Illegal to Traffic Counterfeit Goods Knowingly

It is illegal to traffic goods or services if you know they lack a genuine mark. This requires that the perpetrator knew or reasonably should have known that the mark is counterfeit.

Additionally, it is illegal to traffic in labels, boxes, or other packaging that bear a counterfeit mark likely to cause confusion or deception. The same knowledge outlined above also applies.

It is illegal to knowingly traffic in counterfeit military goods or services due to the high risk of causing serious injury, death, or disrupting military operations.

Similarly, trafficking in drugs known to be counterfeit is also illegal. Under 21 U.S.C. 321, a "drug" encompasses various narcotics, pharmaceuticals, supplements, and other medical products.

If you have been charged or are under investigation under 18 U.S. Code § 2320, understanding your rights is crucial. Our federal criminal defense lawyers can help you navigate these charges and protect your interests.

Analysis of the Law According to 18 U.S. Code 2320

18 U.S.C. § 2320 specifies the laws and penalties related to trafficking in counterfeit goods.

In short, it is illegal to "traffic"—meaning to transport, transfer, or dispose of—any counterfeit items that are presented as genuine. The statute delineates four types of offenses covered under § 2320.

Knowingly engaging in the trade of goods or services bearing a "counterfeit mark," or knowingly dealing in items to which a counterfeit mark has been affixed. Types of such items include:

• Labels, stickers, wrappers, or tags,
• Patches or badges,
• Emblems, medallions, or charms,
• Boxes, cans, containers, cases, or packaging,
• Documentation.

Knowingly engaging in the trade of counterfeit military goods or services, which are likely to cause harm when used.

• Death or bodily harm to the user,
• Disclosure of classified information,
• Combat operations impairment,
• Serious injury inflicted upon a member of the Armed Forces.

Trafficking in a drug bearing a counterfeit mark, which could be understood as:

• Dietary supplements,
• Pharmaceuticals.

What Criteria Define a Counterfeit Mark?

Legally, a counterfeit mark is defined as a "spurious" or fake mark that is regarded as being:

• The same as, or nearly identical to, another trademark already in use and registered with the U.S. Patent and Trademark Office.
• Used similarly or in conjunction with the previously registered mark.
• Potentially leading to confusion or errors emphasizes the importance of understanding counterfeit marks and the risks of unintentional violations, encouraging the audience to seek legal advice.
• Intended to deceive.

Counterfeit markings often feature logos, signs, insignias, or other types of branding.

What Are the Possible Penalties?

Section 2320 outlines severe penalties for trafficking in counterfeit goods, including hefty fines and long prison sentences, underscoring the importance of legal guidance.

Section 2320 outlines penalties for trafficking in counterfeit goods, with punishments varying depending on whether the offender is an individual or a legal entity, such as a business or corporation.

Readers should be aware that any attempt or conspiracy to breach this law is punishable in the same way as an actual violation. The penalties for violating 18 U.S.C. § 2320 are outlined within the statute and are relatively simple. For general violations:

• Once convicted, trafficking counterfeit goods can result in fines up to $2,000,000 and imprisonment for up to 10 years.
• For a second offense, the penalties increase to a $5,000,000 fine and prison of up to 20 years.
• For violations involving the convicted person causing or attempting to cause serious bodily injury:
• The convicted individual faces a fine of $5,000,000 and imprisonment for up to 20 years.
• If the violation causes a person's death, the defendant could face life imprisonment.

Regarding violations related to military or drug offenses:

• A first offense can result in a fine of up to $5,000,000 and imprisonment for as long as 20 years.
• A subsequent violation can result in fines up to $15,000,000 and imprisonment for up to 30 years.

If a legal entity, rather than an individual, commits the offense:

• If convicted, the penalty can be up to $5,000,000 for a first-time offense.
• Up to $15,000,000 for later violations,
• If the subsequent violation involves trafficking in drugs or military goods and services, the maximum fine rises to $30,000,000.

Similar to other federal crimes, attempting or conspiring to commit an offense is prosecuted as if the crime were completed. Additionally, full restitution for victims may be ordered under 18 U.S.C. § 2323.

Forfeiture and destruction of counterfeit goods, as well as restitution to any affected party, may be ordered according to the provisions of 18 U.S. C. 2323.

What Are Possible Additional Charges?

Simultaneous charges frequently occur in federal cases. 18 U.S.C. 2320 is often paired with:

• 18 U.S.C. § 1961 - RICO
• 18 U.S.C. § 371 - Conspiracy to Commit a Crime
• 18 U.S.C. §§ 1956-1957 - Money Laundering
• 18 U.S.C. § 1029 - Credit Card Fraud
• 18 U.S.C. § 1341 - Mail Fraud
• 18 U.S.C. § 1343 - Wire Fraud

What Are the Potential Defenses?

Being accused of any federal crime can seem overwhelming, but in reality, there are numerous legal defense strategies that you and your attorney might consider using.

As in other fraud cases, federal prosecutors under 18 U.S.C. § 2320 must demonstrate that the defendant knew of the crimes. It can be argued that you were unaware that the product or service was counterfeit.

Items imported from abroad may not be considered counterfeit. This is because the products could still be genuine, even if they were produced outside authorized channels. Such items are known as "parallel imports" or "gray market" goods.

If the government violates your Constitutional rights during investigation or evidence collection, the seized evidence can be excluded from your case through a successful motion after filing.

Eisner Gorin LLP is a highly ranked federal criminal defense law firm based in Los Angeles, California. We offer legal services nationwide for all federal crimes. Reach out to us for a case review by phone or through our contact form.