(2) There’s no predictability to your business because your success is tied to not being discovered by the trademark owner. (1) If the trademark owner chases you, you can quickly lose all of your business investments and assets (all your fake Gucci bags) and much more (you may be pursued for your personal property and home). The short answer is that selling counterfeit goods is a bad idea for a business. The ripoffs eventually cut into sales, generally causing revenues to drop by 25% and forcing the company to lay off 15% of its employees. The Zippo lighter has been the target of massive counterfeiting-depending on where you are in the world, the percentage of fake Zippos can be between 5% and 50%. The marketplace is littered with millions of counterfeits relating to brands like Gucci, Louis Vuitton, and Dolce & Gabbana. That could be the case because the underlying work-a dress, for example-cannot be protected under the law, meaning that a knockoff doesn’t violate any legal rules. Some knockoffs might imitate an established product without infringing. The term “knockoff” is often used as a substitute for “counterfeit.” But the terms aren’t exactly synonymous. That’s because even when a buyer knows that the product is a fake, the product can still be used to deceive others. It’s still counterfeiting even when the people buying and selling the merchandise are aware that it isn’t from the real source–for instance, that the clothing isn’t made by Calvin Klein.
For example, a website that copied the Playboy Bunny logo for adult sex subscription services was assessed $10,000 for trademark counterfeiting. The standard of trademark infringement–likelihood that consumers will be confused–is self-evident in counterfeiting: The counterfeiter’s primary purpose is to confuse or dupe consumers.Ĭounterfeiting isn’t limited to consumer products like watches and handbags. For example, a business deliberately duplicating the Adidas trademark on shoes is guilty of counterfeiting. It’s the act of making or selling lookalike goods or services bearing fake trademarks. But what does that mean for you? Will the trademark owner be able to find you? What will that owner do upon finding you? What Is Counterfeiting?Ĭounterfeiting is a form of trademark infringement. Counterfeiting is the act of making or selling lookalike goods or services bearing fake trademarks.Īre you considering starting a business that involves selling unauthorized merchandise such as fake Gucci handbags? The sale of counterfeit goods (as described below) is illegal, as you’re probably aware.
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