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Selling counterfeit goods: how do you get caught and stripped of your assets?

Selling counterfeit products is a criminal offense and results in civil claims. It makes no difference whether you are a private individual or a trader: you infringe intellectual property rights, risk criminal prosecution, and can be held liable for damages, surrender of profits, and destruction...

Published on September 28, 2020 by MKBjuristen.nl
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Selling counterfeit products is a criminal offense and results in civil claims. It makes no difference whether you are a private individual or a trader: you infringe intellectual property rights, risk criminal prosecution, and can be held liable for damages, surrender of profits, and destruction of stock.

Counterfeiting is more than trademark infringement

When thinking of counterfeiting, one thinks of a copied brand, but it goes further. Counterfeiting is an infringement of intellectual property rights in a broad sense: in addition to trademark law, copyright, design rights, or patent law may also be at stake. You are therefore in violation more quickly than you think.

Punishable for everyone

Selling or trading counterfeit goods is a criminal offense, regardless of whether you are a private individual or a trader and regardless of whether you properly declare your income. Penalties are increasing, and trademark holders and authorities can detect counterfeiting with increasing ease, including online.

Civil claims: damages and disgorgement of profits

In addition to criminal consequences, the rights holder can take civil action against you: compensation for damages, surrender of profits derived from the counterfeiting, destruction or recall of the stock, and an injunction subject to a penalty payment. The costs can mount up substantially.

Prevent yourself from trading counterfeit goods

Check your purchasing and suppliers carefully: a suspiciously low price or a dubious source is a warning. If you are unsure whether a product infringes, seek advice before selling it. Ignorance is not a license to do so.

Frequently Asked Questions

Is selling counterfeit goods also a punishable offense for a private individual?

Yes. Trading in counterfeit goods is a punishable offense, regardless of whether you are a private individual or a trader.

What can a trademark holder demand from me?

Including, among other things, compensation for damages, surrender of profits, destruction or recall of stock, and an injunction with a penalty payment.

Am I liable if I didn't know it was a fake?

Ignorance does not automatically protect you. Check your purchasing and source carefully.

Questions about counterfeiting or trademark infringement?

Our legal experts advise rights holders as well as sellers who have been sued. View our trademarkor IP lawteam, or schedule a free consultation.

Please note: an article provides general information, but your legal situation may turn out differently.

A contract, conflict, or legal risk must always be assessed based on the facts, documents, evidentiary position, and interests. Are you in doubt? Have your situation assessed before you act.

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