Anti-counterfeiting bill is now a law

Law enforcers now have a stronger arm to run after businesses and persons engaged in counterfeiting and selling fake goods, with Gov. Juan N. Babauta signing into law yesterday a legislative bill that criminalizes such activities.

Babauta said the law would help curb the proliferation of forgery and counterfeiting activities, which have created a negative impact on trade and commerce in the CNMI.

The law also punishes those who knowingly transport counterfeit goods into, out of, or within the CNMI.

Offered by Sen. Paterno S. Hocog, Senate Bill 14-32 is now Public Law 14-22, or the Private Labels Protection Act, which provides penalties of up to 15 years imprisonment for violators.

“I believe that the enactment of this measure will increase consumer confidence in the quality of the products and materials they have purchased,” the governor said.

He said the previous lack of legislation to define and punish counterfeiting activities encouraged consumer fraud. PL 14-22’s provisions were patterned after a similar federal statute.

Counterfeiting of registered trademarks is considered a felony that entails strict penalties for violators. If the goods or services to which the counterfeit trademarks are attached or to which the offender intended to be attached have a retail sale value of $1,000 or more, the law provides a penalty ranging from two- to five-years imprisonment, and a fine equivalent to three times the retail value of the legitimate items, or three times the profits received by the offender, whichever is greater.

If the goods or services have a retail value of less then $1,000, the prison term ranges from one to two years, besides the fine.

“When an offender has in the last five years been convicted of counterfeiting under this section, or vending counterfeit goods…the offender shall be punished by imprisonment of not less than 10 years but not more than 15 years and a minimum fine of $10,000 or treble the actual retail price of the items, whichever is greater,” the law states.

The law also penalizes commercial use and trafficking counterfeit goods or services. Those who sell or offer to sell counterfeit goods with retail sale value of $1,000 or more face imprisonment of two to five years, plus the fine.

If the goods’ retail sale value is less then $1,000, the offender commits a misdemeanor, or a minor infraction of the law, which entails imprisonment of not more than a year and the fine.

Law enforcers may seize counterfeit trademarks or service marks and tools used in the their reproduction.

The law also penalizes aiding and abetting the trafficking of counterfeit goods, which entails a mandatory minimum prison term of two years and a maximum of five years.

One commits the crime if he solicits a person to purchase counterfeit goods; knowingly transports fake goods into, or within the CNMI; and knowingly transports any person into, out of, or within the CNMI for the trafficking of counterfeit goods.

If one commits the offense and he has been convicted of the crime in the last five years, the minimum mandatory prison term is five years, while the maximum is 10 years. The offense entails a $10,000-fine.

“The court shall order any person found in violation…to make restitution to the owner of the registered or protected trademark, to the CNMI government, or to the CNMI Customs Office, as the case may be, for the cost of storage and destruction of the counterfeit or forged goods,” the law states.