counterfeitere
20 January 2014Trademarks

US counterfeiter hit with multi-million dollar fine

A US counterfeiter has been fined nearly $4 million after being found guilty of selling and possessing more than 1,500 fake goods.

Maria Luisa Sanchez had been selling fake handbags and jewellery for the last four years in various locations across Los Angeles.

The fine, given by the LA City Attorney Office (CAO), is the largest amount the office has ever handed down in a counterfeiting case.

“This judgement is testament to how seriously our office and the courts view counterfeiting,” said City Attorney Michael Feuer following the ruling on January 15.

“Counterfeit goods hurt legitimate businesses and deprive the public of needed tax revenues to fund vital city services,” he added.

Sanchez was found to have committed 1,586 trademark violations while selling the items at various storefronts.

She was given the maximum penalty of $2,500 for each of the counterfeit items that she sold or owned with the intention of selling.

Most recently, Sanchez sold items from a business called Blue Boo. When she was operating the store, Sanchez was on probation from a 2012 conviction, also for the sale and possession of counterfeit goods.

Following the lawsuit, Los Angeles Superior Court Judge Michael Johnson issued a permanent injunction ordering Sanchez to cease all operations at the Blue Boo store.

Sanchez was also banned from all locations where counterfeit goods are known to be sold, stored, manufactured or transported, and must notify the CAO if she owns, operates or works in an LA business related to any items that are counterfeited.

“This case is remarkable to the extent it demonstrates that city officials and municipalities are focusing their resources on anti-counterfeiting programmes on behalf of the citizenry, and not necessarily the trademark owner,” said Ralph Cathcart, partner at Ladas & Parry LLP in New York.

“It demonstrates a growing trend by local governments and administrations to treat counterfeiting as deceptive practice that consumers need protection against, rather than merely focusing on the obvious economic and reputational harm visited upon the trademark owner.”

Sanchez’s conviction represents the second time a fine has been levied against a counterfeiter by the CAO in the last six months.

In September, Ahmad Salim, the owner and operator of a shop called El Socalo, was ordered to pay $388,000.

During one raid police discovered that Salim had been selling counterfeit Lacoste and Burberry shirts and True Religion jeans.

The LA City Attorney is an elected official.

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