Fake trademark invoice fraudsters sentenced
The Svea Court of Appeal in Stockholm, Sweden has sentenced 20 individuals involved in sending fake invoices to trademark applicants.
Between 2011 and 2014, fake invoices were sent out by what appeared to be the Office for Harmonization in the Internal Market (OHIM), now known as the European Union Intellectual Property Office (EUIPO).
Several hundred recipients in different countries were alleged to have received the fake invoices. All of the recipients had applied to register a community trademark with OHIM.
The Svea Court of Appeal handed down sentences against 20 individuals, after reversing a decision made by the District Court in Uppsala.
An individual known as Mr SR was sentenced to four years and eight months of imprisonment for attempted gross fraud and completed gross fraud in 355 cases.
Another man, known as Mr DN, was convicted for being complicit in the gross fraud committed by Mr SR, and for gross fraud in a further 33 cases. He was sentenced to two years and nine months of imprisonment.
An additional 18 individuals were charged as they allowed their bank accounts to be used in the scam, while some helped to mail the fraudulent invoices. Of the 18, two were sentenced to imprisonment.
Marques, the European association of trademark owners, received one of the invoices.
In 2010, it applied to register the trademark ‘ Class 46’ in connection with its blog and, shortly afterwards, the Marques’ secretariat in Leicester, UK, received a scam invoice.
Recognising the trademark for ‘Class 46’, and seeing that it was sent by OHIM, the organisation’s finance department believed it to be an official invoice and paid the sum.
Willem Leppink, of Ploum Lodder Princen and chair of Marques’ anti-fraud task force, told WIPR that fraudulent activity isn’t always noticed as those that make the payments are not the ones with knowledge of the trademark, as was the case with Marques.
As it had already been in contact with EUIPO regarding scam invoices in general, Marques joined the case as a victim, with Leppink being a witness before the Swedish court.
“We see in our membership so many people that are heavily frustrated that scammers seem to get away with these scams and people were so happy to see that a tenacious public prosecutor kept on fighting in this matter, with great support from the EUIPO,” explained Leppink.
Leppink advised other organisations to check whether an invoice is fraudulent by looking on the EUIPO’s ‘ Misleading Invoices’ help page.
He added that although it is not always the case, most trademark officials will recognise scam invoices. However, it is important to inform support staff not to pay any such invoice without approval.
“I think it is a matter of getting your internal approval procedures right and to make people everywhere aware of this phenomenon. The problem is bigger than just trademark scams, it also happens with patents, domain names and even traffic fines.”
An analysis of the case provided by EUIPO can be found here.
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