What happens to a person that sells knock-offs of branded goods in the U.S.?
It’s not good. It could mean felony jail time or steep fines for criminal counterfeiting of goods.
Knock-offs that copy trademarks or trade dress are called counterfeit goods under the Lanham Act, the federal law that governs trade dress, trademarks and service marks.
Counterfeiting is an act of making, distributing or selling lookalike goods or services bearing fake trademarks or service marks.
In a civil suit a brand owner can recover actual damages or statutory damages of not less than $1,000 or more than $200,000 per counterfeit mark per type of goods or services sold, offered for sale, or distributed, as the court considers just.
Worse still, the “willful” counterfeiter may be liable for up to $2,000,000. That will put you out of business.
Now, Canada and Mexico are going to join the U.S. in providing statutory damages for counterfeit goods as part of the USMCA trade agreement.
To find out more, schedule a Strategy Call with me, Chris Paradies, using my automatic scheduler.