Yes, selling counterfeit goods is illegal in Los Angeles and is punishable under both state and federal law. In California, the sale of counterfeit goods—such as fake designer items or knockoff products—is a violation of Penal Code Section 350, which prohibits the manufacture, sale, or possession for sale of counterfeit goods intended to deceive or mislead consumers.
Penalties for Selling Counterfeit Goods in Los Angeles
The consequences of selling counterfeit goods vary depending on the severity of the offense. Penalties can include:
- Misdemeanor Charges: If it’s a first offense and involves fewer than 1,000 counterfeit items with a total value of less than $950, it is typically charged as a misdemeanor. This can lead to up to one year in county jail and fines of up to $10,000 for individuals or $200,000 for businesses.
- Felony Charges: If the offense involves 1,000 or more counterfeit goods, exceeds $950 in value, or is a second or subsequent offense, it may be charged as a felony. Felony penalties include up to three years in county jail and fines of up to $500,000 for individuals and $1,000,000 for businesses.
- Restitution: Prosecutors may seek restitution to compensate victims, such as legitimate trademark holders, for their financial losses. Restitution may cover lost sales, harm to brand reputation, and legal costs.
- Civil Liability: In addition to criminal charges, trademark holders can file civil lawsuits for damages, including lost profits and attorney’s fees.
Defenses to Counterfeit Goods Charges
If you are charged with selling, possessing, or manufacturing counterfeit goods in Los Angeles, several defenses may apply:
- Lack of Knowledge: You may argue that you were unaware the goods were counterfeit. The prosecution must prove you knowingly sold or possessed counterfeit goods.
- No Intent to Defraud: If you did not intend to deceive consumers or believed the goods were genuine, this may serve as a defense.
- Mistaken Identity: If you were falsely accused or your role in the counterfeit operation was exaggerated, mistaken identity may be a viable defense.
- False Accusation: You could argue that a competitor or disgruntled employee falsely accused you of involvement in the counterfeit operation.
- Unlawful Search and Seizure: If the counterfeit goods were obtained through a violation of your Fourth Amendment rights, such as an illegal search, the evidence may be suppressed.
- Lack of Possession: If the counterfeit goods were found in a location you had no control over, you could argue that you did not possess the items.
- Entrapment: If law enforcement coerced you into selling counterfeit goods, you could claim entrapment, meaning you were induced to commit a crime you otherwise wouldn’t have committed.
- No Substantial Evidence: The prosecution must provide substantial evidence to prove each element of the crime beyond a reasonable doubt. If the evidence is weak or insufficient, your defense may focus on this lack of proof.
Contact a Los Angeles Counterfeit Goods Defense Attorney
Facing charges for selling or manufacturing counterfeit goods in Los Angeles can have severe consequences, but an experienced defense attorney can help protect your rights. If you’ve been arrested or charged, contact our office immediately to learn more about your legal options. We have decades of experience defending clients against counterfeit goods charges.
Call us today at (213) 481-6811 for a free consultation and to discuss your defense strategy.