The Counterfeit Merchandise Issue

Counterfeit merchandising is the act of making or selling goods that look like name brand goods or services or have a fake trademark. Selling counterfeit merchandise is illegal but what happens to you if you’re caught is the question. Does it affect your business? What issues would your customer service department have to deal with? Would you go to jail? Here are some answers to these questions.

Selling Counterfeit Merchandise

Selling counterfeit merchandise is a bad idea. The money is there, but it isn’t worth your reputation or the loss of your business in legal proceedings. You can be caught because of an online transaction which attracts the attention of law enforcement or because a disgruntled customer doesn’t like how your customer service handled their complaint about; for instance, a purse that fell apart and decides to report you.

You wouldn’t even be able to predict the availability of what you’re selling because what you’re obtaining is through illegal connections. Also if you are found out by the owner of the trademark you’re selling copies of, then you can lose all your business investments and assets. If your personal property is tied in with your business, you can lose that property also, not to mention possible jail time. There will be lawsuits involved since the offer to sell counterfeit merchandise can trigger liability to you because now you are involved in counterfeiting. You don’t have to make the merchandise to be charged as just selling it is enough.

What’s the Difference between Knockoffs and Counterfeit?

There is a difference between knockoff merchandise and counterfeit merchandise, but it’s slight. Knockoffs can imitate a product that’s established but it doesn’t quite infringe on it’s trademark. Some companies manufacture merchandise that resembles a famous maker’s patterns. This isn’t the real bag but it can be mistaken for something else and this can be classified as copyright infringement. You could be liable for contributory infringement if you would sell this merchandise.

Counterfeiting, on the other hand, is a form of trademark infringement. The merchandise is deliberately made to look like what the counterfeiter is copying in everything but value.  For example, Rolex watches that look like a Rolexes and are sold as Rolexes but are fakes. It’s made to confuse or dupe the customer into thinking they are buying the real thing.

What Harm Can It Do?

Counterfeit merchandise and knockoffs do harm. When business owners purchase the merchandise they are aiding and abetting organized crime. It also drives up the price of the original merchandise for legitimate customers as legitimate businesses raise prices to make up for losses in sales. Also, since the merchandise is a lower quality then the original, they fall apart, rip or the color fades. This then becomes a problem for your customer service department because then they have to deal with returns and unhappy customers. Also, when you purchase counterfeit or knockoff merchandise, you are supporting illegal, non-tax paying criminal activity.

Buying counterfeit or knockoff merchandise isn’t worth losing your business or reputation to earn a few more dollars for profit. By making the right decision, you won’t lose your business in a lawsuit and your customers will know what they are buying is worth spending their hard earned money on.

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