Last Updated on: 19th October 2023, 08:02 pm

New York Counterfeiting Charges

With the increase of purchases through the internet, trademark counterfeit goods are estimated to account for 3.3% of all global commerce. For many people, visiting New York has been synonymous with getting a counterfeit bag from Canal Street in Chinatown. Although it is not a crime to purchase counterfeit goods, it is a crime to manufacture, sell or re-sell goods that bear counterfeit trademarks. New York has three different Trademark Counterfeit charges. Specifically, these charges are:

• New York Trademark Counterfeiting in the First Degree
• New York Trademark Counterfeiting in the Second Degree
• New York Trademark Counterfeiting in the Third Degree

The difference in these New York Counterfeiting charges is explained below.

New York Trademark Counterfeiting in the Third Degree

The least serious of the New York Trademark Counterfeiting charges is New York Trademark Counterfeiting in the Third Degree. Under New York Penal Law Section 165.71^[1], a person is guilty of Trademark Counterfeiting in the Third Degree when:

• With intent to deceive or defraud some other person, OR
• With intent to evade lawful restriction on sale, resale, offering for sale or distribution of goods,
• S/he manufactures, sells or offers for sale goods which bear a counterfeit trademark, OR
• Possesses a trademark knowing it to be counterfeit to attach it to any goods.

Penalties and Sentencing for New York Trademark Counterfeiting in the Third Degree

This New York Counterfeiting charge is a Class “A” Misdemeanor. As such, it is punishable by up to 1 year in prison. Importantly, the following sentences are possible for Trademark Counterfeiting in the Third Degree:

• Conditional Discharge
• Unconditional Discharge
• Time Served (even if only the time spent in was for arrest processing)
• Probation (up to 3 years)

New York Trademark Counterfeiting in the Second Degree

Under New York Penal Law Section 165.72^[2], a person is guilty of Counterfeiting in the Second Degree when:

• S/he commits Trademark Counterfeiting in the Third Degree (Penal Law 165.71), AND
• The retail value of all such goods bearing counterfeit trademarks exceeds $1,000.

Penalties and Sentencing for Trademark Counterfeiting in the Second Degree

Trademark Counterfeiting in the Second Degree is a Class “E” Non-violent Felony. As such, this New York Trademark Counterfeiting charge is punishable by up to 1 1/3 to 4 years in prison. However, the following are potential sentences for this charge:

• Probation (3, 4, or 5 years);
• Conditional Discharge;
• Unconditional Discharge;
• Incarceration (Determinate sentence of 1 year or less).

New York Trademark Counterfeiting in the First Degree

New York Trademark Counterfeiting in the First Degree is the most serious of New York Counterfeiting charges. The elements of this charge are:

• S/he commits Trademark Counterfeiting in the Third Degree (Penal Law 165.71), AND
• The retail value of all such goods bearing counterfeit trademarks exceeds $100,000.

Penalties and Sentencing for New York in the First Degree

New York Trademark Counterfeiting in the First Degree is a Class “C” Non-Violent Felony. This charge is punishable by up to 5 to 15 years in prison. However, these are also possible sentences:

• Determinate sentence of 1 – 2 years
• Probation (3, 4, 5 years)

Conclusion

New York has strict laws against the manufacture, distribution and sale of counterfeit goods. There are three degrees of trademark counterfeiting charges, with penalties ranging from 1 year to 15 years in prison. Police have broad authority to seize counterfeit merchandise. However, experienced criminal defense counsel can raise viable defenses and negotiate reduced charges in many cases. With billions of dollars of counterfeit goods still flooding New York markets, these issues will continue to make headlines.