Senate panel goes after counterfeiters, trademark thieves

Friday, April 30, 1999 | 12:25 p.m.

The Senate Judiciary Committee is considering AB616, which would upgrade sales of counterfeit merchandise from a misdemeanor to a felony in some cases.

Joe Guild, a lobbyist for the International Anti-Counterfeiting Coalition, says the change is needed because the misdemeanor status of the crime makes prosecutors reluctant to pursue counterfeiting cases. Misdemeanor convictions carry maximum penalties of six months in jail and a $1,000 fine.

Under AB616, illegal sales of trademarked or counterfeit items would become a felony, which warrants prison time if the violator had been previously convicted of it or the goods numbered more than 100 or had a value of more than $1,000.

It also defines "intent to sell" as possession of 26 or more of the salable items.

"We don't want to get to the situation where a person becomes a felon for having three knockoff tapes of the film 'Titanic,"' said Guild. "I think the point is if somebody has 26 of these, their intention is not to take them home and use them for their own purposes. Their intent is to clearly have a number of items to sell.

"It's not T-shirts any more," he added, reading off a list of counterfeit items sold in Nevada that included Power Ranger toys, sunglasses, computer software and watches.

Lawmakers acknowledged there are problems but worried the legislation might turn innocent people into suspects.

Judiciary Chairman Mark James, R-Las Vegas, said bulk purchases of household goods might number more than 26 units. He also asked how it would impact buyers who unknowingly acquire bogus goods.