Alleged counterfeit goods seized by state

Friday, April 23, 2004 | 10:38 a.m.

CARSON CITY -- The state attorney general's office said Thursday it seized records and goods from four Hot Cats clothing stores -- three of them in Las Vegas -- suspected of selling counterfeit merchandise with name brands.

Deputy Attorney General Tracey Brierly said authorities found heat presses where counterfeit names were printed on such things as T-shirts, tank tops and sweatshirts.

"Selling counterfeit merchandise undermines a fundamental tenet of the marketplace: owners of intellectual and trademark property have the right to expect that sanctions will be taken if their property is stolen by imitators," Brierly said. The merchandise bore brand names such as Spitfire, Von Dutch, Jack Daniels, Playboy, Hustler, Fox Racing, and Roxy/Quicksilver.

Kenneth "Kip" Johnson, co-owner of the stores, refused to comment and referred inquiries to his lawyer Scott Freeman, who could not be reached for comment.

The three Southern Nevada stores are at the Galleria mall in Henderson and at the Fashion Show and Meadows malls in Las Vegas. The remaining store targeted by the seizure is in Reno.

Consumer Advocate Tim Hay obtained the search warrants after receiving complaints from some of the brand-owning companies about the alleged counterfeiting.

Hay said Hot Cats may have been engaged in deceptive trade practices. Brierly said some consumers may have bought the merchandise without knowing they were purchasing counterfeit goods. For instance, she said some people paid as much as $49.95 for a brand-name tank top.

He said a brand such as Spitfire puts its name on the shirt and also on the label. She said authorities discovered the name of Spitfire on a T-shirt but the shirt had a Hanes or another label on it. The attorney general's office took along experts to examine the merchandise that was seized. She said counterfeit activity "makes it more difficult for legitimate retailers to compete and, further, results in decreased legitimate sales."

Brierly said the owners -- Johnson and his brother Mark Johnson -- are suspected of committing counterfeiting, a felony defined as selling, displaying, advertising or having in their possession with the intent to sell goods with a false trademark valued in excess of $1,000 or more than 100 units.

Store computers were also seized, allowing investigators to examine the company records.

The attorney general's office is asking those who believe they have purchased counterfeit merchandise from these stores to call the Bureau of Consumer Protection in Las Vegas at (702) 486-3194 or in Reno at (775) 688-1818.