Bill S7541-2013

Relates to trademark counterfeiting

Relates to trademark counterfeiting.

Details

Actions

  • Jun 11, 2014: referred to codes
  • Jun 11, 2014: DELIVERED TO ASSEMBLY
  • Jun 11, 2014: PASSED SENATE
  • Jun 11, 2014: ORDERED TO THIRD READING CAL.1304
  • Jun 11, 2014: COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • May 15, 2014: REFERRED TO CODES

Votes

Memo

BILL NUMBER:S7541

TITLE OF BILL: An act to amend the penal law, in relation to trademark counterfeiting

PURPOSE OR GENERAL IDEA OF BILL: Establishes a new crime of trademark counterfeiting in the fourth degree, and amends the definition and penalty structure for the existing three degrees of trademark counterfeiting. The bill's main aim is to impose a harsher penalty for those who commit trademark counterfeiting in a value in excess of ten thousand dollars.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1 amends section 165.71 of the penal law to change trademark counterfeiting in the third degree to trademark counterfeiting in the fourth degree, and establishes that trademark counterfeiting in the fourth degree shall be a class A misdemeanor.

Section 2 amends section 165.72 of the penal law to change trademark counterfeiting in the second degree to trademark counterfeiting in the third degree. It provides that a person is guilty of trademark counterfeiting in the third degree if the retail value of all counterfeit goods manufactured, distributed, sold, or offered for sale by this person exceeds one thousand dollars or the total number of all counterfeit goods exceeds two hundred. It also establishes that trademark counterfeiting in the third degree shall be a class E felony.

Section 3 amends section 165.73 of the penal law to change trademark counterfeiting in the first degree to trademark counterfeiting in the second degree. It provides that a person is guilty of trademark counterfeiting in the third degree if the retail value of all counterfeit goods manufactured, distributed, sold, or offered for sale by this person exceeds twenty-five thousand dollars or if the total number of all counterfeit goods exceeds two thousand. It also establishes that trademark counterfeiting in the second degree shall be a class D felony.

Section 4 renumbers section 165.74 to 165.75, and adds a new section 165.74 which establishes a new definition of trademark counterfeiting in the first degree. It establishes that a person is guilty of trademark counterfeiting in the first degree if the retail value of all counterfeit goods manufactured, distributed, sold, or offered for sale by this person exceeds one hundred thousand dollars or the total number of all counterfeit goods exceeds ten thousand. It also establishes that trademark counterfeiting in the first degree shall be a class C felony.

Section 5 provides that the act shall take effect on the first of November next succeeding the date on which it shall have become law.

JUSTIFICATION: Trademark counterfeiting is a serious issue both in New York State and around the globe, especially when conducted on a large scale. According to a report released by the New York State White Collar Crime Task Force, "Trademark counterfeit goods may account for as much as seven percent of all world trade, or up to $650

billion in sales per year. New York City estimates that it loses more than $1 billion per year in revenue based upon the sale of counterfeit goods". The White Collar Crime Task Force report also notes that the sale of goods bearing counterfeit trademarks is a known revenue stream for many terrorist organizations, due to the fact that profit margins are higher and risks are lower than trafficking narcotics. This loss of revenue to New York state businesses and potential public safety hazard is extremely concerning, and reveals an area of law enforcement in dire need of legislative reform.

This legislation serves to rework the penalty structure for trademark counterfeiting in order to provide penalties which are more commensurate with the severity of the offense. In particular, it would make a trademark counterfeiting operation which has a total retail value exceeding one hundred thousand dollars or which produces a total number of goods exceeding ten thousand a class C felony.

PRIOR LEGISLATIVE HISTORY: New Legislation

FISCAL IMPLICATIONS: None to the state.

EFFECTIVE DATE: This act shall take effect on the first of November next succeeding the date on which it shall have become law.


Text

STATE OF NEW YORK ________________________________________________________________________ 7541 IN SENATE May 15, 2014 ___________
Introduced by Sen. HOYLMAN -- read twice and ordered printed, and when printed to be committed to the Committee on Codes AN ACT to amend the penal law, in relation to trademark counterfeiting THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 165.71 of the penal law, as amended by chapter 490 of the laws of 1992, is amended to read as follows: S 165.71 Trademark counterfeiting in the [third] FOURTH degree. A person is guilty of trademark counterfeiting in the [third] FOURTH degree when, with the intent to deceive or defraud some other person or with the intent to evade a lawful restriction on the sale, resale, offering for sale, or distribution of goods, he or she manufactures, distributes, sells, or offers for sale goods which bear a counterfeit trademark, or possesses a trademark knowing it to be counterfeit for the purpose of affixing it to any goods. Trademark counterfeiting in the [third] FOURTH degree is a class A misdemeanor. S 2. Section 165.72 of the penal law, as amended by chapter 535 of the laws of 1995, is amended to read as follows: S 165.72 Trademark counterfeiting in the [second] THIRD degree. A person is guilty of trademark counterfeiting in the [second] THIRD degree when, with the intent to deceive or defraud some other person or with the intent to evade a lawful restriction on the sale, resale, offering for sale, or distribution of goods, he or she manufactures, distributes, sells, or offers for sale goods which bear a counterfeit trademark, or possesses a trademark knowing it to be counterfeit for the purpose of affixing it to any goods, and the retail value of all such goods bearing OR INTENDED TO BEAR counterfeit trademarks exceeds one thousand dollars OR THE TOTAL NUMBERS OF ALL SUCH GOODS BEARING COUNTER- FEIT TRADEMARKS EXCEEDS TWO HUNDRED. Trademark counterfeiting in the [second] THIRD degree is a class E felony. S 3. Section 165.73 of the penal law, as amended by chapter 535 of the laws of 1995, is amended to read as follows:
S 165.73 Trademark counterfeiting in the [first] SECOND degree. A person is guilty of trademark counterfeiting in the [first] SECOND degree when, with the intent to deceive or defraud some other person, or with the intent to evade a lawful restriction on the sale, resale, offering for sale, or distribution of goods, he or she manufactures, distributes, sells, or offers for sale goods which bear a counterfeit trademark, or possesses a trademark knowing it to be counterfeit for the purpose of affixing it to any goods, and the retail value of all such goods bearing OR INTENDED TO BEAR counterfeit trademarks exceeds [one hundred thousand dollars] TWENTY-FIVE THOUSAND DOLLARS OR THE TOTAL NUMBERS OF ALL SUCH GOODS BEARING COUNTERFEIT TRADEMARKS EXCEEDS TWO THOUSAND. Trademark counterfeiting in the [first] SECOND degree is a class [C] D felony. S 4. Section 165.74 of the penal law is renumbered section 165.75 and a new section 165.74 is added to read as follows: S 165.74 TRADEMARK COUNTERFEITING IN THE FIRST DEGREE. A PERSON IS GUILTY OF TRADEMARK COUNTERFEITING IN THE FIRST DEGREE WHEN, WITH THE INTENT TO DECEIVE OR DEFRAUD SOME OTHER PERSON, OR WITH THE INTENT TO EVADE A LAWFUL RESTRICTION ON THE SALE, RESALE, OFFERING FOR SALE, OR DISTRIBUTION OF GOODS, HE OR SHE MANUFACTURES, DISTRIBUTES, SELLS, OR OFFERS FOR SALE GOODS WHICH BEAR A COUNTERFEIT TRADEMARK, OR POSSESSES A TRADEMARK KNOWING IT TO BE COUNTERFEIT FOR THE PURPOSE OF AFFIXING IT TO ANY GOODS, AND THE RETAIL VALUE OF ALL SUCH GOODS BEARING OR INTENDED TO BEAR COUNTERFEIT TRADEMARKS EXCEEDS ONE HUNDRED THOUSAND DOLLARS OR THE TOTAL NUMBERS OF ALL SUCH GOODS BEARING COUNTERFEIT TRADEMARKS EXCEEDS TEN THOUSAND. TRADEMARK COUNTERFEITING IN THE FIRST DEGREE IS A CLASS C FELONY. S 5. This act shall take effect on the first of November next succeed- ing the date on which it shall have become a law.

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