In an era where counterfeiting and piracy are skyrocketing, businesses are grappling with the challenge of protecting their brands. In 2022, the global value of these illicit activities was a staggering $28 trillion. Every year, counterfeiters are becoming more innovative, constantly finding ways to evade anti-counterfeit and anti-piracy measures. For many businesses, the legal route offers a reliable solution. In the United States, pursuing counterfeiters often involves civil litigation. This process can not only provide relief, but it can also act as a deterrent against future counterfeiting. Understanding civil litigation and how it can be leveraged is crucial for businesses aiming to safeguard their brands. To discuss this subject in more detail alongside a qualified Chicago intellectual property lawyer, call (929)724-7529 today to book a consultation with Sullivan & Carter, LLP.

What Is the United States Law Against Counterfeit Goods?

Under United States law, counterfeiting is considered a severe crime. It's strictly penalized under both criminal and civil law. Courts are empowered to seize counterfeit goods, order monetary damages, and in some instances, even imprison violators.

Lanham Act

At the heart of the battle against counterfeiting, the primary regulatory force is the Lanham Act. This act provides brand owners the right to seek damages from individuals or entities that have infringed upon their trademarks intentionally. Under the Lanham Act, one can file a civil lawsuit against counterfeiters. In civil litigation, brand owners have the opportunity to recover actual damages, profits made by the violator, and attorneys' fees. They can also request the court to issue an injunction, preventing future counterfeiting and sale of counterfeit goods. It gives power to law-exemplifying entities to seize counterfeit products as evidence, which in effect, hampers the counterfeiter's income.

Tariff Act of 1930

In addition, the United States also follows strict import regulations through the Tariff Act of 1930. This act, enforced by the U.S. Customs and Border Protection (CBP), makes importing counterfeit products into the US illegal. It empowers the CBP to detain, seize, and destroy items identified as counterfeit.

Stop Counterfeiting in Manufactured Goods Act

Moreover, the Stop Counterfeiting in Manufactured Goods Act, another vital piece of legislation, further provides protection against counterfeiters. This law makes it illegal to knowingly use a counterfeit mark on or in relation to goods, and further prohibits trafficking counterfeit labels, patches, stickers, wrappers, badges, emblems, or similar items.

Common Challenges in Counterfeit Lawsuits

As with any legal proceeding, civil litigation for counterfeiting comes with its fair share of obstacles. While the United States law poses heavy punishments for counterfeiting, taking advantage of the legal frameworks can be rather taxing. The challenges, sadly, often overshadow the potential benefits of a court case. Evidence collection stands as a significant hurdle in counterfeit lawsuits. A successful counterfeiting case hinges on the quality and quantity of evidence presented. Collecting concrete proofs of counterfeiting can often become a daunting task as counterfeiters are adept at concealing their activities.

In many cases, businesses also grapple with the anonymity of counterfeiters. The surge in online counterfeiting activities has given rogue traders the cloak of invisibility. E-commerce platforms and online marketplaces offer pseudonyms and fake credentials, making it difficult to identify and pin down the culprits. Furthermore, the question of jurisdiction often complicates lawsuits. With counterfeiting a global problem, identifying the appropriate court to hear the case can prove to be tricky. The rules governing jurisdiction can vary from one nation to another, or even one state to another, causing additional stresses for businesses. International considerations further complicate these cases, as different countries may have varied definitions and penalties for counterfeiting, hampering efforts to standardize enforcement.

Civil Enforcement

Addressing counterfeiting through civil enforcement involves alternative approaches beyond just punitive measures. It includes both proactive defense strategies and reactive methods designed to staunch the flood of forged goods.

In tandem with these acts previously mentioned, the U.S. Customs and Border Protection (CBP) undertakes a critical role. If the CBP identifies goods as counterfeit, those goods are seized and forfeited. A civil monetary penalty against the importer might follow suit. Alongside this, the CBP executes exclusion orders dispensed by the U.S. International Trade Commission (ITC). The ITC is a quasi-judicial federal body, forming part of the government's bulwark against the illegal import of counterfeit merchandise.

Why You Should Consider Contacting an Attorney to Navigate Civil Litigation Related to Counterfeiting

Hiring an attorney for civil litigation related to counterfeiting can be an important consideration for several reasons:

• Legal Expertise: Attorneys specializing in intellectual property (IP) law and civil litigation have the knowledge and expertise to navigate the complexities of counterfeiting cases. They understand the relevant laws, regulations, and legal procedures and can provide valuable guidance throughout the litigation process.
• Evidence Collection and Investigation: Attorneys can assist in gathering evidence to support your case, including identifying counterfeit products, documenting infringement, and conducting investigations to uncover the source of counterfeit goods. They can work with investigators, expert witnesses, and other professionals to strengthen your case.
• Strategic Planning: Attorneys can develop a strategic litigation plan tailored to your specific goals and circumstances. They can assess the strengths and weaknesses of your case, identify legal theories and arguments, and develop a plan to achieve a favorable outcome, whether through negotiation, mediation, or litigation in court.
• Protection of Intellectual Property Rights: Attorneys can help protect your intellectual property rights by enforcing your trademarks, copyrights, and other IP assets against counterfeiters. They can advise on the best legal strategies to stop infringing activities, prevent further harm to your brand, and recover damages for any losses suffered.
• Legal Representation in Court: If litigation becomes necessary, attorneys can provide representation in court proceedings. They can draft legal documents, file motions, argue before the court, and advocate for your interests at every stage of the litigation process, from pre-trial hearings to trial and appeal if necessary.
• Cost-Effective Resolution: While litigation can be costly, attorneys can help you pursue cost-effective strategies to resolve counterfeiting disputes. This may include exploring alternative dispute resolution methods such as mediation or arbitration, negotiating settlements, or pursuing litigation funding options to finance your case.

Overall, hiring an attorney for civil litigation related to counterfeiting can provide invaluable support and expertise to protect your intellectual property rights, pursue legal remedies, and achieve a successful resolution of your case.

Speak with a Qualified Intellectual Property Lawyer in Chicago

Navigating civil litigation for counterfeiting may be easier after joining forces with a qualified intellectual property lawyer in Chicago. Call (929) 724-7529 to discuss this subject further alongside Sullivan & Carter, LLP.