What You Need to Know About Counterfeit Merchandise Charges

February 7, 2025 | Ahmed & Sukaram, Criminal Defense Attorneys

Counterfeit merchandise charges are serious criminal offenses. You could be charged with a misdemeanor or a felony, depending on the circumstances of your case. In this piece, a San Jose criminal defense lawyer discusses these charges in this blog and what you must do to protect your rights if you are arrested on counterfeit merchandise charges.

California Law Makes It Illegal to Counterfeit Merchandise

A counterfeit is a fraudulent copy of valuable items, including merchandise. California Penal Code §350 makes manufacturing, possessing for sale, or selling a counterfeit mark illegal. A counterfeit mark is a brand or trademark that is the same or confusingly similar to a mark that is registered with the United States Patent and Trademark Office or the California Secretary of State.

Examples of common counterfeit products include, but are not limited to:

Personal care items
Perfumes
Consumer electronics
Pharmaceuticals and nutritional supplements
Clothing, shoes, and handbags
Automotive parts
Jewelry and watches
Cosmetics
Artwork and collectibles
Baby products
Designer products, including popular brands such as Disney, Gucci, Tiffany & Co., Hermès, Rolex, Ray-Ban, Otterbox, etc.
Cosmetics

Counterfeit merchandise can be dangerous. These items are often produced with toxic materials or defects that can cause serious injuries or death. They are a threat to public safety and health.

It is important to note that you are not breaking the counterfeit merchandise law if you possess counterfeit merchandise. You must knowingly possess counterfeit products with the intent to sell them to be charged with counterfeit merchandise.

What Are the Penalties for a Conviction of Counterfeit Merchandise Charges in California?

The penalties for charges of counterfeit merchandise depend on several factors.

A counterfeit merchandise charge is a misdemeanor if there are less than 1,000 units and the value of the goods involved is less than $950. The penalty for misdemeanor counterfeit merchandise charges is up to one year in county jail, a maximum fine of $10,000 for individuals ($200,000 for businesses), and probation.

However, if the charges involve more than 1,000 units or the value of goods is over $950, the offense is a wobbler. You can be charged with a misdemeanor or a felony. The penalty for a felony conviction of counterfeit merchandise charges is up to three years in state prison, a maximum fine of $500,000 for individuals ($1 million for businesses), and felony probation.

Defendants who have a prior conviction for counterfeit merchandise offenses face enhanced penalties. Additionally, related criminal charges could result in additional penalties, such as forgery and theft.

Are There Defenses to Counterfeit Merchandise Charges in San Jose, CA?

A criminal defense lawyer investigates the circumstances that led to your counterfeit merchandise charges. They examine the evidence to determine potential defenses to the charges. Defenses to counterfeit merchandise charges include:

You did not intend to sell the counterfeit products: You may have purchased a fake product because you wanted the product but could not afford an original. Therefore, you never intended to sell the counterfeit merchandise. Mere possession without an intent to sell does not break this law.
Mistake of fact: Your attorney may argue that you did not know the goods you were selling were counterfeit. You legitimately thought that you were in possession of original items when they were fake.
Violation of your rights: Procedural misconduct can be used as a defense to counterfeit merchandise offenses. For example, police officers found counterfeit merchandise during an unlawful search or seizure. This scenario may occur when officers enter a store or home without a valid search warrant or conduct a search outside the parameters of the search warrant. The evidence recovered in an illegal search and seizure can be inadmissible in court.
False accusations: A competitor or other party may falsely accuse you of selling or manufacturing counterfeit merchandise. You would need to show that the items in your possession are authentic or do not have a registered mark as required by the statute.
Lack of possession: You must have possession of counterfeit merchandise with the intent to sell to be convicted of this crime. Your attorney may argue that you were unaware the items were at your business or home. Even though the items were found at your location, you had no control over them, so you did not have actual or constructive possession.

A skilled criminal defense lawyer can assess the details of your situation, challenge the prosecution’s evidence, and develop a strong defense strategy to protect your rights and seek the best possible outcome.

Get Help With Criminal Charges in California

At Ahmed & Sukaram, Criminal Defense Attorneys, our San Jose criminal defense lawyers help accused individuals fight criminal charges. We stand up for your rights and protect your interests during every phase of your criminal case. Call our office today to schedule a free consultation with one of our attorneys.

Contact our Criminal Defense Law Firm of Ahmed & Sukaram, Criminal Defense Attorneys Today For Help

For more information please contact our criminal defense law firm of Ahmed & Sukaram, Criminal Defense Attorneys at the nearest location for a free consultation.

Ahmed & Sukaram, Criminal Defense Attorneys – San Jose Office
1625 The Alameda, Suite 405, San Jose, CA 95126
(408) 217-8818

Ahmed & Sukaram, Criminal Defense Attorneys – Redwood City Office
600 Allerton St Suite 201G, Redwood City, CA 94063
(650) 299-0500