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TheFashionPolice:Criminalizingthe KnowingPurchaseofTrademark CounterfeitFashionItems

ERINFITZGERALD* ABSTRACT Sex and the City, Gossip Girl, and Keeping Up with the Kardashians bringhighfashionluxurybrandsintohomesonanightlybasis.Thedesire to obtain these celebrity styles is a driving force behind the success of trademarkcounterfeitfashionsellers.Aconsumercanbuyacounterfeitof ahandbagsherecentlysawonaredcarpetfor$30onastreetcorner,while thegenuineproductcosts$1,200.Butatwhatcosttosocietyareconsumers willingtomakethesepurchases? Itisacommonmisconceptionthatthepurchaseofcounterfeitfashion items is a harmless act of bargain shopping. In actuality, counterfeit purchasescostU.S.companies$250billionannually,$12billionofwhichis specificallylostinthefashionindustry.Itisalsoestimatedthat750,000U.S. jobs have been lost to counterfeiters. Even more threatening, these purchases fund organized crime operations such as prostitution, drug trafficking,andterrorism.Forinstance,theFBIhasconfirmedthatthe1993 bombingoftheWorldTradeCenterwasfundedbycounterfeitpurchases madeonBroadwayAvenueinNewYorkCity.Finally,buyingcounterfeit items supports child labor and ignores the health risks the goods pose to consumers. For example, in order to cut costs, counterfeiters often use ingredients such as antifreeze, bacteria, and even urine to produce counterfeitluxuryperfumes. While it is illegal in the United States to manufacture and sell trademark counterfeit items, it is not illegal to purchase them. Under the TrademarkCounterfeitingAct,acounterfeitercanreceiveafineofupto$2
* Candidate for Juris Doctor, New England Law | Boston (2013). B.A., Psychology and Criminal Justice, Stonehill College (2003). I would like to thank my colleagues on the New England Law Review for their suggestions, editing, and support throughout the publication process.

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million or imprisonment of up to ten years, or both if found guilty of intentionally dealing in goods bearing counterfeit trademarks. However, despite these tough criminal penalties, the counterfeiting industry continuestogrow.Itistimetoholdpurchasersofcounterfeitfashionitems accountablefortheirroleinthiscrime. Based on the existing crime of receiving stolen property, this Note proposes a uniform law stating: No person shall purchase a fashion item bearing a counterfeit trademark when such person knows or reasonably shouldhaveknownsuchtrademarkiscounterfeit.TheNotealsoexplores criminal penalties for the new crime and law enforcement strategies. Finally, the Note considers possible criticisms of the proposed law and whytheneedforthelawoutweighsthesecriticisms.

INTRODUCTION
ex and the City, Gossip Girl, and Keeping Up with the Kardashians bringhighfashionluxurybrandsintohomesonanightlybasis.1The desire to obtain these celebrity styles is a driving force behind the success of trademark counterfeit fashion sellers.2 A consumer can buy a counterfeitofahandbagsherecentlysawonaredcarpetfor$30onastreet corner,whilethegenuineproductcosts$1,200.3Butatwhatcosttosociety areconsumerswillingtomakethesepurchases? Itisacommonmisconceptionthatthepurchaseofcounterfeitfashion items is a harmless act of bargain shopping.4 In actuality, counterfeit purchasescostU.S.companies$250billionannually,$12billionofwhichis specifically lost in the fashion industry.5 It is also estimated that 750,000 U.S. jobs have been lost to counterfeiters.6 Even more threatening, these purchases fund organized crime operations such as prostitution, drug
1 See, e.g., The Best of Sex and the City Fashion, NBC S. http://www.nbclosangeles.com/thescene/fashion/THREADSexandtheCityFashion 94829819.html(lastvisitedMay29,2012). 2

CAL.,

See Keith Wilcox et al., Why Do Consumers Buy Counterfeit Luxury Brands?, 66 J. OF MARKETING RES. 247,249(2009).(notingthatpeoplemaybuyhighfashionitemsbecausethey arestatussymbols).
3 Guillermo Contreras, Bogus Goods to Cost Flea Market $3.6 Million: Jury Decides Against Eisenhauer Emporium, MY SAN ANTONIO (Jan. 12, 2012, 11:49 PM), http://www.mysanantonio .com/news/local_news/article/Bogusgoodstocostfleamarket36million2492681.php.

Aubrey Fox, The High Price of Counterfeit Goods, GOTHAM GAZETTE (Mar. 2008), http://www.gothamgazette.com/article/crime/20080331/4/2476.
5 6

Wilcox,supranote2,at247.

About Counterfeiting, INTL ANTICOUNTERFEITING COALITION, http://www.iacc.org/about counterfeiting/(lastvisitedNov.28,2012).

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trafficking, and terrorism.7 For instance, the FBI has confirmed that the 1993 bombing of the World Trade Center was funded by counterfeit purchasesmadeonBroadwayAvenueinNewYorkCity.8Finally,buying counterfeitfashionitemssupportschildlaborandignoresthehealthrisks the goods pose to consumers.9 For example, in order to cut costs, counterfeiters often use ingredients such as antifreeze, bacteria, and even urinetoproducecounterfeitluxuryperfumes.10 While it is illegal in the United States to manufacture and sell trademarkcounterfeititems,itisnotillegaltopurchasethem.11Underthe TrademarkCounterfeitingAct,acounterfeiterwhointentionallytrafficsor attempts to traffic in goods with a counterfeit mark or knowingly uses a counterfeitmarkongoodsissubjecttoacriminalpenalty.12Counterfeiters can be fined up to $2 million or imprisoned up to ten years, or both.13 Despite these tough criminal penalties, the counterfeiting industry continues to grow.14 It is time to hold purchasers of counterfeit fashion itemsaccountablefortheirroleinthiscrime.15 This Note proposes a uniform law16 for the criminalization of the knowing purchase of trademark counterfeit fashion items.17 The paper
7 8

Fox,supranote4.

FactsonFakes,THE INTL ANTICOUNTERFEITING COALITION 6,http://www.fnal.gov/direct orate/OQBP/sci/sci_reference_docs/SCI%20Facts_on_fakes.pdf(lastvisitedNov.28,2012).

9

Fox,supranote4.

ElisabethLeamy&VanessaWeber,FakeFragrances:WhatIsReallyinThem?,ABC GOOD MORNING AM. (Jan. 27, 2010), http://abcnews.go.com/GMA/ConsumerNews/ counterfeit perfumes/story?id=9670448.
11 ANNE GILSON LALONDE, ANTICOUNTERFEITING IN THE TWENTYFIRST CENTURY 3233 (2006). 12 13 14

10

18U.S.C.2320(a)(1)(2008). Id.

Facts on Fakes, supra note 8, at 3 (noting that in 1982 counterfeiting cost the global economy $5.5 billion and by 1996 the number increased to $200 billion); Miriam Bitton, Rethinking the Anticounterfeiting Trade Agreements Criminal Copyright Enforcement Measures, 102 J. CRIM. L & CRIMINOLOGY 67, 68 (2010), available at http://www.law.northwestern.edu/ jclc/backissues/v102/n1/1021_67.Bitton.pdf(showingthattodaycounterfeitingcoststheglobal economy$600billionannually). Phillip A. Rosenberg, A Legislative Response to Tiffany v. eBay: In Search of an Online Commerce Certification Act (OCCA), 36 RUTGERS COMPUTER & TECH. L.J. 99, 116 (2009) (concluding that government would be well advised to consider criminal penalties for consumerswhoknowinglybuycounterfeitproducts).
16 Uniform laws provide states with nonpartisan, wellconceived, and welldrafted legislation that brings clarity and stability to critical areas of state statutory law. About the ULC,UNIFORMLAWCOMMISSION,http://uniformlaws.org/Narrative.aspx?title=AbouttheULC (lastvisitedNov.28,2012). 17 15

SeeinfraPartV.

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focuses on counterfeit fashion items because unlike other counterfeited goods such as food and pharmaceuticals, which are given more statutory protection, fashion trademark owners have no additional special protection.18 Part I of this Note provides an overview of trademark law. Part II discusses the rise of trademark counterfeiting in the fashion industry. Part III explores current anticounterfeiting enforcement, including border patrol, trade organizations, and local law enforcement. Part IV highlights the harms that the purchase and sale of counterfeit goods has on society. Part V of this Note proposes a uniform law for the criminalization of the knowing purchase of trademark counterfeit fashion items. Finally, Part VI of this Note discusses possible criticisms of the proposedlaw. I. OverviewofTrademarkLaw

Thepracticeofbrandingproductswithadistinctivemarktracesback over 4,000 years.19 During the Middle Ages, European blacksmiths were required to imprint unique symbols on their metal work to identify themselfasthemaker.20Whiletrademarkscanbetracedbacktoantiquity, theroadtotheirgoverninglawshasbeenlongandwindy.21 Congressenactedthefirstfederaltrademarkstatutein1870inresponse to industrial growth after the Civil War.22 The statute provided for the registrationoftrademarksandcivilremediesagainstthosewhoinfringed them.23Thisallowedmanufacturerstoestablishindividualidentitywithin their trade markets.24 The statute was amended in 1876 to add criminal penalties to the already existing civil remedies for trademark infringement.25 However, only a few years later, the U.S. Supreme Court ruled that the statute was unconstitutional becausethe Commerce Clause
18 Lisa Lyne Cunningham, Trademark Counterfeiting and Individual Purchaser Liability, THE NATIONAL LAW REVIEW 1 (Nov. 11, 2011), http://www.natlawreview.com/article/trade mark counterfeitingandindividualpurchaserliability(followDownloadPDFhyperlink). 19 DavidD.Mouery,Trademark LawandtheBottomLineCokeisit!,2BARRY L. REV.107, 111(2001). 20 PAUL R. PARADISE, TRADEMARK COUNTERFEITING, PRODUCT PIRACY, AND THE BILLION DOLLARTHREATTOTHEU.S.ECONOMY14(1999). 21 SeeCRAIGJOYCEETAL.,COPYRIGHTLAW9(8thed.2010)(explainingthattrademarklaw hascomealongwayfromitsbeginnings).

A Brief History of Trademark Law in the USA, AMERILAWYER.COM, http://www. amerilawyer.com/pdf/404.pdf(lastvisitedNov.28,2012)[hereinafterAMERILAWYER].

23 24 25

22

InreTradeMarkCases,100U.S.82,85(1879). SeeAMERILAWYER,supranote22.

ZviS.Rosen,InSearchoftheTradeMarkCases:TheNascentTreatyPowerandtheTurbulent OriginsofFederalTrademarkLaw,83ST.JOHNSL.REV.827,84243(2009).

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didnotgrantCongressthepowertoregulatetrademarks.26 A. TheTrademarkActof1946 It was not until 1946 that Congress reasserted its authority to govern trademarks.27 The Trademark Act of 1946, known as the Lanham Act, formedthefoundationofcurrentfederaltrademarkprotection.28Underthe Lanham Act a trademark is defined as any word, name, symbol, or device...usedbyaperson...toidentifyanddistinguish[their]goods... fromthosemanufacturedorsoldbyothersandtoindicatethesourceofthe goods....29SomeofthemostrecognizabletrademarkstodayaretheNike swoosh design, the CocaCola bottle shape, and the NBC chimes that identifythenetwork.30 While trademarks are used in every industry, they are considered a fashioncompanysmostvaluableasset.31Sincefashionpurchasesareoften motivated by an items label and reputation, fashion companies rely heavilyontheirtrademarkstohelpconsumersidentifyanddistinguishone brand from another.32 Trademarks in the fashion industry are found on shoes,dresses,shirts,jeans,hats,andeyewear.33Theyaresoprevalentthat consumers often do not realize they are looking at a legal entitythey
26 SeeInreTradeMarkCases,100U.S.at9798(strikingdownCongresssamended1876 trademark statute as outside of the authority given to Congress in the Commerce Clause); Edward Grosek, The Multilateral Agreements that Protect Trademarks and Marks that Indicate OriginsofSource,82J. PAT. & TRADEMARK OFF. SOCY471,473(2000)(notingthattheSupreme Courtinvalidatedthestatutein1879). 27 SeeElizabethL.WarrenMikes, DecemberMadness:TheSeventhCircuitsCreationofDual Use in Illinois High School Association v. GTE Vantage, 93 NW. U. L. REV. 1009, 1012 (1999) (notingCongresspassedtheLanhamActin1946whichgovernstrademarklaw).

DavidS.Welkowitz,TheSupremeCourtandTrademarkLawintheNewMillennium,30WM. MITCHELL L. REV.1659,1669(2004)(explaining thethatTrademarkActof1946wasthefirst federalizedtrademarklaw).

29 30

28

15U.S.C.1127(2006).

SIEGRUN D. KANE, TRADEMARK LAW: A PRACTITIONERS GUIDE 1:1:1, at 12 (4th ed. 2006).
31 RadianceWalters,INTARoundTable:TrademarkLawintheFashionandApparelIndustries, DLA PIPER (Feb. 8, 2011), http://www.remarksblog.com/copyright/intaroundtable trademarklawinthefashionandapparelindustries/.

FOR

See Barbara Kolsun & Heather J. McDonald, Counterfeiting, in FASHION LAW: A GUIDE DESIGNERS, FASHION EXECUTIVES, AND ATTORNEYS 105, 105 (Guillermo C. Jimenez & BarbaraKolsuneds.,2010).

32

33 See Sara R. Ellis, Copyrighting Couture: An Examination of Fashion Design Protection and WhytheDPPAandIDPPPAareaStepTowardstheSolutiontoCounterfeitChic,78TENN. L. REV. 163, 175 (2010) (providing that Chanels interlocking backtoback Cs and Louis Vuittons entwinedLVToileMonogramarewellknownfashiontrademarks).

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merelyconsidertrademarkspartofafashionitem.34 B. PurposesofTrademarkLaw Scholarsintheareaoftrademarklawhavetraditionallyviewedmarks as a source of identification and information for the protection of consumers.35Itiswidelyacceptedthattheprimarypurposeofatrademark istoprovideconsumerswiththeoriginofthegoodthecompanybased onthemarkusedontheproduct.36Associatinganoriginwithatrademark enablesconsumerstodistinguishbetweengoodsofdifferentcompaniesin the marketplace.37 Additionally, trademarks symbolize the quality of a product.38Whenaconsumerseesafamiliarmark,heorsheisabletoattach adegreeofnatureandqualitytotheproductthathasbeenestablishedin themarketplace.39 Whilethetraditionalfocusoftrademarklawiscenteredonprotecting consumersfromconfusionandunfamiliargoods,thereisacurrenttrend towards the propertization of trademarks.40 This trend is supported by recentcourtdecisionsthatfocusonatrademarksproprietaryvalue,rather than on its ability to convey product information to consumers.41 In Qualitex Co. v. Jacobson Prods. Co., the Supreme Courtunderstanding the value companies place upon their trademarksheld that a color is an acceptabletrademarkaslongasitactsasasourceidentifier.42Courtshave also allowed the enforcement of trademark protection outside of a manufacturers primary market.43 Courtsrecognized the possibility of
George Gottlieb et al., An Introduction to Intellectual Property Protection in Fashion, in FASHION LAW: A GUIDE FOR DESIGNERS, FASHION EXECUTIVES, AND ATTORNEYS 35, 39 (GuillermoC.Jimenez&BarbaraKolsuneds.,2010).
35 Rudolf Rayle, The Trend Towards Enhancing Trademark Owners RightsA Comparative StudyofU.S.andGermanTrademarkLaw,7J.INTELL.PROP.L.227,227(2000). 36 HanoverStarMillingCo.v.Metcalf,240U.S.403,412(1916)(holdingthattheprimary purpose of a trademark is to identify the origin or ownership of the [good] to which it is affixed);ROBERTC.LIND,TRADEMARKLAW:STUDENTSTUDYGUIDE1(2002). 37 38 34

Gottliebetal.,supranote34,at39.

ABA SECTIONOF INTELL. PROP. LAW, WHATISA TRADEMARK? 6(3ded.2009)[hereinafter ABA];KANE,supranote30,at1:2:1[B],at110.

39 40

ABA,supranote38.

Amanda Silverman, Draconian or Just? Adopting the Italian Model of Imposing AdministrativeFinesonthePurchasersofCounterfeitGoods,17CARDOZO J. INTL & COMP. L.175, 209(2009). See Robert G. Bone, Enforcement Costs and Trademark Puzzles, 90 VA. L. REV. 2099, 2121 (2004).
42 43 41

See514U.S.at163.

Bone, supra note 41, at 2119 (noting that courts have expanded trademark protection outsideofatrademarkownersprimarymarket).

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trademark confusionan element in proving trademark infringementat points outside of the time of purchase.44 Thus, under the modern view, trademarks are considered valuable property belonging to the trademark holder.45 C. TrademarkCounterfeitingAct While the Lanham Act provides adequate recourse for trademark infringement,46itwasnotcreatedwithtrademarkcounterfeitinginmind.47 The civil remedies imposed were not harsh enough to deter counterfeiting.48 They were simply considered a cost of doing business in the highly lucrative counterfeiting world.49 It was not until Congress enacted the Trademark Counterfeiting Act of 1984 that criminal penalties and tougher civil remedies were available against trademark counterfeiters.50 Yet despite tougher penalties, the counterfeit business continued to flourish.51 In response, Congress amended the Trademark CounterfeitingActinboth1994and1996toincreasepenalties.52 The most recent amendment to the Trademark Counterfeiting Act occurred in 2006.53 The current statute provides that anyone who intentionallytrafficsorattemptstotrafficingoodswithacounterfeitmark
44 Keds Corp. v. Renee Intl Trading Corp., 888 F.2d 215, 222 (1st Cir. 1989) (noting that trademark confusion should be analyzed, not only at the point of sale, but also through the eyesofprospectiveconsumers);LoisSportswear,U.S.A.,Inc.v.LeviStrauss&Co.,799F.2d 867, 871 (2d Cir. 1986) (allowing LeviStrauss to stop a company from using their unique stitching pattern because a person who sees it may be confused into thinking the jeans are Levisjeans). 45 46

SeeSilverman,supranote40,at210.

Trademarkinfringementistheuseofamarkthatissimilarenoughtoaregisteredmark thatitislikelytocauseconfusionaboutthesourceofagood.15U.S.C.1114(1)(2006).
47 48

Cunningham,supranote18,at2.

S. REP. NO.98526,at5(1984);StevenN.Baker&MatthewLeeFesak,WhoCaresAbout the Counterfeiters? How the Fight Against Counterfeiting Has Become an In Rem Process, 83 ST. JOHNSL.REV.735,739(2009).
49 S. REP. NO. 98526, at 5; David J. Goldstone & Peter J. Toren, The Criminalization of TrademarkCounterfeiting,31CONN.L.REV.1,6(1998).

KANE, supranote30,at 8:3:1[A](explainingthattheTrademarkCounterfeitingActof 1984includedcriminalpenaltiesofupto$250,000,uptofiveyearsimprisonment,orboth).

51 52

50

2ANNEGILSONLALONDE,GILSONONTRADEMARKS5.19[7](2008).

KANE, supra note 30, at 8:3:1[A] (providing that the 1994 amendment increased criminal penalties to $2 million and not more than ten years imprisonment for a first offense; and the 1996 amendment strengthened the civil remedies by providing . . . damagesrangingfrom$500to$100,000percounterfeittrademarkforeachtypeofoffending merchandiseandupto$1millionpermarkiftheviolationiswillful).
53 SeeStopCounterfeitinginManufacturedGoodsAct,Pub.L.No.109181,1,120Stat. 285,289(codifiedasamendedat18U.S.C.2320(2006)).

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orknowinglyusesacounterfeitmarkongoodsissubjecttoafineupto$2 million or imprisonment of up to ten years, or both.54 It defines a counterfeit mark as a spurious mark... that is identical with, or substantiallyindistinguishablefrom...aregisteredtrademark.55Whileall counterfeiting is infringement, not all infringement is counterfeiting.56 Unlikeinfringers,counterfeitersintentionallydealingoodstheyknowbear acounterfeitmark,57andpassthegoodsoffasauthenticitems.58 II. OverviewofTrademarkCounterfeitingintheFashionIndustry While counterfeiting can be traced back over 4,000 years, it was not until the 1960s that the United States started to feel its effect.59 The American garment industry was hit particularly hard by counterfeiting during this time.60 The problem only grew worse as designer fashion labels entered the marketplace.61 Traditionally, fashion labels were stenciled on the inside of clothing.62 However, by midcentury designers such as Louis Vuitton, Chanel, Gucci, and Hermes began using their trademarksontheoutsideofgarmentssothatconsumerswouldrecognize theirbrand.63 Themostpopulardesignerfashionlabelswerefoundondenimjeans.64 Historically,jeanswereconsideredaworkingmansclothes.65However,
54 55 56

Id. 18U.S.C.2320(e).

See Lynda ZadraSymes & Nicholas M. Zovko, AntiCounterfeiting Strategies: What You NeedtoKnow,49ORANGE COUNTY L. 10,11(Aug.2007)(providingthatadefendantisliable for trademark infringement if trademark counterfeiting is established, but to establish counterfeiting the plaintiff must show that the defendant intentionally used a counterfeit mark).
57 58

SeePARADISE,supranote20,at8.

Nicole Giambarrese, The Look for Less: A Survey of Intellectual Property Protections in the Fashion Industry, 26 TOURO L. REV. 243, 259 (2010) (explaining that counterfeiters try to deceivebuyersinto thinking theyarepurchasinggenuinemerchandise) (internalquotation marksomitted).
59 60 61

Mouery,supranote19;PARADISE,supranote20,at73. PARADISE,supranote20,at73.

See Robert J. Abalos, Commercial Trademark Counterfeiting in the United States, the Third WorldandBeyond:AmericanandInternationalAttemptstoStemtheTide,5B.C. THIRD WORLD L.J. 151,153(1985)(notingthatanincreaseintrademarkcounterfeitingactivitywasseenafterthe useofdesignerlabelsbegan). BillCunningham,FashionthatSpeaksforItself,N.Y. TIMES,Jan.7,1996,at32,availableat http://www.nytimes.com/1996/01/07/style/onthestreetfashionthatspeaksforitself.html.
63 64 65 62

Id. PARADISE,supranote20,at75.

Id.; accord The History of Blue Jeans: Lets Go Back in Time, JEANS AND ACCESSORIES, http://www.jeansandaccessories.com/historyofbluejeans.html (last visited Nov. 28, 2012)

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in the 1960s, bellbottom jeans gained unprecedented popularity as a symbolofantiestablishment.66Individualswhooncewornjeansaschildren were now wearing them as adults.67 It did not take long for the labels on jeanstobecomemorevaluablethantheitemtheywereaffixedto.68Asthe valueofdesignerlabelsrose,counterfeiterssawtheeasewithwhichthey could copy the labels to turn an enormous profit.69 By merely sewing a counterfeit label onto a pair of jeans, a tee shirt, or a bag, a counterfeiter couldsellagenericitemfordoubleortripletheprice.70 Whilefashionknockoffs71werecommonduringthistime,thebirth ofcounterfeitingdesignerlabelscaughtthefashionindustrybysurprise.72 The novelty of trademark counterfeiting in the fashion industry left designerswithlittlerecourse.73Spurredbynecessity,leadersinthefashion industrybecameinstrumentalindevelopinganticounterfeitinglegislation andcreatingorganizationsdedicatedtoprotectingintellectualproperty.74 III. AnticounterfeitingEnforcement A. BorderEnforcement Borderenforcementisconsideredoneofthemostsignificantalliesin enforcing laws against counterfeiting.75 Two federal agencies play an intricate role in patrolling the importation of counterfeit goods: Customs andBorderProtection(CBP)andImmigrationandCustomsEnforcement
[hearinafterJEANSANDACCESSORIES]. JEANS AND ACCESSORIES, supra note 65 (stating that jeans were worn during the hippy movement;andsymbolizedwesterndecadenceandindividuality).
67 68 69 70 71 66

PARADISE,supranote20,at75. SeeCunningham,supranote62. PARADISE,supranote20,at76. Id.

Knockoffsareimitationgoodsmadetobesimilartotheoriginalarticle,butarenot represented to consumers as the original. Lauren Michel, On Teaching Fashion: Counterfeits, Knockoffs, and Plagiarism, WORN THROUGH (Feb. 27, 2009), http://www. wornthrough.com/2009/02/27/onteachingfashioncounterfeitsknockoffsandplagiarism/.
72 73

PARADISE,supranote20,at77.

See KANE, supra note 30, at 8:3.1[A] (providing that it was not until the Trademark Counterfeiting Act of 1984 that Congress directly addressed the growing problem of commercialcounterfeitingthroughtougherpenalties).
74 SeeRosielynA.Pulmano,InSearchofComplianceWithTRIPsAgainstCounterfeitinginthe Philippines:WhenisEnoughEnough?,12TRANSNATL LAW. 241,247&n.34(1999)(statingthat many fashion business owners were integral to the creation of the International AntiCounterfeiting Coalition: an institution responsible for the enactment of the Trademark CounterfeitingActof1984.). 75

Kolsun&McDonald,supranote32,at117.

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(ICE).76ThemissionofCBPistoprotecttheUnitedStatesfromterrorists, terroristweapons,andtoensurethatgoodsimportedintotheUnitedStates arelegitimate.77EveryyearCBPoverseestheimportationofover$2trillion worth of goods.78 In order to optimize its effectiveness, CBP prioritizes whichtradeissuestolookatmostcloselyduringimportation.79Controlling the importation of counterfeit goods is one of CBPs highest priorities because of the threat the counterfeit goods pose to Americas economy, nationalsecurity,andthehealthandsafetyofitsconsumers.80 Similarly, ICEs primary goal is to promote homeland security and public safety through the criminal and civil enforcement of federal laws governingbordercontrol,customs,trade,andimmigration.81In2010,ICE unveiled a five year strategic plan to ensure its mission was effectively accomplished.82 This plan highlighted four key priorities, including the protection of U.S. borders against illegal trade.83 Specifically, the agency intends to combat the war on counterfeit importation by invigorat[ing] intellectual property investigation[] by leveraging their partnerships with private industry to address and prevent the smuggling of falsely labeledcommodities....84 While both CBP and ICE independently work to accomplish their missions,theirpartnershipundertheNationalIntellectualPropertyRights Coordination Center (IPR Center) also aids their goals.85 [T]he IPR Center uses the expertise of its member agencies to share information, develop initiatives, coordinate enforcement actions, and conduct

76 77

Id.

Bennie G. Thompson, A Legislative Prescription for Confronting 21stCentury Risks to the Homeland, 47 HARV. J. ON LEGIS. 277, 310 (2010); About CBP, U.S. CUSTOMS AND BORDER PROTECTION,http://www.cbp.gov/xp/cgov/about/(lastvisitedNov.28,2012).
78 JarrodM.Goldfeder,2008InternationalTradeDecisionsoftheFederalCircuit,58AM. U. L. REV.975,976(reportingthatin2007theU.S.importedalmost$2trillionworthofgoods).

Priority Trade Issues, U.S. CUSTOMS AND BORDER http://www.cbp.gov/xp/cgov/trade/priority_trade/(lastvisitedNov.28,2012).

80 81

79

PROTECTION,

Id.

About ICE, U.S. IMMIGR. AND CUSTOMS ENFORCEMENT, http://www.ice.gov/ about/overview/ (follow Mission hyperlink) (last visited June. 2 , 2012); accord Thompson, supranote77,at310.
82 ICE Strategic Plan: Fiscal Years 20102014, U.S. IMMIGR. AND CUSTOMS ENFORCEMENT 2, http://www.ice.gov/doclib/news/library/reports/strategicplan/strategicplan2010.pdf (last visitedNov.28,2012)[hereinafterICEStrategicPlan]. 83 84 85

Id.at3. Id.at45.

Lauren D. Amendolara, Note, Knocking out Knockoffs: Effectuating the Criminalization of TraffickinginCounterfeitGoods,15FORDHAMINTELL.PROP.MEDIA&ENT.L.J.789,814(2005).

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investigations related to IP theft.86 Its success is shown through the increased number of seizures of counterfeit goods since its formation in 2000.87 In 2010, the combined efforts of CBP and ICE resulted in 19,959 seizures,athirtyfourpercentincreasecomparedtothenumberofseizures in 2009.88 The seized counterfeit goods valued $188.1 million worth of domesticgoods,fortytwopercentofwhichwerefashionitems.89 B. TradeOrganizations Intellectual property organizations supplement the efforts of border patrol agencies through the promotion of laws, regulations, and anti counterfeiting initiatives.90 Organizations such as the International AntiCounterfeiting Coalition (IACC), World Intellectual Property Organization (WIPO), and International Trademark Association (INTA) are dedicated to protecting intellectual property, establishing internationalintellectualpropertytreaties,anddeterringcounterfeiting.91 TheINTAhasbeeninfluentialinestablishingstrongfederaltrademark legislation including the Lanham Act in 1946, the Trademark CounterfeitingActof1984,the2006StopCounterfeitinginManufactured GoodsAct,andtheAnticybersquattingConsumerProtectionActof1999.92 Similarly,theIACCstirelesslobbyingpushedCongresstoenacttheAnti Counterfeiting Consumer Protection Act of 1996an amendment to the Trademark Counterfeiting Actwhich gave the U.S. Customs Service
About Us, NATL INTELL. PROP. RIGHTS http://www.iprcenter.gov/aboutus(lastvisitedNov.28,2012).
86

COORDINATION

CENTER,

87 See Amanda S. Reid, Comment, Enforcement of Intellectual Property Rights in Developing Countries:ChinaasaCaseStudy,13DEPAULLCAJ.ART&ENT.L.63,64(2003)(notingthatU.S. Customs Service seized more than $45 million in counterfeit goods in 2000, more than $57 millionworthofproductsin2001,andmorethan$98millionincounterfeitgoodsin2002).

Intellectual Property Rights: Fiscal Year 2010 Seizure Statistics, IPRCENTER.GOV 5, http://www.iprcenter.gov/reports/iprfinalreportfiscalyear2010seizurestatistics/view (last visitedNov.20,2012).
89 Id. at 13 (detailing that 24% were footwear items, 10% were wearing appeal, and 8% werehandbags,wallets,andbackpacks). 90 See About the IACC, INTL ANTICOUNTERFEITING COALITION, https://iacc.org/aboutthe iacc/(lastvisitedNov.28,2012).

88

See About IACC, INTL ANTICOUNTERFEITING COALITION, https://iacc.org/ (last visited Nov. 20, 2012); About INTA, INTL TRADEMARK ASSN, http://www.inta.org/About /Pages/Overview.aspx (last visited Nov. 20, 2012); About WIPO, WORLD INTELL. PROP. ORG., http://www.wipo.int/treaties/en/convention/ summary_wipo_convention.html (last visited Nov.20,2012). BriefofAmicusCuriaetheInternationalTrademarkAssociationinSupportofaPetition foraWritofCertioraritotheSecondCircuitCourtofAppeals,Tiffany(NJ)Inc.v.eBay,Inc., 600F.3d93(2dCir.2010)(No.10300),at6.
92

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broaderpowertoregulatecounterfeitingactivity.93 In addition to legislative activism, these three organizations provide training to law enforcement agencies to help them accurately identify counterfeit goods,94 give legal assistance in the area of intellectual property,95 carry out policy and advocacy work,96 and host educational programs tohelp trademark ownersstay informedon trademark issues.97 Through their efforts, the organizations hope to stress the importance of trademarksandtrademarkprotection,andfurtheranunderstandingofthe critical role trademarks play in fostering informed decisions by consumers.98 C. StateEnforcement Since state law enforcement officers regularly interact with local manufacturers, distributors, street vendors, retailers, house parties99 and others involved in the manufacture and sale of counterfeit merchandise, they are often in the best position to enforce anticounterfeiting laws.100 Smallscale seizures often lead to larger takedowns and the discovery of organizedcrimerings.101Forinstance,aroutinebustinNewYorkCityin 2005 led to the discovery of a warehouse filled with counterfeit shoes, handbags,andclothingworthupto$2million.102Thevalueofthesesmall seizuresintheoverallfightagainsttheproductionandsaleofcounterfeit
93 LarrySmith&ElizabethKaplan,IPMeetsEliotNessSmallerFirmsStillDominateHigh ProfileAnticounterfeitingPractice,18NO.13OFCOUNSEL32,30(1999). 94 95 96

SeeAbouttheIACC,supranote90. AboutWIPO,supranote91.

See, e.g., Policy and Advocacy, INTL TRADEMARK ASSN, http://www.inta.org/Advocacy/ Pages/main.aspx(lastvisitedNov.20,2012). See, e.g. Programs and Events, INTL TRADEMARK ASSN, http://www.inta.org/Programs/ Pages/main.aspx(lastvisitedJune4,2012).
98 99 97

SeeBriefforWritofCertiorari,supranote92,at4.

House parties are residential gatherings where people buy counterfeit items such as handbags. Carolyn Marcelo, The Crimes of Fashion: The Effects of Trademark and Copyright Infringement in the Fashion Industry, LIBERTY U. 25 (Spring 2011), http://digitalcommons. liberty.edu(searchCarolynMarcelo). Kolsun&McDonald,supranote32,at11920;seePeoplev.Garcia,124Cal.Rptr.3d886, 888 (Cal. Ct. App. 2011) (noting a Los Angeles police officer discovered thousands of counterfeit DVDs after spotting the defendant leaving a building with suspiciously large bags); People v. Levy, 940 N.E.2d 547, 547 (N.Y. 2010) (explaining how local police, in executingasearchwarrant,foundandseizedcounterfeitpartsforFordvehiclesbeingusedin anautopartsshop).
101 102 100

Kolsun&McDonald,supranote32,at120. Ross Tucker, NYPD Seizes $2M in Counterfeit Goods, WOMENS WEAR DAILY, Sept. 30,

2005.

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goods has led many metropolitan areas to initiate special task forces dedicated to uncovering, investigating, and penalizing local counterfeiters.103 Local enforcement and seizures are one of the most valuableassetsinanticounterfeitingprograms.104 IV. ImpactofCounterfeitGoodsonSociety A. EffectontheUnitedStatesEconomy In 1982, the International Trade Commission estimated that counterfeitingactivitycosttheglobaleconomy$5.5billion.105By1996,the number increased to $200 billion, making it 4,000 times more costly than bank robberies.106 Today, it is estimated that up to seven percent of our annual world trade$600 billionis counterfeit.107 The tremendous growthofthecounterfeitindustryoverthelastfewdecadesmakesitoneof the fastest growing and most profitable industries in the country.108 Businessinsiderscallitthecrimeofthetwentyfirstcentury.109 Specifically, American companies lose $250 billion annually due to counterfeiting.110 Of the $250 billion, the fashion industry absorbs $12 billionoftheloss.111Itisestimatedthatonecounterfeitbagissoldforevery real one.112 These corporate losses translate into in job losses.113 It is reported that 750,000 jobs have been lost in the United States to
103 See Emili Vesilind, Los Angeles Market for Counterfeit Fashion Evolves, LOS ANGELES TIMES (July 26, 2009), http://articles.latimes.com/2009/jul/26/image/iglafakes26 (noting that LAPDsAntiPiracyTaskForceistaskedwithcombatingcounterfeitactivity);MayorsOfficeof Special Enforcement, NYC.GOV, http://www.nyc.gov/html/mose/ (last visited Nov. 20, 2012) (noting that New York Citys Office of Special Enforcement is responsible for coordinating enforcementeffortsagainsttrademarkcounterfeitingbazaars). 104 105

Kolsun&McDonald,supranote32,at120.

Jeanne M. Kempthorne, New Penalties for Intellectual Property Offenses and Computer Crime,41B.B.J.8,8(May/June1997);FactsonFakes,supranote8,at3.
106 SeeFactsonFakes,supranote8,at3(notingthatbankrobberiesinvolvelessthan$50 millionperyear). 107 Kristina Rae Montanaro, Shelter Chic: Can the U.S. Government Make it Work?, 42 VAND.J.TRANSNATLL.1663,1668(2009);Wilcox,supranote2,at247. 108 109 110 111 112

ThomasC.ODonnelletal.,TheCounterfeitTrade,BUS.WEEK,Dec.16,1985,at64. DavidStipp&ShereeR.Curry,Farewell,MyLogo,FORTUNE,May27,1996,at12829. Giambarrese,supranote58,at282. Wilcox,supranote2,at247.

Tina Cassidy, Bagging the Knockoffs Theres Nothing Like the Real Thing, BOSTON GLOBE, Dec.26,2002,atD1. Grace Pyun, The 2008 ProIP Act: The Inadequacy of the Property Paradigm in Criminal Intellectual Property Law and Its Effect on Prosecutorial Boundaries, 19 DEPAUL J. ART, TECH. & INTELL.PROP.L.355,380(2009).
113

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counterfeiters.114 Approximately 100,000 of those jobs were lost in Los Angelesalone.115 Since counterfeiters do not pay business income tax, personal income tax,oremployeetax,andpurchasersdonotpaysalestax,theUnitedStates also loses substantial tax revenue.116 New York City loses approximately $380millioninlosttaxes,$290millioninlostbusinessincometaxes,and $360millioninlostpersonalincometaxesannuallybecauseofcounterfeit sales.117Similarly,in2005,LosAngeleslost$40millionduetocounterfeit products.118 These economic effects are felt in many areas, as the tax revenuelostresultsinfewerschools,hospitals,police,androads.119 B. SupportofCriminalActivity Organized crime and terrorism are becoming increasingly entwined with the sale of counterfeit goods.120 It only costs $1.25 to manufacture a fake Louis Vuitton bag in Hong Kong and ship it to the United States.121 That same counterfeit bag can be sold to a U.S. buyer for anywhere from $30to$120,whileagenuineLouisVuittonbagsellsfor$1,200to$1,400.122 The quick and lucrative profit makes trademark counterfeiting appealing tocriminalgroups.123 Organized crime groups often use proceeds from counterfeit sales to

114 115 116 117

Fox,supranote4. Marcelo,supranote99. KatherineC.Spelman,WhatsNewinAntiCounterfeiting,1022PLI/PAT379,384(2010).

Id.;seealsoFox,supranote4(notingthatcounterfeitingcauses$1billionintaxrevenue losseseachyearforNewYorkCity).
118 119

Marcelo,supranote99.

Amy Frerichs, Attitudes Towards Counterfeit Fashion Products: A South Dakota State University Case Study, S. DAKOTA ST. U. 21, http://www.sdstate.edu/jur/2008/upload/AttitudesTowardCounterfeitFashionProductsASouth DakotaStateUniversityCaseStudy.pdf(lastvisitedNov.28,2012).
120 Spelman, supra note 116, at 385; Jacqueline Morales, Legal Developments in Trademark Counterfeiting, U.S. PAT. AND TRADEMARK OFF., http://www.ipo.org/AM /Template.cfm?Section=Patent_And_Trademark_Office_Day2&Tempate=/CM/ContentDisplay .cfm&ContentID=16801 (last visited Jun. 14, 2012) (connecting trademark counterfeiting to organizedcrimeandterroristactivity). 121 122 123

Giambarrese,supranote58,at278;Contreras,supranote3. Contreras,supranote3.

StopCounterfeitinginManufacturedGoodsAct,Pub.L.No.109181,1(a)(2)(E),120 Stat. 285, 285 (2006) (noting that ties between trademark counterfeiting and terrorism have been established); Sam Cocks, The Hoods Who Move the Goods: An Examination of the Booming International Trade in Counterfeiting Luxury Goods and an Assessment of the American Efforts to CurtailItsProliferation,17FORDHAMINTELL.PROP.MEDIA&ENT.L.J.501,517(2007).

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fund drug trafficking, prostitution, and money laundering schemes.124 In 1993, New York law enforcement raided a warehouse to seize counterfeit handbags.125 In addition to the fake bags, they discovered illegal drugs sewnintotheseamsofthebags.126Thecounterfeitersusedthehandbagsto transportandsellthedrugsandsellthebags,gettingridoftheevidence.127 Similarly, in July 2002, a New York raid seized 5,000 fake Rolex watches andMountBlancpens,$1million,anddiscoveredthatthedefendantssold counterfeitgoodstolaundertheirdrugmoney.128 Terroristactivityisalsolinkedtothemanufactureanddistributionof counterfeit products.129 A seizure of Al Qaeda terrorist training manuals confirmed that the sale of counterfeit products is an encouraged way to fund terrorist operations.130 In 1999, the International Chamber of Commerce reported the Irish Republican Army wasfinancing itsterrorist activitiesthroughcounterfeitvideossuchastheLionKing.131Similarly,the FBI gathered evidence indicating that the 1993 terrorist bombing of the WorldTradeCenterwassupportedbyproceedsearnedthroughthesaleof counterfeittextilegoodsonBroadwayAvenueinNewYorkCity.132While the FBI has not confirmed it, there is speculation that the 2001 terrorist attack on the World Trade Center was once again funded by the sale of counterfeitfashionitems.133
124 KateGoldwasser,KnockItOff:AnAnalysisofTrademarkCounterfeitGoodsRegulationin the United States, France, and Belgium, 18 CARDOZO J. INTL & COMP. L. 207, 209 (2010); Fox, supranote4. 125 126

FactsonFakes,supranote8,at9.

Anticounterfeiting Consumer Protection Act of 1995, S. Rep. No. 104177, at 5 (1995); FactsonFakes,supranote8,at9.
127 128

SeeFactsonFakes,supranote8,at9.

Scott Shifrel, 3 Charged In Money Laundering, NYDAILYNEWS.COM (July 11, 2002), http://articles.nydailynews.com/20020711/local/18201150_1_moneylaunderinghongkong genuinerolex.
129 Kolsun & McDonald, supra note 32, at 112; Gabrielle Levin, Desperate Times, Desperate Measures? Reconceptualizing Ex Parte Seizure Orders to More Effectively Fight the War on TrademarkCounterfeiting,14U.BALT.INTELL.PROP.L.J.171,174(2006).

IP Crimes and the Ties to Terrorism, INTELL. PROP. CRIMES, http://investigativeconsultants.com/ipcrimes/html/terrorism.html(lastvisitedNov.20,2012).

131 Kathleen Millar, Financing Terror: Profits From Counterfeit Goods Pay for Attacks, U.S. CUSTOMS TODAY (Nov. 2002), http://www.cbp.gov/xp/CustomsToday/2002/November /interpol.xml. 132 JamesNurton,HowtoBeatthePirates,MANAGING INTELL. PROP.,Sept.2002,at43;Willy Stern,WhyCounterfeitGoodsMayKill,BUS.WEEK,Sept.2,1996,at6.

130

SeeBetsyStreisand,JingleAlltheWay?,U.S. NEWS & WORLD REP.,Dec.16,2002,at36; RoslynA.Mazer,FromTShirtstoTerrorism:ThatFakeNikeSwooshMayBeHelpingtoFundBin LadensNetwork,WASH.POST,Sept.30,2001,atB2.

133

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C. ThreattoHealthandSafety Counterfeiting is lucrative because counterfeiters find methods to manufacturetheirproductsintheleastcostlyway.134Todosotheymake inferiorproducts,135anddonotabidebylaborregulations.136Counterfeiters usetoxicchemicalsanddyeswhenproducinggarmentsthatcanburnand irritatetheskin.137Sunglasses,whichmakeupalargeportionofcounterfeit fashion sales, are often not made with the required shatterproof lens and ultraviolet ray protection.138 Wearing sunglasses without ultraviolet ray protection may lead to cataracts, skin cancer around the eyes, and the burning of the front surface of the eye.139 When counterfeiting luxury perfumes, counterfeiters often use bacteria, antifreeze, and even urine as active ingredients.140 Since perfume is absorbed into the skin, these ingredientsarelifethreatening.141 Consumersofcounterfeitproductsarenottheonlypeopleatriskthe health and safety of counterfeit manufacturers are also in danger.142 Anti counterfeiting investigators in Asia report that factories producing counterfeitproductsarekeptindeplorableconditionsthatwouldboggle yourmind.143Itisnotuncommontoseechildrenasyoungasfouryears old mixing dangerous and deadly chemicals for the production of the
134 SeeBarbaraKolsun&JonathanBayer,IndirectInfringementandCounterfeiting:Remedies AvailableAgainstThoseWhoKnowinglyRenttoCounterfeiters,16CARDOZO ARTS & ENT. L.J.383, 383&n.6(1998)(notingthathighprofitmarginsincounterfeitingmakeitverylucrative). 135 See U.S. v. Nweke, 340 Fed. Appx. 237, 239 (5th Cir. 2009) (explaining how the counterfeitgoodsweresoinferiorthattheycouldnotbemistakenforthegenuineproduct); EricR.Waltmire,HowtoSecureYourClientsBrandAgainstCounterfeitingOperationsinAsia,22 DCBA BRIEF 46, 46 (Oct. 2009) available at http://www.dcbabrief.org/ vol221009art5.html (notingthatcounterfeitingproductsareofteninferior). 136 SeeMalletierv.LincolnFantasy,2006WL2129025,at*4(D.PuertoRico2006)(noting that trademark counterfeiting fosters child labor); Jenny T. Slocum & Jess M. Collen, The EvolvingThreatandEnforcementofReplicaGoods,33W.NEWENG.L.REV.789,794(2011). 137 Frerichs, supra note 119, at 24; Counterfeit Clothing a Growing Problem, JUSTSTYLE.COM (June 17, 2008), http://www.juststyle.com/analysis/counterfeitclothingagrowing problem_id101100.aspx. 138 Rosenberg, supra note 15, at 117; Cynthia Nellis, Faking It: Counterfeit Fashion, ABOUT.COM,http://fashion.about.com/cs/tipsadvice/a/fakingit.htm(lastvisitedNov.20,2012).

See Prevent Eye Damage: Protect Yourself from UV Radiation, U.S. ENVTL. PROTECTIONS AGENCY(Aug.2010),http://www.epa.gov/sunwise/doc/eyedamage.pdf.
140 141 142

139

Leamy&Weber,supranote10. Id.

Fox,supranote4(notingthatcounterfeitsareoftenproducedinfactorieswhodisregard laborstandards).
143

Id.(quotingLorneLipkusoftheCanadianAntiCounterfeitingNetwork).

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counterfeititems.144 Dana Thomas, a journalist who specializes in the fashion industry, remember[s]walkingintoanassemblyplantinThailandacoupleofyears agoandseeingsixorsevenlittlechildren,allunder10yearsold,sittingon the floor assembling counterfeit leather handbags.145 A counterfeit investigatortoldherthat[t]heownershadbrokenthechildrenslegsand tied the lower leg to the thigh so the bones wouldnt mend. [They] did it because the children said they wanted to go outside and play.146 This vignetteisoneofthecountlessstoriesdemonstratingtheharmcausedby buyingcounterfeit goodsand the many victims ofwhat many consumers viewasbargainshopping.147 ANALYSIS V. CriminalizingtheKnowingPurchaseofTrademarkCounterfeit FashionItems Until there is no market demand for counterfeit fashion items, the United States will continue to lose the battle against trademark counterfeiting.148Congresshascontinuouslyincreasedthepenaltiesforthe saleofthesegoods.149Inaddition,extrasupportisprovidedbyintellectual property organizations,150 law enforcement efforts,151 and fashion companies.152Thepublicisawareoftheimpactthecounterfeitingindustry
144 145

Id.

Dana Thomas, Fight Against Fake Designer Goods Isnt Frivolous, TODAY (Jan. 9, 2009, 9:38 a.m.), http://today.msnbc.msn.com/id/28571321/ns/todaystyle/t/fightagainstfake designergoodsisntfrivolous/.
146 147

Id.

Marcelo, supra note 99, at 22 ([M]any cases [exist] in which children are working endlesslytomakeclothesinworkingconditionsthatareclosetoslavery.).
148 See Cunningham, supra note 18, at 34 (suggesting that holding endconsumers of counterfeit products liable may be the best way to stop the manufacture and distribution of the goods). In 2011, New York City Council woman Margaret S. Chin, submitted a bill to makebuyingfakedesignerbrandsillegalinthestateofNewYork.Nodecisiononthebillhas been made as of February 2012. Ashley Parker, Counsel Member Seeks to Make Buying Fake Designer Brands a Crime, N.Y. TIMES, Apr. 26, 2011, http://www.nytimes.com/2011/04/27 /nyregion/billaimstomakebuyingfakegoodsacrimeinnewyork.html. 149 KANE, supra note 30, at 8:3:1[A] (commenting on the increases in civil and criminal penaltiesforcounterfeitactivity). 150 About IACC, supra note 91 (noting the IACC is the worlds largest nonprofit organizationdevotedsolelytoprotectingintellectualpropertyanddeterringcounterfeiting). 151 Kolsun&McDonald, supranote32,at117(explainingCustomsandBorderProtection and Immigration and Customs Enforcement play an intricate role in patrolling the importationofcounterfeitgoods). 152 Leamy & Weber, supra note 10 (noting that Harpers Bazaar has dedicated itself to preventingcounterfeiting).

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has on the U.S. economy, organized crime and terrorism, and health and safety.153 But the counterfeiting industry continues to boom.154 The epidemic has risen to the point where it is necessary to hold consumers accountable for their contribution to the illegal world of counterfeiting.155 This Note proposes a uniform law establishing criminal liability for the knowing purchase of trademark counterfeit fashion items.156 Criminal penalties for a similar activity are already embodied in our criminal code and embraced by society.157 The crime of receiving stolen property providesgroundsforcriminalliabilityofpurchasersofcounterfeitfashion goods.158 A. ReceivingStolenProperty Section223.6oftheModelPenalCodeprovides,[a]personisguiltyof theft if he purposely receives... property of another knowing that it has beenstolen,orbelievingthatithasprobablybeenstolen....159Underthe Model Penal Code, the term receiving is defined as acquiring possession... of the property.160 As individual states have adopted this uniform law, they have further defined the meaning of receiving.161 In California,theactofreceivingissatisfiedbythepurchaseoracceptanceof stolen goods.162 Similarly, Massachusetts law provides that receiving is
See City, Harpers Bazaar Unveils New AntiCounterfeiting Campaign, NY1 YOUR CITY, YOUR NEWS, May 13, 2008, http://www.ny1.com/content/top_stories/81553/cityharpers bazaarunveilsnewanticounterfeitingcampaign [hereinafter Harpers Bazaar]; Public Awareness Campaigns, INTL ANTICOUNTERFEITING COALITION, https://iacc.org/about counterfeiting/publicawarenesscampaigns.php (last visited Jun. 4, 2012) (highlighting the IACCsanticounterfeitingcampaign).
154 Bitton, supra note 14 (representing that counterfeiting presently costs the global economy$600billionannually). 155 Rosenberg, supra note 15 (concluding that government would be well advised to considercriminalpenaltiesforconsumerswhoknowinglybuycounterfeitproducts). 156 See Silverman, supra note 40, at 21920 (calling for the United States to adopt an administrative fine for individuals who knowingly purchase counterfeit goods like Italian law). 157 158 159 153

SeeModelPenalCode223.6(1980). Seeid.

Id.; accordCommonwealthv.Foreman,797A.2d1005,1011(Pa.Super.Ct.2002)(noting thattheprosecutionmustshowthatthepropertywasstolen,thedefendanthadpossessionof the stolen property, and that the defendant knew or should have known the property was stoleninordertoobtainaconvictionforreceivingstolenproperty).
160 161

ModelPenalCode223.6.

SeeCommonwealthv.Cromwell,761N.E.2d530,532(Mass.App.Ct.2002)(notingthat in Massachusetts the elements of receiving stolen property are established if one knowingly buys,receivesoraidsintheconcealmentofstolengoods).
162

Peoplev.Smith,161P.2d941,943(Cal.1945).

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satisfiedbytheacceptance,purchase,orconcealmentofstolengoods.163In New York the act of buying, concealing, or withholding stolen property satisfiestheelementofreceiving.164 Likewise,statecaselawhasfurtherdefinedtheelementofknowledge that is found in 223.6 of the Model Penal Code.165 Courts no longer requireactualknowledgethatthegoodswerestolen.166Aprosecutoronly needstoestablishthatthedefendanthadreasonablecausetobelievethat the goods were stolen.167 Furthermore, the element of knowledge can be proven through circumstantial evidence.168 In Commonwealth v. Harrison, the Superior Court of Pennsylvania considered the defendants conduct, hisrelationshiptothevictimofthetheft,thetimethathadelapsedbetween his possession of the property and the theft, and the distance between where the theft occurred and where the stolen property was found to conclude that the defendant was guilty of knowingly receiving stolen property.169 B. TheProposedUniformLawfortheCrimeoftheKnowingPurchase ofTrademarkCounterfeitFashionItems Under the modern view that trademarks are an owners property, counterfeiting the mark is equivalent to theft,170 and the subsequent purchase of the stolen mark is analogous to receiving stolen property.171 Because of the similarity between receiving stolen property and buying counterfeit fashion items this Note proposes a uniform law stating: No personshallpurchaseafashionitembearingacounterfeittrademarkwhen such person knows or reasonably should have known such trademark is counterfeit.172

163 164

Cromwell,761N.E.2dat532.

See William C. Donnino, Practice Commentary to N.Y. PENAL LAW 165.40 (McKinney2010).
165 Statev.Underwood,668A.2d447,449(N.J.SuperCt.App.Div.1995);Finbergv.Lean (In re Lean), 18 B.R. 189, 191 (Bankr. E.D. Pa. 1982); Commonwealth v. Harrison, 432 A.2d 1083,1088(Pa.Super.Ct.1981). 166 167 168 169 170

Underwood,668A.2dat449;InreLean,18B.R.at191. InreLean,18B.R.at191. Harrison,432A.2dat1088. Id.

Kolsun & McDonald, supra note 32, at 107 (showing that trademark counterfeiting is intellectualpropertytheft).
171 172

SeeModelPenalCode223.6. Seeid.

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1. EstablishingthePurchaseElement While the proposed counterfeit law is similar to the law governing receivingstolenproperty,itisdistinguishableinthattheactofreceivingis limited to the purchase of the counterfeit good.173 Mere possession or acceptance of a counterfeit fashion item is not sufficient to violate the crime.174Tosatisfytheelementofpurchaseundertheproposedlaw,an individualmustobtainownershiporpossessionofthecounterfeitfashion itemthroughtheexchangeofmoneyoritsequivalent.175 2. EstablishingtheKnowledgeElement Most individuals who purchase trademark counterfeit fashion items possesstheactualknowledgethattheyarenotbuyinganauthenticgood.176 Theywantthelookandstatusthatluxuryfashionitemsprovide,buteither donothaveordonotwanttospendthemoneyforthegenuineproduct.177 While an individual purchaser might have actual knowledge, it may be hardtoproveiftheydenyit.178Therefore,likethecrimeofreceivingstolen property, the knowledge element for the crime of purchasing trademark counterfeit fashion items can be satisfied through circumstantial evidence.179 The circumstantial evidence that establishes an individual knew or reasonably should have known a trademark is counterfeit includes:(1)thelocationofthepurchase;(2)thepriceofthegood;and(3) thequalityoftheproduct.180 Counterfeitfashionitemsaretypicallypurchasedonthestreet,outofa car trunk, in back alleys, or in public markets.181 For instances, street vendors dealing in counterfeits often whisper designer names as people walkby,ifthepasserbyisinterestedinviewingthemerchandisetheyare often led to basements and back rooms where the illegal products are
173 174 175 176

Seesupratextaccompanyingnote171. Seesupratextaccompanyingnote171. SeeTHEMERRIAMWEBSTERDICTIONARY1010(11thed.,MerriamWebsterInc.2003).

Wilcox, supra note 2, at 247 (noting that consumers often knowingly buy counterfeit luxuryitems).
177 See Fox, supra note 4 (explaining that the purchase of counterfeit goods is considered bargainshopping). 178 SeeAndreaSloanPink,CopyrightInfringementPostIsoquanticShift:ShouldBulletinBoard Services be Liable?, 43 UCLA L. REV. 587, 624 (1995) (noting that actual knowledge is a more difficultburdentoprove). 179 See Commonwealth v. Phillips, 392 A.2d 708, 709 (Pa. 1978) (providing that circumstantialevidencecanestablishknowledgethatpropertywasstolen). 180 181

Nellis,supranote138. SeeCunningham,supranote18,at4.

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stored.182 Commonsense tells us that high fashion designers like Louis Vuitton, Chanel, or Burberry do not sell their luxury goods priced in the thousandsintheseplacesandmanner.183Authenticitemsareonlysoldby authentic dealers for the designer and official retailers such as department stores.184 Therefore, one who purchases goods in places like basements, back alleys, and car trunks either knew or reasonably should haveknownthatthegoodswerecounterfeit.185 Similarly, if the price seems too good to be true, it probably is.186 Counterfeit goods are considerably less expensive than their authentic counterparts.187 Anticounterfeiting investigators hired by Louis Vuitton reportthatauthenticbagsthatcost$1,200to$1,400sellforabout$30to$40 ascounterfeitsatfleamarkets.188Thedrasticpricediscrepancyissufficient to prove an individual purchaser reasonably should have known the productwasacounterfeit.189 Finally, the quality of the product can distinguish an authentic good fromacounterfeit.190Visualcluessuchaspoororunevenstitching,glued on labels, poor quality zippers, and misspelled words all support the conclusion that an item is a counterfeit.191 Additionally, luxury retailers take special care in packaging their products.192 They wrap products in tissue paper, provide authenticity and product care information, and use qualityboxesandshoppingbags.193Incontrast,counterfeiterscoveritems inplasticwrapordustbags,andwrapthehandlesofhandbagsinplastic and scotch tape.194 By evaluating the purchase location, price, andquality
182 183 184

Marcelo,supranote99,at5. SeeFrerichs,supranote119,at22.

Id.;accordHowtoSpotaFakeLouisVuittonHandbag, BAGBLISS,http://www.bagbliss.com/ counterfeits/louisvuitton/ (last visited Nov. 20, 2012) [hereinafter How to Spot a Fake] (explaining that authentic Louis Vuitton items are exclusively sold in their own stores, over thephone,orontheirownwebsite,notonthestreet).
185 186

SeeHowtoSpotaFake,supranote184.

Fact Sheets: Protecting a Trademark, INTL TRADEMARK ASSN, http://www.inta. org/TrademarkBasics/FactSheets/Pages/Counterfeiting.aspx(lastvisitedNov.28,2012).

187 188 189 190

Contreras,supranote3. Id. SeeTheFactSheets,ProtectingaTrademark,supranote186.

Misty Huber, How to Tell a Real Juicy Couture From a Fake, EHOW.COM, http://www. ehow.com/how_5905235_tellrealjuicycouturefake.html(lastvisitedNov.20,2012).
191 192

Id.

Ali Datko, Fake vs. Real Louis Vuitton Purses, EHOW STYLE, http://www.ehow.com/info_8675415_fakereallouisvuittonpurses.html(lastvisitedNov.28, 2012).
193 194

Id. Id.

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anindividualsknowledgecanbeestablished.195 C. ThePenaltyforViolatingtheCrimeoftheKnowingPurchaseof TrademarkCounterfeitFashionItems. Asurveyofstatepenaltiesforreceivingstolengoodsshowsthatmost states classify the crime as either a misdemeanor or felony depending on thevalueofthepropertyreceivedandapersonscriminalhistory.196Italso providesthatapersonconvictedofthecrimecouldreceiveapunishment in the form of a fine, imprisonment, or both.197 In Massachusetts, if the value of the property received is less than two hundred and fifty dollars and it is the persons first offense, the crime will be charged as a misdemeanorsubjecttoimprisonmentofnotmorethantwoandonehalf years, or by a fine of not more than two hundred and fifty dollars.198 However,ifthevalueistwohundredandfiftydollarsorgreateroritisa subsequent offense the crime will be charged as a felony subject to imprisonmentofnotmorethanfiveyears...orbyafineofnotmorethan fivehundreddollars.199 Whilethegoalofacriminalpenaltyforreceivingstolenpropertyisto punishoffenders,thegoalofacriminalpenaltyfortheknowingpurchase of trademark counterfeit fashion items is deterrence.200 Because of this differenceinrationale,alessseverecriminalclassificationandpenaltyare appropriate for the proposed new law.201 Deterrencecan be accomplished through a misdemeanor classification punishable by a flatrate, fineonly

195 196

Nellis,supranote138.

E.g., Receiving Stolen Property California Penal Code 496 PC, SHOUSE LAW GROUP, http://www.shouselaw.com/stolenproperty.html (last visited June 4, 2012) [hereinafter SHOUSE LAW GROUP]; Receiving Stolen Property, LAW OFFICES OF KATHLEEN M. MCCARTHY, http://www.kmmdefense.com/lawyerattorney1331163.html (last visited Nov. 20, 2012) see generally Receipt of Stolen Property, [hereinafter MCCARTHY]; CRIMINALDEFENSELAWYER.COM, http://www.criminaldefenselawyer.com/crimepenalties/ federal/ReceiptofStolenProperty.htm(lastvisitedNov.20,2012). MASS. GEN. LAWSch.266,60(2010);SHOUSE LAW GROUP,supranote196;Receiving Stolen Property in Mississippi, MISS. CRIM. DEF. BLOG (July 25, 2011), http://mississippicriminaldefenseblog.com/2011/07/25/receivingstolenpropertyin mississippi/.
198 199 200 197

MASS.GEN.LAWSch.266,60;accordMCCARTHY,supranote196. MASS.GEN.LAWSch.266,60;accordMCCARTHY,supranote196.

See Cunningham, supra note 18, at 34 (noting that deterrence through consumer liabilitymaybethemosteffectivewaytosolvethetrademarkcounterfeitingproblem). See Doris Layton MacKenzie, Criminal Justice and Crime Prevention, NATL CRIM. JUST. REFERENCE SERVICE, https://www.ncjrs.gov/works/chapter9.htm (last visited Nov. 20, 2012) (explainingthatfinesmayactasadeterrenttocriminalactivities).
201

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penaltyoftwohundredandfiftydollars.202 D. TheEnforcementoftheCrimeoftheKnowingPurchaseof TrademarkCounterfeitFashionItems After a police officer witnesses a knowing purchase of a counterfeit fashion itemeither through observation or a sting operationthis Note proposesthatasummonsorcitationbeissuedtotheindividualaslongas there are no exigent circumstances making an arrest necessary.203 When enforcingcriminallaws,policeofficershavetheauthoritytoeitherarrestor issue a summons or citation to an alleged offender.204 The issuance of a summonsorcitationchargesthepersonwiththeoffenseandrequiresthem toappearbeforeamagistrate.205Indeterminingwhethertomakeanarrest or use a summons or citation police officers weigh the need to obtain properidentificationoftheperson,theriskofthepersonnotappearingin court,andthethreatthepersonpossessestosociety.206 While the booking process of an arrest includes taking a photograph andgatheringtheoffendersfingerprints,207itisnottheonlywaytoensure proper identification of a suspect.208 An officer issuing a summons or citation could take a photograph and even obtain fingerprints in the field.209 Additionally, individuals who commit minor offenses, or who do not think their behavior is criminal, are not likely to be carrying false
SeeSilverman,supranote40,at20506(explainingthatbothItalyandFrancecurrently useendconsumermonetaryfinesintheiranticounterfeitingprograms).
203 SeeBriefoftheInstituteonCriminalJusticeastheUniversityofMinnesotaLawSchool andElevenLeadingExpertsonLawEnforcementandCorrectionsAdministrationandPolicy asAmiciCuriaeinSupportofPetitioners,Atwaterv.CityofLagoVista,530U.S.1260(2000) (No.991408),2000WL1341293,at*2[hereinafterBriefforthePetitioners](providingthatan arrestforanonjailablemisdemeanorisrarelynecessaryorjustifiable). 204 AliciaA.DAddario,PolicingProtest: ProtectingDissentandPreventingViolenceThrough FirstandFourthAmendmentLaw,31N.Y.U. REV. L. & SOC. CHANGE97,107(2006)(notinghow policeofficershavediscretiontodecidewhethertoarrest,orissueasummonsorcitation). 205 StephenA.Saltzburg,TheFourthAmendment:InternalRevenueCodeorBodyofPrinciples?, 74GEO.WASH.L.REV.956,1001(2006). 206 207 202

Id.at1002.

Kendall Thomas, Beyond the Privacy Principle, 92 COLUM. L. REV. 1431, 1439 (1992) (explaining that after making the arrest, the suspect was booked, fingerprinted, and photographed).
208 See, e.g., Hayes v. Florida, 470 U.S. 811, 816 (1985) (noting that the collection of fingerprintsinthefieldbypoliceofficersdoesnotnecessarilyviolatetheFourthAmendment); UnitedStatesv.Hensley,469U.S.221,232(1985)(explainingthatapoliceofficermaystopa suspect,checkhisidentification,askhimquestions,andbrieflydetainhiminordertogather information). 209

Saltzburg,supranote205,at1002.

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identification, which itself may be a more severe offense.210 Since the proposedcrimefortheknowingpurchaseofcounterfeitfashionitemsisa minornonjailableoffense,individualswilllikelycomplywithanofficers request for identification, a field photograph, and fingerprinting, rather thanbeingarrested.211 An arrest may seem like the only way to guarantee a suspect will appearincourt.212However,thismaynotbenecessaryinthecaseofminor offenses.213 Since the penalty for failing to appearin court is often greater thanthepenaltyforaminoroffense,aminoroffenderhasagreatincentive to make their court appointment.214 An arrest for a nonjailable misdemeanor is rarely necessary or justifiable.215 The penalty for the proposed crime is likely less severe than the penalty for not appearing in court,thus,itisunlikelyapersonwouldnotappear.216 Finally, an arrest removes dangerous individuals from society.217 It allows the public to feel safe in their community knowing that the threat hasbeentakenaway,andwillnotbeletgountilamagistratetakesacloser look and determines whether the individual should be released.218 However,notallpeoplewhocommitcriminaloffensespossessadangerto society.219 Minor offenders may not require the drastic act of arrest, and may be better served through a summons or citation.220 Since the act of knowingly purchasing trademark counterfeit fashion goods does not supportaconclusionthatthepersonisathreattosociety,thereisnoneed

210 211 212

Seeid. Seeid.

See United States v. Scott, 450 F.3d 863, 865 (9th Cir. 2006) (providing that an arrest ensures a defendants presence in court); Brief of Amicus Curiae Texas Criminal Defense Lawyers Association in Support of Petitioners, Atwater v. City of Lago Vista, 530 U.S. 1260 (2000) (No. 991408), 2000 WL 1299521, at * 3 [hereinafter Brief] (noting that the reason why policearrestasuspectistoensurethathewillappearincourt).
213 Brief, supra note 212 (explaining that a person who has committed a criminal traffic violationbuthasprovidedtheirlicenseandsignedapromisetoappearincourtdoesnotneed tobearrestedtoensurehisappearanceincourt). 214 215 216 217

Saltzburg,supranote205,at1002. BriefforthePetitioners,supranote203. SeeSaltzburg,supranote205,at1002.

ShawnM.Mamasis,FearoftheCommonTrafficStopAmIGoingtoJail?TheRightof PolicetoArbitrarilyArrestorIssueCitationsforMinorMisdemeanorsinAtwaterv.CityofLago Vista, 27 T. MARSHALL L. REV. 85, 107 (2001) (noting that the theory of arrest is to segregate individualswhoareathreattosociety).
218 219 220

Saltzburg,supranote205,at1002. Id. Id.

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todetaintheseindividuals.221 VI. PossibleCriticismsoftheProposedUniformLaw A. TheSeverityofCriminalPunishment Some may argue that the introduction of a criminal penalty for the knowing purchase of trademark counterfeit fashion merchandise is too severe.222 However, criminal penalties for a similar activityreceiving stolenpropertyisalreadyembodiedinourcriminalcodeandembraced by society.223 In view of the current trend to recognize trademark counterfeiting as stealing anothers intellectual property, the subsequent purchase of these fashion items is directly in line with the crime of receivingstolenpropertyanditspenalty.224 Additionally, the harm to the U.S. economy requires strong penalties against individuals who contribute to its financial depletion.225 Counterfeitersarenotharmlessconartistsorpoorstreetpeddlers;theyare playersinanillegalindustrythatmake$600billiondollarsannuallywhile U.S. citizens lose jobs and community services.226 More than 13.3 million Americans are currently unemployed; regaining the jobs that counterfeitingstealsisessential.227 The purchase of counterfeit fashion items also funds terrorist acts on U.S.soil,andsupportstheenslavementofchildlaborers;228nottomention thatapurchaserscounterfeithandbagmayhavetheremainsoftrafficked drugs in its inseam.229 Considering the harm that the purchase of counterfeit fashion items has on society, a misdemeanor punishable by a flatrate,fineonlypenaltyoftwohundredandfiftydollarsmorethanfits
221 See id. (suggesting that since not all criminal activity poses an immediate risk to the public,itisnotalwaysnecessarydetaineverycriminal).

Silverman, supra note 40, at 207 (arguing that criminal penalties for the purchase of counterfeitgoodsisdisproportionatetotheact).
223 224

222

SeeModelPenalCode223.6.

See id. (providing that a person is guilty of receiving stolenpropertyiftheyreceiveit knowingorbelievingthatithasbeenstolen).

225 See Rosenberg, supra note 15, at 116 (concluding that the government would be well advised to consider criminal penalties for consumers who knowingly buy counterfeit products). 226 227

FactsonFakes,supranote8,at3.

See US Unemployment Rate Drops Sharply, VOICE OF AM. (Dec. 1, 2011), http://www. voanews.com/english/news/usa/USUnemploymentRateDropsSharply134901378.html.
228 229

FactsonFakes,supranote8,at5;Fox,supranote4.

SeeAnticounterfeitingConsumerProtectionActof1995,S.Rep.No.104177,at5(1995); FactsonFakes,supranote8,at9.

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thecrime.230 Finally, the current criminalization of other less severe activity supports the criminalization of the knowing purchase of counterfeit fashion items.231 Our legal system embraces the criminalization of disturbingthepeace,232failuretopayahighwaytoll,233smokingonsubway platforms,234 and even jaywalking, none of which result in harms to the level that is caused by the purchase of trademark counterfeit goods.235 Based on the harms counterfeiting causes and current criminalized behavior, criminal punishment for the knowing purchase of trademark counterfeitfashionitemsfitswithinourcriminaljusticesystem.236 B. TheBurdentheNewLawPutsonLawEnforcementandtheCourt System A concern that arises with the passage of a new criminal law is the burden it may put on law enforcement237 and the court system.238 The
230 231

SeesupraPartIV.AC.

See IDAHO CODE ANN. 186409 (2007) (providing that any person who disturbs the peaceissubjecttoamisdemeanor);ARIZ. REV. STAT. ANN. 132904(2010)(explainingthata person who commits disorderly conduct with the intent to disturb the peace is subject to a class1misdemeanor).
232 233

IDAHOCODEANN.186409;ARIZ.REV.STAT.ANN.132904.

RuthE.Sternglantz,RainingontheParadeofHorribles:OfSlipperySlopes,FauxSlopes,and JusticeScaliasDissentinLawrencev.Texas,153U.PA.L.REV.1097,1112(2005)(citingAtwater v. City of Lago Vista, 532 U.S. 318, 371 (2001) (OConner, J., dissenting)) (noting that both litteringandnotpayingahighwaytollarefineonlymisdemeanorsinTexas). MASS. GEN. LAWS ch. 272, 43A (2010) (providing that a person who smokes in a terminaloperatedbytheMassachusettsBayTransportationAuthorityshallbepunishedby imprisonmentfornotmorethantendaysorbyafineofnotmorethanonehundreddollars, orbothsuchfineandimprisonment).
235 Pedestrian Struck Near Orange Coast College Campus, LEDGER & ASSOCIATE, http://www.ledgerlaw.com/personalinjurylawyer/caraccidentlawyer/pedestrianstruck nearorangecoastcollegecampus/ (last visited May 30, 2012) [hereinafter LEDGER & ASSOCIATE] (explaining that jaywalking is a misdemeanor offense in most California jurisdictions). 236 237 234

SeeMASS.GEN.LAWSch.266,60;LEDGER&ASSOCIATES,supranote235.

SeeDanielBooth,FederalismonIce:StateandLocalEnforcementofFederalImmigrationLaw, 29HARV. J.L. & PUB. POLY1063,1064(2006)(explainingthatopponentsofnewlawsallowing state and local law enforcement to carry out federal immigration laws would overburden theselawenforcemententities).
238 See Sara Sun Beale, The Unintended Consequences of Enhancing Gun Penalties: Shooting Down the Commerce Clause and Arming Federal Prosecutors, 51 DUKE L.J. 1641, 164951 (2002) (noting that Senator DAmatos proposal to make murders committed with a handgun that traveled interstate a federal crime was rejected for fear the new federal crime would overburdenthecourtsystem).

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burden to law enforcement can come in the form of training239 and enforcement resources.240 While in some instances training on a new law may be extensive, this is not the case with the proposed law since police officers havealready beentrained to identify counterfeits and enforce the existing laws against the manufacture and distribution of counterfeit goods.241Theproposedlawismerelyanextensionofenforcementagainst counterfeit activity.242 The law will give enforcement entities another weaponintheirfightagainstcounterfeiting.243 Additionally, the burden on police resources can be mitigated.244 Unlikesomecrimesthatcanoccuranywhere,counterfeitingactivitytends to occur and reoccur in certain areas known to police officers.245 By strategicallyfocusingonhighcounterfeitingareas,costscanbereduced and resources can be preserved.246 While the cost of law enforcement cannot be totally eliminated, states and cities plagued by counterfeiting activity may be able to recoup their costs through the criminal fines imposed247 and on the tax revenue they regain when counterfeit sales are prevented.248 While new criminal laws may burden the court system, the recommended language of the new proposed law eliminates any unnecessary burden and confusion.249 Under the proposed law, the main element of the crimeknowledgecan be established through circumstantialevidence.250Sinceimputedknowledgeisalowerburdento
239 SeeTEX. ADMIN. CODEtit.37, 217.11(2012)(noting thatofficersarerequiredtotake continuingeducationclassesthatcoverchangesinthelaw). 240 Silverman, supra note 40, at 218 (explaining that law enforcement costs are always a concernwhenenactingacriminalstatute). 241 18U.S.C.2320(a)(1)(Supp.2011)(showingthatitisalreadyillegaltoknowinglysell counterfeittrademarkitems). 242 243 244

Seeid.(providingthatcurrentlawcoversthesaleofcounterfeittrademarkgoods). Seeid.(notingitisalreadycriminaltoknowinglysellcounterfeittrademarkitems).

See Whren v. United States, 517 U.S. 806, 808 (1996) (explaining that police officers targetlocationsknowntobehighdrugareasintheirfightagainstdrugs).
245 Vesilind,supranote103(explainingthatSanteeAlleyisLosAngelessgroundzerofor counterfeitfashionitems);GuidetoBuyingFakeHandbaginNewYorkCity,NEW YORK SHOW TICKET, http://www.nytix.com/NewYorkCity/articles/handbags.html (last visited Mar. 10, 2012)(notingthatCanalStreethasthebestcounterfeithandbags).

Cf.Whren,517U.S.at808(showingthatpolicepatrolareasandtargetlocationsknown tobehighdrugareasintheirfightagainstdrugs).
247 248 249

246

Silverman,supranote40,at21819. SeeFox,supranote4.

See Silverman, supra note 40, at 219 (noting that laws that include an imputed knowledge,ratherthanactualknowledge,requirementincreasejudicialefficiency).
250

SeesupraPartV.B.2.

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provethanactualknowledgecourtproceedingcanrunquickerandmore efficiently.251 Additionally, the burden on the court system is minimized by the proposed laws penalty.252 By using a flatrate, fineonly penalty of two hundredandfiftydollarsforallviolators,thebrightlinepenaltyremoves the burden of sentencing from judicial proceeding.253 Finally, concerns about the burden on law enforcement and the court system need to be weighed against the impact the criminal activity has on society, considering the negative effects of purchasing trademark counterfeit fashionitems,theburdenisworthwhile.254 C. PublicAwarenessoftheProposedLaw As individual states adopt the proposed uniform law, the public will needtobeawareofthecriminalpenaltyimposedontheknowingpurchase ofcounterfeitfashionitems.255Thereareseveralwaysinwhichthepublic can be made aware of this new law.256 First, the law can be included in travel guides, on travel websites, and posted at tourist information centers.257Anotherwaytoinformthepublicistousesignageinareassuch asCanalStreetinNewYorkCityandSanteeAlleyinLosAngeleswhich are known for the sale and purchase of counterfeit items.258 Additionally, intellectualpropertyorganizationsandfashioncompanieswhichalready run anticounterfeiting campaignscan include the new law in their
251 See Silverman, supra note 40, at 219 (explaining that imputed knowledge based on objectivecriteriaismorecosteffective). 252 253

Seeinfratextaccompanyingnotes25455.

See Jacqueline Rose, Mandatory Sentencing, INTERNATIONAL DEBATE EDUCATION (Jan. 10, 2011), http://www.idebate.org/debatabase/topic_details.php? topicID=200 (discussing how mandatory sentencing frees up a bottleneck in the judicial system by removing the need for lengthy and costly presentencing reports, thus increasing efficiency).
ASSOCIATION
254 SeeFox,supranote4(notingthenegativeeconomic,criminal,healthandsafetyimpacts ofcounterfeiting). 255 SeeJosephE.Murphy,TheDutyoftheGovernmenttoMaketheLawKnown,51FORDHAM L. REV. 255, 285 (1982) (arguing that promulgation, making the public aware of laws, is an affirmativedutyofthegovernment). 256 257

Seeinfratextaccompanyingnotes25861.

SeeGINGER ADAMS OTIS, PUERTO RICO 263 (3ded.2005)(providingthelocalroadrules in Puerto Rico); Myrtle Beach: State & Local Laws, TRIPADVISOR, http://www.tripadvisor.com /Travelg54359c3585/MyrtleBeach:SouthCarolina:State.And.Local.Laws.html (last visited Nov.20,2012)(providingtouristswithlawsuniquetoMyrtleBeach). See No Smoking Signs, ALLSTATE SIGN, http://www.allstatesign.com/building/no smoking(lastvisitedNov.20,2012)(explaininghowpostingsignshelpsenforcepoliciesand ensurepeoplecomplywithstateandfederallaws).
258

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campaigns.259 Finally, once purchasers of the illegal fashion goods start receiving the criminal fine, the existence of the law will likely spread virallyasthetopicoffashionblogs.260 CONCLUSION Over the past three decades, counterfeiting has grown from a $5.5 billionannualindustrytoa$600billionannualindustry.261Thisgrowthhas occurred in the face of increased criminal penalties, tougher law enforcement, and strong anticounterfeiting campaigns. With no evidence that counterfeiters plan to slow down, it is time to hold individuals criminally liable for their role in the industrys success and the harms it causes. Thegoalofimposingcriminalpenaltiesagainstconsumersistodeter themfrommakingthepurchases.Byreducingconsumerdemandwhich drivescounterfeitactivitythemanufactureandsaleofcounterfeitgoods willbereduced.Inturn,therevenuelosttocounterfeitingwillbereturned toU.S.companiesandthestates,whichwillhelprestorejobsoncelostto counterfeiters.Additionally,theneedforchildlaborwillbeminimizedand purchasers will no longer be facilitating organized crime. To win the war against the illegal counterfeiting world, it is time for the United States to declare that no act of bargain shopping or desire for a fashion status symbolisworththeharmsthatthepurchasescause.

259 HarpersBazaar,supranote153;PublicAwarenessCampaign,supranote153(highlighting theIACCsanticounterfeitingcampaign).

See Heather Fonseca, Knockoff or Not?, THE STYLE CONFESSIONS (June 20, 2011), http://thestyleconfessions.com/2011/06/20/knockoffornot/(questioningwhetheritshouldbe acrimetopurchasecounterfeitfashionitems);SusanScafidi,TotedAway,COUNTERFEIT CHIC (July15,2011),http://www.counterfeitchic.com/(bloggingabouttheCFDAeBaycollaboration tofightcounterfeiting). Facts on Fakes, supra note 8, at 3 (noting that in 1982 counterfeiting cost the global economy $5.5 billion and by 1996 costs increased to $200 billion); Bitton, supra note 14 (showingthatthecurrentglobalcostsofcounterfeitingare$600billionannually).
261

260