Dealing in counterfeit goods, a serious crime

Counterfeiting is a global problem. It's not only a recognised economic parasite which diminishes brand value, subverts government tax revenue and reduces profits, but it also poses a real danger to consumers. In South Africa counterfeit goods are not limited to everyday items such as clothing, jewellery, cigarettes and cellphone accessories, but extend to highly sophisticated industries such as motor vehicles, foodstuffs and cosmetics.

29 Sep 2011

"It's extremely important that we have an in-depth knowledge of what counterfeit goods are, what the consequences are of dealing in these goods and how we can protect ourselves and our clients from harm caused by counterfeit goods," says Godfrey Budeli, senior associate at Adams & Adams law firm.

"In terms of the South African Counterfeit Goods Act (CGA) any person found dealing in counterfeit goods - whether it's being in possession of the goods for trading, importing, marketing, displaying for sale or distributing is subject to both criminal and civil sanctions," says Budeli.

Verify copyright and trademark

The CGA provides a maximum penalty for first time offenders of R5 000 per item, or three years' imprisonment. Repeat offenders face a maximum fine of R10 000 per item, or five years' imprisonment. "The bottom line," says Budeli "is that any person wanting to import branded goods for purposes of trading or selling should ensure that they are from a seller who has the relevant copyright or trade marks and is authorised to distribute or to sell them."

Anyone importing or selling goods is obligated to take all reasonable steps to ensure they are not counterfeit.

While counterfeit goods are generally of poor quality, it's not always easy to distinguish counterfeits from the genuine article. However, the alarm bells should ring if the price is too good to be true.