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It could soon be harder to find everything from knockoff handbags to pirated CDs and DVDs in Virginia because of new laws designed to crack down on counterfeit products.
While many people are more familiar with knockoffs of brand name products such as sunglasses, purses and licensed sports jerseys, officials say there is a darker side the counterfeiting business.
"Fake brake pads, fake toothpaste, batteries that explode. It is a significant problem," said Virginia Attorney General Bob McDonnell, who led legislative efforts to change the Commonwealth's laws governing counterfeit products.
The Food and Drug Administration estimates that counterfeit drugs account for 10 percent of all drugs sold in the nation.
Daljit Kaur owns a discount store in Springfield. She hopes the new law will help insure she gets authentic merchandise from her wholesaler.
"We don't want to sell bad stuff," said Kaur. "I even pay more, but still we don't know if it's good or bad. How can we find out?"
The new laws, which go into effect Tuesday, change the Commonwealth's definition of trademark to include all products registered with the U.S. Patent and Trademark office. Previously, only products trademarked in Virginia were subject to copyright protections. The problem was that few companies trademark products state-by-state, leaving a loophole, according to McDonnell.
The legislation also increases the penalties for selling knockoff products to a class 1 misdemeanor. Anyone in possession of 100 counterfeit products, or knockoff products worth more than $200, is subject to a class 6 felony charge.
According to a news release from the Attorney General's office, counterfeit products have included, "automotive brake pads, diabetes test strips, airline mechanical parts, smoke alarms, baby food, prescription drugs, cancer-fighting drugs, surgical mesh, batteries, wine, clothing, shoes, DVDs/CDs, toys, toothpaste and jewelry."
Federal regulators estimate counterfeiting and piracy cost the U.S. about $250 billion each year, and led to the loss of more than 750,000 jobs.
Officials say they will handle enforcement on a complaint basis, so don't expect raids. They do, however, predict you will see fewer of the kiosks selling knockoff handbags.
Criminal Penalties Referenced:
- ·Class One Misdemeanor: Up to 12 months in jail and/or up to $2500 fine
- ·Class Two Misdemeanor: Up to 6 months in jail and/or up to $1000 fine
- ·Class Six Felony: 1-5 years in jail, or up to 12 months and/or a fine up to $2500
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