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The Corporate CounselorLJN NewslettersNewsSections

Criminal Prosecution

By E. Alex Beroukhim and Emilia P. E. Morris

With the dramatic influx of counterfeit goods in the marketplace, brand name manufacturers now, more than ever, have their work cut out for them as they seek to protect the reputation and value of their trademarks. For example, in February of this year, U.S. Customs and Border Protection seized 1,500 counterfeit Hermes' leather handbags at the Los Angeles/Long Beach seaport that had been shipped from China and would have had an estimated retail value of $14.1 million.

In December 2012, as a part of the third annual Operation Holiday Hoax, federal authorities seized a wide variety of suspected counterfeit merchandise, including sports jerseys, athletic shoes, designer jewelry and leather goods at mail processing and express cargo facilities in Los Angeles and the San Francisco Bay Area, among other locations. Nationally, U.S. Customs and Border Protection reports that the manufacturer's suggested retail price of seized counterfeit goods increased from $1.11 billion in FY 2011 to $1.26 billion in FY 2012.

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