senate Bill S6966

Relates to the disposal of counterfeit products

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 17 / Apr / 2012
    • REFERRED TO CONSUMER PROTECTION
  • 21 / May / 2012
    • REPORTED AND COMMITTED TO CODES

Summary

Relates to the disposal of counterfeit products.

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Bill Details

See Assembly Version of this Bill:
A6248A
Versions:
S6966
Legislative Cycle:
2011-2012
Current Committee:
Senate Codes
Law Section:
General Business Law
Laws Affected:
Amd §360-m, Gen Bus L; amd §165.74, Pen L
Versions Introduced in 2009-2010 Legislative Cycle:
A10813, A10813

Votes

7
0
7
Aye
0
Nay
2
aye with reservations
0
absent
1
excused
0
abstained
show Consumer Protection committee vote details

Sponsor Memo

BILL NUMBER:S6966

TITLE OF BILL:
An act
to amend the general business law and the
penal law, in relation to the
disposal of counterfeit products

PURPOSE:
Currently, all seized counterfeit or imitation products must be
delivered to an officer of the court or to the complainant to be
destroyed. This bill would add the option for the court to donate
clothing products to recognized charitable organizations.

SUMMARY OF PROVISIONS:
The court would make the determination that the seized clothing
products may be donated; they could be given only to nonprofit
corporations with an established history of service to indigent
individuals. These corporations would be able to petition the court
for consideration. The merchandise companies whose products have been
counterfeited would have to "opt-out" within 30 days, the clothing
items would be distributed by the court. These items could not be
sold by either the charity or by the individuals who receive them.
All distributed items would have the tags removed or marked in such a
way that they would not be confused with actual products of the
lawful mark owner.
This bill would restrict donations to clothing items.

LEGISLATIVE HISTORY:
Similar to S.3660/S.4147

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
Immediate.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  6966

                            I N  S E N A T E

                             April 17, 2012
                               ___________

Introduced  by  Sen.  GRIFFO -- read twice and ordered printed, and when
  printed to be committed to the Committee on Consumer Protection

AN ACT to amend the general business law and the penal law, in  relation
  to the disposal of counterfeit products

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Section 360-m of the general  business  law,  as  added  by
chapter 319 of the laws of 1996, is amended to read as follows:
  S  360-m. Remedies. 1. Any owner of a mark registered under this arti-
cle may proceed by suit to enjoin the manufacture, use, display or  sale
of  any  counterfeits  or  imitations thereof and any court of competent
jurisdiction may grant injunctions to restrain  such  manufacture,  use,
display  or sale as may be by the said court deemed just and reasonable,
and may require the defendants to pay to such owner all profits  derived
from and/or all damages suffered by reason of such wrongful manufacture,
use,  display or sale; and such court may also order that any such coun-
terfeits or imitations in the possession or under  the  control  of  any
defendant  in  such  case be delivered to an officer of the court, or to
the complainant, to  be  destroyed  OR  DONATED.    The  court,  in  its
discretion,  may  enter judgment for an amount not to exceed three times
such profits and  damages  and/or  reasonable  attorneys'  fees  of  the
prevailing  party  in  such  cases where the court finds the other party
committed such wrongful acts with knowledge or in bad faith or otherwise
as according to the circumstances of this case. The enumeration  of  any
right  or  remedy herein shall not affect a registrant's right to prose-
cute under the penal law.
  2. IF A COURT MAKES A DETERMINATION THAT THE COUNTERFEIT OR  IMITATION
PRODUCTS  SHOULD  BE DONATED, THEN NOTICE OF THAT DETERMINATION SHALL BE
GIVEN TO THE LAWFUL MARK OWNER OF THE PRODUCTS. THE NOTICE  SHALL  STATE
THAT  THE  COURT  INTENDS TO DONATE THE SEIZED PRODUCTS TO HELP INDIGENT
INDIVIDUALS AND THAT THE DONATION WILL PROCEED UNLESS  THE  LAWFUL  MARK
OWNER  OBJECTS  TO  THE DONATION, IN WRITING. THE LAWFUL MARK OWNER WILL
HAVE THIRTY DAYS TO OBJECT TO THE COURT TO THE DONATION.  IF THE  LAWFUL
MARK  OWNER  DOES  NOT  OBJECT,  OR GIVES NO RESPONSE WITHIN THAT PERIOD

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08012-03-2

S. 6966                             2

DESPITE HAVING RECEIVED THE NOTICE, THEN THE COURT SHALL TAKE THAT AS  A
GRANTING  OF  CONSENT  BY THE LAWFUL MARK OWNER THAT THE DONATION SHOULD
PROCEED.
  3.  THE  COUNTERFEIT  OR  IMITATION  PRODUCTS  MAY  ONLY BE GIVEN TO A
NOT-FOR-PROFIT CORPORATION THAT HAS AN ESTABLISHED HISTORY OF  PROVIDING
GOODS  AND  SERVICES TO INDIGENT INDIVIDUALS. ORGANIZATIONS MAY PETITION
THE COURT TO BE CONSIDERED A RECIPIENT OF THE COUNTERFEIT  OR  IMITATION
PRODUCTS.  THE  JUDGE,  IN  HIS  OR HER SOLE DISCRETION, SHALL DETERMINE
WHETHER AN ORGANIZATION QUALIFIES PURSUANT TO THIS SUBDIVISION AND WHICH
ORGANIZATION SHALL RECEIVE THE COUNTERFEIT OR IMITATION PRODUCTS.
  4. ANY COUNTERFEIT OR IMITATION PRODUCTS RECEIVED BY  AN  ORGANIZATION
THROUGH  THIS  SECTION  MAY NOT BE SOLD BY THE ORGANIZATION, NOR MAY ANY
PERSON OR ENTITY IN POSSESSION  OF  ANY  OF  THESE  PRODUCTS  SELL  SUCH
PRODUCTS.
  5.  ANY  COUNTERFEIT OR IMITATION PRODUCTS RECEIVED BY AN ORGANIZATION
THROUGH THIS SECTION MUST HAVE THE PRODUCTS' TAGS REMOVED  OR  HAVE  THE
PRODUCTS  MARKED,  ALTERED,  IMPRINTED  OR  INDELIBLY  STAMPED  SO AS TO
PREVENT THEIR RESALE OR ANY CONFUSION WITH THE ACTUAL  PRODUCTS  OF  THE
LAWFUL MARK OWNER.
  6.  PROVIDED, HOWEVER, THAT THE ONLY COUNTERFEIT OR IMITATION PRODUCTS
THAT MAY BE DONATED PURSUANT TO THIS SECTION SHALL BE CLOTHING, AND  ALL
OTHER COUNTERFEIT OR IMITATION PRODUCTS MUST BE DESTROYED.
  S 2. Section 165.74 of the penal law, as amended by chapter 535 of the
laws of 1995, is amended to read as follows:
S  165.74 Seizure and DISTRIBUTION OR destruction of goods bearing coun-
           terfeit trademarks.
  Any  goods  manufactured,  sold,  offered  for  sale,  distributed  or
produced  in violation of this article may be seized by any police offi-
cer. The magistrate must, within forty-eight hours after arraignment  of
the  defendant,  determine whether probable cause exists to believe that
the goods had been manufactured, sold, offered for sale, distributed  or
produced  in violation of this article, and upon a finding that probable
cause exists to believe that the  goods  had  been  manufactured,  sold,
offered for sale, distributed, or produced in violation of this article,
the court shall authorize such articles to be retained as evidence pend-
ing  the  trial of the defendant.  Upon conviction of the defendant, the
articles in respect whereof the  defendant  stands  convicted  shall  be
destroyed  OR  DONATED.   Destruction shall not include auction, sale or
distribution of the items in their original form. DONATION OF THE  ITEMS
SHALL  BE  MADE  AT  THE  COURT'S DISCRETION UPON THE REQUEST OF ANY LAW
ENFORCEMENT AGENCY AND PURSUANT TO THE RESTRICTIONS  AND  PROCEDURES  OF
SECTION THREE HUNDRED SIXTY-M OF THE GENERAL BUSINESS LAW, FOR THE BENE-
FIT OF INDIGENT INDIVIDUALS.
  S 3. This act shall take effect immediately.

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