senate Bill S7541

Relates to trademark counterfeiting

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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

  • 15 / May / 2014
    • REFERRED TO CODES
  • 11 / Jun / 2014
    • COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • 11 / Jun / 2014
    • ORDERED TO THIRD READING CAL.1304
  • 11 / Jun / 2014
    • PASSED SENATE
  • 11 / Jun / 2014
    • DELIVERED TO ASSEMBLY
  • 11 / Jun / 2014
    • REFERRED TO CODES

Summary

Relates to trademark counterfeiting.

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Bill Details

Versions:
S7541
Legislative Cycle:
2013-2014
Current Committee:
Assembly Codes
Law Section:
Penal Law
Laws Affected:
Amd §§165.71, 165.72 & 165.73, add §165.74, Pen L

Sponsor Memo

BILL NUMBER:S7541

TITLE OF BILL: An act to amend the penal law, in relation to
trademark counterfeiting

PURPOSE OR GENERAL IDEA OF BILL: Establishes a new crime of trademark
counterfeiting in the fourth degree, and amends the definition and
penalty structure for the existing three degrees of trademark
counterfeiting. The bill's main aim is to impose a harsher penalty for
those who commit trademark counterfeiting in a value in excess of ten
thousand dollars.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1 amends section 165.71 of the penal law to change trademark
counterfeiting in the third degree to trademark counterfeiting in the
fourth degree, and establishes that trademark counterfeiting in the
fourth degree shall be a class A misdemeanor.

Section 2 amends section 165.72 of the penal law to change trademark
counterfeiting in the second degree to trademark counterfeiting in the
third degree. It provides that a person is guilty of trademark
counterfeiting in the third degree if the retail value of all
counterfeit goods manufactured, distributed, sold, or offered for sale
by this person exceeds one thousand dollars or the total number of all
counterfeit goods exceeds two hundred. It also establishes that
trademark counterfeiting in the third degree shall be a class E
felony.

Section 3 amends section 165.73 of the penal law to change trademark
counterfeiting in the first degree to trademark counterfeiting in the
second degree. It provides that a person is guilty of trademark
counterfeiting in the third degree if the retail value of all
counterfeit goods manufactured, distributed, sold, or offered for sale
by this person exceeds twenty-five thousand dollars or if the total
number of all counterfeit goods exceeds two thousand. It also
establishes that trademark counterfeiting in the second degree shall
be a class D felony.

Section 4 renumbers section 165.74 to 165.75, and adds a new section
165.74 which establishes a new definition of trademark counterfeiting
in the first degree. It establishes that a person is guilty of
trademark counterfeiting in the first degree if the retail value of
all counterfeit goods manufactured, distributed, sold, or offered for
sale by this person exceeds one hundred thousand dollars or the total
number of all counterfeit goods exceeds ten thousand. It also
establishes that trademark counterfeiting in the first degree shall be
a class C felony.

Section 5 provides that the act shall take effect on the first of
November next succeeding the date on which it shall have become law.

JUSTIFICATION: Trademark counterfeiting is a serious issue both in
New York State and around the globe, especially when conducted on a
large scale. According to a report released by the New York State
White Collar Crime Task Force, "Trademark counterfeit goods may
account for as much as seven percent of all world trade, or up to $650


billion in sales per year. New York City estimates that it loses more
than $1 billion per year in revenue based upon the sale of counterfeit
goods". The White Collar Crime Task Force report also notes that the
sale of goods bearing counterfeit trademarks is a known revenue stream
for many terrorist organizations, due to the fact that profit margins
are higher and risks are lower than trafficking narcotics. This loss
of revenue to New York state businesses and potential public safety
hazard is extremely concerning, and reveals an area of law enforcement
in dire need of legislative reform.

This legislation serves to rework the penalty structure for trademark
counterfeiting in order to provide penalties which are more
commensurate with the severity of the offense. In particular, it would
make a trademark counterfeiting operation which has a total retail
value exceeding one hundred thousand dollars or which produces a total
number of goods exceeding ten thousand a class C felony.

PRIOR LEGISLATIVE HISTORY: New Legislation

FISCAL IMPLICATIONS: None to the state.

EFFECTIVE DATE: This act shall take effect on the first of November
next succeeding the date on which it shall have become law.

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

                                  7541

                            I N  S E N A T E

                              May 15, 2014
                               ___________

Introduced  by  Sen. HOYLMAN -- read twice and ordered printed, and when
  printed to be committed to the Committee on Codes

AN ACT to amend the penal law, in relation to trademark counterfeiting

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

  Section  1. Section 165.71 of the penal law, as amended by chapter 490
of the laws of 1992, is amended to read as follows:
S 165.71 Trademark counterfeiting in the [third] FOURTH degree.
  A person is guilty of trademark counterfeiting in the  [third]  FOURTH
degree  when, with the intent to deceive or defraud some other person or
with the intent to evade a  lawful  restriction  on  the  sale,  resale,
offering  for  sale,  or  distribution of goods, he or she manufactures,
distributes, sells, or offers for sale goods which  bear  a  counterfeit
trademark, or possesses a trademark knowing it to be counterfeit for the
purpose of affixing it to any goods.
  Trademark  counterfeiting  in  the  [third] FOURTH degree is a class A
misdemeanor.
  S 2. Section 165.72 of the penal law, as amended by chapter 535 of the
laws of 1995, is amended to read as follows:
S 165.72 Trademark counterfeiting in the [second] THIRD degree.
  A person is guilty of trademark counterfeiting in the  [second]  THIRD
degree  when, with the intent to deceive or defraud some other person or
with the intent to evade a  lawful  restriction  on  the  sale,  resale,
offering  for  sale,  or  distribution of goods, he or she manufactures,
distributes, sells, or offers for sale goods which  bear  a  counterfeit
trademark, or possesses a trademark knowing it to be counterfeit for the
purpose  of  affixing  it to any goods, and the retail value of all such
goods bearing OR INTENDED TO BEAR  counterfeit  trademarks  exceeds  one
thousand dollars OR THE TOTAL NUMBERS OF ALL SUCH GOODS BEARING COUNTER-
FEIT TRADEMARKS EXCEEDS TWO HUNDRED.
  Trademark  counterfeiting  in  the  [second] THIRD degree is a class E
felony.
  S 3. Section 165.73 of the penal law, as amended by chapter 535 of the
laws of 1995, is amended to read as follows:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15153-01-4

S. 7541                             2

S 165.73 Trademark counterfeiting in the [first] SECOND degree.
  A  person  is guilty of trademark counterfeiting in the [first] SECOND
degree when, with the intent to deceive or defraud some other person, or
with the intent to evade a  lawful  restriction  on  the  sale,  resale,
offering  for  sale,  or  distribution of goods, he or she manufactures,
distributes, sells, or offers for sale goods which  bear  a  counterfeit
trademark, or possesses a trademark knowing it to be counterfeit for the
purpose  of  affixing  it to any goods, and the retail value of all such
goods bearing OR INTENDED TO BEAR counterfeit  trademarks  exceeds  [one
hundred  thousand  dollars]  TWENTY-FIVE  THOUSAND  DOLLARS OR THE TOTAL
NUMBERS OF ALL SUCH GOODS BEARING  COUNTERFEIT  TRADEMARKS  EXCEEDS  TWO
THOUSAND.
  Trademark counterfeiting in the [first] SECOND degree is a class [C] D
felony.
  S  4. Section 165.74 of the penal law is renumbered section 165.75 and
a new section 165.74 is added to read as follows:
S 165.74 TRADEMARK COUNTERFEITING IN THE FIRST DEGREE.
  A PERSON IS GUILTY OF TRADEMARK COUNTERFEITING  IN  THE  FIRST  DEGREE
WHEN,  WITH  THE INTENT TO DECEIVE OR DEFRAUD SOME OTHER PERSON, OR WITH
THE INTENT TO EVADE A LAWFUL RESTRICTION ON THE SALE,  RESALE,  OFFERING
FOR SALE, OR DISTRIBUTION OF GOODS, HE OR SHE MANUFACTURES, DISTRIBUTES,
SELLS,  OR  OFFERS FOR SALE GOODS WHICH BEAR A COUNTERFEIT TRADEMARK, OR
POSSESSES A TRADEMARK KNOWING IT TO BE COUNTERFEIT FOR  THE  PURPOSE  OF
AFFIXING IT TO ANY GOODS, AND THE RETAIL VALUE OF ALL SUCH GOODS BEARING
OR  INTENDED TO BEAR COUNTERFEIT TRADEMARKS EXCEEDS ONE HUNDRED THOUSAND
DOLLARS OR THE TOTAL NUMBERS  OF  ALL  SUCH  GOODS  BEARING  COUNTERFEIT
TRADEMARKS EXCEEDS TEN THOUSAND.
  TRADEMARK COUNTERFEITING IN THE FIRST DEGREE IS A CLASS C FELONY.
  S 5. This act shall take effect on the first of November next succeed-
ing the date on which it shall have become a law.

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