Selling counterfeit goods—whether it’s fake designer handbags, knock-off electronics, or imitation pharmaceuticals—is a federal crime that can result in severe penalties, including prison time, asset forfeiture, and heavy fines. If you or someone you know is facing these charges, it’s crucial to understand the law, the government’s burden of proof, and possible defenses.
What Is A Counterfeit Good?
A counterfeit good is any product that bears a trademark, logo, or label that is identical or substantially indistinguishable from a registered trademark, but is used without authorization.
Common examples:
- Fake luxury brand clothing and accessories
- Knock-off electronics sold under well-known names
- Counterfeit car parts, pharmaceuticals, or software
The key element is intent to deceive or confuse consumers about the source or authenticity of the product.
Key Federal Statute: 18 U.S.C. § 2320
This is the primary federal law criminalizing trafficking in counterfeit goods.
Under 18 U.S.C. § 2320, it is a crime to:
“Intentionally traffic in goods or services and knowingly use a counterfeit mark on or in connection with such goods or services.”
Legal Elements the Government Must Prove:
- You trafficked in goods or services – sale, transport, or distribution.
- The goods had a counterfeit trademark – identical or substantially indistinguishable from a genuine registered trademark.
- You knew the trademark was counterfeit.
The penalties vary based on the value and type of counterfeit items:
| Offense | Potential Penalty |
| First offense (individual) | Up to 10 years in prison, $2 million fine |
| Second or subsequent offense | Up to 20 years in prison |
| Offense involving health or safety (e.g., counterfeit drugs, auto parts) | Up to 20 years in prison |
| Organizations (e.g., companies) | Fines up to $5 million |
Additionally:
- Asset forfeiture: The government may seize counterfeit goods, proceeds of the sales, and property used to commit the offense.
- Restitution: Courts may order you to pay restitution to trademark holders.
Common Scenarios That Lead To Charges
- Selling fake designer goods at flea markets or online platforms like eBay or Amazon.
- Importing counterfeit goods from overseas to resell in the U.S.
- Operating websites or social media accounts that promote and sell counterfeit merchandise.
- Repackaging and relabeling generic or expired goods as name-brand products.
Federal agencies involved in these investigations include:
- Homeland Security Investigations (HSI)
- Customs and Border Protection (CBP)
- Federal Bureau of Investigation (FBI)
- U.S. Postal Inspection Service
Common Legal Defenses
1. Lack of Knowledge
You did not know the goods were counterfeit. For example, you purchased items from a third-party supplier assuming they were authentic.
2. No Intent to Defraud
You did not attempt to mislead consumers or use a fake mark with the intent to deceive.
3. Substantial Differences
The mark used may not be “substantially indistinguishable” from a registered trademark, especially in parody or artistic expression cases.
4. Not “Trafficking” Under the Law
If you did not sell, transport, or distribute the item, you might argue your involvement was too minimal to qualify as trafficking.
5. Lawful Resale
In some rare cases, reselling genuine products may be protected under the “first sale doctrine”—if the goods were originally lawfully sold by the trademark owner and haven’t been materially altered.
How These Cases Are Investigated
Federal prosecutors often rely on:
- Undercover purchases
- Surveillance and internet records
- Customs seizures
- Testimony from brand investigators
- Financial transaction records
If you’re under investigation or have been contacted by federal agents, do not make statements—speak to our Tampa, FL criminal defense lawyer immediately.
Facing Counterfeit Goods Charges? Act Fast.
A conviction for trafficking in counterfeit goods can devastate your career, finances, and freedom. If you’re under investigation or have been arrested, you need a criminal defense attorney who understands federal court, intellectual property law, and government enforcement tactics.
At Stechschulte Nell, we defend clients across the U.S. facing complex white-collar and federal criminal charges. Contact us today for a confidential consultation and start building your defense.
