Selling fake brands? That is a crime.

Myth or fact?

What people often think.

• Myth: Copies are sold everywhere. Only the factory is at fault.
• Fact: Selling goods with a counterfeit trade mark is a crime too: up to 1 year (PPC s.486), unless the seller proves he acted innocently.

The law.

Section 486, PPC.

“Whoever sells, or exposes, or has in possession for sale or any purpose of trade or manufacture, any goods or thing with a counterfeit trade mark or property mark affixed to or impressed upon the same ... shall, unless he proves ... be punished with imprisonment of either description for a term which may extend to one year, or with fine, or with both.”

Pakistan Penal Code, 1860 · Section 486, Selling goods marked with a counterfeit trade mark

Three crimes.

Sections 482, 483, 486, PPC.

• s.482 UsingA false trade mark. Up to 1 year.
• s.483 CopyingCounterfeiting another's mark. Up to 2 years.
• s.486 SellingGoods with a counterfeit mark. Up to 1 year.

The seller's way out.

Section 486, clauses (a) to (c).

• PrecautionsHe took reasonable care and had no reason to doubt the mark.
• The supplierWhen asked, he told all he knew about who supplied it.
• OrHe otherwise acted innocently.

Quick quiz. The shop.

Guess first, then swipe for the answer.

• A. Yes, always
• B. He can prove the defence
• C. Only the buyer is at fault

Answer: B. The burden is his.

Section 486, PPC.

• The ruleSelling a fake is an offence unless he proves the defence.
• His proofCare taken, no reason to suspect, the supplier named.

The newer law.

Sections 99, 100, Trade Marks Ordinance, 2001.

• False description3 months to 2 years, or a fine of at least Rs.50,000, or both.
• False originA false country or maker on goods: same penalty.
• Again6 months to 3 years, or at least Rs.100,000 (s.100).

How it runs.

Schedule II, CrPC, section 486.

• ArrestPolice shall not arrest without a warrant.
• BailBailable.
• SettlingCompoundable with the court's permission.

Why the law cares.

Supreme Court, 20 Jan 2015 (Farooq Ghee Mills v. Registrar of Trade Marks).

• Who it protectsBuyers, and the honest traders behind a mark.
• The words"robbing someone of his hard earned goodwill"

Before you buy.

Three habits that catch most fakes.

• The priceFar below the market is a warning.
• The packSpelling, print and seals.
• The billAsk for one with the seller's name.

Not sure?

Ask FAI in your own words. It answers with the exact section and the judgments behind it.

• A shop sold me a fake branded phone charger. What can I do?
• What is the punishment under section 486 PPC?

Example questions

Sources

• Pakistan Penal Code, 1860 · Section 486
  Selling goods marked with a counterfeit trade mark Pakistan Code