Brief ⁽¹⁾

HB 2596 would amend the Criminal Code to add the crime of counterfeiting, defined as the intentional manufacturing, using, displaying, advertising, distributing, offering for sale, selling, or possessing with intent to sell or distribute any item or services bearing or identified by a counterfeit mark.

The penalties for the crime are as follows:

• when the retail value is less than $500, the penalty is a class A nonperson misdemeanor;



• when the retail value is at least $500 but less than $25,000, involves more than 100 but less than 1,000 items bearing a counterfeit mark, or on a second violation, the penalty is a severity level 9 nonperson felony;



• when the retail value is $25,000 or more, involves 1,000 or more items, or on a third or subsequent violation, the penalty is a severity level 7 nonperson felony;



• the crime of counterfeiting is added to those offenses that are subject to forfeiture whether or not there is a conviction; and



• upon the request of the intellectual property owner, seized items must be released to the owner.

Background

The sponsor spoke in favor of the bill. The delegate from Oakley, Inc. also testified in support of the bill.

The fiscal note indicates the fiscal impact would depend on the number of probation revocations due to counterfeiting.

1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/bill_search.html