Counterfeiting is a global problem. It’s not only a recognised economic parasite which diminishes brand value, subverts government tax revenue and reduces profits; it also poses a real danger to consumers.

In South Africa counterfeit goods are not limited to everyday items such as clothing, jewellery, cigarettes, cellphone accessories etc, but extend to highly sophisticated industries such as motor vehicles, foodstuffs and cosmetics – to mention a few.

And Godfrey Budeli, Senior Associate at internationally recognised law firm Adams & Adams’ trade mark department knows all about it.

Adams & Adams litigation teams are focused on combating the infringement of client’s intellectual property rights.

Particularly with regards to matters in which they take action on behalf of clients to curb the smuggling of counterfeit goods into the Republic or prevent the sale of the goods in this country.

“It’s extremely important that we, as a firm, have an in-depth knowledge of what counterfeit goods are, what the consequences are of dealing in these goods is, and how we can protect ourselves and our clients from harm caused by counterfeit goods,” says Budeli.

“In terms of the South African Counterfeit Goods Act (CGA) any person found dealing in counterfeit goods – whether it’s being in possession of the goods for trading, importing, marketing, displaying for sale, or distributing is subject to both criminal and civil sanctions,” says Budeli.

The CGA provides a maximum penalty for first time offenders of R5000 per item, or three years’ imprisonment. Repeat offenders face a maximum fine of R10000 per item, or five years’ imprisonment. Dealing in counterfeit goods is a serious crime with very serious consequences.

“The bottom line,” says Budeli “is that any person wanting to import branded goods for purposes of trading, or selling should ensure that they’re from a seller who has the relevant copyright or trade marks, and is authorised to distribute or to sell them.”

And ignorance is not bliss. Anyone importing or selling goods is obligated to take all reasonable steps to ensure they are not counterfeit. And the nature of the type of the counterfeit goods may pose a threat to your health.

Says Budeli: “Counterfeit foodstuffs are an example, or in the instance of fake brake pads or mag wheels, may put your life at risk,”

And while counterfeit goods are generally of poor quality, it’s not always easy to distinguish counterfeits from the genuine article. However, the alarm bells should ring if the price is too good to be true.

For more information contact:
Adams & Adams
Godfrey Budeli
012 432 6000