Counterfeit: when trademarks get cold feet

The sale of counterfeit household items, such as clothing and shoes, has become part of everyday life in South Africa. Vendors at robots and flea markets make a comfortable living selling what are, in many instances, illegal and sub-standard imports from China. However, the perception exists that this is only in relation to goods such as clothing, sneakers, CD/DVDs, sunglasses, handbags and the like, when in fact television sets, toys, ointments (such as Zambuk), vehicle parts, healthcare products (for example, Viagra) and other medicines, and even gold, are regularly sold in counterfeit form.

Without doubt, this trade in counterfeit goods affects the genuine goods market. In some instances, the counterfeit product is defective, less robust or even dangerous and may prove disastrous to the reputation of the authentic goods. It is also said that large criminal organizations are involved in counterfeit operations, and that the money earned is used in money laundering schemes and organized drug smuggling activities. Counterfeit goods therefore represent the dark side of intellectual property.

The Counterfeit Goods Act

The objective of the Counterfeit Goods Act is to offer a practical means of protecting certain rights which are undermined by counterfeiting activities. The rights which are dealt with in this act include those arising from registered trademarks, or well-known trade marks such as McDonald’s, and copyrighted works. Patent and design rights are not, however, afforded protection under this act.

Rowan Forster is a director at Edward Nathan Sonnenbergs. Janine Lee is a director at Edward Nathan Sonnenbergs

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E-mail: info@ens.co.za

 

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