Counterfeiting is looked at differently in US and in China. As a large contributor to the Chinese GDP the Chinese government looks the other way when it comes to enforcing intellectual property infringement. The Industry and Business Administration are in charge of regulating intellectual property infringement in China. When reports are filed the Industry and Business Administration will contact the police to enforce the law. The police will not do much about it because counterfeit software and products provide the people of China with affordable necessity. On the other hand, Intellectual property is heavily protected in the U.S. By filing Patent, Copyright or Trademark individuals are able to protect their property and have the right to sue people are producing their products. The Federal Fraud Department is in charge of investigating these cases. China’s police force is not able to do enforce the laws in the rural areas, where most of the counterfeiting happens. The police in those areas are understaffed and lack the technology to gather evidence. Counterfeits are looked upon differently in these two countries and thus have different retail regulations. In the U.S. retails need to get permission from the manufactures to shelf their products and because of this they are not able to sell counterfeit products. In China, retailers need a license and certificate to run their store, but they are allowed to house and sell counterfeit products. The Patents, Copyright and Trademarks allow manufactures to sue stores that sell counterfeits, but since China does not protect these property rights retailers in China are able to sell counterfeits. Three types of counterfeiting
First type of counterfeit: replica the logo or trademark:
In this type, people replica the product of those registered brands with exactly the same logo and trademark on it. In America:
Trademark Counterfeiting Act of 1984: This law makes it illegal to produce, sell and trying to sell goods that use someone else's trademark without permission, such as the Nike sneaker for example. Punishment for those who violate such Act could be: •Imprisonment: Up to 10 years for the first offense and up to 20 years for a repeat offender. An offender who knowingly or recklessly causes death as a result of an unlawful sale faces up to life in prison. •Fines: Up to $15.0 million for corporations and $5.0 million for individuals who are repeat offenders. •Seizure and destruction of the counterfeit products.
•Civil lawsuits by the trademark owner under the federal trademark law for the recovery of damages, lost profits, attorneys’ fees and injunctive relief. In China:
•Imprisonment: Up to 3 years if the sales of fake product are below 250 thousands; 3-7 years if the sales are beyond 250 thousand. •Fines: Up to 500 thousand Chinese RMB, depends on the sales of fake product. •Seizure and destruction of the counterfeit products.
Second type of counterfeit: replica the product with similar logo or trademark: It is another kind of fake product without using the exact brand logo or trademark on it, so technically, it is not a counterfeit. In China, you can sell this legally as long as you don't advertise or promote it as the genuine brand name. But in America, people can be sued even if they resemble the trademark or logo of a registered brand. Stop Counterfeiting in Manufactured Goods Act: This law specifically targets the practice of attaching labels to fake products and passing off to consumers poorly made items as brand-name ones.It modifies the definition of "counterfeit mark" to include a spurious mark that is applied to or consists of a label or packaging of any type or nature that is designed, marketed, or otherwise intended to be used on or in connection with the goods and services for which the mark is registered in the U.S. Patent and Trademark Office, that is substantially indistinguishable...