Fair Trade Law Q&A - Counterfeiting

In the amendments to the Fair Trade Act promulgated on February 4, 2015, the provision governing counterfeiting conduct was redesignated as Article 22. More importantly, recognizing that, with respect to counterfeiting conduct, the Fair Trade Act serves as a supplementary regime to the Trademark Act, and in order to avoid an imbalance in the protection of legally protected interests, the legislature removed the provisions imposing administrative and criminal liability for violations of Article 22 and replaced them with a civil-liability framework. Accordingly, for disputes arising after February 6, 2015 involving alleged counterfeiting conduct in violation of Article 22 of the Fair Trade Act, the parties must pursue their claims directly through civil judicial proceedings. The Fair Trade Commission no longer has authority to intervene or impose administrative sanctions with respect to such disputes.

Relevant Provision: Article 22 of the Fair Trade Act.