Walking through the NoHo Arts District or the busy corridors of Lankershim Boulevard, you might see vendors offering luxury handbags, high-end electronics, or designer apparel at a fraction of the retail price. While these deals attract shoppers, the Los Angeles Police Department and federal task forces actively monitor these transactions. If authorities suspect you are manufacturing, distributing, or selling items with unauthorized trademarks, you could face aggressive prosecution under California Penal Code 350.
This statute serves as the primary tool for prosecutors targeting intellectual property crimes. A conviction does not just result in a mark on your record; it can lead to massive fines and years in jail. We understand that many people caught up in these investigations are small business owners or individuals unaware of the severity of the law. Even so, the state treats these items as serious theft, and you need a defense that matches that intensity.
Defining a Counterfeit Mark Under California Law
California Penal Code 350 makes it a crime to manufacture, sell, or possess for sale any goods that bear a counterfeit mark. The law defines a counterfeit mark as a mark that is identical to, or nearly identical to, a mark registered with the Secretary of State or the U.S. Patent and Trademark Office. You can verify registered marks through the California Secretary of State.
To secure a conviction, the prosecutor must prove that you acted willfully. This means you intended to sell the items or intended to deceive the public into believing the goods were genuine. They must also prove the mark was being used on the same types of goods for which the genuine mark is registered.
In North Hollywood, these cases often stem from raids on warehouses or storefronts where bulk shipments arrive from overseas. Law enforcement looks for labels, packaging, and manufacturing equipment as evidence of a large-scale operation. If they find these items in your possession, they will likely charge you with the intent to distribute, even if you have not made a single sale yet.
Misdemeanor vs. Felony Charges for Counterfeit Goods
The penalties you face depend largely on the quantity of the goods and their total retail value. California law allows prosecutors to charge Penal Code 350 as either a misdemeanor or a felony, making it a wobbler offense. This decision usually hinges on the scale of the alleged operation.
If you are a first-time offender and the total number of items is less than 1,000, and the total retail value is less than $950, the state typically pursues a misdemeanor. A conviction at this level can lead to up to one year in a Los Angeles County jail and a fine of up to $10,000, as outlined in the current penal code.
The stakes increase dramatically if the value exceeds $950 or the item count exceeds 1,000. In these instances, the state can charge you with a felony. A felony conviction under Penal Code 350 can result in 16 months, two years, or three years in county jail. Fines for a felony can reach $500,000 for an individual; meanwhile, corporations may face fines up to $1,000,000.
Enhanced Penalties for Repeat Offenses
The California legal system shows no leniency toward those who return to the counterfeit trade after a prior conviction. If you have a previous conviction under Penal Code 350 and are caught selling counterfeit goods again, the state can bypass the misdemeanor option entirely.
Regardless of the value of the goods in the second case, a repeat offense is often charged as a felony. The court can impose the same three-year maximum sentence and significantly increase the fines. Prosecutors in the Van Nuys Courthouse often push for harsher sentencing in repeat cases to deter others in the San Fernando Valley from engaging in the trade.
Beyond the standard jail time and fines, the court may also order you to pay restitution. This money goes to the actual trademark owner to pay them back for the lost sales and brand damage your actions allegedly caused. These restitution amounts can be financially devastating, sometimes reaching hundreds of thousands of dollars, depending on the brand involved, according to Section 1202.4.
Asset Forfeiture and Property Seizure
One of the most aggressive aspects of a counterfeit goods investigation is the seizure of your property. Under California law, any items bearing a counterfeit mark are subject to forfeiture and destruction. You will not get these items back, even if they are high-quality products.
Furthermore, any equipment used to create the counterfeit marks can be seized. This includes computers, printers, heat presses, and even the vehicles used to transport the goods. The state can also move to freeze bank accounts if it believes the funds are the direct proceeds of the sale of these goods.
This process often happens before you are even convicted. We have seen clients lose their entire inventory and business equipment while their case is still pending. Our team works to challenge these seizures, forcing the state to prove that each piece of property was actually involved in criminal activity.
Fighting Counterfeit Charges in North Hollywood
Just because you were found with counterfeit items does not mean you are guilty. We look for every possible angle to dismantle the prosecution’s case. A common defense involves the lack of knowledge. If you honestly believed the goods were authentic, or if you were a low-level employee with no knowledge of the brand’s trademark status, the willful requirement of the law is not met.
We also examine the methods law enforcement uses during its investigation. Many counterfeit cases rely on searches of storage units, homes, or vehicles. If the LAPD or investigators from the Los Angeles County District Attorney’s Office violated your rights by searching without a valid warrant or probable cause, we fight to have that evidence suppressed.
Another strategy involves challenging the mark’s status as a counterfeit. If the mark is significantly different from the registered trademark, it may not meet the legal definition of a trademark. We also investigate whether the trademark was actually active and registered at the time of the alleged offense by checking the U.S. Patent and Trademark Office Principal Register.
A Personalized Defense Strategy from Wegman & Levin APC
When you are facing the power of the state, you cannot afford to be just another file on a desk. We are a small, dedicated team where every hand is on deck for every case. Our two active attorneys, supported by our paralegal and legal assistant, provide a level of focus that larger firms simply cannot match. We stay in constant communication with you, ensuring you are an active participant in your own defense.
We use a client portal where you can access all documents and updates for your case at any time. This transparency keeps us accountable and keeps you informed. We do not just look for the easiest way out; we think outside the box to find solutions that protect your freedom and your future. While no firm can satisfy everyone, our history of favorable outcomes and honest client reviews reflects our commitment to going the extra mile.
If you are under investigation or have been arrested for selling counterfeit goods, the time to act is now. We offer free consultations to discuss your situation and begin building an aggressive defense. Contact us today at 818-495-8330 to speak with a team that treats your case with the urgency it deserves.
