Making counterfeits could earn you 15 years in prison

 By John Odyek

A person found trading in or making counterfeit goods faces a minimum of seven years and a maximum of 15 years in jail if convicted.

The court could also choose to order the person to pay a fine not less than 10 times and not more than 20 times the value of the market price of the genuine goods. They could also face both the fine and imprisonment.

On conviction, the State will confiscate the counterfeit goods and machines used to make them and close the premises being used.

These are some of the penalties proposed in the Anti- Counterfeits Bill 2010. The Bill was tabled in Parliament last week by trade and industry minister Amelia Kyambadde.

The Bill seeks to stop the proliferation of counterfeits.

“The policy behind the Bill is to prohibit trade in counterfeit goods that infringe upon protected intellectual property rights; to require intellectual property rights to cover only copyright and trademarks and to prohibit release of counterfeit goods into the channels of commerce,” Kyambadde noted.

Counterfeit goods are also defined as counterfeit trademark goods or pirated copyright goods.

Counterfeit trademark goods refer to any goods, including packaging, bearing without authorisation a trademark which is identical to the trademark validly registered in respect of the goods, or which cannot be distinguished in its essential aspects from such a trademark, and which, thereby, infringes the rights of the owner of the trademark in question under the laws of Uganda.

For those who are not involved in manufacturing of counterfeit goods but get involved in selling, exhibiting for trade, distribution, importing and exporting, donation and hiring, the Bill proposes that if convicted, they be liable to a fine not less than five times but not more than 10 times the value of the market price of the genuine goods.
The court can also order that they face imprisonment for a minimum of five years and not more than 10 years or both the fine and imprisonment.

In convicting persons involved in counterfeit trade, the court will take into account mitigating measures such as whether the person truthfully disclosed to the best of his knowledge to the inspectors all information in relation to the source of the goods, identity of those involved in importation or manufacture, the addresses of those involved in the distribution and the channels of distribution.

Any person who suffers damage or loss caused by wrongful seizure, removal or detention of goods alleged to be counterfeit is entitled to claim compensation for the damage or loss suffered by them.

Any matters of alleged counterfeiting of medicines are dealt with by the National Drug Authority under the National Drug Policy and Authority Act, the Bill says.