Counterfeit Abatement Targeting the PLACES where counterfeit goods are manufactured, sold, stored Deputy City Attorney Kevin A. Gilligan Office of the Los Angeles City Attorney Detective Rick Ishitani Los Angeles Police Department Webinar Housekeeping Audio Support: • Use Telephone or Mic & Speakers • Check Audio Setup for problems • All callers will be on mute throughout the webinar To ask a Question: • Type a question in the box; click Send • Staff will respond in the ‘Questions’ box COUNTERFEIT ABATEMENTS Civil enforcement action brought by criminal prosecutors in civil courts Seeks injunctions, penalties and other remedies to stop chronic counterfeit activity Primarily targets the PLACES counterfeit occurs Defendants: property owners, business owners, individuals who are causing the illegal counterfeit activity and/or nuisance 1
Brief Overview of Counterfeit Goods Enforcement PERCEPTI ONS ENCOUNTERED WHEN ENFORCI NG LAWS AGAI NST COUNTERFEI T GOODS AND PI RACY Defendants/Jurors: It’s not like I’m hurting anyone buying a little counterfeit…. “It’s just T-shirts” “Kids just want to share a little music” “It’s just a little handbag” “The entertainment industry makes enough money” Prosecutors/Police “Purse police” I’m a prosecutor/police officer “I only handle SERIOUS crimes….” Education: Part of our job is to educate our audience about why counterfeit is serious. This webinar will give you the information you need to begin this process. Who is your audience? -Investigator/Police Officer -Prosecutor -Your boss -Judge -Juries -People who can fund your program -Potential buyers of counterfeit goods -Media 2
MOST PEOPLE DON’T UNDERSTAND THAT COUNTERFEIT GOODS ARE UBIQUITOUS Apparel and Entertainment….yes, but also… Pharmaceuticals Heart meds, cancer meds (Avastin), birth control, internet pharmacies Food & Beverages Powdered baby milk Counterfeit Vodka in Russia killed hundreds 2006 Personal Hygiene Toothpaste US 1 million tubes of Colgate with diethylene glycol Mach 3 razor blades - 1 estimate had 80% of ebay razors counterfeit Electronics Counterfeit Game boy charger electrocutes 7 year old Connor O’Keefe British family on vacation in Thailand in ‘07 Circuit breakers Counterfeit certifications Law Enforcement Badges and identification Police Car Brake Pads-Ford Motorsports Defense Industry Routers, computer chips, military parts, software Financial Industry Phising attacks, counterfeit cashier’s checks, money orders Why Counterfeit? Extremely profitable Low barriers to entry Draws little attention from law enforcement Minimal criminal penalties-probation Perceived as a “victimless” crime by many Explain this in your civil pleadings 3
Intellectual Property Theft Education National Crime Prevention Council NCPC and BJA Public Education Campaign http://www.ncpc.org/topics/intellectual-property-theft Rand Report on Film Piracy, Organized Crime and Terrorism Cite in your pleadings, your expert may use it http://www.rand.org/pubs/monographs/MG742.html 4
5
THE SCOPE OF THE PROBLEM 500 BI LLI ON A YEAR – BI GGER THAN DOPE 10% OF GOODS I N MARKETPLACE NOT LI MI TED TO LUXURY GOODS PUBLI C SAFETY I SSUES AI RPLANE & AUTOMOBI LE PARTS MEDI CI NE & MEDI CAL EQUI PMENT FOOD I TEMS LAPD ANTI PIRACY - 110,000 PIRATED CDS RECOVERED 8/ 07/ 08 6
I talian authorities bust counterfeit Ferrari ring WHO IS INVOLVED IN COUNTERFEITING? 7
Busted U.S. Drug Ring w as funding Hezbollah 2 0 0 7 Los Angeles - A seem ingly sm all-tim e drug ring busted this w eek in Los Angeles w as actually targeted for funding the Lebanese m ilitia group Hezbollah, the Daily New s has learned. Ali Khalil Elreda , 3 2 , of Bell; Moham ad Elreda, Ali's brother, 2 5 , of Bell Susanne Elreda, Ali's sister, 3 4 , of Sm yrna, Ga. Hussein Saleh Saleh, 3 7 , of Bell Robert Bell, 36, of Corona Dalisa Johnson, 37, of Corona Moussa Matar, 4 8 , of Cudahy Moham ad Matar, Moussa's son, 2 8 , of Cudahy Ali Matar, Moham ad's tw in brother, 2 8 , of Cudahy Juan Gonzalez, 2 6 , of Lynw ood Frankie Higuea, 2 4 , of Dow ney Crystal Hill, 2 5 , of Haw thorne 8
HEZBOLLAH / AL- QAEDA 36 TH STREET / 38 TH STREET ASIAN ORGANIZED CRIME 18 TH STREET MS 13 CRIPS / BLOODS EAST COAST CRIPS RAYMOND STREET COMPTON CRIPS HELLS ANGELS PROPERTY ABATEMENTS AS A TOOL TO FIGHT COUNTERFEIT ACTIVITY When arrests aren’t enough to solve the problem PROPERTY ABATEMENTS Civil Enforcement Action Filed by Prosecutors in the Name of the People Narcotic abatements Red light abatements L.A. City Attorney began filing narcotic abatements in 1990. 9
PROJECT T.O.U.G.H. (Taking Out Urban Gang Headquarters) PROPERTY ABATEMENTS Abatements evolved to include gangs as well as drug abatements Staff joint federal/local investigations in LA ATF, FBI, DEA, CBP and LAPD/LASD Now includes counterfeit and organized crime locations COMMON CAUSES OF ACTION IN PROPERTY ABATEMENTS Narcotics Abatement CA Health & Safety Code section 11570 General Public Nuisance CA Civil Code section 3479 Unlawful Business Practices aka Consumer Protection B&P section 17200/allege counterfeit violations as a predicate act (CA PC 350) Actions can be combined with code enforcement PROPERTY ABATEMENTS Defendants are: Engaged in nuisance activity Gang members Property managers Tenants Business owners Property owners* * Depending on facts, notice, and statute used. 10
Abatement Remedies Injunctive relief (owner, business owner, gang members, counterfeiters) Stay away orders Evictions Closure & demolition Receiver Attorney’s fees Investigative costs Civil penalties Judgment recovery Search and seizure conditions VARY BASED ON FACTS, CAUSE OF ACTI ON NOW WHAT CLOTHING 9229 S. Broadway NOW WHAT CLOTHING Activity: Counterfeit goods (sales) Gang loitering Guns (illegally possessed by felons) Marijuana and Ecstasy 2 Shootings, homicide Stolen property Multiple arrests and search warrants!!!! Multiple Gangs Involved!! 11
NOW WHAT CLOTHING Gang members and counterfeiting* Lucrative Rarely investigated Public perception (jurors and prosecutors) Lesser penalties Generally safer than dealing dope * Increase in gang members involvement in counterfeit in Los Angeles California B&P 17800 Counterfeit Abatement Statute Nonresidential building or places used for willfully manufacturing, intentionally selling, or knowingly possessing for sale any counterfeit goods shall be deemed a nuisance. Powerful remedies, injunctive relief, damages Remedies per PC 11225 Valid until 2015 REQUIRES COUNTERFEIT CONVICTION PRIOR TO FILING California PC 350(2) or 653w Owner must be given 30 days notice prior to filing California Trademark Protection Penal Code 350 (2) Willful manufacture, intentional sale or knowing possession for sale of a counterfeit mark registered with Secretary of State or the Principal Register of the US Patent & Trademark Office of 1,000 or more items OR has a total retail or fair market value equal to or greater than grand theft (PC 487)-Currently $950. 12
Counterfeit CD’s or DVD’s California Penal Code Section 653w Failure to disclose the origin of a recording or audiovisual work, if for commercial advantage or financial gain, (s)he knowingly advertises or offers for sale or resale, or sells or resells, causes the rental, sale or resale, rents, manufacturers, or possesses any recording or audiovisual work, the cover, box, jacket, or label of which does not clearly and conspicuously disclose the actual true name and address of manufacturer and name of actual author, artist, performer, producer etc… Unlawful Business Practices California B & P 17200 Prohibits unlawful , unfair , deceptive business practices Extremely broad Applies if business violates any law – municipal, state or federal We allege violations of state trademark law, but also cite the federal Lanham Act Unlawful Business Practices aka the Unfair Competition Law (UCL) “(T)he UCL’s purpose is to protect both consumers and competitors by promoting fair competition in commercial markets for goods and services.” By alleging violations of UNLAWFUL and UNFAIR prongs you can bring in many facts including lost revenue to city, courts, effect on other businesses Educate the judge, tends to drive defense counsel crazy. 13
Unlawful Business Practices California B & P 17200 Injunction & receiver—possible closure $2,500 penalty per violation, per day Current examples: drug/gang apt. buildings tattoo shop counterfeit goods NOW WHAT CLOTHING CONSIDERATIONS Legal options Abatement (injunction) Case conference Eviction Causes of action??? Narcotic abatement action Nuisance B&P 17800 Counterfeit Defendants NOW WHAT CLOTHING Filing Decision Did not use 17800 in our case because we did not have a counterfeit conviction* 17200 350 PC 3479 Civil Code - Nuisance * Teamwork - Police, prosecutors, abatement attorneys, investigators to seek Conviction for counterfeit where an abatement is needed 14
Recommend
More recommend
