Counterfeit goods are fraudulent replicas of genuine products that often pose a serious risk to both brands and businesses, in some cases leading to substantial financial losses. Individuals who replicate existing products often do so in order to avoid regulatory hurdles; to take advantage of the reputation built by well-known companies; and, perhaps unsurprisingly, to make a quick buck.
In Canada, any individual accused of counterfeiting goods can be charged and punished severely, as such imitation is illegal.
What Are The Legal Remedies For Counterfeiting? Which Agencies Get Involved?
Civil and criminal remedies
If a person suspects that their original product is being replicated, they may seek either civil or criminal remedies. Civil remedies include temporary or permanent injunctions; monetary or punitive damages; the seizure and destruction of counterfeit goods; and costs. Criminal remedies include fines, imprisonment, or the confiscation of counterfeit goods.
Before filing a suit in court, it is best to serve the makers of the counterfeit goods with a legal warning that outlines the consequences of continued replication. The purpose of this is to prevent these individuals from further imitating the original product. If the legal warning is unsuccessful, then the owner of the original product has the right to sue the counterfeiter in a court of law.
Canadian Anti-fraud Centre
A person may also file a complaint with the Canadian Anti-fraud Centre, which tracks all complaints regarding fraud, scams, and identity theft.
Victims can report the scams online or by phone. Although the Canadian Anti-fraud Centre does not investigate crime directly, it provides support to the RCMP, the Ontario Provincial Police, and other agencies.
Canadian Border Services Agency (CBSA)
Finally, the Canadian Border Services Agency (CBSA) stops the import and export of counterfeit goods. When the owner of an original product files a Request for Assistance, the CBSA looks for and detains any items suspected of being a replica of that product. CBSA officers will then notify the product owner, enabling them to pursue legal remedies in a court of law.
How Can Brands And Businesses Combat Counterfeiting?
To successfully prevent counterfeiting and safeguard their interests, product owners should take proactive and comprehensive measures, including:
- making use of anti-counterfeiting technologies, such as holograms, QR codes, and block chain-based tracking systems;
- making sure that their businesses are properly registered, and that other IP assets are actively monitored; and
- training their employees to recognize suspected counterfeiting, and to report such activities.
We Can Guide You!
If you are a business or brand, and you suspect that someone might be replicating your products, get in touch with the lawyers at Ayaz Mehdi Professional Corporation for legal advice tailored to you.
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