Newsletter
PURCHASING COUNTERFEIT GOODS WITH INTENT TO PROFIT VIOLATES TRADEMARK ACT
Article 82 of the Trademark Act provides for penalties of up to one year's imprisonment for trading in goods that infringe on another's trademark. However, when trade-mark-infringing goods were seized before they were sold, the courts have usually found that as sale had merely been attempted, but not actually taken place, no offence of trading had been committed.
In a 2007 criminal summary judgment, the Kaohsiung District Court, citing a 1978 Supreme Court judgment in a case brought under the Drugs and Pharmacists Management Act (now superseded by the Pharmaceutical Affairs Act), held that for an act of "trading" as referred to in the Trademark Act to have occurred, it was not necessary that goods had been first purchased and then resold, but only that goods had been either purchased or sold for the purpose of profit. If either of these actions had been performed, the offence would have been committed.
This interpretation of "trading" appears to expand the scope of actions punishable under the Trademark Act, possibly beyond the extent en-visaged by legislators. However, if in future the courts consistently adopt the same interpretation, it should have a powerful effect in deterring trademark infringement.