Cosmetics: Thai IP&IT court cracks down on copyright infringer

May 14, 2014

BANGKOK - In a surprising break from standard practice, the Central Intellectual Property and International Trade Court (IP&IT Court) has sentenced a recidivist infringer to imprisonment for offences under the Thai Trademark Act. Lawyers Baker & McKenzie say the case has attracted significant attention among IP rights holders, who have long criticised the customary practice of suspending imprisonment sentences against intellectual property offenders.

The accusedwas first arrested by the Department of Special Investigations (DSI) in 2011 for trademark infringement under the Trademark Act and for offering for sale controlled cosmetics under the Cosmetics Act. At the time of his arrest, the accused had over 18,000 counterfeit cosmetics in his possession for the purpose of commercial sales, including lipsticks, mascaras, eye shadows, perfumes, found ations, blushes, and brush sets which bore the trademarks of ESTEE LAUDER, MAC, BOBBI BROWN, SHISEIDO, LANCÔME, L’OREAL, and SK-II, among others.
He was convicted and fined, but a prison sentence of 14 months was suspended, in keeping with standard practice, B&M says.
The following year, the DSI raided a shop and its warehouse, which were owned by the same accused, and found and seized 35,000 counterfeit cosmetics, nearly double the quantity confiscated during the previous raid.
On the grounds that the infringer had violated the probationary terms of his original conviction, the IP&IT Court revoked the suspension of his first sentence and refused to grant a suspension of the second sentence. It sentenced the infringer to 22 months imprisonment and a fine of THB 150,000 (approximately US$4,840).
Since the conclusion of the second case, the accused has appealed the IP&IT Court's decision to the Supreme Court. “Should the Court uphold the original decision, it would represent a noteworthy shift in the perceived gravity of infringement crimes, whether by first time or recidivist offenders,” the law firm, which represents several of the brand owners, said. www.bakermckenzie.com (ATI).