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What Are the Criminal Offences for Trade Mark Forgery?

Forging a registered mark, falsely applying it to goods, or making or holding a die or machine for forging it — up to K2,000 or three years. Selling or holding goods bearing such a mark is a separate offence. It is a defence to prove you acted without intent to defraud.

The trade marks series, no. 39 · Infringement and enforcement · 6 min read

Part XI of the Trade Marks Act (Chapter 385) is headed “Protection of Trade Marks”. It creates criminal offences that run alongside the civil action for infringement.

Section 75 — forgery and false application

A person who

(a) forges a registered trade mark; or

(b) falsely applies a registered trade mark to goods; or

(c) makes a die, block, machine or instrument for the purpose of forging, or of being used for forging, a registered trade mark; or

(d) disposes of or has in his possession such a die, block, machine or instrument for that purpose,

is guilty of an offence. Penalty: a fine not exceeding K2,000.00 or imprisonment for a term not exceeding three years.

Paragraphs (c) and (d) reach back up the supply chain to the person who makes or holds the tools of counterfeiting, without any need to prove that goods were actually marked.

Section 75(2) — the defence

It is a defence if the defendant proves that he acted without intent to defraud.

Section 76 — selling and possessing marked goods

Section 76(1)

A person who sells or exposes for sale, or has in his possession for sale or for the purpose of trade or manufacture, goods to which a forgery of a registered trade mark is applied, or to which a registered trade mark is falsely applied, is guilty of an offence. Penalty: a fine not exceeding K500.00.

(2) It is a defence if the defendant proves that he acted without intent to defraud.

Section 76 catches the retailer and the wholesaler, not just the counterfeiter. Note the width of “possession”: for sale or for the purpose of trade or manufacture. Goods in a warehouse or a container, not yet offered to anyone, are within the section.

The Part XI offences at a glance
SectionConductMaximum penalty
75Forging a mark; falsely applying it; making, disposing of or possessing a die, block, machine or instrument for forgingK2,000.00 or 3 years
76Selling, exposing for sale, or possessing for sale or trade goods bearing a forged or falsely applied markK500.00
77Knowingly importing such goodsK500.00
79Aiding, abetting, counselling or procuring, or being knowingly concerned in, an act outside the country which would be an offence hereK500.00
78On conviction under s 75, 76 or 77 — forfeiture to the State of all goods by means of or in relation to which the offence was committedIn addition to the punishment
103Falsely representing that a mark is registered, or that a registration covers goods it does notK200.00

Section 80 — when a mark is forged

Section 80(1) — a person is deemed to forge a registered trade mark

(a) if, without the assent of the registered proprietor or of a registered user, or the authority of this Act, he makes the trade mark or a mark substantially identical with it; or

(b) if he falsifies a registered trade mark, whether by alteration, addition, effacement or otherwise.

Section 80(2) — the burden of proving assent

In a prosecution for forging a trade mark, the burden of proving the assent of the registered proprietor or registered user lies on the defendant. The same rule applies to false application under section 81(5).

For anyone printing labels, packaging or point-of-sale material to a customer’s order, the practical consequence is direct: keep written authority on file. An oral assurance from the person who placed the order will not discharge the burden.

Note that paragraph (b) — falsifying by alteration, addition, effacement or otherwise — overlaps with section 54, which makes altering, partially removing, or adding damaging matter to a mark on goods a civil infringement where a prohibiting notice is in place.

Section 81 — when a mark is “applied”

Section 81(2) and (3) — a trade mark is deemed applied to goods

If it is woven in, impressed on, worked into, or annexed or affixed to the goods (s 81(2)); and where:

(a) it is applied to the goods themselves; or

(b) it is applied to a covering, label, reel or thing in or with which the goods are sold, exposed, or had in possession for trade or manufacture; or

(c) it is used in a manner likely to lead to the belief that it refers to, describes or designates the goods; or

(d) it is used in a sign, advertisement, invoice, wine list, catalogue, business letter, business paper, price list or other commercial document, and goods are delivered to a person on a request or order made by reference to the mark as so used.

Section 81(1) defines “covering” to include a stopper, glass, bottle, vessel, box, capsule, case, frame or wrapper, and “label” to include a band or ticket.

Section 81(4) — false application

A registered mark is deemed to be falsely applied to goods if, without the assent of the registered proprietor or of a registered user, or the authority of this Act, the mark or a mark substantially identical with it is applied to the goods.

Paragraph (d) is wider than it looks

It reaches the trader who never marks the goods at all, but takes orders by reference to the brand — a price list or catalogue offering the branded product, followed by delivery of something else. The mark is then deemed applied to the goods delivered.

Using the criminal and civil routes together

Criminal and civil enforcement compared
Part XI offencesSection 53 infringement
TestForged or falsely applied — the mark or one substantially identicalSubstantially identical or deceptively similar
Mental elementDefence of no intent to defraud, proved by the defendant; s 77 requires knowinglyNone — strict
OutcomeFine or imprisonment, plus forfeiture of the goods (s 78)Injunction, and damages or an account (s 56)
Who actsThe prosecuting authoritiesThe proprietor, or a registered user under s 70(1)

The criminal route is narrower — it does not reach merely deceptively similar marks — but it delivers something the civil route does not: forfeiture of the goods to the State under section 78. Against a counterfeiter with no assets, that is often the only meaningful outcome.

Section 79(2) preserves the operation of the Criminal Code Act (Chapter 262), under which fraud and false pretence offences may carry considerably heavier penalties than the Part XI maxima.

Sources

Check the section yourself

Before relying on anything here, read the current text of the Trade Marks Act (Chapter 385) and check for later amendments. If a decision matters to you, get advice — start with the Office of the Public Solicitor, or find a firm in the law firms directory.

Disclaimer: This article provides general information about Papua New Guinea law and does not constitute legal advice. Laws may change, and their application depends on individual circumstances. You should obtain professional legal advice for your specific situation. Read the full disclaimer.