The UAE government is intensifying its crackdown on counterfeit goods with the introduction of harsher penalties for those found guilty of selling or possessing such items.
Counterfeit merchandise, which globally accounts for an estimated market value of $2-3 trillion, affects both companies and consumers.
Mahmood Shakir Al Mashhadani, a senior associate at Galadari Advocates and Legal Consultants, highlighted the moral duty of UAE residents to report counterfeit products to the Economic Crimes Section of the UAE Ministry of Interior. Details about the counterfeit items and their discovery should be provided.
If significant quantities of fake goods are detected in warehouses or containers, they will be confiscated and transferred to an alternative storage site. The accused would bear the costs associated with the storage, transport, and disposal of these seized products. After the criminal judgement is finalized, victims can seek damages through civil litigation.
Penalties for those in possession or dealing in counterfeit goods will be determined by the court. This could include fines, confiscation, destruction of the goods, imprisonment, and even deportation.
Specifically, Article 49 of the Federal Decree Law No. 36 of 2021 on Trademarks stipulates severe penalties. This includes a fine ranging from Dh100,000 to Dh1 million, imprisonment, or both for forgery or counterfeiting of registered trademarks which may mislead the public. This extends to anyone knowingly using, importing, or exporting goods with forged or counterfeit trademarks for commercial purposes.
Al Mashhadani emphasized that the onus is on the accused to prove their ignorance about the counterfeit nature of the items or to notify the exporter.
