New York
On June 13th, the City Council’s Public Safety Committee – chaired by Council Member Peter F. Vallone Jr. – held a hearing to discuss legislation introduced by Council Member Margaret Chin, which would make it illegal for
someone to purchase counterfeit products.

The bill would classify purchasing counterfeit goods as a Class A misdemeanor, punishable by up to a year in jail and $1,000 fine.

Vallone commended Chin for shining light on a serious problem – in 2003, it was estimated that $23 billion was spent on counterfeit goods in New York City, with profits funding criminal activity, including money laundering,
organized crime, drug trafficking and terrorist groups.

While Vallone admitted that very few people are unaware they are purchasing counterfeit goods, he believes putting them in jail for a year is excessive. However, the Council Member does feel that monetary penalties
for shoppers, one year in jail for purchasing large amounts of counterfeit goods or stiffer penalties for people who sell the products may be more realistic punishments. **

“Buying counterfeit goods is more like a hostage exchange now, with people picking out pictures of items and making shifty exchanges in dark basements and alleys,” *said Council Member Vallone. *“It’s a serious
issue, and people obviously know what they are buying is fake, but a year in jail is excessive. Let’s look at some realistic deterrents.”*

During the hearing, the Council Member also announced he would draft legislation which would increase penalties on landlords of storage facilities who knowingly harbor counterfeit products.

Karen Turner, the Unit Chief of the Rackets Division, testified on behalf of District Attorney Charles Hynes. Valerie Salembier, President and CEO of The Salembier Group, and Joseph C. Giocondam, a counselor at Law and
Founder who specializes in trademark protection litigation, also testified at the hearing.

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