Entitles law enforcement agencies for restitution for the costs of storage and destruction of goods or articles seized with arrests for trademark conterfeiting; repealer

2 Co-sponsors

• Martin J. Golden
• Tom Libous

BILL NUMBER:S4147

Title of bill

An act to amend the penal law and the criminal procedure law, in relation to the storage and destruction of goods and articles relating to the offenses of trademark counterfeiting and unauthorized recordings; and to repeal certain provisions of the penal law relating thereto

Summary of provisions

Section 1 of the bill would amend Penal Law ("PL") § 60.27 to entitle law enforcement agencies to restitution when they have incurred costs attended to the storage and/or destruction of goods or articles seized in connection with arrests for first, second or third degree trademark counterfeiting.

Section 2 of the bill would add a definition of "representative sample" to PL § 165.70, the section that defines several terms related to trademark counterfeiting offenses.

Section 3 of the bill would repeal and re-enact PL § 165.74, to be entitled "Seizure and destruction of goods bearing counterfeit trademarks." This comprehensive section details the procedures to be followed for the destruction of a representative sample of goods bearing counterfeit trademarks, including notice to the defendant; hearings to be held upon request of the defendant; the steps that must be taken to photograph, videotape or otherwise record such goods; and preservation of goods after the final determination of the charges.

Section 4 of the bill would repeal and re-enact PL § 420.00, "Seizure and destruction of unauthorized recordings", which would delineate procedures for destroying representative samples of unauthorized recordings, ones analogous to the protocols that would be established with respect to goods bearing counterfeit trademarks as set forth in section 3 of the bill.

Finally, sections 5, 6 and 7 of the bill would make conforming changes to Criminal Procedure Law sections 170.10, 180.10, and 210.15 regarding arraignment and the right to a hearing afforded to defendants accused of violating misdemeanor and felony laws relating to counterfeit trademarks and unauthorized recordings.

Reasons for support

This City proposes to amend the Penal Law and the Criminal Procedure Law to allow for the destruction, after notice and an opportunity for a hearing, of all but a representative sample of seized counterfeit trademark goods or unauthorized recordings.

In lieu of destruction, where the seized goods consist of items of apparel or footwear, such goods could be released to the trademark holder or a charitable organization, with the consent of the trademark holder.

This bill is intended to help law enforcement officials effectively combat the trade in counterfeit trademarks and unauthorized recordings. The New York City Police Department has limited

facilities to store goods bearing a counterfeit trademark and unauthorized recordings after they are seized. Because of such limitations, law enforcement personnel have had to delay operations to seize additional goods until storage space becomes available. Seized goods are often bulky in nature (e.g., apparel and footwear) and are often seized in great quantity, and prolonged retention of such illegal material requires excessive storage capacity within limited space. The NYPD has had to maintain as many as 200 trailers holding nearly 3,000 tons of these seized goods for an extended period of time.

Accordingly, the Mayor urges the earliest possible favorable consideration of this proposal by the Legislature.

Effective date

This act shall take effect on the ninetieth day after becoming a law.