Recently, a parent who resold her child’s outgrown second-hand Peppa Pig clothing online received a criminal case notice demanding a NT$30,000 settlement. Surprising, right?
This local mom was sued by the trademark owner for violating the Trademark Act, simply because she resold used clothes featuring the cartoon character Peppa Pig online. How could this happen? Let the little legal secretary explain it to you!
While whether such a case constitutes a criminal offense is still debatable in court, these types of incidents are actually quite common.
You might think reselling second-hand clothes or using original product images from the manufacturer to sell your used items on Shopee is harmless. But in reality, there are many legal pitfalls to watch out for when selling second-hand goods.
For example:
• Is the product authentic?
• Are you using your own photos instead of grabbing images from the brand’s official site?
These are common traps that can lead to trademark or copyright infringement.
1. Civil Damages for Trademark Infringement
In terms of civil remedies, trademark holders can seek damages under Article 71 of the Trademark Act, with four main calculation methods (they may choose one):
1. The profits normally expected from the registered trademark minus the actual profits obtained by the infringer;
2. The profits earned by the infringer due to the infringement;
3. Up to 1,500 times the retail price of the counterfeit goods found;
4. A sum equivalent to the royalty the trademark owner would have earned by licensing the trademark.
Note: The right to claim damages (if infringement is due to intent or negligence) is extinguished if not exercised within 2 years from knowing the damage and the infringer, or within 10 years from the date of infringement (Article 69).
2. Criminal Liability for Trademark Infringement
If intent to infringe is present, criminal liability may apply under Articles 95, 97, and 98 of the Trademark Act, and Article 38 of the Criminal Code:
1. Manufacturing counterfeit goods (Article 95)
– Up to 3 years in prison, detention, and/or a fine of up to NT$200,000.
2. Selling, possessing, displaying, exporting, or importing counterfeit goods with intent to sell (Article 97)
– Up to 1 year in prison, detention, and/or a fine of up to NT$50,000.
3. Confiscation of infringing items, documents, or tools used/prepared for the offense (Articles 98 & Criminal Code Article 38).
In Taiwan, the IP Police Task Force accepts reports from the public, and many international brands have commissioned local trademark firms to monitor infringement. That’s the power of owning a trademark!
Although some may wonder, “Is it really necessary?”, the law protects those who understand it. The Trademark Act protects those who register trademarks.
We’re here to help you apply for trademarks. Want to do marketing? Start with trademarks!
For all trademark matters, trust the trademark specialists!
