This act changes the mental state requirement for counterfeiting from "willingly" to "knowingly". It also expands the list of items that may be subject to counterfeiting to include goods, services, labels, patches, fabric, stickers, wrappers, badges, emblems, medallions, charms, boxes, containers, cans, cases, hangtags, documentation, or packaging, or any other component of any nature that is designed, marketed, or other intended to be used on or in connection with any goods or services bearing or identified by a counterfeit mark.

This act redefines the terms "counterfeited mark", "retail value", "physical injury", and "serious physical injury". It is a Class A misdemeanor if the counterfeiting offense involves less than 100 items or services or the total retail value is $1,000 or less.

This act makes counterfeiting a Class C felony, rather than a Class D felony if the defendant has previously been convicted of the crime, the violation involves more than 100 but less than 1000 items, or the total retail value of the items or services is more than $1,000 but less than $10,000.

Counterfeiting is a Class B felony, rather than a Class C felony if the defendant has previously been convicted of the crime two or more times, the violation involves the manufacture or production of items bearing counterfeit marks, the violation involves 1,000 or more items, the total retail value of the items or services is more than $10,000, or the offender knowingly or recklessly causes or attempts to cause physical injury to another person by the commission of the crime.

Counterfeiting is a Class A felony if by the commission of the crime, the offender knowingly or recklessly causes or attempts to cause the serious physical injury or death of another person.

This act requires the forfeiture of all counterfeited property used or sold in the commission of the crime and any property directly or indirectly obtained as the result of the counterfeiting offense. The court is required, at the conclusion of all criminal and civil proceedings, to order any forfeited item to be destroyed with the written consent of the trademarked owners.

Under this act, a person convicted of counterfeiting is required to pay restitution to the trademark owner and any other victim in the amount of any expenses incurred by the trademark owner in the investigation and prosecution of the offense as well as any lost profits realized by the offense.

This act is identical to HB 482 (2007).

SUSAN HENDERSON MOORE