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Anti-counterfeiting
Diesel’s Australian distributors became aware of a vast amount of counterfeit products being sold both through retail stores and various markets around Australia. Middletons partner Tony Watson and senior associate Lisa Egan worked on effective strategies to eradicate the counterfeit goods from the Australian marketplace.
Originating from Italy, the popular ‘Diesel’ brand attracted the attention of counterfeiters hoping to profit from its enormous worldwide popularity.
During a 12 month period, Middletons acted in concert with Diesel and its investigators to design and implement an effective anti-counterfeiting program to protect this brand before it was too late.
In a well planned and executed campaign, Middletons targeted a number of major suppliers of counterfeit Diesel goods, identified from seizures stopped by Customs, and information gained through the market watch program. In all, more than 100 counterfeiters (both wholesalers and retailers) were identified. In conjunction with Diesel representatives, Middletons also conducted training sessions with Customs staff to help them identify counterfeit products.
Court proceedings were issued against approximately 20 importers/wholesalers/suppliers of the counterfeit stock. ‘Search and seizure’ orders were also obtained from the Courts allowing Diesel and Middletons representatives to enter and search specific premises seizing large volumes of counterfeit stock and records that helped identify other traders in the stock, resulting in recovery of more stock and monetary compensation.
Investigators conducted reviews at ground level through major markets around Australia in pursuit of traders dealing in counterfeit goods. As reviews were completed, Middletons served letters on traders found to be selling counterfeit stock and liaised directly with market management in relation to their activities.
Stopping the supply of the counterfeit product by targeting the importers and wholesalers was important, but so too were the financial penalties and loss of stock by the retailers and market stall operators in deterring them from purchasing the counterfeit products again. The sellers of counterfeit products signed undertakings that they would not deal in such stock again and agreed to pay Diesel’s legal costs and an amount in damages.
Our client focus is all about building relationships of substance – not stylish revenue streams – to provide experience and industry knowledge and effective commercial solutions that deliver on the expected outcome and within the budget. At Middletons that is our aim and this is the true test of value in our legal services.
"The program has been very successful with Australian Customs initially stopping approximately 5 importations per week. Not only has the amount of imported counterfeit stock been significantly reduced, Customs staff even stopped an individual arriving in Australia wearing a counterfeit belt!"
Lisa Egan
