SRC-JFA S.B. 228 75(R)    BILL ANALYSIS


Senate Research CenterS.B. 228
By: Armbrister
       International Relations, Trade & Technology
2-3-97
As Filed


DIGEST

Currently, Texas law does not provide adequate criminal sanctions for the
counterfeiting of trademarks, service marks, and identification marks in
the manufacture and sale of goods and services.  The manufacture and sale
of counterfeit goods and the offer of services through counterfeit service
marks pose a threat to the health and safety of the residents of this
state and result in economic disruption to the legitimate businesses
located in this state, such as the aircraft parts industry, the auto parts
industry, and the luxury goods industry.  This bill sets forth criminal
sanctions, including the forfeiture of property, for the counterfeiting of
such marks in the manufacture and sale of goods and services.     

PURPOSE

As proposed, S.B. 228 sets forth criminal sanctions, including the
forfeiture of property, for the counterfeiting of trademarks, service
marks, and identification marks in the manufacture and sale of goods and
services.  

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Sets forth the findings of the legislature regarding the
manufacture and sale of counterfeit goods and services, the negative
repercussions of such sales, and the need for appropriate legislative
action to protect the public from such negative repercussions.   

SECTION 2. Amends Title 2, Business and Commerce Code, by adding Chapter
20, as follows: 

CHAPTER 20.  COUNTERFEIT TRADEMARKS, SERVICE MARKS, AND IDENTIFICATION
MARKS 

Sec. 20.01.  DEFINITIONS.  Defines "identification mark," "protected
mark," "service mark," and "trademark."   

Sec. 20.02.  COUNTERFEIT TRADEMARK, SERVICE MARK, OR IDENTIFICATION MARK.
Sets forth the conditions in which a trademark, service mark, or
identification mark is counterfeit.   

Sec. 20.03.  PRODUCTION OF COUNTERFEIT TRADEMARK, SERVICE MARK, OR
IDENTIFICATION MARK.  Sets forth the conditions under which a person
commits a second degree felony, a third degree felony, or a Class A
misdemeanor, regarding a person who knowingly produces a counterfeit mark
or a good bearing such a mark. 

Sec. 20.04.  SALE OR OFFER FOR SALE OF COUNTERFEIT GOODS OR SERVICES.
Provides that a person commits a third degree felony or a Class A
misdemeanor if the person sells, offers to sell, or possesses with the
intent to sell a good the person knows or should have known contained a
counterfeit mark; or the person sells or offers for sale a service in
conjunction with a service mark the person knows is counterfeit.  
 
Sec. 20.05.  POSSESSION OF MATERIALS OR DEVICES TO PRODUCE COUNTERFEIT
TRADEMARK, SERVICE MARK, OR IDENTIFICATION MARK. Provides that a person
commits a Class A misdemeanor if the person possesses a tool, machine,
device, or other reproduction instrument or material with the intent to
produce a counterfeit mark.   

SECTION 3. Amends Article 59.01(2), Code of Criminal Procedure, to
redefine "contraband." 

SECTION 4. Effective date: September 1, 1997.

SECTION 5.  Emergency clause.