By Place H.B. No. 1613
75R7241 GWK-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the creation of the offense of trademark
1-3 counterfeiting.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subchapter B, Chapter 32, Penal Code, is amended
1-6 by adding Section 32.23 to read as follows:
1-7 Sec. 32.23. TRADEMARK COUNTERFEITING. (a) In this section:
1-8 (1) "Counterfeit mark" means:
1-9 (A) an unauthorized reproduction or copy of
1-10 intellectual property; or
1-11 (B) intellectual property that, without the
1-12 consent of the owner of the intellectual property, is:
1-13 (i) attached to any item knowingly sold,
1-14 offered for sale, manufactured, or distributed; or
1-15 (ii) used to identify a service offered or
1-16 rendered.
1-17 (2) "Intellectual property" means a trademark, service
1-18 mark, trade name, label, term, device, design, or word adopted or
1-19 used by a person to identify goods or services owned or provided by
1-20 the person.
1-21 (3) "Retail value" means the actor's regular selling
1-22 price for an item or service that bears or is identified by a
1-23 counterfeit mark, except that if an item bearing a counterfeit mark
1-24 is a component of a finished product, the retail value means the
2-1 actor's regular selling price of the finished product on or in
2-2 which the component is used.
2-3 (b) A person commits an offense if the person intentionally
2-4 manufactures, uses, displays, advertises, distributes, offers for
2-5 sale, sells, or possesses with intent to sell or distribute an item
2-6 or service that bears or is identified by a counterfeit mark.
2-7 (c) A person who possesses more than 25 items that bear a
2-8 counterfeit mark is presumed to possess the items with intent to
2-9 sell or distribute the items.
2-10 (d) A state or federal certificate of registration of
2-11 intellectual property is prima facie evidence of the facts stated
2-12 in the certificate.
2-13 (e) For the purposes of Subsection (f), when items or
2-14 services are the subject of counterfeiting in violation of this
2-15 section pursuant to one scheme or continuing course of conduct, the
2-16 conduct may be considered as one offense and the retail value of
2-17 the items or services aggregated in determining the grade of
2-18 offense.
2-19 (f) An offense under this section is a:
2-20 (1) Class C misdemeanor if the retail value of the
2-21 item or service is less than $20;
2-22 (2) Class B misdemeanor if the retail value of the
2-23 item or service is $20 or more but less than $500;
2-24 (3) Class A misdemeanor if the retail value of the
2-25 item or service is $500 or more but less than $1,500;
2-26 (4) state jail felony if the retail value of the item
2-27 or service is $1,500 or more but less than $20,000;
3-1 (5) felony of the third degree if the retail value of
3-2 the item or service is $20,000 or more but less than $100,000;
3-3 (6) felony of the second degree if the retail value of
3-4 the item or service is $100,000 or more but less than $200,000; or
3-5 (7) felony of the first degree if the retail value of
3-6 the item or service is $200,000 or more.
3-7 SECTION 2. (a) The change in law made by this Act applies
3-8 only to an offense committed on or after the effective date of this
3-9 Act. For purposes of this section, an offense is committed before
3-10 the effective date of this Act if any element of the offense occurs
3-11 before the effective date.
3-12 (b) An offense committed before the effective date of this
3-13 Act is covered by the law in effect when the offense was committed,
3-14 and the former law is continued in effect for that purpose.
3-15 SECTION 3. This Act takes effect September 1, 1997.
3-16 SECTION 4. The importance of this legislation and the
3-17 crowded condition of the calendars in both houses create an
3-18 emergency and an imperative public necessity that the
3-19 constitutional rule requiring bills to be read on three several
3-20 days in each house be suspended, and this rule is hereby suspended.