Landlords and car owners will be jailed for abetting counterfeit goods

Soroti | Landlords and vehicle owners across the country could soon face legal action for facilitating the trade of counterfeit goods and services.

They could face penalties under the proposed Anti-Counterfeit Bill of 2023, which is yet to be passed into law.

In July 2023, Asuman Basaliwa, Bugiri Municipality MP, received Parliamentary approval to introduce the “Anti-Counterfeit Bill, 2023.” This legislation seeks to prohibit counterfeit goods that infringe on intellectual property rights, specifically copyrights and trademarks.

The Bill not only prohibits the sale and manufacture of counterfeit goods, but also punishes those involved in their packaging, labelling, or importation. Section 12(1) of the Bill defines an offender as anyone directly or indirectly involved in the sale, importation, or possession of counterfeit goods or services.

Individuals who aid, abet, or conspire in the commission of Section 12(1) offences face up to ten years in prison or a fine of up to five times the prevailing retail price of the genuine goods or services, according to the Bill. 

Additional penalties may include the revocation of trade licences, the confiscation or destruction of counterfeiting equipment, and a ten-year ban on engaging in commercial activities.

To combat counterfeit products, the proposed Bill specifically targets automobiles (cars and motorcycles) and properties as potential channels for distributing and harbouring counterfeit goods, as well as individuals involved in such illegal activities. 

This initiative seeks to regulate asset owners in a manner similar to existing laws, such as the Tenant and Landlord Act.

During a consultative meeting in Soroti City, Counsel Fred Muwema, a founding Partner of Muwema & Co. Advocates and Chairman of the Anti-Counterfeit Network (ANC), highlighted citizens’ negligence and the lack of direct legislation addressing the issue.

Muwema also cited public demand for low-cost commodities, which drives traders to seek out cheaper and counterfeit products in both domestic and international markets.

Muwema emphasised that once passed, the “Anti-Counterfeit Goods and Services Bill 2023” would be ground-breaking, with offenders facing shs50 million fines or up to ten years in prison if convicted.

Paul Omer, mayor of Soroti City East Division, emphasised the importance of stringent law enforcement by agencies such as the URA, UNBS, and the Police in combating counterfeit trade, blaming the prevalence of fake goods on inadequate oversight.

He admitted to being a victim of counterfeit goods, claiming that people have been duped and lives have been lost as a result of consuming counterfeit products, which have caused health complications in citizens.

Omer, who was declared as an ambassador of the Bill, says he will spread the draft copies of the bill and dissemination of information about the bill to all masses through the media and other public gatherings to create awareness.

Moses Outa, a mechanic at Jua-Kali, recounted challenges faced due to counterfeit products, including customer dissatisfaction and road accidents caused by substandard automotive parts.

Outa noted that some of the road accidents realised are caused by the counterfeit products that are widely spread in shops fixed in these automotives.

Robert Erau, the LC1 chairperson of Cell B Oderai Ward, supported the Bill, criticising the government’s failure to address counterfeit goods effectively.

Erau also faults the government for privatisation, noting that most of the private companies are the ones fostering counterfeit goods at the watch of the government.  

 Jonathan Ebwalu, the MP for Soroti City West Division and a supporter of the private member’s bill, emphasised widespread public support for the legislation and proposed amendments to raise the maximum jail sentence from ten years to life imprisonment.

Ebwalu expressed optimism that the bill’s passage would increase government revenue by reducing tax evasion through counterfeiting.

Existing laws governing intellectual property include the Copyright and Neighbouring Rights Act of 2006, the Trade Secrets Protection Act of 2009, the Trademarks Act of 20l0, the Geographical Indications Act of 2013, the Industrial Property Act of 2014, and the Plant Variety and Protection Act of 2014.

However, none of these laws specifically address counterfeit goods and services and their penalties.

By Robert Edwomu.