In the digital age, the unauthorized use of trademarks has become a prevalent issue, impacting businesses and consumers alike. The Cybercrime Code Act 2016 of Papua New Guinea addresses various cyber offences, including online trademark infringement. Section 29 of this Act provides detailed provisions on the unlawful use of electronic systems or devices to infringe on trademarks.
What Constitutes Online Trademark Infringement?
Section 29 of the Cybercrime Code Act 2016 defines online trademark infringement as the intentional and unauthorized use of an electronic system or device to sell or expose for sale goods or services with a forged registered trademark, in violation of the Trademarks Act (Chapter 385) or other related trademark laws.
Key Actions Constituting Online Trademark Infringement
Online trademark infringement includes:
- Selling Goods or Services: Selling items that falsely bear a registered trademark.
- Exposing Goods or Services for Sale: Displaying items for sale that falsely bear a registered trademark.
Penalties
The Act imposes severe penalties for those found guilty of online trademark infringement: For Natural Persons:
- Imprisonment for a term not exceeding 15 years.
- A fine not exceeding K100,000.00.
- Prohibition from accessing and using ICTs or electronic systems for the term of imprisonment imposed plus an additional two years.
- Any combination of the above penalties.
The penalty for bodies corporate is a fine not exceeding K1, 000, 000.00.
Examples
Online trademark infringement involves the unauthorized use of a trademark in a way that causes confusion about the source of goods or services. Here are two examples:
Selling Counterfeit Products on E-Commerce Platforms: An online seller lists products on an e-commerce platform, falsely using a well-known brand’s trademark to market and sell counterfeit goods. For instance, they might sell fake designer handbags with the brand’s logo, misleading customers into believing they are purchasing authentic items. This form of trademark infringement damages the brand’s reputation and can lead to significant legal consequences under laws like the Cybercrime Code Act 2016.
Domain Name Squatting: An individual registers a domain name that is confusingly similar to a well-known trademark, intending to attract web traffic for commercial gain. For example, they might register “amaz0n.com” instead of “amazon.com” to deceive users into visiting their site, where they sell unrelated or inferior products. This practice, known as cybersquatting, is a form of online trademark infringement and can result in legal action and penalties.
Implications of Online Trademark Infringement
The stringent penalties outlined in Section 29 highlight the seriousness with which Papua New Guinea treats online trademark infringement. Such activities can lead to significant financial losses for legitimate businesses, damage to brand reputation, and potential harm to consumers. The legislation aims to deter trademark infringement by imposing heavy fines and long prison terms for offenders.
Prevention
Given the severe penalties and potential impacts of online trademark infringement, it is crucial to adopt comprehensive measures to prevent such activities. Here are some strategies:
- Implement strong trademark policies: Ensure that all goods and services sold or displayed comply with trademark laws.
- Educate users and businesses: Provide education and awareness programs about the legal and ethical implications of trademark infringement.
- Monitor online activities: Regularly monitor online platforms for signs of unauthorized use or sale of trademarked goods or services.
- Enforce trademark protection: Take legal action against those who infringe upon trademark laws and support efforts to remove unauthorized content.
Conclusion
Section 29 of the Cybercrime Code Act 2016 underscores the importance of preventing online trademark infringement in Papua New Guinea. By understanding the legal implications and implementing robust preventive measures, individuals and organizations can better protect themselves and others from the harmful effects of trademark infringement.
About the author