OREGON CITY — A Happy Valley man will serve 40 days in jail for selling counterfeit Rolex watches, iPods and designer apparel on the Internet.  Gordon Kean Dye, 52, also will pay a $500 fine, pay for his extradition from Texas and remain on probation for two years after he completes his jail term.

Dye was arrested by FBI agents in September 2008, during a crackdown on intellectual property rights violations. After agents obtained a search warrant, they found Dye with several bogus items he bought in Mexico, including 20 bogus Rolex watches, Coach handbags, Nike apparel and items bearing the prestigious Prada label. The counterfeit goods were manufactured in China.

Dye faced charges in both Washington and Clackamas counties. Prosecutors in both counties worked together and negotiated coordinated pleas.

On Friday, Dye pleaded guilty in Washington County Circuit Court to second-degree trademark counterfeiting.

Today, he pleaded guilty in Clackamas County Circuit Court to first-degree trademark counterfeiting, second-degree trademark counterfeiting and third-degree trademark counterfeiting.

Dye offered a simple apology to Judge Steven L. Maurer.

“I’m sorry for being here, your honor, in this courtroom,” he said.

Source: The Oregonian

The Trademark Counterfeiting statute appears below.  Click the links above to see the penalty for each degree of counterfeiting.

CHAPTER 647—Trademarks and Service Marks; Oregon Revised Statutes 647.135
(1) A person commits trademark counterfeiting if the person knowingly and with the intent to sell or distribute and without the consent of the registrant uses, displays, advertises, distributes, offers for sale, sells or possesses any item that bears a counterfeit of a mark or any service that is identified by a counterfeit of a mark registered under this chapter or registered under this chapter or registered under 15 U.S.C. 1052 with knowledge that the mark is counterfeit.

(2) For purposes of this section, a mark is counterfeit if:

(a) It is a mark that is identical to or substantially indistinguishable from a registered mark; and

(b) It is used on or in connection with the same type of goods or services for which the genuine mark is registered.

(3) A person does not commit trademark counterfeiting if the person has adopted and lawfully used the same or a confusingly similar mark in the rendition of like services or the manufacture of like goods in this state from a date before the effective date of registration of the service mark or trademark and continues to use the mark after the effective date of registration.

Stay out of trouble, kids!