Bharatiya Nyaya Sanhita, 2023
Section 349
Selling goods marked with a counterfeit property mark
Whoever sells, or exposes, or has in possession for sale, any goods or things with a counterfeit property mark affixed to or impressed upon the same or to or upon any case, package or other receptacle in which such goods are contained, shall, unless he proves—
(a) that, having taken all reasonable precautions against committing an offence against this section, he had at the time of the commission of the alleged offence no reason to suspect the genuineness of the mark; and
(b) that, on demand made by or on behalf of the prosecutor, he gave all the information in his power with respect to the persons from whom he obtained such goods or things; or
(c) that otherwise he had acted innocently, be punished with imprisonment of either description for a term which may extend to one year, or with fine, or with both.
Why this exists
Counterfeit-marked goods can only reach ordinary consumers through sellers, so this section extends responsibility down the supply chain to those who sell such goods, encouraging sellers to check the genuineness of property marks on what they stock. At the same time, it fairly protects honest sellers who took reasonable care, had no reason to suspect a problem, cooperated with authorities about their supplier, or otherwise acted innocently, from being punished for someone else's deception.
Common misconceptions
- Myth: Any shopkeeper who sells counterfeit-marked goods is automatically guilty, even if they had no idea the goods were fake.
Fact: The law provides a specific defence: a seller who took reasonable precautions, had no reason to suspect the mark was fake, cooperated with authorities about their supplier, or otherwise acted innocently, can avoid punishment under this section.