Chinese Counterfeiter Sentenced

The U.S. Golf Manufacturers Anti-Counterfeiting Working Group (the "U.S. Golf Group," comprised of Acushnet Company, Callaway Golf, Cleveland Golf, Nike Golf, PING and TaylorMade Golf Company) reports that the Zhejiang Yongkang Court in China has sentenced 26-year-old defendant, Hou Bo, following a conviction in February for selling counterfeit golf equipment.

Hou Bo was sentenced to three years and six months in jail and ordered to pay a fine of $58,000. Hou Bo's automobile and inventory were confiscated, and the defendant was ordered to return $4,360 in illegal profits made from the sales of the counterfeit merchandise.

The conviction was the culmination of aggressive petitioning efforts by the U. S. Golf Group. An investigation and raid action was jointly conducted by the Yongkang Administration for Industry and Commerce (AIC) and Yongkang Municipal Public Security Bureau (PSB) in July 2007. The raid of the Sporting Goods Shop and Hong Kong Orient Sporting Goods Co., Ltd. led to a seizure of 1,684 pieces of counterfeit golf clubs, 4,764 golf balls and large amount of sales records. The owner, Hou Bo, was arrested by the Yongkang PSB and prosecuted by the Yongkang Prosecutorate in February for selling counterfeit merchandise.

The criminal trial was conducted before a panel of three judges. The Yongkang Court determined the case value of $212,488, based on Hou Bu's sales records and the counterfeit golf products seized during the raid. The Court found that during the period from March 2007 to July 2007, Hou Bu conducted his main operation from a building located at No. 301 South Zi Wei Road in Yongkang City. The defendant purchased counterfeit golf clubs bearing logos and trademarks owned by the U.S. Golf Group member companies and resold the fake goods to the customers in the United States, United Kingdom, Canada and other countries through online promotion and mail delivery. Sales amounted to $153,436.

According to the PRC Judicial Interpretation on IP Crime (issued in 2004) and Article 214 of PRC Criminal Code, any sales of counterfeit goods amounting to more than RMB 250,000 is deemed "very large" and the defendant should be sentenced to a fixed prison term of not less than three years and not more than seven years, plus a monetary fine. The Yongkang Court took into account Hou Bo's cooperation with the police during the investigation and his expression of remorse. The appeal period has expired, and the defendant is now incarcerated. The term of imprisonment started on July 14 2007 and will end January 13, 2011.