Economic, Commercial and Intellectual Property Laws · Law relating to Trade Marks

Offences, Penalties and Imported Goods with False Trade Marks

Updated 11 October 2026 · Fact-checked

Under the Trade Marks Act, 1999, falsifying a trade mark, falsely applying it, or applying a false trade description is a criminal offence (Section 103). Selling such goods is also punishable (Section 104). Section 140 lets the proprietor ask Customs to stop imports and lets the Commissioner of Customs demand importer information.

Understand Offences, Penalties and Imported Goods with False Marks

Trade mark law has a civil side and a criminal side. Infringement and passing off give the owner a suit for injunction and damages. The offences in Chapter XII add criminal punishment for those who counterfeit marks or deceive buyers about goods or services.

Start with the building blocks. Section 102 says when a person falsifies a mark: making the mark or a deceptively similar mark without the proprietor's assent, or altering, adding to or effacing a genuine mark. It also says when a person falsely applies a mark: putting the mark or a deceptively similar one on goods, services or packages without assent, or using a package bearing such a mark to pack goods that are not the genuine goods of the proprietor. A mark falsified or falsely applied is a false trade mark. In a prosecution, the burden of proving the proprietor's assent lies on the accused.

Section 101 explains what applying a mark means. It covers applying it to the goods, to a package, placing goods inside a marked package, using it in a way likely to make people believe the goods are designated by it, and using it in invoices, catalogues, advertisements and similar documents where goods are delivered against an order made by reference to it.

Section 103 punishes the maker side: falsifying, falsely applying, holding dies, blocks, machines or plates for falsifying, applying a false trade description, giving or tampering with indications of origin required under Section 139, and causing any of these. Section 104 punishes the seller side: selling, letting for hire, exposing or possessing for sale goods or services bearing a false mark or description, or goods lacking a required indication of origin. Both carry imprisonment of six months to three years and a fine of ₹50,000 to ₹2,00,000. The court may go below these minimums only for adequate and special reasons recorded in the judgment.

Section 103 offenders escape only if they prove they acted without intent to defraud. Section 104 sellers can escape by proving reasonable precautions and no reason to suspect, or that they gave all information on their supplier on demand, or that they otherwise acted innocently. Section 139 lets the Central Government require, by notification, an indication of country, place or maker's name and address on specified goods. Section 140 deals with imports: the proprietor or licensee of a registered mark may give written notice to the Collector of Customs to prohibit import of goods that infringe under Section 29(6)(c). Where goods are prohibited under the Customs Act notification and liable to confiscation, the Commissioner of Customs, if he has reason to believe the mark is false, may require the importer or agent to produce documents and give the consignor's and consignee's names and addresses.

Key rules to remember

Punishment under Sections 103 and 104: Imprisonment: 6 months to 3 years; Fine: ₹50,000 to ₹2,00,000; Court may impose less only for adequate and special reasons stated in the judgment.
False trade mark (Section 102): Falsified mark or falsely applied mark = false trade mark; Both require absence of the proprietor's assent; the accused must prove assent.
Section 103 defence: Acted without intent to defraud; The accused must prove it.
Section 104 defences: (a) reasonable precautions and no reason to suspect; or (b) gave all information on supplier on demand; or (c) otherwise acted innocently; Any one, proved by the seller, is enough.
Section 140(1) notice: Proprietor or licensee of registered mark → written notice to Collector of Customs → prohibit import; Applies where import infringes under Section 29(6)(c).
Section 140(2)-(3) information: Commissioner may require documents and names and addresses of consignor and consignee; compliance within 14 days; penalty ₹10,000 for failure; Penalty is levied by the authority under the Customs Act, 1962; the 14-day period and penalty come from the 2023 amendment effective 1-8-2024.
Section 140(4): Commissioner may pass the information to the registered proprietor or registered user; Allows the owner to act against the supplier.
Section 116: Port of shipment (goods brought by sea) = prima facie evidence of place or country of production; Applies in prosecutions under the Act and certain Customs Act proceedings.

How to solve Offences, Penalties and Imported Goods with False Marks questions

Use this order for any problem on offences or imported goods with false marks.

1Identify the act: making or altering a mark, applying it, selling goods, or importing goods.
2Test for falsification or false application under Section 102: was there assent of the proprietor? Remember the burden is on the accused.
3Check whether the act amounts to applying a mark under Section 101 (goods, package, invoice, advertisement and so on).
4Pick the offence: Section 103 for maker or applier, Section 104 for seller or possessor.
5Examine the available defences: no intent to defraud for Section 103; the three alternatives for Section 104.
6State the punishment: six months to three years and ₹50,000 to ₹2,00,000, with the court's limited power to reduce.
7If goods are imported, apply Section 140: notice by proprietor or licensee, Commissioner's information power, 14 days, ₹10,000 penalty, and disclosure to the proprietor.
8Conclude clearly: liable or not, with the section cited.

Quickest way: Maker, seller, importer triage

When to use it: Use when you have a short case-based question and little time.

Maker or applier of the mark: Section 103.
Seller or holder for sale: Section 104 and its defences.
Importer: Section 140 and customs powers.
Write the punishment figures once, then the defence, then the conclusion.

Common mistakes in Offences, Penalties and Imported Goods with False Marks

Treating Sections 103 and 104 as the same offence
Both have identical punishment, so students merge them.
Fix: Section 103 targets those who falsify or apply; Section 104 targets those who sell, hire or possess for sale. Their defences differ.
Saying the prosecution must prove absence of assent
Criminal law usually puts the burden on the prosecution.
Fix: Section 102(4) puts the burden of proving the proprietor's assent on the accused.
Stating the punishment as a fixed term or ignoring the minimums
Students remember only the maximum of three years.
Fix: Write six months to three years and ₹50,000 to ₹2,00,000, with the proviso allowing less for special reasons recorded.
Saying anyone can invoke Section 140(1)
Students overlook who may give notice.
Fix: Only the proprietor or licensee of a registered trade mark may give written notice to the Collector of Customs, for goods infringing under Section 29(6)(c).
Mixing up Section 140 time limit and penalty
Older notes show different figures.
Fix: The importer or agent must comply within fourteen days or face a penalty of ₹10,000, levied under the Customs Act, 1962.
Ignoring Section 139 indications of origin
Students focus only on marks.
Fix: Missing or false origin indications required by notification under Section 139 can trigger Sections 103 and 104.

Worked examples

Example 1

Ravi runs a unit in Ludhiana that prints the registered mark of a well-known Mumbai garment company on shirts without its consent and sells them to retailers. Advise on his liability.

Show the solution

Under Section 102(1)(a) and (2)(a), making and applying the mark or a deceptively similar mark without the proprietor's assent is falsifying and falsely applying; the mark becomes a false trade mark.
Under Section 102(4), Ravi must prove the proprietor's assent; he has none.
Section 103 punishes falsifying and falsely applying unless he proves he acted without intent to defraud; selling the shirts as the brand's goods shows no such absence.
Punishment is imprisonment of six months to three years and a fine of ₹50,000 to ₹2,00,000, reducible only for adequate and special reasons recorded by the court.

Answer: Ravi is liable under Section 103 and faces six months to three years of imprisonment and a fine of ₹50,000 to ₹2,00,000, as he cannot prove assent or lack of intent to defraud.

Example 2

A registered proprietor learns that a consignment bearing a counterfeit of its mark is arriving at Nhava Sheva port. What can it do under Section 140, and what duties fall on the importer?

Show the solution

Under Section 140(1), the proprietor or a licensee of a registered trade mark may give written notice to the Collector of Customs to prohibit importation, if the import infringes under Section 29(6)(c).
Where the goods are prohibited by a Customs Act notification for protection of trade marks and are liable to confiscation, the Commissioner of Customs, on representation and with reason to believe the mark is false, may require the importer or agent to produce documents and give the names and addresses of the consignor and the Indian consignee (Section 140(2)).
The importer or agent must comply within fourteen days; failure attracts a penalty of ₹10,000, levied by the authority under the Customs Act, 1962 (Section 140(3)).
Under Section 140(4), the Commissioner may pass on the information to the registered proprietor or registered user.

Answer: The proprietor may give written notice to Customs to prohibit the import. The Commissioner may demand documents and party details; the importer must comply within fourteen days or pay ₹10,000, and the information may be shared with the proprietor.

Exam tips

Write the section number with every offence or power; ICSI-style answers reward it.
Use the sequence provision, facts, conclusion, and state the punishment figures exactly.
For case-based questions, always say who bears the burden: the accused for assent (Section 102(4)).
Learn Section 140 as a short list: who gives notice, what Customs may ask, 14 days, ₹10,000, sharing with the proprietor.

Practice questions from Law relating to Trade Marks

Offences, Penalties and Imported Goods with False Marks: frequently asked questions

What is the punishment for applying a false trade mark in India?

Under Section 103 of the Trade Marks Act, 1999, it is imprisonment of six months to three years and a fine of ₹50,000 to ₹2,00,000. The court may impose less only for adequate and special reasons recorded in the judgment.

Who can ask Customs to stop imports under Section 140?

The proprietor or a licensee of a registered trade mark may give written notice to the Collector of Customs. The import must infringe under Section 29(6)(c).

Can a shopkeeper selling counterfeit goods escape liability?

Under Section 104 the seller can escape by proving reasonable precautions and no reason to suspect, or that he gave all information on his supplier on demand, or that he otherwise acted innocently. The burden is on him.

What happens if an importer does not give information to Customs?

The importer or agent must comply within fourteen days. Failing that, a penalty of ₹10,000 is levied by the authority under the Customs Act, 1962.