Businessmen acquitted of importing counterfeit items

Court acquits two businessmen after prosecution fails to prove they knowledgeably imported counterfeit items and placed fake MK logo on their imported goods.

Two businessmen were this morning acquitted of breaching intellectual property rights, but were fined €56 for importing electrical accessories without an importation license.

Magistrate Consuelo Scerri Herrera,  heard how back in 2002 ironmonger Ray Abdilla had spoken to Emanuel Micallef, owner of  Master Electric of Qormi regarding the supply of electrical plugs and switches. Subsequently Micallef visited a Fair in China where he placed an order for what he believed were electrical supplies by MK.

The police had received a complaint from Joe Camilleri, owner of ITC Company Ltd. Camilleri claimed that various ironmongers were selling counterfeit plugs carrying the MK logo. He also alleged that the company importing such items was Master Electric of Qormi. Dr Michael Tanti Dougal, as legal representative of  MK Ltd signed the complaint and confirmed that ITC was the sole importer of the MK brand.

Further investigations led the police to an ironmongery shop in Zurrieq, owned by Ray Abdilla.  From the shop and store of the 44-year-old man of Mosta. the police seized 43 boxes of electrical supplies marked with the MK logo. In his police statement Abdilla explained to investigators how he had stopped buying from ITC as they could not better his profit margin. He also admitted to agreeing to buy items from Emanuel Micallef. These items had a better profit margin however had to be paid in advance. Abdilla said that all items purchased had a declaration of conformity and the prices was not cheap enough to make him suspect the items were counterfeit.

When the police spoke to Emanuel Micallef as owner of Master Electric, the 49-year -old of San Gwann confirmed he had imported electrical supplies marked as MK from Chinese company Sassin International. He claimed that he had done this as he was aware that parallel trading was allowed in Malta. Police searches carried out in the stores of Master Electric gave negative results.

Taking the witness stand, Professor Joseph Agius confirmed to the court that the seized items were indeed counterfeit and not original MK products.

Witness Alfred Scerri took the stand on 11 June 2003. Scerri told the court he has an ironmongery shop in Naxxar and had purchased items from master Electric. In all he had bought 20 three-pin-plugs, of which some were sold and the rest were seized by the police. When he spoke to the company about the seized items he was reimbursed for the seized plugs. Furthermore he explained how for 27 years he had purchased MK supplies from ITC but then started buying the same items from Ray Abdilla. He had only purchased directly from Master Electric once.

The court held that the charges of breach of intellectual property rights can only be raised following the complain of the injured party. MK Ltd at no time asked the police to investigate or proceed against the accused. "What was presented in court was a power of attorney by MK Ltd for lawyer Michael Tanti Dougal to appear on behalf of the company in any legal proceeding," the court said.

The accused were also charged with using counterfeit MK markings on electrical products. The court argued that the prosecution failed to prove that it was the two accused who had put the MK logo on the items. Moreover, all documents showed that the items were imported readily bearing the MK logo and the accused were not involved in the application of the logo onto the items.

Magistrate Consuelo Scerri Herrera acquitted the two men of the first two charges and fined them €56 for operating without an importation license. The Magistrate ordered that all seized items will be passed over to the Government of Malta.