Minnesota Session Laws - 1999, Regular Session

                            CHAPTER 142-S.F.No. 411 
                  An act relating to crime; imposing criminal penalties 
                  for manufacturing, distributing, selling, or 
                  possessing with intent to sell or distribute 
                  counterfeited intellectual property; providing for 
                  forfeiture of these items; amending Minnesota Statutes 
                  1998, sections 609.531, subdivision 1; and 609.902, 
                  subdivision 4; proposing coding for new law in 
                  Minnesota Statutes, chapter 609. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 1998, section 609.531, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [DEFINITIONS.] For the purpose of sections 
        609.531 to 609.5318, the following terms have the meanings given 
        them.  
           (a) "Conveyance device" means a device used for 
        transportation and includes, but is not limited to, a motor 
        vehicle, trailer, snowmobile, airplane, and vessel and any 
        equipment attached to it.  The term "conveyance device" does not 
        include property which is, in fact, itself stolen or taken in 
        violation of the law.  
           (b) "Weapon used" means a dangerous weapon as defined under 
        section 609.02, subdivision 6, that the actor used or had in 
        possession in furtherance of a crime.  
           (c) "Property" means property as defined in section 609.52, 
        subdivision 1, clause (1).  
           (d) "Contraband" means property which is illegal to possess 
        under Minnesota law.  
           (e) "Appropriate agency" means the bureau of criminal 
        apprehension, the Minnesota state patrol, a county sheriff's 
        department, the suburban Hennepin regional park district park 
        rangers, the department of natural resources division of 
        enforcement, the University of Minnesota police department, or a 
        city or airport police department.  
           (f) "Designated offense" includes:  
           (1) for weapons used:  any violation of this chapter, 
        chapter 152, or chapter 624; 
           (2) for all other purposes:  a felony violation of, or a 
        felony-level attempt or conspiracy to violate, section 325E.17; 
        325E.18; 609.185; 609.19; 609.195; 609.21; 609.221; 609.222; 
        609.223; 609.2231; 609.24; 609.245; 609.25; 609.255; 609.322; 
        609.342, subdivision 1, clauses (a) to (f); 609.343, subdivision 
        1, clauses (a) to (f); 609.344, subdivision 1, clauses (a) to 
        (e), and (h) to (j); 609.345, subdivision 1, clauses (a) to (e), 
        and (h) to (j); 609.42; 609.425; 609.466; 609.485; 609.487; 
        609.52; 609.525; 609.53; 609.54; 609.551; 609.561; 609.562; 
        609.563; 609.582; 609.59; 609.595; 609.631; 609.66, subdivision 
        1e; 609.671, subdivisions 3, 4, 5, 8, and 12; 609.687; 609.821; 
        609.825; 609.86; 609.88; 609.89; 609.893; 609.895; 617.246; or a 
        gross misdemeanor or felony violation of section 609.891 or 
        624.7181; or any violation of section 609.324.  
           (g) "Controlled substance" has the meaning given in section 
        152.01, subdivision 4. 
           Sec. 2.  [609.895] [COUNTERFEITED INTELLECTUAL PROPERTY; 
        PENALTIES.] 
           Subdivision 1.  [DEFINITIONS.] (a) As used in this section, 
        the following terms have the meanings given them. 
           (b) "Counterfeit mark" means: 
           (1) any unauthorized reproduction or copy of intellectual 
        property; or 
           (2) intellectual property affixed to any item without the 
        authority of the owner of the intellectual property. 
           (c) "Counterfeited item or service" means an item or 
        service bearing or identified by a counterfeit mark. 
           (d) "Intellectual property" means any trademark, service 
        mark, or trade name. 
           (e) "Retail value" means: 
           (1) the usual selling price of the article or service 
        bearing or identified by the counterfeit mark; or 
           (2) the usual selling price of a finished product on or in 
        which components bearing or identified by a counterfeit mark are 
        used. 
           (f) "Service mark" means a mark used by a person to 
        identify services and to distinguish them from the services of 
        others. 
           (g) "Trademark" means a mark used by a person to identify 
        goods and to distinguish them from the goods of others. 
           (h) "Trade name" means a word, name, symbol, device, or any 
        combination of the foregoing in any form or arrangement, used by 
        a person to identify the person's business, vocation, or 
        occupation and to distinguish it from the business, vocation, or 
        occupation of others. 
           Subd. 2.  [CRIME.] A person who intentionally manufactures, 
        produces, distributes, offers for sale, sells, or possesses with 
        intent to sell or distribute any counterfeited item or service, 
        knowing or having reason to know that the item or service is 
        counterfeit, is guilty of counterfeiting intellectual property 
        and may be punished as provided in subdivision 3. 
           Subd. 3.  [PENALTIES.] (a) A person who is convicted of 
        violating subdivision 2 may be sentenced to imprisonment for not 
        more than five years or to payment of a fine of not more than 
        $100,000, or both, if: 
           (1) the violation involves the manufacture or production of 
        a counterfeited item or items; 
           (2) the violation involves the distribution, offer for 
        sale, sale, or possession with intent to sell or distribute 
        1,000 or more counterfeited items; 
           (3) the violation involves the distribution, offer for 
        sale, sale, or possession with intent to sell or distribute 
        counterfeited items or services having a retail value of more 
        than $10,000; or 
           (4) the defendant has two or more prior convictions for 
        violating this section or a law of another state or the United 
        States that provides criminal penalties for counterfeiting 
        intellectual property. 
           (b) Except as otherwise provided in paragraph (a), a person 
        who is convicted of violating subdivision 2 may be sentenced to 
        imprisonment for not more than three years or to payment of a 
        fine of not more than $50,000, or both, if: 
           (1) the violation involves more than 100 but fewer than 
        1,000 counterfeited items; 
           (2) the violation involves counterfeited items or services 
        having a retail value of more than $1,000 but not more than 
        $10,000; or 
           (3) the defendant has one prior conviction for violating 
        this section or a law of another state or the United States that 
        provides criminal penalties for counterfeiting intellectual 
        property. 
           (c) A person may be sentenced to imprisonment for not more 
        than one year or to payment of a fine of not more than $3,000, 
        or both, if the person is convicted of violating subdivision 2, 
        under circumstances not described in paragraph (a) or (b).  
           (d) If the defendant distributes, sells, offers for sale, 
        or possesses with intent to sell or distribute more than one 
        item or service bearing or identified by more than one 
        counterfeit mark, the quantity or retail value of these items 
        and services may be aggregated for purposes of determining 
        penalties under this subdivision. 
           Subd. 4.  [ALTERNATIVE FINE.] In lieu of the fine 
        authorized by subdivision 3, a person convicted of violating 
        this section who received economic gain from the act or caused 
        economic loss during the act may be sentenced to pay a fine 
        calculated in the manner provided in section 609.904, 
        subdivision 2. 
           Subd. 5.  [FORFEITURE.] Property used to commit or 
        facilitate the commission of a violation of this section, and 
        all money and property representing proceeds of a violation of 
        this section, shall be forfeited in accordance with sections 
        609.531 to 609.5316.  Notwithstanding any provision of section 
        609.5315 to the contrary, forfeited items bearing or identified 
        by a counterfeit mark must be destroyed unless the intellectual 
        property owner consents to another disposition. 
           Subd. 6.  [PRIMA FACIE EVIDENCE.] A Minnesota or federal 
        certificate of registration of an intellectual property is prima 
        facie evidence of the registrant's ownership and exclusive right 
        to use the intellectual property in connection with the goods or 
        services described in the certificate. 
           Sec. 3.  Minnesota Statutes 1998, section 609.902, 
        subdivision 4, is amended to read: 
           Subd. 4.  [CRIMINAL ACT.] "Criminal act" means conduct 
        constituting, or a conspiracy or attempt to commit, a felony 
        violation of chapter 152, or a felony violation of section 
        297D.09; 299F.79; 299F.80; 299F.82; 609.185; 609.19; 609.195; 
        609.20; 609.205; 609.221; 609.222; 609.223; 609.2231; 609.228; 
        609.235; 609.245; 609.25; 609.27; 609.322; 609.342; 609.343; 
        609.344; 609.345; 609.42; 609.48; 609.485; 609.495; 609.496; 
        609.497; 609.498; 609.52, subdivision 2, if the offense is 
        punishable under subdivision 3, clause (3)(b) or clause 3(d)(v) 
        or (vi); section 609.52, subdivision 2, clause (4); 609.53; 
        609.561; 609.562; 609.582, subdivision 1 or 2; 609.668, 
        subdivision 6, paragraph (a); 609.67; 609.687; 609.713; 609.86; 
        609.894, subdivision 3 or 4; 609.895; 624.713; 624.74; or 
        626A.02, subdivision 1, if the offense is punishable under 
        section 626A.02, subdivision 4, paragraph (a).  "Criminal act" 
        also includes conduct constituting, or a conspiracy or attempt 
        to commit, a felony violation of section 609.52, subdivision 2, 
        clause (3), (4), (15), or (16), if the violation involves an 
        insurance company as defined in section 60A.02, subdivision 4, a 
        nonprofit health service plan corporation regulated under 
        chapter 62C, a health maintenance organization regulated under 
        chapter 62D, or a fraternal benefit society regulated under 
        chapter 64B. 
           Sec. 4.  [EFFECTIVE DATE.] 
           Sections 1 to 3 are effective August 1, 1999, and apply to 
        violations occurring on or after that date. 
           Presented to the governor May 7, 1999 
           Signed by the governor May 11, 1999, 1:42 p.m.