Unlawful Use of a Trademark — Article 196
The unlawful use of another's trademark, appellation of origin or geographical indication is governed by Article 196 of the Criminal Code of Georgia. This norm matters to business in both directions: it protects the holder of the right and at the same time defines the border whose crossing leads an entrepreneur to criminal liability. If such a charge has been brought against you, or your mark is being used unlawfully, it is important to know exactly what the law requires.
Elements — When Conduct Becomes a Crime
Under the first part of the article it is punishable to unlawfully make, in a large amount, another's trademark (service mark), appellation of origin of goods or geographical indication, or otherwise unlawfully to use them, as well as to produce goods unlawfully marked (labeled) with another's mark, appellation or a registered firm name, or to put them into civil circulation — on condition that this caused significant damage. The note makes clear that unlawful making counts as being in a large amount when the total quantity of the marks exceeds 1000 pieces, and the damage is significant when the value of the marked goods exceeds 5000 GEL. These two thresholds — quantity and damage — are the foundation of the qualification of the case, and their establishment must be documented. In practice this means that the case must separately show how many units were involved in circulation, what value that goods had, and by what methodology the value was calculated. In borderline cases every detail is decisive: the completeness of the inventory, the correctness of the valuation and which batch belongs to which period. If any of these elements is unproven, the feature of a large amount or significant damage does not exist, and this directly entails the absence of the elements of the crime.
Penalties Under the Parts of the Article
The first part provides a fine, or corrective labor for a term of up to two years, or imprisonment for the same term. The choice among these forms of penalty is a decision of the court and depends on all the circumstances of the case.
A separate composition is the false indication of a warning marking together with an unregistered trademark (service mark), appellation of origin of goods or geographical indication. This part provides a fine, or community service for a term of one hundred twenty to one hundred eighty hours and, or, corrective labor for a term of up to one year, or imprisonment for a term of two to three years. This composition concerns precisely a false indication of a warning marking — the incorrect use of a sign pointing the consumer to a certain legal status. Establishing it requires defining what was indicated as the marking and how far it corresponded to reality; a general presumption is impermissible, and only concrete factual data may underlie the conclusion.
Conduct provided for by the first or the second part is punished more severely — by a fine or imprisonment for a term of three to five years — when it is committed:
- more than once;
- by a person convicted for such a crime;
- by a group with prior conspiracy.
Each of these features requires separate establishment: repetition presupposes a prior commission, conviction presupposes a special subject, and prior conspiracy presupposes a formed group intent. Refuting any one of these features returns the qualification to the first or second part, which substantially reduces the penalty.
How the Defense Works
The first question is quantity: the threshold of a large amount — more than 1000 pieces — must be established by a reliable inventory, and its calculation is always subject to verification. The second is damage: the condition of significant damage is tied to the value of the goods exceeding 5000 GEL, and this value must be confirmed by documents. The third is the element of unlawfulness: if the use rested on a legal basis, the conduct lacks the element of the crime. The fourth is the aggravating features, each of which must be established separately. The rules for the allocation of punishment are defined by other norms of the Code.
Frequently Asked Questions
What does Article 196 establish?
The unlawful making or use, in a large amount, of another's trademark, appellation of origin or geographical indication, as well as the production or circulation of marked goods, where this caused significant damage.
What is a large amount and significant damage?
A large amount is when the total quantity of marks exceeds 1000 pieces; the damage is significant when the value of the marked goods exceeds 5000 GEL.
What is the penalty under the first part?
A fine, or corrective labor for up to two years, or imprisonment for up to two years.
And under the third part?
When committed more than once, by a person convicted for such a crime, or by a group with prior conspiracy — a fine or imprisonment from three to five years.
What does the lawyer verify?
The calculation of quantity, the establishment of damage, the legal basis of the use, and the aggravating features — each of these elements is a separate subject of review.
How We Help on Legal.ge
Such cases are almost always built on documentary evidence — contracts, declarations, accounting data and inventories of goods — and the accurate analysis of this material decides whether the conduct reaches the threshold of a crime. A Legal.ge lawyer works effectively for both sides: for the accused, by verifying the elements of quantity, valuation and unlawfulness; for the right holder, by fully documenting the factual picture of the infringement. Contact us on Legal.ge — we will review your situation in confidence and recommend the path that best protects your interests.