IPC Section 480 – Using a Counterfeit Property Mark

Section Overview

Section Number:

IPC Section 480

Section Title:

Using a Counterfeit Property Mark

Act:

Indian Penal Code, 1860 (IPC)

Status:

Substantially retained under Bharatiya Nyaya Sanhita (BNS), 2023 within provisions dealing with trade fraud, counterfeit marking, and property identification offences.

Applicability:

IPC Section 480 applies when a person:

• Uses a counterfeit property mark on goods or property;

• Knows that the mark is counterfeit;

• Intends to deceive others regarding ownership or origin;

• Causes or attempts to cause wrongful gain or loss through such use.

👉 The focus is on use, not just creation of fake marks.

Section Explanation

Simple Explanation (Plain English/Hinglish)

IPC Section 480 ka simple matlab hai ki agar koi vyakti kisi product ya property par fake property mark lagata hai ya use karta hai aur janta hai ki woh mark jhootha hai, to woh crime karta hai.

Simple words mein:

"Fake property mark ko use karna IPC 480 hai."

Legal Meaning

Section 480 punishes:

• Use of counterfeit property marks;

• Intentional misrepresentation of ownership or origin;

• Fraudulent branding or labeling of goods;

• Acts done knowingly to deceive.

Essential Ingredients

Counterfeit Property Mark

There must be a fake mark representing:

• Ownership; OR

• Origin; OR

• Identity of goods.

Use of the Mark

The accused must actively:

• Apply;

• Display;

• Sell goods with; OR

• Represent goods using counterfeit mark.

Knowledge

The accused must know:

• The mark is counterfeit; AND

• It is being used fraudulently.

Fraudulent Intention

The purpose must be to:

• Deceive buyers or authorities;

• Gain wrongful benefit;

• Misrepresent ownership or origin.

Why IPC Section 480 Is Important

This section:

• Protects consumers from fraud;

• Prevents misuse of ownership marks;

• Ensures fair trade practices;

• Protects brand and ownership identity;

• Maintains trust in commercial transactions.

Difference Between Sections 479 and 480

👉 Section 480 is the “usage stage” offence.

Common Forms of Offence

 Fake Branded Goods

Selling goods using fake company property marks.

 Misleading Ownership Labels

Using someone else’s property mark to sell goods.

 Counterfeit Packaging Use

Using fake labels to increase product value.

Commercial Fraud

Using counterfeit marks to mislead consumers in trade.

Punishment & Legal Classification

Punishment

IPC Section 480 provides:

• Imprisonment up to 3 years; OR

• Fine; OR

• Both.

Bailable / Non-Bailable

✔ Generally Bailable

Cognizable / Non-Cognizable

❌ Generally Non-Cognizable

Compoundable

✔ Compoundable (in certain cases with court permission)

Triable By

Magistrate of First Class

IPC ↔ BNS Mapping

IPC Section

IPC Section 480

BNS Equivalent

Bharatiya Nyaya Sanhita includes corresponding provisions dealing with:

• Use of counterfeit property marks;

• Trade mark misuse;

• Commercial fraud and deception in goods.

Status

Concept retained and updated for modern commercial enforcement.

Real-Life Examples

Example 1: Fake Branding Use

A person sells goods using fake property marks of a well-known company.

Section 480 applies.

Example 2: Misleading Ownership Label

Goods are marked with another person’s property mark to deceive buyers.

IPC Section 480 is attracted.

Example 3: Counterfeit Product Packaging

Fake property marks are used on packaging to make goods appear original.

Section 480 applies.

Example 4: Market Deception

A trader knowingly uses counterfeit marks to increase resale value.

Offence under IPC 480 is made out.

Landmark Judgments

Case Name:

Cadila Health Care Ltd. v. Cadila Pharmaceuticals Ltd.

Court:

Supreme Court of India

Key Takeaway:

Misleading marks can create consumer confusion and must be strictly regulated.

Case Name:

Satyam Infoway Ltd. v. Sifynet Solutions Pvt. Ltd.

Court:

Supreme Court of India

Key Takeaway:

Protection of trade identity is essential for fair commercial practices.

Case Name:

Laxmikant V. Patel v. Chetanbhai Shah

Court:

Supreme Court of India

Key Takeaway:

Misrepresentation in trade affects goodwill and consumer trust.

Legal Insights

When Is Section 480 Applied?

Section 480 is applied when:

• Counterfeit property marks are used on goods;

• Consumers are deceived;

• Ownership or origin is misrepresented;

• Fraudulent trade practices occur.

Common Misuse Scenarios

Civil Trademark Disputes

Business disputes mistaken for criminal offences.

 Lack of Intent

No intention to deceive consumers.

Clerical Labeling Errors

Mistaken or accidental marking.

Unregistered Trade Confusion

Brand confusion without fraud.

Defenses Available

No Fraudulent Intent

No intention to mislead.

Genuine Mark

Mark is authentic or legally permitted.

Lack of Knowledge

Accused unaware of counterfeit nature.

No Deception Possibility

No likelihood of consumer confusion.