IPC Section 486 – Selling Goods Marked with Counterfeit Trade Mark

Section Overview

Section Number:

IPC Section 486

Section Title:

Selling Goods Marked with Counterfeit Trade Mark or Property Mark

Act:

Indian Penal Code, 1860 (IPC)

Status:

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

Applicability:

IPC Section 486 applies when a person:

• Sells or offers for sale goods;

• The goods are marked with counterfeit trade mark or property mark;

• The person knows or has reason to believe the marks are counterfeit;

• The act is done with fraudulent or deceptive intent.

👉 This section focuses on distribution and sale stage of counterfeit goods.

Section Explanation

Simple Explanation (Plain English/Hinglish)

IPC Section 486 ka simple matlab hai ki agar koi vyakti aise goods bechta hai jin par fake trade mark ya property mark laga hua hai aur use pata hota hai ki woh fake hai, to woh crime karta hai.

Simple words mein:

"Fake brand wale products bechna IPC 486 hai."

Legal Meaning

Section 486 punishes:

• Selling counterfeit-marked goods;

• Offering such goods for sale;

• Possession of such goods for sale;

• Knowledge of counterfeit nature of marks.

Essential Ingredients

Goods with Counterfeit Mark

The goods must bear:

• Fake trade mark; OR

• Fake property mark.

Act of Sale or Possession for Sale

The accused must:

• Sell goods; OR

• Offer goods for sale; OR

• Keep goods for commercial sale.

Knowledge or Reason to Believe

The accused must:

• Know OR

• Have reason to believe

that the mark is counterfeit.

Fraudulent Intent

The purpose must include:

• Deceiving consumers;

• Gaining wrongful profit;

• Misrepresenting goods.

Why IPC Section 486 Is Important

This section:

• Protects consumers from counterfeit goods;

• Maintains fair trade practices;

• Prevents circulation of fake branded products;

• Strengthens anti-piracy enforcement;

• Supports intellectual property protection indirectly.

Difference Between Sections 485 and 486

👉 Section 486 is the distribution/sale stage offence.

Common Forms of Offence

Fake Branded Goods Sale

Selling duplicate branded items in markets.

Counterfeit Online Sales

E-commerce sale of fake branded products.

Wholesale Distribution

Supplying counterfeit goods to retailers.

Street Market Fraud

Selling fake goods in physical marketplaces.

Punishment & Legal Classification

Punishment

IPC Section 486 provides:

• Imprisonment up to 3 years; OR

• Fine; OR

• Both.

Bailable / Non-Bailable

✔ Generally Bailable

Cognizable / Non-Cognizable

❌ Generally Non-Cognizable

Compoundable

✔ Compoundable (with court permission in certain cases)

Triable By

Magistrate of First Class

IPC ↔ BNS Mapping

IPC Section

IPC Section 486

BNS Equivalent

Bharatiya Nyaya Sanhita includes corresponding provisions dealing with:

• Sale of counterfeit goods;

• Trade mark infringement in commercial distribution;

• Consumer protection from fraud.

Status

Concept retained and adapted for modern digital and physical commerce.

Real-Life Examples

Example 1: Fake Branded Clothing Sale

A shop sells clothes with fake luxury brand logos.

Section 486 applies.

Example 2: Online Marketplace Fraud

Seller knowingly sells counterfeit branded electronics online.

IPC Section 486 is attracted.

Example 3: Wholesale Counterfeit Supply

A distributor supplies fake branded goods to multiple retailers.

Section 486 applies.

Example 4: Street Vendor Selling Fake Goods

A vendor sells goods with counterfeit trade marks in local market.

Offence under IPC 486 is made out.

Landmark Judgments

Case Name:

Cadila Health Care Ltd. v. Cadila Pharmaceuticals Ltd.

Court:

Supreme Court of India

Key Takeaway:

Counterfeit goods create consumer confusion and must be strictly controlled.

Case Name:

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

Court:

Supreme Court of India

Key Takeaway:

Trade identity protection is essential for fair commercial practice.

Case Name:

Laxmikant V. Patel v. Chetanbhai Shah

Court:

Supreme Court of India

Key Takeaway:

Misuse of branding damages goodwill and consumer trust.

Legal Insights

When Is Section 486 Applied?

Section 486 is applied when:

• Counterfeit goods are sold;

• Goods with fake marks are circulated;

• Seller has knowledge of counterfeit nature;

• Commercial fraud is established.

Common Misuse Scenarios

 Innocent Sellers

No knowledge of counterfeit nature.

 Civil Disputes

Trademark disputes mistaken as criminal offences.

 Supplier Misrepresentation

Retailer unaware of upstream fraud.

Lack of Intent

No fraudulent intention proven.

Defenses Available

No Knowledge

Accused unaware goods were counterfeit.

No Fraudulent Intent

No intention to deceive consumers.

Genuine Belief

Belief that goods were original.

Lack of Evidence

Insufficient proof of knowledge.