$40,000 in fines for fake Rugby World Cup T-shirts

A judge's decision to fine a man $20,000 for importing fake Rugby World Cup merchandise is a strong signal to those involved in the fake merchandise business, the Ministry of Economic Development (MED) says.

Terry Lung Chan, 31, was fined $20,000 and his company, CLNZ Trading Company Ltd, was also fined $20,000 at the Auckland District Court today.

The ministry's national enforcement unit investigation manager, Phil Day, said outside court it was the first case of its kind in New Zealand and the sentence sent a strong message.

"We're satisfied that it's a substantial fine as we want to deter other people from being involved in this type of behaviour.

"This sends out a very strong message to people who are involved or are thinking about getting involved with importing or selling items which are not licenced for any major event, such as the Rugby World Cup."

MED, New Zealand Customs and Rugby World Cup Ltd worked together on the investigation and prosecution.

Chan, director of CLNZ Trading Company Ltd, was convicted of importing 1374 counterfeit t-shirts, intercepted by customs in December 2009. They were later destroyed.

MED lawyer Samuel Wimsett told the court Chan left for China shortly after being charged.

Judge Greg Davis was told Chan remained out of the country but the fines would be recorded against his name and would have to be paid if he returned to New Zealand.

Judge Davis said this sort of behaviour needed to be stopped.

"We need to deter those people who think any benefit can be obtained by producing fake replicas without paying for and obtaining the correct licence," he said.

The charges were the first to be laid under the Major Events Management Act 2007, under which the World Cup has been declared a major event.

Judge Davis said the case had been proved by way of a proof hearing, where the defendant had not made an appearance, and it proceeded using affidavit evidence.

"The Major Events Management Act 2007 is a special purpose legislation for the purposes of the Rugby World Cup, but which may also be used for other recognised major events. The purpose is to ensure that only properly licenced goods are produced for sale, so that members of the public know they are properly licenced and authentic," Judge Davis said.

The court was told there had been a high level of premeditation and sophistication.

"There is no evidence before us as to what each of the t-shirts may have sold for, and the level of profits which may have been generated.

"We also have no information about the nature and scale of the distribution system and whether the internet was involved," Judge Davis said.

He added the main victim was Rugby World Cup Ltd.

"They have paid a significant sum for the right to be the licensee and determine who the holders are. Those who make fakes for distribution undermine the commercial value of that licence."

- NZPA