Trade Marks Act 2002

Legal proceedings - Border protection measures - Proceedings relating to goods bearing infringing sign

154: Powers of court

You could also call this:

"What a court can do with goods that copy trademarks"

When a court decides that goods have an infringing sign, they must order the goods to be given to the government, destroyed, or handled in another way. The court thinks about whether other solutions would be enough to make up for the problem and protect the person who complained. They also make sure the goods aren't used in a way that could harm the complainer.

If more than one person has an interest in the goods, the court can order them to be sold and the money shared, or make any other decision they think is fair.

For counterfeit goods, the court usually orders them to be destroyed or given to someone who will destroy them, unless there's a really good reason not to.

If the court decides the goods don't have an infringing sign, they can order someone involved in the case to pay money to the person who brought the goods in, sent them out, or owns them.

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This page was last updated on 13 May 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM165080.

Topics:

Business > Intellectual propertyCrime and justice > Courts and legal help

153: Proceedings to determine whether goods bear infringing sign, or

"Court decides if goods have illegal signs"

155: Inspection of goods, or

"You can ask to look at goods linked to trade mark issues"

Part 4Legal proceedings
Border protection measures: Proceedings relating to goods bearing infringing sign

154Powers of court

If, in proceedings under section 153, the court decides that any goods that are the subject of a determination made under section 146 are specified goods on or in physical relation to which an infringing sign is used, the court must make an order that the goods be—
forfeited to the Crown; or
destroyed; or
otherwise dealt with as the court thinks fit.

In considering what order should be made under subsection (1), the court must consider—
whether other remedies available in proceedings for infringement of a registered trade mark would be adequate to compensate, and to protect the interests of, the claimant; and
the need to ensure that no goods on or in physical relation to which an infringing sign is used are disposed of in a manner that would adversely affect the claimant.

If more than 1 person is interested in goods, the court may—
direct that the goods be sold or otherwise dealt with, and the proceeds divided; and
make any other order it thinks fit.

Despite subsections (1) to (3), if the goods are counterfeit goods, the court must, unless the court is satisfied that there are exceptional circumstances, make an order that the goods be—
destroyed; or
delivered to any person the court may direct (being a person who will destroy the goods).

If, in proceedings under section 153, the court decides that goods to which a determination under section 146 relates are specified goods but that no infringing sign is used on or in physical relation to the goods, the court may make an order that a person who is a party to the proceedings pay compensation in such amount as the court thinks fit to the importer, exporter, or owner of the goods.

Notes

Section 154(1): amended, on 30 December 2018, by section 103(1) of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership Amendment Act 2018 (2016 No 90).
Section 154(3A): inserted, on 30 December 2018, by section 103(2) of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership Amendment Act 2018 (2016 No 90).
Section 154(4): replaced, on 30 December 2018, by section 103(3) of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership Amendment Act 2018 (2016 No 90).