Section 40 of The Geographical Indications of Goods (Registration and Protection) Act, 1999
Any person who sells, lets for hire or exposes for sale, or hires or has in his possession for sale, goods or things to which any false geographical indication is applied or which, being required under section 71 to have applied to them an indication of the country or place in which they were made or produced or the name and address of the manufacturer, or person for whom the goods are manufactured or without the indications so required, shall, unless he proves,--
- (a)that, having taken all reasonable precautions against committing an offence against this section, he had at the time of commission of the alleged offence no reason to suspect the genuineness of the geographical indication or that any offence had been committed in respect of the goods; or
- (b)that, on demand by or on behalf of the prosecutor, he gave all the information in his power with respect to the person from whom he obtained such goods or things; or
- (c)that otherwise he had acted innocently, be punishable with imprisonment for a term which shall not be less than six months but which may extend to three years and with fine which shall not be less than fifty thousand rupees but which may extend to two lakh rupees: Provided that the court may, for adequate and special reasons to be mentioned in the judgment, impose a sentence of imprisonment for a term of less than six months or a fine of less than fifty thousand rupees.
Summary
- This provision punishes people who sell or rent out goods that have fake indications.
- It also applies to people who have such fake goods in their possession for the purpose of sale.
- You can also be punished if the goods are missing the required country of origin labels.
- Sellers can be excused if they prove they took precautions and had no reason to doubt the goods.
- A seller can also be excused if they help the prosecutor by identifying where they bought the goods.
- Like the previous section, judges can reduce the sentence if they have special reasons.
Practical examples
FAQ
1. What happens if I accidentally sell a product with a fake mark under Section 40 of the Geographical Indications Act?
Under Section 40, you might not be punished if you prove you took reasonable precautions and had no reason to suspect the mark was fake.
2. Does Section 40 of The Geographical Indications of Goods (Registration and Protection) Act, 1999 apply to renting goods?
Yes, Section 40 applies to anyone who sells, lets for hire, or exposes for sale any goods that have a false geographical indication.
3. What information should a seller provide to avoid penalty under Section 40 of the Geographical Indications Act?
To avoid penalty, Section 40 says a seller should give all the information they have about the person from whom they obtained the suspicious goods.
4. What is the fine range for selling fake indicated goods under Section 40 of the Geographical Indications Act?
The fine is normally between fifty thousand rupees and two lakh rupees, as stated in Section 40.
Test yourself
Q1.Under Section 40 of The Geographical Indications of Goods (Registration and Protection) Act, 1999, which of these is a valid defense for a seller?
Q2.Comparing Section 39 and Section 40 of the Geographical Indications Act, which statement is true about the punishments?
Q3.Under Section 40 of the Geographical Indications Act, a person is liable if they possess goods for sale that are missing labels required by which other section?
Q4.According to Section 40 of The Geographical Indications of Goods (Registration and Protection) Act, 1999, what is the maximum fine for a vendor selling fake goods?