Chile Proposes Jail Time to Slow Flood of Counterfeits

The Chilean government has proposed jailing people caught producing, distributing, or selling counterfeit-branded products in a bid to halt a growing tide of fake goods—from phony Michael Kors handbags to Lego bricks—from entering the country.

Counterfeiters could face up to three years in prison while maximum fines would double to $140,000 under wide-ranging intellectual property legislation presented to Congress in October.

Companies hope that the threat of jail will dissuade people from selling counterfeit clothing, sneakers, makeup, and toys. The move is in line with an international trend toward stiffer penalties for trademark fraud, Chile’s patent office, Instituto Nacional de ...