Patent Office Arrests Organization Manufacturing and Distributing Counterfeit ‘S’ Brand Coffee Tumblers

The Trademark Special Judicial Police* (hereinafter referred to as Trademark Police) under the Korean Intellectual Property Office (KIPO) led by Commissioner Kim Wan-ki has charged nine individuals including the mastermind Mr. A (aged 53) with violations of trademark law for manufacturing and distributing counterfeit ‘S’ brand coffee tumblers. *Special Judicial Police under KIPO investigate trademark infringement (counterfeit goods) and refer cases to the prosecution.

According to the Trademark Police Mr. A and his group are suspected of manufacturing and distributing approximately 130000 counterfeit ‘S’ brand coffee tumblers (with an estimated retail value of KRW 6.2 billion in genuine products) domestically from 2021 to 2023 over a period of three years. The investigation began when counterfeit tumbler components imported by the group were seized at customs prompting the police to investigate the subsequent manufacturing and distribution of the counterfeit goods.

The Trademark Police identified Mr. A (53) along with other key figures such as Mr. B (46 in charge of distribution) Mr. C (65 responsible for finances) and Mr. D (62 responsible for manufacturing) all of whom were involved in the operation across the Gyeonggi Province region. Mr. A previously only a middleman buying and reselling counterfeit tumblers planned and led the operation by directly manufacturing and distributing the counterfeit tumblers himself.

Importing Tumbler Parts Separately to Avoid Detection Assembly and Distribution in Korea

To avoid detection Mr. A and his group imported the tumblers in separate parts which were then assembled and reprocessed in Korea. Mr. A imported plain tumblers (without logos) from overseas and in Korea unauthorized ‘S’ logos were printed on them creating counterfeit tumbler bodies. Additionally parts such as lids rubber pads and stickers were custom-ordered from overseas while packaging boxes and instruction manuals were produced domestically. The final products were assembled and distributed as counterfeit ‘S’ tumblers in Korea.

The group sold around 130000 of these counterfeit tumblers at less than 50% of the price of genuine products disguising them as parallel imports. They were sold as souvenirs or promotional items through online and offline channels to government agencies corporations and private organizations.

The investigation also revealed that the group shared information about the results of investigations conducted by KIPO the police customs authorities and online platform restrictions. This information exchange allowed them to evade detection or minimize charges. Mr. A attempted to disguise the counterfeit products as parallel imports by submitting false certificates but forensic analysis by the Trademark Police uncovered the full extent of the crime including the manufacturing process.

Strengthening Cooperation Between Trademark Police and Other Investigative Agencies to Combat Evolving Crimes

Anticipating the continuous evolution of criminal methods the Trademark Police plan to enhance their collaboration with the police customs and other investigative agencies by holding regular meetings and joint training sessions. This will strengthen their ability to respond to new types of crime.

Jung In-sik Director of the Industrial Property Protection Cooperation Bureau at KIPO stated Criminals are constantly evolving their methods through information sharing creating new types of infringements. We will continue to respond proactively by enhancing communication and cooperation with related agencies while utilizing the latest investigative techniques to strengthen counterfeit product investigations.

Meanwhile those who have suffered damages due to counterfeit goods can easily file a complaint or seek consultation through KIPOs Intellectual Property Infringement One-Stop Reporting and Consultation Center (Phone: 1666-6464 Website: www.ippolice.go.kr).

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