Court orders forfeiture of 2,300 counterfeit watches

A haul of 2,361 counterfeit watches seized by police during raids in Leeds will be forfeited and the man who sold them must pay £10,000 following a contested forfeiture application hearing.

Jeremy Smith, 41, of Wetherby Road, Collingham, sold the watches from an eBay account and two websites. An investigation by the Police Intellectual Property Crime Unit (PIPCU) at City of London Police concluded that, although the watches were counterfeits imported from China, there was no evidence to suggest that Smith knew they were fake and there were no charges brought against him.

However, the contested forfeiture application hearing took place at Leeds Magistrates Court on 24 and 25 July 2024, after Smith refused to disclaim the watches seized by PIPCU and argued that they were genuine.

The hearing concluded that the watches were counterfeit and a forfeiture order, which authorises their destruction, was issued. Smith was also ordered to pay the legal fees for the City of London Police, worth a total of £10,090, in addition to those for the defence, within 28 days.

Detective Constable Daryl Fryatt, from the Police Intellectual Property Crime Unit (PIPCU) at City of London Police, said:

“Selling counterfeit goods is illegal. Some consumers get conned, some end up with a poor-quality product and the money that runs through the counterfeit goods trade funds organised crime.

“PIPCU will use every tool available to ensure that these goods aren't sold to the public, and we won't be pressured into complying with sellers who challenge our position.

“The evidence provided by the legitimate brands involved in this hearing was instrumental in helping us achieve this result, which is proof of what law enforcement and industry can achieve when we work together to tackle the counterfeit goods trade.”

The case was referred to PIPCU by a solicitor representing two designer brands, which identified an eBay account and two websites that were selling suspected counterfeit watches. The watches were sold for less than the retail value of the genuine items.

The brands carried out six test purchases between April 2019 and October 2020. The watches were sent to the genuine manufacturer for examination, and all were confirmed to be counterfeit.

On 7 October 2021, officers from PIPCU executed search warrants at Smith's residential address and his business address in Leeds. Further searches were carried out at an outbuilding at the business address and two containers in a storage yard five miles away. A total of 2,361 counterfeit watches were seized.

Smith attended a voluntary interview with PIPCU officers on 17 November 2021, where he denied that the watches were fake.

Further enquiries by PIPCU confirmed that the watches were counterfeit and had been imported from China. However, a criminal investigation into Smith concluded with no charges, as officers did not find evidence to show he knew that the watches were counterfeit.

Officers sought to obtain a forfeiture order for the seized watches, but Smith refused to consent to them being destroyed. He argued that the watches were genuine, and a contested forfeiture application hearing took place at Leeds Magistrates Court on 24 and 25 July 2024.

During the hearing, representatives from six legitimate brands provided evidence to show that the watches seized by PIPCU were counterfeit. They identified differences between the counterfeit and genuine watches, including use of the wrong font, incorrect logo placement and inconsistencies between a watch and the information printed on its handtag.