Rolling paper firm wins more damages in fakes crackdown

US manufacturer of rolling papers used for cigarettes – Republic Brands – has won sizeable damages in another lawsuit brought against alleged counterfeiters of its brand.

The latest award is for $1.2m and has been imposed on Samad Lakhani and his distribution company, ZCell & Novelties, after a seven-day jury trial. Before trial, the court had found that Lakhani was personally liable for ZCell's sale of counterfeits using Republic's TOP and JOB trademarks.

Following the trial, Lakhani and ZCell requested the court to reduce the damages, which was denied, and the company has since paid the judgment to Republic Brands and dismissed their appeal, bringing the legal action to an end.

It comes after Republic Brands was awarded $11m in damages against Raj Solomon and Diamond J Wholesale in 2022, which was upheld after an appeal, and a $1.1m judgment against Monty Hudda and Star Importers & Wholesalers, which is still in the appeals process.

Republic Brands has scored other major wins against counterfeiters in Georgia, Texas, Tennessee, Illinois, Virginia, and elsewhere, amounting to millions more dollars in damages.

"The bad actors don't stop, so we won't stop—ever," said Republic Brands chief executive Don Levin. "Protecting consumers from counterfeit products remains an ongoing priority," he added, suggesting that the company is still closing in on "some very big operations."

He continued: "Republic Brands has proven that it will use all means available under the law to protect our consumers' trust and our company's reputation. On behalf of our consumers and the industry, we won't quit doing everything within our power to stop those who seek to profit from selling counterfeit products."

The actions taken by the company are an object lesson in what can be achieved by brand owners with a determined legal defence in the face of widespread counterfeiting – at least if those responsible are in the same legal jurisdiction.

Where counterfeiters are based overseas countries like China it can be much more tricky, with awards often largely symbolic victories unless brand owners partner with local authorities on actions.

Safety concern

There are concerns about unknown ingredients found in counterfeit papers, poor manufacturing conditions in which the knock-off papers are made, as well as environmental pollution and labour exploitation in production units used by fake manufacturers.

In independent testing, Republic has found unknown or unexpected ingredients in counterfeit papers, including heavy metals and the synthetic compound, polyvinyl acetate (PVA) – an industrial chemical adhesive) – instead of the natural acacia gum used in its genuine products.