Apple goes after SA firm over fake iPhones seized at OR Tambo

Johannesburg – Apple has approached the Johannesburg High Court to stop a local company from allegedly trading in counterfeit iPhones and Apple-branded packaging seized by the South African Revenue Service (SARS) at OR Tambo International Airport.

According to Sunday Times, Apple is seeking an order against Johannesburg-based HHHH Tradings to determine the status of the seized products, prevent the company from dealing in them and compel it to disclose where the goods came from and who was involved in their importation.

The consignment was detained by SARS on 17 March and formally seized on 27 July, according to Apple’s court papers.

The company alleges that the phones and packaging carried Apple and iPhone trademarks but were not manufactured by Apple or with its authority.

Apple trademarks

Apple stated in its court papers that HHHH Tradings had imported the goods “for the purposes of trade” while bearing Apple trademarks or marks confusingly similar to them, despite the products not having been manufactured or authorised by Apple.

“From a date unknown to Apple, HHHH Tradings imported mobile phones, including packaging for mobile phones, into South Africa for the purposes of trade bearing one or more of Apple’s trademarks and/or marks confusingly similar thereto … but which had not been manufactured by or with the authority of Apple,” the company stated in its court papers, as reported by The Citizen.

The report said that Apple is also seeking disclosure of documents showing how the products were imported, manufactured, distributed or sold, as well as an inquiry into damages or a reasonable royalty.

The Sunday Times reported that HHHH Tradings lists Fatima Toheed and Muhammad Toheed as directors and is registered at an address in Fordsburg, Johannesburg.

However, a visit by the newspaper found a small computer shop operating at the address, with an employee saying they did not know either of the listed directors. A security guard reportedly said police had visited the premises and that different people appeared to be operating the shop afterwards.

Wider counterfeit trade

The case comes amid growing concern over South Africa’s counterfeit-goods market. Business Day, which also reported on the court action, cited former SARS commissioner Edward Kieswetter as estimating that the country’s illicit economy could be worth between R800 billion and R1.2 trillion, with between R200 billion and R300 billion in taxes potentially going uncollected.

SARS says the Counterfeit Goods Act is intended to prevent counterfeit products from entering the local market and allows customs officials to detain imported goods suspected of being counterfeit.