Malaysian court imposes RM2.08 million fine for unauthorized use of registered trademark on cigarettes
18 February 2026
The Shah Alam Sessions Court has convicted a cigarette importing company and its director for offences relating to the unauthorised use of a registered trademark, following enforcement action taken under the Trademarks Act 2019.
The defendants, Ramunas Shd Bhd and its director, were charged with using a registered trademark without the consent or authorization of the trademark owner in relation to cigarette products bearing the mark “John”.
The charges arose from an inspection conducted in October 2020 at a warehouse located in Port Klang, Selangor. During the inspection, enforcement officers discovered 520,000 boxes of cigarettes bearing the registered trademark. The prosecution alleged that the trademark had been falsely applied to the goods and that the cigarettes were possessed for the purposes of trade.
The prosecution brought charges under Section 100 of the Trademarks Act 2019 for falsely applying a registered trademark to goods, as well as Section 102(1)(c) of the act for possessing goods bearing a false trademark for the purposes of trade. The prosecution contended that the use of the registered trademark on the cigarette products had been carried out without the approval of the registered proprietor.
The case proceeded to a full trial before the Shah Alam Sessions Court. During the proceedings, the prosecution called several witnesses to establish the elements of the offences, including evidence in relation to the discovery of the goods, the application of the trademark, and the absence of authorisation from the trademark proprietor. The defence contested the charges and advanced its case in response to the prosecution’s evidence.
After hearing the evidence and submissions from both parties, the Sessions Court held that the prosecution had proven the charges beyond reasonable doubt. The court rejected the defence raised by the defendants and entered convictions against both the company and its director.
Upon conviction, the Sessions Court imposed a fine of RM1.56 million on Ramunas Shd Bhd, while its director was separately fined at RM520,000, bringing the total fines imposed in the matter to RM2.08 million (US$719,000). The court further ordered that, in default of payment of the fines, the accused would face 12 months’ imprisonment.
The court also ordered that all cigarette products seized during the enforcement action be forfeited to the government for disposal, pursuant to Section 127 of the act. The forfeiture order covered the full quantity of cigarettes discovered at the warehouse in Port Klang during the October 2020 inspection.
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