Apple takes Johannesburg company to court over fake iPhones

Apple, the global technology giant, has filed a lawsuit against a South African company in the Johannesburg High Court, alleging that the company is selling counterfeit iPhones and related packaging. The high-end products were seized at OR Tambo International Airport in March. In its legal application, Apple seeks the court's declaration that the products are counterfeit, an injunction against the company from dealing in them, and a requirement for the company to disclose the origin and network behind the goods.

According to Apple's claim, the South African Revenue Service (SARS) detained the consignment on March 17 and formally seized it on July 27. The seized goods included mobile phones and packaging with Apple and iPhone trademarks, labeled as "offending goods" in Apple's court documents. Apple asserts that these products were not manufactured by Apple or with its authorization.

HHHH Tradings, the South African company involved, operates from Fordsburg, Johannesburg. The company has two listed directors, Fatima Toheed and Muhammad Toheed. Apple's legal action aims to uncover documents concerning the products' import, manufacturing, distribution, or sale, and seeks an inquiry into potential damages or a reasonable royalty.

Legal expert Michael Lamont explained that if the samples are deemed counterfeit, as per the Counterfeit Goods Act, customs requires the IP rights-holder to provide confirmation of the counterfeit nature through an affidavit of complaint. South Africa's economy suffers significantly from counterfeit goods, with estimates suggesting the illicit economy could be worth between R800-billion and R1.2-trillion, costing the government up to R300-billion in lost taxes annually.

Apple's legal action is part of broader efforts to combat counterfeit electronics, both domestically and internationally. In October last year, the South African Police Service (SAPS) seized illegally imported smartphones, including mainly Apple iPhones and Samsung gadgets, valued at over R17 million. The officers also seized two-way radios and IMEI and ICASA labels during a raid in Fordsburg.

This is not the first instance of police seizing fake Apple products; in August, the Hawks arrested a 33-year-old Indian national with counterfeit Apple merchandise worth approximately R60,000 after receiving a complaint from Apple. The arrest followed a detailed investigation sparked by Apple's concerns over counterfeit iPhone merchandise suspected to be sold at a local outlet of a company in Summerstrand Village, Gqeberha.