The next chapter in a long-running and complex dispute between Ugg Australia and a group of counterfeit operators has ended with multiple prison sentences for “one of the worse cases of contempt” before the Federal Court.
Deckers Outdoor Corporation, manufacturer and owner of Ugg Australia branded boots, was awarded $6.5 million earlier this year following a battle against 23 counterfeit operators dating back to 2003.
In the latest Federal Court proceeding, three individuals were sentenced to jail for repeatedly and deliberately contravening the court’s orders to cease the production and distribution of counterfeit boots.
The proceeding involved Vladimir Vaysman, Victoria Vaysman, Leonid Mykhalovskyi and two companies associated with their activities.
Vladimir, who helmed the counterfeit operation, received the brunt of the court’s condemnation, with 10 charges of contempt spanning across the manufacture, distribution and advertising of fake goods.
In a proceeding earlier this year, Justice Richard Tracey described his conduct as “one of the worst cases of contempt” before the court.
In the latest proceeding, he confirmed Vladimir had ignored several orders made since November, 2007. Vladimir was sentenced to three years imprisonment for his most serious offence, with other instances resulting in sentences of between seven days and six months.
Seven charges of contempt were proven against his sister Victoria, who played a central role in procuring sales via the internet and recruiting sales agents.
While Justice Tracey said the most serious charge warranted a one-year prison sentence, the single parent was ordered to serve two months’ jail with the remainder of the sentence suspended.
Mykhalovskyi was found guilty of six charges of contempt, the most serious of which resulted in a three-month sentence. He was responsible for the manufacture and transportation of goods, as well as being the sole director of several companies which supplied and received proceeds from the sale of fake Ugg products.
Among the charges against him was failing to provide statements of assets of companies associated with the counterfeit operation.
The two associated companies in the case, Vaysman Pty Ltd and Hepbourne Pty Ltd, were deregistered in March 2007 and placed into liquidation as a result of the fines imposed in previous proceedings. As a result, no further financial penalties could be imposed on the companies.
Assia Benmedjdoub