Raid Results in Charges of Copying Oakley Sunglasses

FOOTHILL RANCH —  Oakley Inc., maker of fashionable sunglasses, said that a major counterfeiting operation has been shut down following a six-week investigation.

The Carson-based counterfeiting ring, operating under the name Spenser Products, was broken up by the Los Angeles County Sheriff’s Department in a raid last week, the company said.

About $10 million worth of copycat sunglasses, T-shirts, hats, computerized embroidery machines, printing equipment and other goods were seized.

“It was a multimillion-a-year business,” said Det. Brian McBride, who led the investigation for the Sheriff’s Department.

Nearly 800,000 counterfeit items were found, McBride said. Besides the Oakley knockoffs, there were goods stamped with 16 other brand names, including DKNY, Mossimo, Ray Ban, Guess and Nike, he said.

Paul Lee, Spenser Products’ owner, was arrested and charged with 15 counts of counterfeiting federally registered trademarks. He could face up to 45 years in prison if convicted on all counts. Lee, who has no previous criminal record, remains in custody in lieu of $500,000 bail, McBride said.

The company employed about 20 other workers. No charges were filed against them.

The investigation began after Oakley learned about some counterfeit goods seized in Florida. One of their investigators, working with the Sheriff’s Department, traced the items back to Spenser Products.

The company has been in operation for about eight years, and is believed to have been involved in counterfeiting products for about two years, McBride said.

He described a sophisticated operation in which great pains were taken to make the copycat products appear authentic. “Blank” sunglasses and shirts were imported, mostly from Taiwan, and imprinted with various brand names.

Clothing tags were marked with bar codes. Boxes were stamped with the brand names, and warranty cards were included inside. The products were shipped all over the United States, he said, with many turning up in New York and Florida.

Counterfeiting of brand-name products “is a bad problem,” McBride said, with goods showing up everywhere from swap meets to discount warehouse stores. “They’re making them more and more authentic looking.”

Oakley spokeswoman Renee Law said the company vigorously pursues counterfeiters, employing investigators to scour trade shows and street vendors for unauthorized goods.

“We’ve always been very aggressive in stamping out counterfeiting and copying,” she said. “We see it as a detriment to our business and also to consumers.”

Oakley has also earned a reputation for being vigilant in guarding its patents and trademarks, and has been involved in several patent-infringement lawsuits.