Slippery business: Trader fined RM 516k for selling counterfeit Perodua oil

The High Court has ordered Lee Lap Kee, sole proprietor of Eco Auto Supply, to pay RM516,777 in damages to Perodua Otomobil Kedua Sdn Bhd and Perodua Sales Sdn Bhd after being found guilty of selling counterfeit Perodua-branded lubricants, reports The Edge.

This decision follows a May 2019 raid by the Ministry of Domestic Trade and Cost of Living (formerly the Ministry of Domestic Trade and Consumer Affairs) on Lee's premises, where officials seized various counterfeit items, including Perodua-branded bottles, cap liners, engine oil, and documents related to the unauthorized production of Perodua products.

Lee was initially charged under the Trade Descriptions Act 2011 and pleaded guilty, resulting in a fine of RM52,920. Following this, Perodua pursued a civil case against him for trademark infringement and passing off. A consent judgment in September 2022 prohibited Lee from any of the following actions:

• Infringing or attempting to infringe Perodua trademarks and/or the Perodua “Get-Up” by importing, manufacturing, producing, reproducing, distributing, supplying, selling, offering for sale, or otherwise dealing in automotive lubricants that are not authorized by Perodua.
• Passing off or attempting to pass off, or enabling others to pass off, unauthorized lubricants as Perodua products.
• Using Perodua trademarks without prior consent.
• Importing, manufacturing, producing, reproducing, distributing, supplying, selling, or offering for sale automotive lubricants purporting to be from Perodua. 

As part of the consent judgment, Lee also agreed to publish a full apology in three daily newspapers.

In determining the damages, the High Court awarded Perodua RM 16,777.91 for lost business profits and RM 500,000 for harm to its goodwill and reputation. High Court judge Adlin Abdul Majid deemed this sum “fair and reasonable” given the impact on Perodua’s brand, with an additional RM 15,000 awarded in legal costs.