Dudley trader jailed for selling counterfeit DVDs

Simon Newby, who was director at Sinew Enterprises Ltd, was today beginning a 16-month prison sentence.

His younger stepbrother Thomas Fellows, of Bilston, who was secretary at the company in Dudley Road, Brierley Hill, was given a 12-month community order for his part.

Wolverhampton Crown Court heard yesterday (MON) that between October 2008 and April 2010 PayPal payments of $404,620 (£242,055) had been made to a website operated by the firm.

And a further £62,000 had been made from customers using credit cards to pay between April and November 2010.

Newby, 32, of Bickon Drive, Quarry Bank, pleaded guilty to 28 offences under the Trademarks Act at a previous hearing.

Raids were carried out by Dudley Trading Standards at the business premises and Newby's home.

Miss Sally Cairns, prosecuting, told the court Newby had originally set up a legitimate business selling car cleaning chemicals.

"However the profits from selling the DVDs became so great they overtook he legitimate business," she said.

"During the raids burning towers, computers, printers and 1,800 counterfeit DVDs were seized."

Newby had also used false names when setting up websites and accounts - which he claimed was done to stop receiving junk mail, the court was told.

Mr Brett Wilson, defending Newby, said: "He had seen these programmes and films online and had believed they were in the public domain so started putting them on DVD and selling them."

Newby admitted seven counts of applying a sign identical to a registered trademark and a further seven counts of selling items with a sign which could be mistaken for a registered trademark.

The remaining 14 counts were possession of goods with a sign identical to a registered trademark.

Fellows, aged 28, of Loxdale Sidings in Bilston, was found guilty after a trial of five counts of applying a sign identical to a registered trademark and a further five of offering for sale goods with a sign identical to a registered trademark.

The court was told he had played only a minor role in the operation as an employee of his stepbrother and had been paid a wage of £270.

He was sentenced to a 12-month community order and to carry out 150 hours unpaid work.

Miss Sonal Dashani, defending, said her client had only played a minor role in the operation.

Judge Webb said: "Making and distributing counterfeit DVDs is in effect a double fraud.

"It takes the legitimate economic benefit from the trademark owners and also takes from the consumer who believes what they are receiving is genuine.

"These are very serious crimes and the sentences reflect that."