This section contains the nature of the case and procedural background.

Prior to 1984 trademark counterfeiting was addressed by the civil penalties found in the Lanham Act. In 1984, Congress determined that 'penalties under [the Lanham] Act have been too small, and too infrequently imposed, to deter counterfeiting significantly.' Congress passed a law that subjected parties to criminal penalties for anyone who intentionally traffics or attempts to traffic in goods knowingly using a counterfeit mark. Baker (D) was convicted under that statute (18 U.S.C. Section 2320). P contends on appeal that the statute requires that he must know that trafficking in counterfeit goods is criminal in order to be convicted. P was selling bogus 'Rolex' watches.

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