<![CDATA[The auction of seized and state-confiscated goods that have been proven to be counterfeit raises legal issues, as it involves the intersecting legal frameworks governing the management of state-confiscated goods, auction regulations, Intellectual Property Rights (IPR) protection, and the principles of Islamic economic law. This study aims to analyse the legal status and eligibility of counterfeit goods as objects of auction, as well as the legal liability arising from their auction without adequate authenticity verification. This study employs normative legal research methods, using statutory and conceptual approaches. The legal materials are analysed qualitatively through legal reasoning and grammatical, systematic, and teleological interpretation. The findings indicate that the status of goods as seized or state-confiscated property does not, in itself, render them eligible for auction. Counterfeit goods whose circulation is prohibited due to violations of IPR regulations should not be reintroduced into commercial circulation through state auctions without due consideration of the applicable legal provisions. The absence of explicit regulations mandating substantive verification of the authenticity of auction objects may create legal uncertainty for good-faith auction winners and give rise to legal liability where auctions are conducted without adequate due diligence. From the perspective of Islamic economic law, the auction of counterfeit goods potentially contravenes the principle of shidq (truthfulness) and the prohibition of tadlis (fraud or concealment of material information). Meanwhile, the principles of hifz al-mal (protection of property), al-'adl (justice), and maslahah (public interest and welfare) require the protection of auction winners and intellectual property rights holders, as well as the prevention of the circulation of goods that may cause harm to other parties. Accordingly, there is a need to strengthen substantive verification requirements, clarify the allocation of responsibilities between selling agencies and auction officials, and harmonise the regulatory frameworks governing state-confiscated property management, auctions, and IPR protection in order to ensure legal certainty in accordance with the principles of justice and public welfare.]]>
