The first is an easily solvable problem - Levis Corp could create a registry of verified vendors, which customers could check before buying.
The second one is the problem the law is trying to solve. People often buy a bag with a G written on it that they know doesn't come from Gucci. They get the status benefit of Gucci without actually paying $1000/bag.
I.e., it's basically a back door way of bringing back sumptuary laws: it's illegal to display status unless you have status.
Furthermore, what's to stop me from sewing a Levi's tag on a pair of Wal-Mart jeans?
There are bigger fish to fry, let the free market run its course.
No, seriously, this part REALLY IS about selling goods with misleading labels... Levi's are not especially expensive, you can buy them easily at the thrift store, and none of this has anything to do with letting the police abuse people.
Are you really going to argue that this is about misleading labels, when the customer deliberately chose the misleading label?
If it were about misleading labels, it would be legal to sell fake Levi's as long as you post a sign saying "Attn Customer: This is NOT real Levi's". It's not about misleading customers. It's about protecting the profits of status sellers.
But, seriously: if it's all about trademark protection, why not call it "Stop Online Trademark Infringement"? Why bother to conflate it with copyright infringement (a.k.a. "piracy", arrr, mate!), even in the title of the bill?
Either SOPA is a mess because the concept of "IP" has led to conflating trademark problems with copyright infringement, OR it's a deliberately bad piece of legislation, introduced under one name in order to get it passed, but intended to be used for entirely different purposes. I know, false dichotomy fallacy, but still...
Why not just sell under the name of the actual company producing the item? I don't put any stock in Levi's as such, so I would be happy enough to buy Lucky Dragon 888 jeans if I were in the market for Chinese stuff.
I don't consider it onerous or awful to require Lucky Dragon 888 to put its own brand on things. What if you start a website which offers a product or subscription service and someone else begins taking people's money while representing that they are you? Doesn't that strike you as a little scummy?