The local market has goods for sale and it is not from the actual maker and they have been there for years.
Patent Infringement Attorney
Probably not legal. If a CD, a book or other recorded media containing copyright material is duplicated without permission of the copyright holder, it is a form of copyright infringement. As a general matter, copyright infringement occurs when a copyrighted work is reproduced, distributed, performed, publicly displayed, or made into a derivative work without the permission of the copyright owner.
No it's not legal, and violates the actual rightsholders trademarks. Just because something is common doesn't make it legal (or morally ok). There's plenty of internet downloading of copyrighted songs and movies, and internet copying of copyrighted photos, and flea market and eBay sales of counterfeit trademarked goods from content owners such movie studios and major league sports teams ahnd famous clothes designers. Some or all of these thieves will eventually be caught and sued, and maybe criminally prosecuted.
Disclaimer: Please note that this answer does not constitute legal advice, and should not be relied on, since each state has different laws, each situation is fact specific, and it is impossible to evaluate a legal problem without a comprehensive consultation and review of all the facts and documents at issue. This answer does not create an attorney-client relationship.