D.C. police and federal law enforcement agents disclosed yesterday that they have seized about 350,000 T-shirts, sweatsuits and shorts from area merchants and street vendors in "Operation Dizzyfox," one of the largest crackdowns ever on counterfeit clothing goods.

Officials displayed a small mountain of the apparel, worth $2 million to $3 million, at a D.C. police garage yesterday. Agents seized the items, bearing such logos as Georgetown University, Hard Rock Cafe and television's "The Simpsons," from 13 D.C. wholesale and retail outlets and more than 30 street vendors.

The action marked the first step of a federal attempt to curb trademark and copyright infringement by East Coast apparel manufacturers and distributors, said U.S. Attorney Jay B. Stephens. The raids took place yesterday and on Thursday, leaving some street vendors and retailers without goods to sell before the Fourth of July weekend.

The sweep of small D.C. retailers and wholesalers is expected to assist an investigation of manufacturers in cities such as Baltimore and New York, said Sgt. James D. Vucci, the D.C. police officer in charge of the raids.

Reaction to the raids was mixed.

"Good, good!" said Brigitte Kramer, manager of the Connecticut Avenue NW Louis Vuitton store. Counterfeits, she said, are "never a good thing because it depreciates your product."

Kramer estimated that sales at the handbag and luggage store would rise by 10 to 15 percent if there were no bootleg merchandise on the streets.

"It's not good for our image," she said. "Too many customers say 'I don't want to carry that bag because there're too many fakes around.' It definitely hurts us."

But some of the targeted vendors, stripped of the merchandise they had paid for, were upset by the raids.

"I can't figure out what it is. I don't know what's going on," said Kim Don, an employee at J.J. House Wholesale in Northeast Washington. Don said that about 50 police officers filled three vans with the store's Simpsons-like T-shirts on Thursday.

"How come they don't give us notice?" Don said. "They could say this is against the copyright laws, and then we'd stop it. It's not fair."

At J.J. House, police seized mostly T-shirts with Simpsons-like characters. One brightly colored shirt, still on display in the store, featured "Martin," a black Bart Simpson look-alike.

"We don't have any Simpson -- it's all different," Don said. "The name is different and the colors are different, and they {the police} say all the T-shirts look like the Simpsons. We don't have any business today."

The wholesaler, which supplies 15 to 20 local street vendors, buys most of its merchandise from a man "who just shows up once in a while and then he just disappears," Don said.

Agents made the largest grab at Southeast Wholesalers at 33 P St. SE, seizing about 80,000 items and $20,000 to $40,000 in unaccounted-for cash in a company safe, police said. Agents also reported seizing "95 percent," or about 10,000 items, of the stock from one floor of the three-story Georgetown Tee's retailer on Wisconsin Avenue NW.

Although street vendors may be the most visible purveyors of counterfeit items, the raids focused heavily on warehouses that supply them.

"If you raid vendors, they're gone today and reappear the next day. If you raid a warehouse you take a lot of merchandise off the streets at one time," said Johannes von Schilcher, executive director of the International Anticounterfeiting Coalition Inc., a lobbying organization.

After a request from major business interests, including Walt Disney Co. and 20th Century Fox Broadcasting Corp., police and industry spokesmen said, industry officials and their Washington-based legal staffs contacted the U.S. attorney about the issue in May, prompting a six-week investigation that culminated in this week's sweep.

About 25 companies sent representatives to train and accompany police as they delivered warrants. The companies also paid for vehicle rentals to transfer seized items, Vucci said. Beginning at 10 a.m. Thursday, agents served warrants on several wholesalers in Northeast and Southeast Washington, and retailers in Georgetown and the Old Post Office Pavilion. The operation continued through about 3 p.m. yesterday.

No arrests were made, but the U.S. Attorney's Office will present evidence before a federal grand jury to determine if charges can be brought under the federal 1984 Trademark Counterfeiting Act, Vucci said. Persons convicted of felony under that act are subject to up to five years in prison and fines of $1 million.

Dave Chen, a vendor on K Street, said he sells legal items, but knows of others who have been caught selling counterfeit goods.

"Usuallly if you get caught you go to the courts, and you give the name of the wholesaler, and you don't get into any trouble," Chen said.

One vendor selling Simpsons T-shirts downtown yesterday positioned himself in front of Celebrations Cards and Gifts, where window displays prominently featured Simpsons T-shirts from licensed manufacturers. "We've been losing a lot of business to the street vendors," said Celebrations employee Deborah Wesley.

James L. Bikoff, a lawyer for 11 companies advocating the crackdown, said federal estimates are that counterfeit trade in the United States costs businesses 150,000 jobs and $40 billion to $61 billion in lost sales annually. Clothing merchants and licensers in the District alone lose between $5 million and $15 million a year, police and trade officials said.