WASHINGTON, Dec. 8 Reuters: The Supreme Court said today it will review USS. rules allowing imports of goods manufactured abroad and properly licensed but sold outside channels authorized by the trademark owner.
The so called “Gray Market” goods bear legitimate foreign trademarks identical to American trademarks, but are sold by an independent importer rather than the American subsidiary of a foreign manufacturer.
Supporters of the rules argue they benefit consumers by allowing imports of such items as watches, cameras, perfumes and electronic equipment at sharply lower Prices.
But US firms that own American trademarks say the imports constitute the misappropriation of their trademark and violate their property rights.
The multimillion dollar Gray Market developed partly as a result of the increase in the dollar’s value against other currencies making it easier for independent importers to buy the goods abroad ‘and bypass the foreign manufacturer’s representative in the United States.
The Supreme Court agreed to review the issue after conflicting lower court rulings; A decision is expected by July.
Article extracted from this publication >> December 12, 1986
