Need the answer for this question. Please find the attachment. IMPORTING GRAY MA
ID: 361170 • Letter: N
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IMPORTING GRAY MARKET GOoDS market goods refer to foreign-made goods bearing valid U.s. copyright, trade- or other U.S. intellectual property protection that are imported into the mar ited States without the consent of the U.S. trademark holder. At least three situations can give rise to gray market goods. CASE 1 GRAY MARKET GooDS Here, a U.S. firm buys from an independent foreign firm both the rights to sell the foreign-made goods in the United States and the rights to register the foreign firm's trademark in the United States. Often the foreign manufacturer will have registered the foreign trademark in the United States. A U.S. firm would want to use the foreign firm's trademark because of the quality image associated with it. The gray market would arise if the foreign manufacturer exported its goods to the United States after having sold its trademark and the right to sell its goods in the United States to a particular U.S. firm. In such a case, the U.S. firm would be forced into intrabrand competition with the very trademark it had purchased. Intrabrand competition could also arise if the foreign manufacturer sold its products outside the United States and a third party bought them there and imported them into the United States to compete once again with a valid trademark holder of those foreign goods. U.S. Customs Service regulations out- lawing case 1 gray market goods were upheld by the U.S. Supreme Court in Kmart Corp. v. Cartier, Inc.
Explanation / Answer
What is it about Quality king distribution, Inc. v. L’anza case that might make one hesitant to conclude that the Quality king case is a gray market case?
Answer : The first sale act states that ones a seller has sold the copyrights, the seller has extinguished all rights of use post the sale. The fact remains that the distributor purchased the copy rights and the re sold it in the US using the same copy rights and did not infringe upon the trade marks or the copyrights. This is what makes is hesitant to classify this as a grey market case.
If the term grey market is not defined but, rather , is federal common law, might not the term be subject to interpretation and consequently given a broader definition by a later case such as quality king?
Answer: Yes is could result in a more ambiguous and a broader implication of its legal meaning and definition. The best way to counter this would be to have different types of grey market classification, some that involve extensive definition of the use of trade marks and or copy right and the other to with the smuggling or resale of unlicensed goods or services or re sale of stolen goods and services.
How much did the Supreme Court rely on the term grey market good in quality king to make its decision ?
Answer : The supreme court did not rely heavily on the definition of grey market in order to come to a conclusion but mostly relied on the The first sale act in and the nature of copy rights and trademarks in order to come to its decision.
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