AGMA - Alliance for Gray Market & Counterfeit Abatement

[James Emory]

This informative site explains and defines different types of fraud and how it affects the marketplace. Visit the FAQ for more details.

www.agmaglobal.org

[Boyd Ostroff]

I'll bet that the American Guild of Musical Artists (AGMA) isn't so happy about that ;-) They are the bargaining unit for our opera singers, directors, choreographers, stage managers and dancers...

http://www.musicalartists.org/

[Paul Tauger]

Originally Posted by James Emory

This informative site explains and defines different types of fraud and how it affects the marketplace. Visit the FAQ for more details.

www.agmaglobal.org

Wow!

Unfortunately, the site presents some extremely biased and inaccurate information.

Gray market goods are not necessarily illegal. Manufacturers don't like the gray market because it makes it more difficult for them to engage in discriminatory pricing based on territory.

The law with respect to gray market is a little complicated. However, the short version is this:

Genuine goods manufactured for distribution outside of the US can be imported and sold within the US provided (1) they are identical in all respects to the U.S. version (including warranty, accessories, etc.) or, (2) if not identical to the US version, they are clearly identified as being something else. I've litigated a couple of gray market cases, in each instance on the side of the defendant. The law comes down to this: the Lanham Act, which is the federal statute which covers trademark infringement and unfair competition, precludes FALSE designation of origin. TRUE designation of origin is not illegal, and goods which are genuine but not intended for the US market may, nonetheless, be sold here subject to the restrictions I mentioned above.

Note, too, that someone else's breach of license doesn't make the gray good illegal, i.e. if a company sells genuine goods outside of the U.S. subject to a license restriction precluding sale to a U.S. importer, breach of the license by the importer doesn't render the goods illegal for sale in the U.S. Note that this applies to trademark concerns. Copyright issues are a little different and more complex but, generally, will not apply to hard goods.

The website goes to great lengths to try to confuse gray market goods with counterfeit goods. These are two completely different concepts. Counterfeit goods, by definition, are not genuine goods. Gray market goods, however, are genuine goods.

Take what is on that website with a grain of salt. In fact, a big 5 pound bag of salt might be more appropriate.

[James Emory]

I have to admit that I didn't read very much of that site. I found it while looking for something else. Thanks for the extra information.