Importer of Counterfeit Goods Liable

U.S. v. Able Time, Inc., 545 F.3d 824, 88 U.S.P.Q.2d 1510, (9th Cir. Cal.) Sep 25, 2008) (NO. 06-56033)

U.S. Customs filed civil penalty action against importer for importing counterfeit watches that bore trademark of a company that did not make watches. The District Court granted summary judgment for importer on the theory that the Tariff Act only covered counterfeit goods – not goods that merely misappropriated a trademark. U.S. Customs appealed.

The Ninth Circuit reversed holding that the Tariff Act was broad enough to cover misappropriated trademarks.