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Gray Market Goods
Practical Law Glossary Item 3-507-1335 (Approx. 3 pages)
Glossary
Gray Market Goods
Also known as parallel imports or gray goods. Generally, goods sold through legal but unauthorized trade channels at significantly discounted prices. Under US trademark law, gray market goods are:
- Genuine goods bearing an authentic trademark of a US trademark owner.
- Manufactured by or with the permission of the trademark owner and intended for sale outside of the US.
- Imported into and sold in the US without authorization from the US trademark owner, typically at significantly discounted prices.
Potential bases for relief against the importation and sale of gray market goods include:
- Trademark infringement, unfair competition, and dilution claims under:
- state law.
- Orders to bar importation under:
- Section 42 of the Lanham Act (15 U.S.C. § 1124); and
- Section 526 of the US Tariff Act of 1930 (19 U.S.C. § 1526).
- Copyright infringement claims under the Copyright Act where the goods copy the plaintiff's logos, trade dress, package inserts, or other copyrightable materials.
For more information, see Practice Note, Protecting Against Counterfeit Trademarks and Gray Market Goods.