United States v. One (1) Lot of Approximately Twenty Thousand (20,000) Pairs

601 F. Supp. 476, 6 I.T.R.D. (BNA) 1967, 225 U.S.P.Q. (BNA) 616, 1985 U.S. Dist. LEXIS 23746
CourtDistrict Court, W.D. North Carolina
DecidedJanuary 2, 1985
DocketNo. C-C-83-936-M
StatusPublished
Cited by2 cases

This text of 601 F. Supp. 476 (United States v. One (1) Lot of Approximately Twenty Thousand (20,000) Pairs) is published on Counsel Stack Legal Research, covering District Court, W.D. North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. One (1) Lot of Approximately Twenty Thousand (20,000) Pairs, 601 F. Supp. 476, 6 I.T.R.D. (BNA) 1967, 225 U.S.P.Q. (BNA) 616, 1985 U.S. Dist. LEXIS 23746 (W.D.N.C. 1985).

Opinion

ORDER

McMILLAN, District Judge.

On December 13, 1983, the government filed a complaint for forfeiture in rem of twenty thousand (20,000) pairs of allegedly counterfeit blue jeans bearing the Jordache trademark. These jeans had been seized by the United States Customs Service in Charlotte on August 4, 1983. On January 18, 1984, CMI, Incorporated (“CMI”), a Charlotte-based trading company, informed the court of its claim for the jeans. On February 13, 1983, Seibo, S.A. de C.V. (“Seibo”), a Mexican wholesaler, made a claim for the jeans. A third claim was made by Jordache Enterprises, Incorporated (“Jordache”), on February 27, 1984.

This case was heard on November 19, 1983, on cross-motions for summary judgment filed by the government, by CMI, and by Seibo. Jordache joined in the government’s motion for summary judgment.

By verified claims and affidavits of the parties, the court finds the uncontested facts to be as follows:

1. Seibo, S.A. de C.V. is a Mexican corporation engaged in the exportation and importation of goods from and to the Republic of Mexico. CMI, Incorporated is a North Carolina corporation engaged in buying wearing apparel in bulk quantities from manufacturers and other vendors and selling those goods to other wholesalers.

2. On or about July 7, 1983, Seibo and CMI entered into an agreement in which Seibo agreed to sell and CMI agreed to buy thirty thousand (30,000) pairs of jeans bearing the Jordache label. The sale price of the jeans was six dollars, sixty-seven cents ($6.67) each. Under the terms of the [478]*478agreement, the jeans were to be delivered by Seibo to CMI, F.O.B. Mexico City.

3. On or about July 27, 1983, Seibo, in order to fulfill its contractual obligations to CMI, purchased twenty thousand (20,000) pairs of jeans from Terrífico, a Mexican corporation engaged in the manufacture of clothing. At the time of the purchase, Terrífico provided Seibo with a certified copy of a document showing that Celine, S.A., an affiliate of Terrífico, was the registered owner and authorized user of the trademark “Jordache” in Mexico.

4. Previously, Seibo had assured CMI that Terrifico’s trademark was valid. The vice president of CMI met with Mexican government officials who verified that Terrífico had the lawful trademark for Jordache in Mexico and provided him with a copy of that trademark. CMI also asserts that Seibo represented to it that the jeans could be lawfully imported in the United States.

5. Neither CMI nor Seibo made any attempt to contact Jordache directly, either at its corporate office in New York or through its Mexico City attorney, to confirm the authenticity of Terrifico’s trademark or to discover if the trademark rights they had been assured were owned by Terrífico in Mexico allowed the importation of the jeans into the United States.

6. According to Seibo, just prior to delivery, and at the express request of and as an accommodation to CMI, Seibo agreed to deliver the jeans to CMI at Charlotte, North Carolina.

7. Prior to shipment, CMI paid Seibo for ten thousand (10,000) pair of jeans with a cashier’s check for $66,700. The second ten thousand (10,000) pair were to be paid for with a letter of credit.

8. On or about August 3, 1983, representatives of Seibo had the jeans placed on an airplane for shipment to the United States.

9. When the jeans reached the United States, a customs agent determined through reference to the customs manual that “Jordache” is a registered trademark of Jordache Enterprises, Incorporated.

10. Local customs officials contacted Mr. Robert A. Spiegelman, attorney for Jordache, who advised them that Jordache did not have and never did have a licensee and manufacturer of Jordache jeans in Mexico and that all jeans exported from Mexico were, therefore, counterfeit and unauthorized.

11. Pursuant to this investigation and under the authority of 19 U.S.C. § 1526 and 15 U.S.C. § 1124 prohibiting the importation and introduction into commerce of the United States items bearing a registered United States trademark by persons other than owners, assignees or licensees of the trademark, the government seized the jeans as a “prohibited importation” under 19 C.F.R. § 133.21(a).

12. Pursuant to 19 U.S.C. § 1606, the District Director of Customs in Wilmington, North Carolina has appraised the blue jeans and determined their domestic value to be $306,200.

13. Jordache represents, through its New York attorney, that the minimum wholesale price of this particular type of Jordache jeans is nineteen dollars ($19) a pair. Retail value for genuine Jordache jeans is about forty dollars ($40) a pair.

CONCLUSIONS OF LAW

1. The relevant importation restrictions state that,

... [I]t shall be unlawful to import into the United States any merchandise of foreign manufacture if such merchandise, or the label, sign, print, package, wrapper, or receptacle, bears a trademark owned by a ... corporation or association created or organized within, the United States, and registered in the Patent and Trademark Office ... and if a copy of the certificate of registration of such trademark is filed with the Secretary of Treasury, ... unless written consent of the owner of such trademark is produced at the time of making entry.

[479]*47919 U.S.C. § 1526(a). Merchandise imported into the United States in violation of this section “shall be subject to seizure and forfeiture for violation of the customs laws.” 19 U.S.C. § 1526(b).

2. The court concludes, on the basis of uncontroverted evidence, that the merchandise in question (twenty thousand (20,000) pair of blue jeans bearing the Jordache label) bears a trademark owned by a corporation organized with the United States and whose trademark is registered in the Patent and Trademark office and that no written consent of the owner of such trademark was produced at the time of making entry into the United States.

3. The merchandise in question is therefore, as a matter of law, subject to seizure and forfeiture. 19 U.S.C. § 1526(e) states in pertinent part:

Any such merchandise bearing a counterfeit mark ... imported into the United States ... shall be seized and, in the absence of the written consent of the trademark owner, forfeited for violations of the customs laws.

4. In order to secure forfeiture under 19 U.S.C. § 1526

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Bluebook (online)
601 F. Supp. 476, 6 I.T.R.D. (BNA) 1967, 225 U.S.P.Q. (BNA) 616, 1985 U.S. Dist. LEXIS 23746, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-one-1-lot-of-approximately-twenty-thousand-20000-ncwd-1985.