Business Law: Principles for Today's Commercial Environment 3rd Edition by Marianne Moody Jennings, David Twomey, Marianne Jennings

Exercise 15

Able Time Inc. imported a shipment of watches into the United States. The watches bore the mark "TOMMY," which is a registered trademark owned by Tommy Hilfiger. U.S. Customs seized the watches pursuant to the Tariff Act, which authorizes seizure of any "merchandise bearing a counterfeit mark." Tommy Hilfiger did not make or sell watches at the time of the seizure. Able argues that because Tommy Hilfiger did not make watches at the time of the seizure, the watches it imported were not counterfeit, and the civil penalty imposed by Customs was unlawful. The government argues that the mark was counterfeit and the Tariff Act does not require the owner of the registered mark to make the same type of goods as those bearing the offending mark. Decide. [U.S. v Able Time, Inc., 545 F3d 824 (9th Cir 2008)].