Beverages

Shutting Down 'Gray Market' Red Bull

Decision prohibits unlicensed entry of energy drinks that infringe on company's trademark
SANTA MONICA, Calif. -- In a victory for Red Bull GmbH and Red Bull North America Inc., the U.S. International Trade Commission has issued a general exclusion order that will prohibit the importation of unauthorized Red Bull energy drink products into the United States. As a result, the U.S. Customs Department will block "gray market" Red Bull products from U.S. ports.

Unauthorized energy drink products include those that infringe on any marks or designs confusingly similar to Red Bull's or are otherwise misleading as to source, origin or sponsorship.

This decision [image-nocss] will help assure consumers that all Red Bull products sold in the United States will have travelled through authorized and quality-controlled distribution channels.

"Red Bull is committed to aggressively pursue gray marketers and will work closely with U.S. Customs to assist them in stopping the importation of all unlicensed Red Bull products," said Stefan Kozak, CEO of Red Bull North America, Santa Monica, Calif. "We will continue to commit significant resources to eliminate all gray market Red Bull product from the U.S."

Ray Kurz from Hogan Lovells, the law firm that spearheaded the legal action, said, "this is a very important victory for Red Bull, and we will continue to work with them to eliminate gray market goods from the marketplace."

Red Bull previously obtained an injunction and a $2.1 million settlement from a gray marketer and recently filed numerous lawsuits in federal courts around the country seeking damages from gray market importers. Red Bull will continue to pursue companies engaged in these illegal activities, it said.

The U.S. International Trade Commission's order and opinion were delivered to President Obama for his final approval.

Red Bull Energy Drink was founded by Dietrich Mateschitz in 1984 and was first introduced in the Austrian market in 1987 before reaching the U.S. market in 1997. Today, Red Bull can be found in more than 160 countries worldwide. The company also makes Red Bull Sugarfree, Red Bull Cola and Red Bull Energy Shots.

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