Tobacco

PM USA Goes After Gray Market

Takes action against web cigarette vendors to stop infringement, illegal importation

RICHMOND, Va. -- Philip Morris USA has filed a complaint with the International Trade Commission (ITC) to stop illegally imported "gray market" cigarettes bearing PM USA's trademarks, including the Marlboro mark, from entering the United States.

"Our brands are among our company's most valuable assets, and we take many steps to protect them," said Charlie Whitaker, vice president of compliance and brand integrity for PM USA. "Today, we are asking the ITC to issue an order to block hundreds of Internet vendors from bringing gray market cigarettes into the U.S."

The complaint alleges [image-nocss] that Internet-based cigarette vendors are unfairly selling cigarettes bearing PM USA's trademarks in violation of U.S. intellectual property laws and the Lanham Act.

The complaint requests that the ITC issue a General Exclusion Order, which would require U.S. Customs & Border Protection to stop all infringing imports from entering the United States, including infringing products sold by the 13 websites named as respondents in the complaint and any other websites engaged in similar activity. PM USA has also identified 177 additional websites in its complaint.

This ITC complaint is the latest in a series of legal actions PM USA has taken to counteract contraband trade in cigarettes. The company said it pursues numerous strategies to address the sale of illegally imported, counterfeit, stolen and untaxed or under-taxed cigarettes. It said it actively supports the efforts of authorities to enforce laws related to cigarette trade; advocates for enhanced federal and state legislation to address the sale of contraband cigarettes; and pursues litigation or other company actions against those who undermine law-abiding wholesalers and retailers.

Richmond, Va.-based PM USA is an operating company of Altria Group Inc., New York.

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