"G.J. Smokes is the fifth Mastic [N.Y.] location in less than a year that we have sued for selling counterfeit product," said Joe Murillo, vice president and associate general counsel, Altria Client Services, speaking on behalf of PM USA. PM USA estimates only about 20 [image-nocss] smoke shops operate on the Poospatuck reservation.
In addition to violating many trademark laws, counterfeit cigarettes are almost always sold without the appropriate federal and state excise tax. The counterfeit cigarettes purchased from G.J. Smokes bore no genuine tax stamp. As a result, the applicable excise taxes were not paid.
"This underscores the need for the state of New York to end its nonenforcement policy and begin collecting the excise tax on cigarettes sold through Native American outlets," said Murillo.
The purchase of cartons of counterfeit versions of Marlboro brand cigarettes by company agents prompted the lawsuit. The lawsuit follows similar suits filed against four other smoke shops in Mastic in 2009 for selling counterfeit versions of Marlboro brand cigarettes. In those cases, PM USA worked with Suffolk County authorities who raided the four smoke shops and seized 487 cartons of counterfeit cigarettes bearing Marlboro brand trademarks.
Since May 2009, PM USA has filed lawsuits against 27 retail locations in New York and New Jersey for selling counterfeit Marlboro brand cigarettes. The company also continues to advocate for legislative solutions to New York's complex contraband cigarette trade issues.
Philip Morris USA is an operating company of Altria Group Inc., New York.
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