Tobacco company Philip Morris has filed trade mark infringement
suits against companies that bring cigarettes destined for sale
abroad back into the US. The action could mark the start of a
countrywide legal fight to halt the flood of so-called grey
imports.
In the suit, filed on March 5 in the federal court in
Indianapolis, Philip Morris is seeking injunctive relief and
damages from five companies that sell or distribute Marlboro
cigarettes in Kentucky and Indiana. The defendants are Allen
Distributors, Allen Food Mart, Blue Grass Distributors, Kocolene
Marketing Group and AF & E. The companies are accused of trade
mark infringement, unfair competition and unlawful trade practices.
Export grade cigarettes differ from those in the US. Differences
include packaging, required health warnings and promotional offers.
Grey importers can obtain the cigarettes cheaply because no duty is
paid on products for sale abroad.