Altadis U.S.A. Applauds Florida Department of Law Enforcement’s Raids and Arrests of Members of South Florida Counterfeiting Racket

On November 5, 2009, the Florida Department of Law Enforcement carried out a series of six separate counterfeit cigar raids and arrested six individuals. A large amount of equipment and massive quantities of counterfeit packaging material in addition to four vehicles were seized. Included were packaging materials for MONTECRISTO, TRINIDAD and ROMEO Y JULIETA, in addition to printing presses and other machinery used in the counterfeiting process.

Early review indicates that the amount of counterfeit material seized from this raid far exceeds that of an earlier raid in 2005 where it was estimated that enough materials were seized to produce over 20 million dollars of packaged counterfeit cigars.

Also seized were the business records and computer equipment of the entities involved in the illegal counterfeiting activities. These are currently being analyzed for evidence of others involved in the illegal counterfeiting racket including retailers and distributors who may have purchased the counterfeit product.

This is the latest in a series of actions that have taken place in recent years as part of an ongoing aggressive campaign by Altadis U.S.A. and state and federal law enforcement officials to put a halt to cigar counterfeiting. These arrests and seizures send an important message to counterfeiters and those that would trade in their illegal goods:

Altadis U.S.A. will not tolerate counterfeiting of their trademarks.

Any individual that engages in the counterfeiting, whether as a producer, distributor or retailer, will be arrested, their assets will be seized and they will ultimately be held liable for payment of substantial damages to Altadis U.S.A.

This campaign reconfirms the important messages that Altadis U.S.A. has been conveying to those who produce, distribute and/or sell so-called “Cuban replica” cigars:

• Any unauthorized use of Altadis U.S.A.’s trademarks is illegal. Labeling the cigars “Habana” or calling them “Cuban replicas” does not make them legal.
  
• Individuals who participate in the manufacture, distribution or sale of “Cuban replica” cigars will be held personally liable for their counterfeiting activities.

“This is part of an ongoing, determined effort by Altadis to protect its interests and those of its distributors, consumers and the entire industry as well,” said Eric Workman, SR VP of Marketing of Altadis U.S.A. He added: “We have for several years been educating members of the industry regarding our rights. No one who is now dealing in counterfeits can claim that they are doing so innocently. We are moving forward with an aggressive enforcement program that will go after anyone not respecting our rights. We are committed to doing whatever it takes to protect our valuable brand names and trade designs and ensuring that they are only associated with the high standards of quality for which they are known. We have established a loyal following for our brands and we intend to vigorously defend their integrity. Altadis U.S.A. will continue to pursue legal remedies against counterfeiters and those who sell counterfeit cigars.”

NOTICE TO THE TRADE

Altadis U.S.A. is strongly committed to vigorous enforcement of its trademark rights and will seek criminal prosecution of anyone who would infringe those rights. Altadis U.S.A. continues to work with state and federal law enforcement officials to use anti-counterfeiting laws to secure convictions of counterfeiters of our brands.

If we learn that any importer, distributor, retailer or other member of the Trade is dealing in counterfeit cigars or cigar packaging, we will proceed against you aggressively through civil and/or criminal channels. In addition to criminal prosecution, in appropriate cases, we will invoke the civil provision of the federal trademark law that allows courts to award trademark owners like Altadis U.S.A. up to $1 million in statutory (non-compensatory) damages per counterfeited mark, as well as their attorney’s fees. We have been awarded damages and attorney’s fees of $1 million to $2.25 million in such cases.

Altadis U.S.A. also continues to work successfully with U.S. Customs to arrange for the seizure and destruction of shipments of counterfeit cigars and packaging materials. Members of the Trade who have paid for cigars that turn out to be counterfeits and are thus seized by U.S. Customs should be aware that in such circumstances they will find themselves without recourse – counterfeiters do not refund monies paid nor are they in a position to make good with legitimate product with the quality and prestige of Altadis U.S.A.’s brands.

Altadis U.S.A.’s brands include, among others: Montecristo, H. Upmann, Romeo y Julieta, Trinidad, Don Diego, Santa Damiana, Cabanas, Por Larrañaga, La Corona, Saint Luis Rey and Quintero.

We caution the Trade against engaging in illegal activity in violation of our rights in any of our brands and ask you to inform us immediately if you receive solicitations for products that violate our rights.