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ALTADIS U.S.A. WINS $3.5 MILLION TOTAL IN YET ANOTHER JUDGMENT
IN COUNTERFEITING CASE
On March 25, 2005, the United States District Court in Ft. Lauderdale,
FL, awarded Altadis U.S.A. and their subsidiaries judgments totaling
$3.5 million in their counterfeiting and trademark infringement lawsuit
against two now inactive Florida corporations (South Beach Cigar Factory,
and Tabacaleras Cubanas S.A. Corp. d/b/a Cuba Habanos U.S.A.) and
their principal owner Rodolfo Morejon. Altadis U.S.A.’s Cuban Cigar
Brands, N.V. and Max Rohr, Inc. divisions received statutory damages
of $2 million and $1.5 million respectively.
The lawsuit centered on counterfeiting and trademark infringement
involving four of Altadis U.S.A.'s brands – Montecristo, Romeo y Julieta,
H. Upmann and Saint Luis Rey. In addition to the monetary award, the
defendants are ordered to recall all counterfeit products, promotional
and packing materials and deliver them to Altadis U.S.A. for destruction.
They are also permanently enjoined from engaging in any activities
employing graphics that are “confusingly similar” to the above-mentioned
registered trademarks.
The recent judgment is the latest in a series of awards to Altadis
U.S.A. in their aggressive pursuit of counterfeiters in the cigar
industry. “This was another important victory for Altadis, its distributors,
consumers and the entire industry as well,” said Theo Folz, President
and CEO of Altadis U.S.A. He added: “In today’s highly competitive
world, protecting brand names and trade designs and controlling high
standards of quality are critical for the successful marketing of
brands, particularly those that have established a loyal following.
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 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 of
our brands, 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 $3.5 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
US 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. Additionally,
Altadis U.S.A. reserves the right to cancel as direct accounts, those
parties who trade in counterfeit cigars.
Altadis U.S.A.’s premium brands include, among others: Montecristo,
H. Upmann, Romeo y Julieta, Trinidad, Don Diego, Santa Damiana, Cabañas,
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 such rights.
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