MARTIN'S HEREND IMPORTS, INC. and Herendi Porcelangyar, Plaintiffs-Counter Defendants-Appellees, v. DIAMOND & GEM TRADING USA, CO., Judith Juhasz and Frank Juhasz, Defendants-Counter Plaintiffs-Appellants. MARTIN'S HEREND IMPORTS, INC. and Herendi Porcelangyar, Plaintiffs-Counter Defendants-Appellees, v. DIAMOND & GEM TRADING USA, CO., et al., Defendants, Judith Juhasz and Frank Juhasz, Defendants-Counter Claimants-Appellants. MARTIN'S HEREND IMPORTS, INC. and Herendi Porcelangyar, Plaintiffs-Appellees, v. DIAMOND & GEM TRADING USA, CO., et al., Defendants, Judith Juhasz and Frank Juhasz, Defendants-Appellants., 112 F.3d 1296

Summary

The court affirmed and reversed, in part, a judgment against defendants, a parallel importer of gray market goods, in a trademark dispute. An award of injunctive relief was affirmed because defendants imported goods that were materially different from those sold in the United States by plaintiff, the exclusive American distributor of plaintiff foreign manufacturer's products. However, the scope of the injunction was overly broad because, under the first sale rule, defendants were entitled to sell products that had previously been sold in the United States. An award of attorney's fees was reversed because plaintiffs did not prove highly culpable conduct. The court reversed summary judgment in favor of plaintiffs on defendants' counterclaim because seizure was not an available remedy under the Lanham Act, 15 U.S.C.S. § 1116(d), in an action involving gray market goods. A civil contempt order was affirmed because defendants violated the injunction while the appeal was pending.