Pan American Foods, Inc. - Page 4

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          illegally imported into the United States.  Effective October 17,           
          1984, petitioner registered the “Gamesa” trademark with U.S.                
          Customs.  No payment was due from petitioner to Gamesa with                 
          regard to the “Gamesa” trademark.                                           
               In November of 1984, petitioner applied for and was                    
          eventually granted gray market protection by U.S. Customs with              
          regard to Gamesa’s products.  In its application for gray market            
          protection, petitioner represented to U.S. Customs that                     
          petitioner and Gamesa were not under common ownership or control.           
               In distributing products to U.S. markets, in order to meet             
          requirements of the U.S. Food and Drug Administration and                   
          preferences of purchasers in the United States, Gamesa made                 
          certain modifications to the ingredients, design, packaging,                
          marketing, and advertising of many of its products.  Pursuant to            
          distribution contracts that were entered into between Gamesa and            
          petitioner, petitioner agreed to supply Gamesa with information             
          that would aid Gamesa in such modifications of its products for             
          U.S. markets.  Petitioner did not, however, agree to pay Gamesa a           
          fee for such modifications.                                                 
               The packaging of Gamesa’s products, including those                    
          purchased and distributed in the United States by petitioner,               
          carried the “Gamesa” trademark and the letter “g” trademark.  The           
          “Gamesa” and “g” trademarks were added to the packaging of                  
          Gamesa’s products by Gamesa.  Petitioner used both trademarks in            
          advertising Gamesa's products in the United States.                         




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