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Santos de Hoyos indirectly owned 100 percent of Rubbik
through two wholly owned trusts, and he also indirectly owned 9.5
percent of Gamesa through his partial ownership interest in
Gamesa’s majority shareholder.
As indicated, petitioner was formed in 1984 to operate as
the direct U.S. distributor of Gamesa’s food products. By
establishing petitioner as its direct U.S. distributor, Gamesa’s
management hoped to capitalize on a growing and profitable market
for Gamesa’s food products in the United States and to reduce the
unauthorized importation of Gamesa’s food products into the
United States.
Prior to 1984, importers had been purchasing Gamesa’s food
products in Mexico, illegally importing the products into the
United States, and selling Gamesa’s products to supermarkets and
distributors that served U.S. markets. Products distributed in
the United States in this manner were often outdated or damaged
by the time they reached U.S. markets, sold at discount prices,
and damaged Gamesa’s reputation.
The U.S. Customs Service (U.S. Customs) will seize “gray
market” imports (i.e., foreign-manufactured products that are
imported into the United States without authorization of the U.S.
corporation holding U.S. trademarks on the products).
By agreement dated June 12, 1984, Gamesa assigned its U.S.
trademark for “Gamesa” to petitioner to qualify petitioner for
gray market protection with regard to Gamesa’s products that were
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Last modified: May 25, 2011