Fighting the Gray Market in Korea and the U.S.

Both Korea and the United States face an influx of gray market goods (also known as “parallel imports”), but the two countries offer trademark owners vastly different tools to combat this problem. Gray market goods are genuine (not counterfeit) goods that have been manufactured by, for or under license from the trademark owner. They are typically intended for sale in a particular market, but imported into and sold into another market or region. In the U.S., trademark owners can avail themselves of both state and federal courts and U.S. customs. In Korea, as well, the courts may be an ally of trademark owners, but the way is not as clear. Moreover, the trademark owners must observe one caution or they themselves could become targets of enforcers.