Facts

Plaintiffs Hyundai Motor America, Inc. and Hyundai Motor Company filed a complaint against defendant Yahala Trading Company doing business as Fourgreen Auto Parts claiming trademark infringements under Section 32 of the Lanham Act; false designation of origin in violation of Section 43(a) of the Lanham Act; and trademark dilution in violation of Section 43(c) of the Lanham Act.

PLAINTIFFS' CONTENTIONS: Plaintiffs contended that defendants were selling and distributing illegal gray market Hyundai parts through various retailers such as Amazon and Walmart. Plaintiffs contended these illegal gray market Hyundai parts are not for sale in the United States and are only for sale and use in foreign countries. In addition, plaintiffs contended that defendants did not notify consumers that the illegal gray market Hyundai parts are not genuine Hyundai parts that was authorized by plaintiff to be distributed in the United States.

DEFENDANTS' CONTENTIONS: Defendant denied plaintiff's contentions.

Result

The court issued a judgment granting plaintiffs recovery from defendant in the total amount of $3,000,000. Further, defendant were permanently enjoined from misrepresenting the source and quality of gray market Hyundai Branded parts and from distributing and selling any gray market Hyundai branded parts to consumers.