JUDGE SENTENCES RETAILER FOUND GUILTY IN FLORIDA CIGAR COUNTERFEITING CASE

A Florida judge Monday sentenced James David Joiner, who had been found guilty of vending goods with counterfeit trademarks, to 364 days in Broward County Jail and five years probation. Joiner was also ordered to pay a fine, pay restitution to Altadis U.S.A., and to pay the cost of prosecution and of probationary supervision. State of Florida v. James David Joiner, Circuit Court of the Seventeenth Judicial Circuit, Broward County, Florida, Case No. 06-2201CF10A (Rodriguez-Powell). The jury on October 1, 2008 had found that Joiner had violated the federally registered U.S. trademarks of Altadis U.S.A. by vending goods with counterfeit Montecristo, Romeo y Julieta, H. Upmann and Trinidad trademarks.

The cigars were not made by Altadis U.S.A. but illegally bore trademarks owned by the company. After the jury’s verdict was announced, the judge had ordered Joiner to be immediately remanded into custody pending sentencing. Altadis U.S.A.’s representative explained to the court during the sentencing hearing that Joiner’s conduct was particularly egregious because he had been a direct buying account of Altadis U.S.A. for many years, testifying that: “Consumers had come to trust Joiner and when he engaged in the counterfeiting conduct for which he has been found guilty, he not only broke the law, he violated that trust,” and that: “Joiner knew better. He knew what he was doing was wrong, but he did it anyway.”

“Obviously we are pleased with the outcome of the case,” stated a key Altadis U.S.A. executive. “There was a fair trial and a jury has applied the law and found the defendant guilty of illegally vending counterfeit cigars. The judge has handed down a sentence that not only punishes Joiner for his conduct, but also sends a clear message to other retailers that might be tempted to become involved in the sale of counterfeit products. In short, if they engage in counterfeiting, they do so at their own peril.” Industry experts estimate the cigar counterfeiting problem involves the sale of hundreds of millions of dollars of fake and inferior products annually to unsuspecting consumers. The verdict is yet another in a series of actions that have taken place in recent years as part of an on-going aggressive campaign by federal, state and local officials to halt cigar counterfeiting. This conviction sends an important note to retailers: sales of counterfeit cigars will not be tolerated. It confirms the message Altadis U.S.A. has been conveying for years to those who retail, distribute and/or produce counterfeit cigars: “This was an important victory for Altadis U.S.A., its distributors, legitimate retailers and the entire industry,” said the Altadis U.S.A. executive. “It is also a major victory for our consumers, because it protects the consumer from unknowingly purchasing counterfeit and inferior products. Altadis U.S.A. remains committed to ensuring that the company’s trademarks are only associated with the cigars it produces under the high standards of quality for which they are known. In today’s competitive world, protecting brand names and trade designs is critical.” Any unauthorized use of Altadis U.S.A.’s trademarks is illegal. Labeling cigars “Habana,” “Cuban” or“Cuban replica” does not make them legal. Individuals who participate in the retail sale, distribution or manufacture of counterfeit cigars will be held personally liable for their counterfeiting activities.

Altadis U.S.A. is strongly committed to vigorous enforcement of its trademark rights and will seek criminal prosecution of anyone who would violate those rights. Altadis U.S.A. continues to work with local, state and federal law enforcement officials to use anti-counterfeiting laws to secure convictions of counterfeiters of our brands. If we learn that any importer, distributor, retailer or other member of the Trade is dealing in counterfeit cigars or cigar packaging of our brands, we will proceed against them aggressively through civil and/or criminal channels. In addition to criminal prosecution, in appropriate cases, we will invoke the civil provision of the federal trademark law that allows courts to award trademark owners like Altadis U.S.A. up to $1 million in statutory (non-compensatory) damages per counterfeited mark, as well as their attorney’s fees. We have been awarded damages and attorney’s fees of $1 million to $3.5 million in such cases. Altadis U.S.A. also continues to work successfully with U.S. Customs to arrange for the seizure and destruction of shipments of counterfeit cigars and packaging materials. Any retailer who has paid for cigars that turn out to be counterfeits and are thus seized by officials should be aware that in such circumstances they will find themselves without recourse. Counterfeiters do not refund monies paid nor are they in a position to make good with legitimate product with the quality and prestige of Altadis U.S.A.’s brands. Additionally, Altadis U.S.A. reserves the right to cancel as direct accounts those parties who trade in counterfeit cigars. Altadis U.S.A.’s premium cigar brands include, among others: Montecristo, H. Upmann, Romeo y Julieta, Trinidad, Don Diego, Santa Damiana, Cabañas, Por Larrañaga, La Corona, Saint Luís Rey and Quintero. We caution the Trade against engaging in illegal activity in violation of our rights in any of our brands and ask you to inform us immediately if you receive solicitations for products that violate such rights.

OR MORE INFORMATION, CONTACT JANELLE ROSENFELD AT(954) 938-7837 OR JROSENFELD@ALTADISUSA.COM