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The extraterritorial application of U.S. statutes allowing civil actions for damages has generated significant and developing jurisprudence. [FOOTNOTE 1] A decision last year by U.S. District Judge Lewis A. Kaplan clarifies the requisite effect on U.S. commerce for Lanham Act jurisdiction and is an important precedent, especially for foreign licensees of U.S. trademarks. [FOOTNOTE 2] The case establishes that a trademark licensee with an exclusive territory outside the U.S. who alleges “gray market exportation,” “transshipment” or “parallel exportation” by U.S. entities (including U.S. co-licensees, brokers, and manufacturers) into the foreign licensee’s exclusive territory should be able to maintain a cause of action in the Second Circuit under the Lanham Act, despite the absence of any allegation of deception or confusion of U.S. consumers.

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