Gray market goods present complex problems for brand owners. Gray market goods are products that are genuine but resold without the authorization of a brand owner, often in a different market at a different price. While the products may be legitimate, the unauthorized use by the manufacturer can undermine the reputation of the brand. Law360 reached to Finnegan partner Mark Sommers for insight on how brands can gain better control over these types of imports.
Sommers suggests that brands should offer additional services beyond the physical product, such as warranties, product activations, and free software updates as a way to keep customers from buying gray market goods. He said, "Any company [offering those services] stands in a much stronger position to prevent the sale of gray goods because they will be able to establish that the gray goods do not come with all the added value attached to the domestic goods. Consideration should be paid to the entirety of the consumer experience deliverable rather than just a physical comparison of the goods themselves."
