Document: 485 U.S. 176 108 S.Ct. 950 99 L.Ed.2d 151 K MART CORPORATION, Petitionerv.CARTIER, INC., et al. 47TH STREET PHOTO, Petitioner v. COALITION TO PRESERVE THE INTEGRITY OF AMERICAN TRADEMARKS, UNITED STATES, al., Petitioners Nos. 86-495, 86-624 and 86-625. Argued Oct. 6, 1987. Decided March 7, 1988. Syllabus A "gray-market" good is a foreign-manufactured that bears valid United States trademark imported without the consent of owner. Section 526(a) Tariff Act 1930 prohibits importation certain gray-market goods. The Customs Service's implementing regulation allows where foreign manufacturer affiliated with owner or has received owner's authorization to use its trademark. Respondent Coalition Preserve Integrity American Trademarks two members filed Federal District Court suit against Government for injunctive declaratory relief, asserting, inter alia, inconsistent § therefore invalid. 47th Street Photo, Inc., intervened as defendant motion dismiss on ground International Trade had exclusive jurisdiction over case. rejected upheld regulation. Appeals affirmed jurisdictional ruling, but reversed merits. Held: 1. under both general federal-question provision, 28 U.S.C. 1331, specific provision regarding actions "arising any Congress relating . trademarks." 1338(a). P. 182. 2. did not have 1581(i)(3), which grants such suits involving "embargoes other quantitative restrictions merchandise reasons than protection public health safety." Pp. 182-190. (a) Although properly theory imposes an "embarg[o]" within meaning court's reasoning—that 1581(i)(3) only extends embargoes arising out trade policy—is unpersuasive. policy sole, nor perhaps even primary, purpose served by embargoes, are also imposed, protect health, safety, morality. Had intended constrain "embargoes" suggested Appeals, it would been unnecessary exclude expressly safety from 1581(i)(3)'s grant, deny prohibited "immoral articles," see 1581(j). 184. (b) ordinary "embargo," apparently adopted in governmentally imposed restriction—of zero—on merchandise. 526(a)'s prohibition since, rather reflecting governmental restriction quantity particular product will enter, merely provides mechanism might, at own option, enlist aid barring foreign-made goods bearing order enforce private right. contention "embargo" should be defined "import takes form prohibition, regardless ultimate purpose," rejected, fact, every import embargo. 185-187. (c) eliminating confusion legislative history provide no indication depart "embargoes." If meant give "importation prohibitions" "embargoes," said so. 187-190. 3. 1581(i)(4), "administration enforcement respect matters referred to" 1581(a), turn applies contesting administrative "denial protest" challenging officer's excluding entry. Since this action does involve "matte[r] 1581(a)—the protest," very broadest, "a protest"—it cannot matter. 190-191. 4. cases restored calendar reargument 191. 252 U.S.App.D.C. 342, 790 F.2d 903 (1986), part. BRENNAN, J., delivered opinion Court, WHITE, MARSHALL, BLACKMUN, STEVENS, JJ., joined. SCALIA, dissenting opinion, REHNQUIST, C.J., O'CONNOR, joined, post, p. ----. KENNEDY, took part consideration decision Louis R. Cohen, Washington, D.C., federal petitioners. Robert W. Steele, William H. Allen, respondents. Justice BRENNAN Court. 1 trademark, This presents issues whether hear challenge Secretary Treasury's permitting goods, 19 CFR 133.21 (1987), and, if so, reasonable agency interpretation (1930 Act), 46 Stat. 741, amended, 1526. 2 * importing 3 "into manufacture owned citizen of, corporation association created organized within, States, registered Patent Trademark Office person domiciled ., unless written produced time making entry." 1526(a).1 4 Service implements prohibit generally "[f]oreign-made articles identical one recorded subject seizure forfeiture importations." 133.21(b) (1987).2 But furnishes "common-control" exception ban, entry manufactured abroad affiliate: 5 "(c) Restrictions applicable. do apply when: 6 "(1) Both name same business entity; [or] 7 "(2) domestic owners parent subsidiary companies otherwise common ownership control. ." 8 further "authorized-use" exception, permits 9 "(3) [t]he bear applied 133.21(c) (1987). 10 Trademarks, owners, (all three collectively COPIAT) brought Columbia, seeking declaration invalid injunction enforcement.3 Specifically, COPIAT asserted common-control authorized-use exceptions Act, 42 Lanham Trade-Mark 15 1124, marks "copy simulate" trademarks. mart Corporation defendants. 11 After rejecting Photo's case, challenges. 598 F.Supp. 844 (1984). Court's ruling (1986) (hereinafter ). We granted certiorari, 479 1005, 107 642, 93 699 resolve conflicts among Courts issue, compare Vivitar Corp. 761 1552, 1557-1560 (CA Fed.1985), aff'g CIT 109, 593 420 (1984), cert. denied, 474 1055, 106 791, 88 769 Olympus 792 315, 317-319 (CA2 1986), 627 911 (EDNY 1985), pending, No. 86-757; COPIAT, supra, U.S.App.D.C., 344-346, F.2d, 905-907, merits, Corp., 1560-1571, 319-322, 346-355, 907-916. now affirm Appeals' conclusion jurisdiction, restore these II 12 Only petitioner Photo contends we lack litigation. trade-marks," 1338(a), would, standing alone, vest district courts action.4 divested however, fell several Trade. propounds theories support claim lies reject both. 13 Petitioner's first laws safety. ."5 "Section quotas policy, sort measures traditionally limited shoes, textiles, automobiles, like." 346, 907. agree reach different reasoning. (1) 14 An embargo " [g]overnment prohibiting commercial individuals businesses nations." Black's Law Dictionary 468 (5th ed. 1979). It "[a] prevents entering nation" "may individual country." J. Berenyi, Modern Business 103 (1982). To sure, like those enumerated, often implement policy. (even assuming exclusion trademarks fairly policy) embargoes. typically see, e.g., 21 381 (adulterated, misbranded, unapproved foods, drugs, cosmetics); 1397 (motor vehicles conform standards); morality, 1305 (obscene pictures, lottery tickets, causing unlawful abortion), interests affairs, 22 2370(a) (embargo Cuba); law enforcement, §§ 1241-1244 (switchblade knives); ecology, 12.60 (1987) (fur-seal sea-otter skins). discovered evidence word mean grounded policy." contrary, so intended, quite Trade's did, "protection safety," 1581(j) (excluding 1305, panoply articles"). (2) 16 analysis, nevertheless impose As above-quoted definitions suggest, statutory language restrictions," 17 party Government's restricting imports Suppose, example, producer distributor distribution rights abroad, contract, captioned "Importation prohibited," bars competing sales. brazenly into may invoke number contract remedies including monetary relief court—to court-issued is, technically, "[g]overnment trade." Yet could more deem party's prohibition" damages breach "tarif[f], dut[y], fe[e] ta[x] merchandise," 1581(i)(2). party, Government, deciding how exercise right, determines can imported. 18 type. law, confers rights, themselves exclusion. bundle right bar See 71 Cong.Rec. 3871 (1929) (remarks Sen. George) (§ "undoubtedly origin effort trade-mark, protecting interest trade-mark who gone trouble registering it"); 62 11603 (1922) Sutherland) designed "protec[t] property citizens purchased trade-marks foreigners"). Thus, 526(a)—like enforcing contractual prohibition"—is set determined limit trafficking in, product: heart's content, usually until market content; importer trademarked ad infinitum, acquires import. Nor control extent nature prohibition. sole authority decide all products enter none will, what entity them, conditions, purpose. There reason suppose distort term beyond encompass right—whose entirely owners', Government's, control—to intrabrand competition abroad.6 SCALIA's falls "ordinary meaning" 196, follows extraordinary definition imports, 195 (emphasis added). court-enforced illustrates, hold yield applications unnatural, say least. For prohibitory regulations providing milk cream except permitholder, 12.7(a) added), "Customs officers shall permit tagged accordance [applicable] regulations," 12.7(b) convert licensing tagging requirements unlicensed improperly dairy products. Similarly, requirement meat inspected prior magically become uninspected (but necessarily tainted) when uses formulation "meat released custody inspection," 12.8 sampling demonstrates departure meaning, much our adherence it, "leave [§ 526(a)] drift currents lawyerly invention," 196. 20 (3) Contrary petitioner's contentions, purposes 1980, Pub.L. 96-417, 94 1727, enacted provision. foremost, remedy division between (now Trade) "ensure uniformity judicial decisionmaking process." H.R.Rep. 96-1235, (1980), U.S.Code Cong. & Admin.News pp. 3729, 3731. commit customs-related regulations. wished expressed intent clearly simply by, conveying specialized court "exclusive civil [Government] directly affecting imports," S. 2857, 95th Cong., 2d Sess. (1978), "all arise transactions [or specified statutes]," 1654, 96th 1st (1979); H.R. 6394, (1980). In bills implemented categorical approach, opted scheme achieved desired goals clarity delineating precisely jurisdiction. "tariffs, duties, fees, taxes they "raising revenue." made direct review facial challenges conditions entry, labeling marking requirements, 11.6-11.7 (packaging distilled spirits, wines, malt liquors); 11.12-11.12b (labeling wool, fur, textile products), inspection, 11.1 (inspection cigars, cigarettes, medicinal preparations, perfumery); meats). Or, focus closely genre issue here, disputes declined grant prohibitions "public safety" articles." By choosing phrase prohibitions," likewise words chose infect cure. 23 Concededly, fully explain obvious why type mentioned above. adequate explanation Congress' omission fall Whatever reason, disagree "utiliz[e] expertise Appeals. 20, 1980 renamed Trade, Improvement 1982 merged Claims Circuit, rarely dealt with, less developed "specialized expertise" law. there (aside strained reading "embargo") new institutions acquire area predecessors none. 24 sum, hint B 25 second vesting easily rejected. begins "[t]he commenced contest denial protest, whole part, section 515 1930." "protest" subsection available decisions officers, ordering "the customs laws." 1514(a)(4) acknowledges present protest because exclude, asserts instead since involves matter given rise excluded admitted, 'as corollary 1581(a).' Brief Inc. (quoting Vivitar, 1560). source putative pertaining [, alia,] subsectio[n] (a)." 26 1581(i)(4) reading. 317-319. 1581(a) [a] protes[t]," protest." "protest," one, stretch imagination "law administration enforcement" protest. Id., 318. III 27 ordered. 29 KENNEDY 30 whom CHIEF JUSTICE O'CONNOR join, dissenting. 31 selects docketed basis importance present, questions tend get short shrift. central suit, so-called immediate substantial effects national economy, provoked amici briefs; while question, undesirable consequence preventing resolution briefed pages petitioners Understandably enough, myself included, eager conclude powerless suit's attention. 32 Even must carefully question asks us determine limits power, particularly when, sets concluded suit. Compare (1986); below, 903, 905-907 1986). Moreover, greater economic (though soon enough another occasion address it), decided incorrectly, generate uncertainty hence litigation indefinite future. my view, strains plain statute, blurs clear line established. 33 agencies "that arises 1581(i)(3). statute define anything meaning. upon commerce either branches," Webster's Third New 738 (1981), nations," 1979), "[a]uthoritative stoppage special trade," Funk Wagnalls English Language 411 34 lawsuit regulation, 1930, 1526(a). That caption "(a) Importation excludes corporation. borrow Senate debate, "an country shipping here claims he them." Kellogg) Because embargo, I 35 means "governmentally imposed" ante, 185, seems me analysis departs truth. Surely enforced executive agency, surely imposed. One might argue privately invocable causes absolute qualify rightly avoids many provisions commonly regarded contain exceptions, exemptions uses. See, U.S.C.A. 1202, 265, Schedule 1, Part 4, Subpart E; 12.80(b)(v), (vi) if, despite meets being unquestionably one. Here, availability affects prohibition; residual whatever extent, governmental. 36 seeks apart observing "rather right." Ante, 185. Perhaps mechanism, relates happens be. accord usage (as readily rejects, ibid.) something Embargoes purposes, sometimes rights. Assuredly latter not, purpose, cause them prohibitions. art stolen nonprofit museum, 12.104-12.104h lever using prohibition's "governmental" character, make difference objective "right," some interest, non- itself. pre-Columbian sculptures murals, produces certificate issued stating were unlawfully exported. 2092; 12.107 normal understanding. 37 establish inherently "nonembargo" character noting follow fact instance prevent was conspiracy violation Sherman thought embargo—because normally Legislative Executive Branches Government. 38 purpose—just quotas, tariffs, identifiable forms their purposes. points out, 187, difficult distinguish condition containing exceptions. true, agreed come ambiguity grappled view things mine. irrelevant existence justifies needless creation another. Under identified (however be—and neither contested here) end proceed examine 39 Today's leaves doubt governmental, benefit parties avoidable consent. holding "rights," then least status infringe copyrights called question. 1124; 601-603. And noted earlier, "rights" (whatever mean) logically invalidating "interests," even, broadly, nongovernmental interests, cast well. 40 These uncertainties today's importation." Much greater, unfortunately, acknowledgment principle permissible. Having loose moorings language, leave invention. remains seen limitations apparent naked mind exist. full text 526(a), codified, 1526(a), follows: "Except provided (d) [an added 1978 personal use], merchandise, label, sign, print, package, wrapper, receptacle, sections 81 109 title 15, copy registration Treasury, manner relevant part: "§ importations names. "(b) Identical Foreign-made importations. forth paragraphs (see 133.2(d) [defining "common control"] 133.12(d) [providing application record report identity affiliate abroad] ); owner; "(4) objectionable mark removed obliterated illegible incapable reconstituted, example by: "(i) Grinding off imprinted wherever appear; "(ii) Removing disposing plates name; "(5) recordant his designate; "(6) gives section, furnished appropriate officials; "(7) exemption claimed allowed 148.55 chapter." sued Commissioner Customs. claim, invoked conferring Act. 1121. 1581 provides: addition conferred subsections (a)-(h) (j) agencies, for— revenue tonnage; raising revenue; safety; (1)-(3) section. "(j) 305 unusual (if unique) breed hands puts parties. SCALIA conceivably match description trademarks, copyrights,

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