| In the most rewarding new industries, there is often | | | | On March 25th, 2005, Altadis, USA was awarded $3.5 |
| a convergence of factors that make them lucrative | | | | million in counterfeiting and trademark infringement |
| and sustainable. Factors like the emergence of new | | | | against two Florida corporations. The corporations |
| technologies, a ripening of the consumer market, or a | | | | have now been disbanded. In addition to the |
| political climate that spawns laws and regulations that | | | | damages, the counterfeiters were ordered to recall |
| give a particular business model oomph can | | | | their entire product line including promotional and |
| revolutionize an industry. Over the last two decades, | | | | packaging material and deliver it to Altadis for |
| the counterfeit cigar industry in the United States | | | | destruction. The participants in the two corporations |
| saw all three of these factors converge to create | | | | are also permanently enjoined from employing |
| the perfect storm of the illicit trades market. | | | | graphics that are confusingly similar to trademarks |
| It began in the 1960's as the trade of authentic | | | | within the Altadis cigar line. |
| Cuban cigars was banned in the United States. This | | | | The cigar boom of the late 1990's brought with it |
| immediately created a situation in which there was a | | | | two major problems - the first was the proliferation |
| consumer demand for a product that was all but | | | | of sub-par cigar lines and the second was the |
| inaccessible through conventional retail channels. More | | | | increased circulation of counterfeit cigars. Sub-par |
| recently, the explosion of computer and printing | | | | cigars have, for the most part, been filtered-out with |
| technology has allowed for the easy duplication of | | | | the rapid decline in consumption that occurred |
| cigar boxes, labels and seals of authenticity. Finally, | | | | between 1997 and 2001. Companies that did not |
| the growing popularity of cigars over the last fifteen | | | | have a strong foundation in quality were forced out |
| years has fueled a consumer market that is eager to | | | | of business. Now, it looks like, major corporations are |
| get its hands on any kind of Cuban cigar possible. | | | | finally stepping up to weed-out the proliferation of |
| In this environment, producing counterfeit cigars is all | | | | counterfeit cigars. |
| but the perfect business move. Add to this fact that | | | | In the 2005 United States cigar market, you would |
| the punishment in the U.S. for this type of | | | | be hard-pressed to find someone who would |
| counterfeiting is among the most minimal for illicit, | | | | disagree with the fact that there are more |
| black-market crimes, and the reward seems well | | | | higher-quality handmade cigars available at better |
| worth the risk. | | | | prices than ever before. To ultimately do serious |
| Altadis, USA has consistently been a prime target for | | | | damage to the counterfeit cigar industry, it will take |
| counterfeiters with the reputation of its ubiquitous | | | | the efforts of Altadis redoubled and spread all over |
| cigar lines. Montecristo, Romeo y Julieta, and H. | | | | the globe. But now that the counterfeiters are being |
| Upmann are all among the most notoriously spoofed | | | | taken to task, maybe we can all have the confidence |
| cigar lines in the United States, and Altadis is | | | | that we get what we pay for. |
| beginning a major crackdown. | | | | |