Posted on 09/23/2002 9:28:40 AM PDT by SheLion
NEW YORK -- Philip Morris Cos. filed unfair-competition lawsuits against certain Internet cigarette sellers, alleging the defendants are violating the company's trademarks.
The eight suits, filed in U.S. District Courts in California and New York, allege the defendants are violating federal and state laws by misusing Philip Morris' trademarks to attract Internet users to their Web sites, the tobacco company said Monday. The company alleges its trademarks, including Marlboro, have been illegally used in Internet addresses, company names and promotional materials.
The suits also allege that many Internet vendors sell cigarettes without complying with laws regarding excise-tax payments, while claiming that their products are tax exempt.
Philip Morris also said many Internet cigarette vendors don't have appropriate mechanisms to verify the age of purchasers and could hinder efforts to prevent youth smoking.
The suits name as defendants the owners or operators of the following Web sites: Cheapmarlboro.com, Discountcigs.homestead.com, Discountcigarettes.cjb.net, Discount-marlboro-cigarettes.com, Dutyfree- cigarettes.com, Dfshop.org, Europecigarettes.com, Freefags.com, Smokefarm.com, Smokeplanet.com, Smoke.shop4all.net, Yesmoke.com and 18orless.com.
Philip Morris said it expects to file additional lawsuits against other parties engaged in what the company alleges is the illegal sale and promotion of its brands on the Internet.
-Susan Willetts; Newswires; 201-938-5400; and Diana Rosenberg; Dow Jones Newswires; 609-520-7817
Puff
Philip Morris sues web smoke sites
Charges trademark violations and tax evasion
NEW YORK (CBS.MW) -- In a rare move to the plaintiff's table, food and tobacco giant Philip Morris USA has filed suit against a handful of online cigarette marketers, alleging trademark infringement and violations of federal law.
Early Monday, Philip Morris (MO : news , chart , profile ) said it had filed eight actions in federal district courts in New York and California. The actions charge that the defendants have "violated trademark and unfair competition laws by misusing Philip Morris USA's trademarks in an effort to attract Internet users to their websites."
Shares of Philip Morris were up 1 percent at $43.13 in Monday morning trading.
The sites targeted include cheapmarlboro.com, smokefarm.com, 18orless.com and freefags.com. Philip Morris claims its trademarks were "wrongfully used in Internet addresses, company names and promotional materials in violation of federal and state laws." The company said the sites had also broken various statutes about cigarette taxation and importation.
Philip Morris also said the vendors do not have "appropriate mechanisms" to verify the age of purchasers and could therefore harm efforts by public health groups, the government, and even the company itself, to prevent underage smoking.
"Philip Morris USA is committed to pursuing all available options to ensure that its products are sold in strict compliance with the law," said Jack Holleran, vice president of brand integrity. "We are also committed to taking appropriate action to protect our trademarks to ensure that adult smokers continue to receive the consistent high quality products they have come to expect from our brands."
Web sites selling cigarette are among the battered medium's few financial success stories. Operating from low-tax states, Indian reservations, or from overseas, web sellers can significantly undercut brick-and-mortar retailers by avoiding state taxes. Most of the sites named in the lawsuit are based in Europe.
Some sites have voluntarily complied with the company's request not to sell its products; others have ignored pleas. One site named in the suit -- 18orless.com -- is based in Switzerland sells a carton of Marlboro for $20, plus a couple bucks for shipping. That is less than half the price in most U.S. states.
These businesses operate in something of a legal gray area, but have begun to attract the notice of regulators and politicians. The sites have been around for years, but business has exploded recently with the imposition of a tax of $1.50 per pack in New York City. See full story.
Separately, on Friday Philip Morris and competitors, including R.J. Reynolds(RJR : news , chart , profile ) and the Carolina Group (CG : news , chart , profile ), got some bad news when a federal judge certified a new nationwide class action lawsuit against the industry. William Spain is a reporter for CBS.MarketWatch.com in Chicago.
Can you believe this? COULD THEREFORE HARM EFFORTS BY PUBLIC HEALTH GROUPS!
I hate Phillip Morris. Who the 'ell are they working for? And the smokers are paying for this personal abuse. This is mind boggling.
Something doesn't pass the "smell test" with this. PM is always helping "them" come after us! There is something in the wood pile and I don't think it's a chipmunk......
I'd like to find out, as well, Joe. If 55 million smokers boycotted PM, it should put a little hurt on them, don't you think?
That statement they made about "hurting the health groups," really pissed me off.
Exactly. They fell to their knees in front of the Attorney Generals, and now they are back-tracking. They brought this all on themselves.
Let's not ever forget............
Anything Kraft, Nabisco, Tombstone pizza - the list is endless. But I think all the brands are listed on the PM website.
WHAT business is it of theirs about state taxes? And what's up with them taking the side of the health fanatics? Something doesn't ring true with this. Who REALLY owns Phillip Morris? The ANTI'S?
Me too, especially when you think of some of the food proucts they put out. You would think they would know better since they are being targeted next from the fat police.
I have a hard time with boycotting their food products, only because I believe in supporting local employers and Kraft is a major employer in my town.
I've also got a personal interest in it because if it wasn't for Walter Baker chocolate, my husband's father would never have been transfered here in the 60's and I would probably never have met my husband.
Baker's Chocolate, Jello, and Maxwell House coffee are also PM products.
And helping the Health Fanatics!! This really gets me going.
Bay State cigarette prices may become highest in US
This is in Mass when they raised the taxes so high. One rep from PM had the gall to say:
''It's a huge price increase for consumers,'' said Thomas Ryan, a spokesman for Philip Morris, the manufacturer of Marlboros.
See what I mean? PM talks out of both sides of their mouth.
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Puff |
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The Magic Dragon...... |
Really cool link: PUFF, the magic dragon lived by the sea...
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