CHAPTER 1： The Twilight Between Gray and Black 1
CHAPTER 2： What Is Gray？ 3
2.1 Government Regulation 4
2.2 Private Regulation 7
2.3 Trademarks 7
2.4 Patents 9
2.5 Copyrights 10
2.6 Trade Secrets 11
2.7 Restrictive Distribution and Manufacturing Agreements 13
CHAPTER 3： Government Trade Controls 15
3.1 Taxes 16
3.2 Tariffs 17
3.3 Trade Preferences 18
3.4 Quotas 19
3.5 Health and Safety 21
3.6 Public Policy Controls 22
3.7 Foreign Policy and National Security 22
3.8 Antidumping and Countervailing Duties 25
3.9 Safeguards 26
3.10 Labeling 26
3.11 Licensing and Agencies 28
CHAPTER 4： Incentives for the Gray Market 31
4.1 Public Attitudes Toward the Gray Market 32
4.2 You Market， We Sell 33
4.3 Better than Cash 33
4.4 Hedging and Currency Speculation 36
4.5 Philanthropists 36
4.6 Patriots and Terrorists 38
4.7 See No Evil 41
4.8 Conglomerates 48
CHAPTER 5： Acquiring the Merchandise 49
5.1 Open Trading 50
5.2 Classic Gray 52
5.3 Contract Manufacturing 55
5.4 Midnight Runs 55
5.5 Diversion 57
5.6 Faithless Distributors 59
5.7 Organized Retail Theft 60
5.8 Cargo Theft 62
5.9 Sampling Scams 63
5.10 Homemade 66
5.11 Reverse Distributors 69
5.12 Bust-outs 70
5.13 Recycling 73
CHAPTER 6： The Gray Market Bazaar 75
6.1 The Internet 76
6.2 Flea Markets 79
6.3 Street Sales 80
6.4 Liquidation and Surplus 81
6.5 Dollar Stores 82
6.6 Mom and Pop 83
6.7 Box Stores 84
6.8 Your Neighborhood Supermarket 85
6.8.1 Diversion Buyers 85
6.8.2 Repackers 87
6.8.3 Inventory Adjustments 89
CHAPTER 7： The Invisible Souk 91
7.1 A Problem with Numbers 92
7.2 Avoidance vs. Evasion 96
7.3 Willful Blindness 97
7.4 Priorities 101
7.5 Company Softies 103
CHAPTER 8： Strategy 109
8.1 Basic Skills 110
8.2 Strategy 110
CHAPTER 9： Tactics 123
9.1 Falsification of Documents 124
9.2 Establishing Credible Deniability 124
9.3 Acquiring a Legitimate Persona 126
9.4 The Setup； the Legend 127
9.5 Papering Files 128
9.6 Comingling 128
9.7 Disguising Consignees and Consignors 129
9.8 Disguising Provenance 130
9.9 Avoiding Speed Traps 131
9.10 Prevarication Without Blushing 131
9.11 Over-and Under-Invoicing 131
9.12 Multiple Invoicing of Goods and Services 132
9.13 Over-and Under-Shipment of Goods and Services 133
9.14 Hiding and Moving Inventory 134
9.15 Moving Money 135
9.16 Hiring Protection 137
9.17 Hiring Sacrificial Goats 138
9.18 Enforcing Conduct of Collaborators 139
9.19 Avoiding Interception of Communications 139
CHAPTER 10： The Special Case of Pharmaceuticals 141
10.1 Trojan Drugs 144
10.2 Diversion of Charitable Contributions 146
10.3 Internet Sales 147
10.4 The Canadian Connection 149
CHAPTER 11： Where Is the Gray Market？ 153
11.1 International Diversion Markets 154
11.1.1 North America 154
11.1.2 Central America 157
11.1.3 South America 158
11.1.4 Caribbean 158
11.1.5 Europe 159
11.1.6 Middle East/Africa 161
11.1.7 Asia 162
11.2 Counterfeiting 164
11.2.1 North America 164
11.2.2 Central America/Caribbean 165
11.2.3 South America 166
11.2.4 Europe 167
11.2.5 Middle East/Africa 168
11.2.6 Asia 170
CHAPTER 12： Investigating the Gray Market 173
12.1 Monitoring 174
12.2 Returns 181
12.3 Live Cases 182
CHAPTER 13： Practical Responses to the Gray Market 189
13.1 Marking 190
13.2 Pricing 191
13.3 Customers 193
13.4 Culture 195
13.5 Co-option 196
CHAPTER 14： Legal Responses to Gray Marketing 199
14.1 Preparing the Legal Ground 203
CHAPTER 15： Civil Actions against Counterfeiters 207
15.1 Interrelationship between Civil and Criminal Proceedings 209
15.1.1 The Fifth Amendment Privilege 210
15.1.2 Stay of Proceedings 212
15.2 Ex Parte Seizures 213
15.3 Damages against Counterfeiters 214
15.4 Seller’s Liability When Counterfeiting Is Disclosed to the Buyer 216
15.5 Section 337 221
CHAPTER 16： Civil Actions against Diverters 225
16.1 Section 337 232
16.2 Fraud 233
16.3 Tortious Interference with Contract 236
16.3.1 Knowledge of the Contract 240
16.3.2 Inducement 241
CHAPTER 17： Enforcement 243
17.1 Border Enforcement 244
17.2 Enforcing Court Orders 245
17.3 Self-help in Enforcement of Court Orders 248
17.4 Section 337 Enforcement 249
CHAPTER 18： Conclusion 253
APPENDIX A 255
APPENDIX B 259
GLOSSARY 271
BIBLIOGRAPHY 275
TABLE OF CASES 283
INDEX 289