K Mart Corporation v. Cartier, Inc.

Section 526 of the Tariff Act of 1930 barred importing foreign-manufactured goods bearing a trademark owned by a U.S. citizen or entity to prevent gray-market goods, and Customs issued regulations creating exceptions permitting import where (1) the same person owned both the U.S. and foreign trademarks, (2) common ownership or control existed between the two trademark owners, or (3) the U.S. trademark owner simply authorized the foreign-made goods to bear the mark. Cartier (plaintiff), an association of trademark holders, sued for a declaratory judgment invalidating the Customs rule as inconsistent with section 526; K Mart (defendant) intervened to defend the rule, the district court upheld it, the court of appeals reversed, and the Supreme Court granted certiorari.