Red Bull files a Trademark Lawsuit against a Wholesaler for Unauthorised Sale of “Grey Market Red Bull Energy Drinks”

August 27,2018:

Red Bull, the energy drink maker, accused a wholesaler of distributing energy drinks in the US that were intended to be sold in South Africa, which is a violation of the US Food and Drug Administration’s (FDA) requirements and the plaintiff’s trademark rights.

Certain kind of Red Bull drinks are authorised to be sold only in certain regions, referred to as ‘Grey Market Red Bull Energy Drinks’. These are ‘materially different’ to products authorised for sale in the US. For instance, it doesn’t contain a unique code to allow tracking in the event of a recall and presents nutritional information in a manner that doesn’t comply with FDA requirements.

Red Bull filed its trademark complaint at the US District Court on Wednesday, August 15, saying that the defendant’s acts have infringed the plaintiff’s exclusive rights in its mark. It asked the Court to restrain the defendant from selling any more Grey Market Red Bull Drinks and a compensation of triple the amount in addition to attorney’s fees.

Quality Wholesale Distributors, the defendant, promotes and distributes these drinks in the US, intended for sale in South Africa which is likely to injure Red Bull’s image and reputation by creating confusion. It also accused Quality Wholesale Distributors of trademark dilution and unfair competition.

The energy drink maker has requested that the Court awards triple damages in addition to attorney’s fees along with the profits Quality Wholesale Distributors have gained from selling the drinks. It has also requested to prevent the defendant from selling any more grey market energy drinks.

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