Stolichnaya vodka was produced and sold by the Union S for half a century. It was licensed and trademarked in the U.S. by VVO-SPI, an enterprise named S. VVO-SPI that came under the authority of SPI after the insolvency of the Union S. However, Russian court claimed that VVO-SPI was not privatized legally under its law, therefore, the authority and possession were held by the beneficiary of Union S, the Russian Federation. Further, the Federation assigned the mark to FTE, a federal enterprise. To this, FTE alleged against SPI for violation and manipulation of the trademark in U.S. federal district court. To find: The validity of assigning the trademark to FTE.

Question

A business entity incorporated under the laws of one of the European Union (EU) member nations contracts with the government of a developing nation to form a joint venture for the mining and refining of a scarce raw material used by several industrial nations in the manufacture of highly sensitive weapons systems. The contract calls for the EU-based corporation to invest money and technology that will be used to build permanent refinery plants that eventually will revert to the developing nation. The developing nation also reserves the right to set quotas on sales of this scarce resource and to choose the destination of exports. Due to political conflicts, the developing nation refuses to allow any exports of the scarce material to the United States. This causes a sharp price increase in exports to the United States by other suppliers. The United States asserts antitrust violations against the EU-based corporation for the effects produced within the United States. Should the United…

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Chapter 11, Problem 8BCP

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Case summary: Stolichnaya vodka was produced and sold by the Union S for half a century. It was licensed and trademarked in the U.S. by VVO-SPI, an enterprise named S. VVO-SPI that came under the authority of SPI after the insolvency of the Union S. However, Russian court claimed that VVO-SPI was not privatized legally under its law, therefore, the authority and possession were held by the beneficiary of Union S, the Russian Federation. Further, the Federation assigned the mark to FTE, a federal enterprise. To this, FTE alleged against SPI for violation and manipulation of the trademark in U.S. federal district court.

To find: The validity of assigning the trademark to FTE.

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