Parallel importation, the selling of trademarked products through unauthori
zed distribution channels, can erode trademark image, strain channel relati
onships and disrupt global planning efforts. With the recent changes in fed
eral court precedent and the landmark 1998 L'Anza Supreme Court decision, t
he legal rights associated with trademarked products in gray markets have f
orever changed. Therefore, the authors review the current status of regulat
ory and judicial decisions affecting gray marketing activities to provide a
practical framework for marketing managers. Legal and nonlegal suggestions
, for the protection of trademarks in gray market competition, are offered.