In re Certain Energy Drinks (337-TA-1502) — ITC Launches Gray Market Trademark Investigation Against 13 Importers at Monster Energy’s Request

Background

Monster Energy Company, one of the largest energy drink producers in the world, filed a complaint with the ITC on April 17, 2026, alleging that 13 companies were importing and reselling Monster Energy drinks in the United States that were manufactured exclusively for foreign markets. These “gray market” products — legitimate Monster beverages produced under license for specific overseas markets — bear Monster’s registered trademarks but lack the labeling, nutritional information, and health warnings required by U.S. law.

The complaint names respondents spread across the United States and abroad, including distributors in New York, Illinois, Michigan, Texas, New Jersey, and Florida, as well as companies in Sri Lanka, New Zealand, and Panama. Monster alleges that these importers are profiting from the price differential between foreign-market and domestic Monster products while undermining the company’s quality control and regulatory compliance in the U.S. market.

The Commission’s Action

On June 1, 2026, the Commission voted to institute an investigation under Section 337 of the Tariff Act of 1930. The investigation will determine whether the importation of gray market energy drinks bearing Monster’s trademarks violates Section 337(a)(1)(C), which prohibits the importation of articles that infringe a valid and enforceable U.S. trademark.

Four U.S. trademark registrations are at issue: the ‘278 mark, the ‘182 mark, the ‘214 mark, and the ‘821 mark. Monster has requested either a general exclusion order — which would bar all gray market Monster products from entering the United States regardless of the source — or alternatively, a limited exclusion order targeting the named respondents, along with cease and desist orders.

Respondents have 20 days from service to respond. The Chief Administrative Law Judge will designate a presiding ALJ, and the Commission will set a target completion date within 45 days of institution.

Key Takeaways

• Gray market imports are a growing ITC target. This investigation uses Section 337’s trademark provisions — not patent claims — to attack the parallel import of genuine goods that lack U.S.-required labeling. Brand owners increasingly turn to the ITC because its exclusion orders are enforced at the border by U.S. Customs, providing a more effective remedy than district court injunctions against hard-to-reach foreign distributors.
• A general exclusion order would be exceptionally broad. If the ITC grants Monster’s preferred remedy, any gray market Monster product — not just those from the 13 named respondents — would be blocked at the U.S. border. General exclusion orders are rare and require a showing that a limited order would be insufficient to prevent circumvention.
• Respondents span four countries. The 13 named companies are based in the U.S. (New York, Illinois, Michigan, Texas, New Jersey, Florida), Sri Lanka, New Zealand, and Panama — illustrating the global supply chains that enable gray market distribution.
• Labeling compliance is the trademark hook. Monster’s theory rests on the fact that foreign-market products lack required U.S. labeling and health warnings. This positions the trademark claims as both brand-protection and consumer-safety arguments, which can strengthen the case for an exclusion order.

Why It Matters

This investigation highlights the tension between trademark holders’ desire to control geographic distribution channels and the economic incentives that drive gray market imports. Energy drinks sold abroad are often priced lower than their U.S. equivalents, creating arbitrage opportunities for importers. For brand owners in any consumer goods category — beverages, cosmetics, electronics, pharmaceuticals — this case could set important precedent on how aggressively the ITC will police gray market goods under Section 337’s trademark provisions.

The case also underscores the ITC’s growing role as a venue for trademark disputes, not just patent cases. A general exclusion order, if granted, would give Monster a customs-enforced border block — far more powerful than chasing individual distributors in federal court.