Johnson, a passionate bicyclist, wanted to go into the business of manufacturing high-quality bicycles. He found that both labor and component parts were quite inexpensive in Taiwan. Even adding the shipping charges to the United States, it was economically advantageous to assemble the bicycles in Taiwan. He chose the name “Winner’s Choice” and a logo that he registered with the Taiwan government. Business boomed, but his success was his downfall when his bicycles caught the attention of an American corporation that manufactured motorcycles and had previously registered the same trademark in the United States. The American fi rm brought suit against Johnson contending that he violated the Lanham Act, which regulates trademarks. Johnson maintained that he was a foreign company and therefore not subject to U.S. trademark laws.

Is Johnson correct in his defense?