According to Section 526(e) of the Tariff Act of 1930, if a goods are imported with a counterfeit mark, and they have no consent of the trademark owner, they are subject to seizure and penalty for custom laws violation.

Certainly, the law gives the U.S. Customs and Border Protection (CBP) authority to seize any goods that have a counterfeit mark as long as they have no consent of the owner of the mark. This means a whether the owner of the trademark sells the same type of goods or not, as long as they have a counterfeit mark without his or her consent, they are subject for civil penalty. Therefore, the argument of the government was valid, and this makes the government likely to win the case.