Rolling paper firm wins $2.3m in damages in fakes case

A US manufacturer of rolling papers used for cigarettes – Republic Brands – has won a multi-million dollar judgment in a federal lawsuit against defendants it accused of counterfeiting its smoking accessory products.

The suit (Case No. 1:19-cv-4939-MLB ) shone a spotlight on Amin "Monty" Hudda and his distribution company Star Importers & Wholesalers, along with Samadali Lakhani and his distribution company ZCell & Novelties.

On March 14, an Atlanta federal jury awarded Republic Brands and its affiliates $2.3m in damages against the Georgia-based wholesalers and also found their owners to be personally liable for the infringement and counterfeiting of the company’s TOP and JOB trademarks.

“In the last two years, Republic Brands has obtained judgments against four wholesale companies operating in Georgia and their respective owners for personal liability for engaging in illegal infringing activities and selling counterfeit goods,” said the brand owner in a statement.

Republic Brands has also been successful in the last several years in achieving criminal and civil judgments against counterfeiters in Texas, Tennessee, Illinois, Virginia, Nevada, and elsewhere.

"As the world's leading rolling paper company, we take our responsibility to consumers seriously,” said chief executive Don Levin in a statement. “On behalf of the industry, we are committed to investigating and stopping the sale of counterfeit rolling papers to protect not only our customers but the consumers that have come to depend on the authenticity and quality of our products."

There are concerns about unknown ingredients found in counterfeit papers, poor manufacturing conditions in which the knock-off papers are made, as well as environmental pollution and labour exploitation in production units used by fake manufacturers.

In independent testing, Republic has found unknown or unexpected ingredients in counterfeit papers, including heavy metals and the synthetic compound, polyvinyl acetate (PVA) – an industrial chemical adhesive) – instead of the natural acacia gum used by Republic Brands.

“Unfortunately, counterfeit rolling papers, which mostly originate in China, aren't all that uncommon,” said Levin. “However, this verdict is a warning that not only will counterfeiters' companies be held accountable, but their owners will also.”