procedures, the state agency issued Reichert a "registration number", which he was required to affix to the product. Reichert accomplished this by having adhesive labels with the registration number printed on them attached to the boxes containing the CPK dolls. (See P-13). Reichert, as required by federal law, 19 U.S.C.A. § 1304 (West 1980 and Supp. 1986), also affixed adhesive labels to the dolls' packaging denoting the product's country of origin. (See P-14).
Reichert, through his contact in Hanover, West Germany, then began to purchase "European" CPK dolls. The defendant testified that he initially attempted to deal with a German distributor of CPK dolls, which had been made by Coleco exclusively for a German company known as Arxon. (See P-5). Arxon was, in fact, owned by Coleco. When the German distributor refused to deal with him, Reichert's contact in Germany simply began to buy up all the CPK dolls he could find in German "supermarkets". When the German supply was exhausted, the defendant's contact put him in touch with a man named Willy Hangartner, who arranged for shipments of the dolls to Reichert from a Spanish company named Jesmar. The plaintiff had authorized Jesmar to manufacture and sell the dolls in certain areas outside the United States, but it was in no way authorized to export the dolls to this country. Though there are certain differences between the "American" CPK dolls and the "European" CPK dolls, it is undisputed that the dolls Reichert imported were "genuine", "authorized" copies, and not "forfeitures" or "imitations".
Reichert testified that he sold approximately 16,000 to 18,000 of the dolls he imported to Hess's Department Store in Allentown, Pennsylvania. He sold the remainder himself or to other retailers like Hess's. The now infamous "adoption papers" which accompanied the European dolls were, as might be expected, not printed in English. (See P-8, German adoption paper which accompanied P-5). Reichert, therefore, had the foreign language documents "translated" into English. (See P-6, English version of Spanish adoption request, and P-7, English version of German adoption request). The English versions of the German and Spanish adoption requests are identical, with the exception of the addresses to which the requests were to be sent. The defendant either provided "proofs" of the translated adoption requests to retailers such as Hess's or supplied the documents himself for those dolls he sold to private individuals.
Reichert also testified that he sold a number of CPK dolls to a Minnesota company, which then developed a number of additional documents promoting the dolls. (See P-9 and 10). P-10, described by the defendant as an "information sheet", states that, "The kids from Europe are a little taller than their American cousins . . ." The sheet also states that, "There are not enough homes in Europe and they wanted to come to America". (P-10). Reichert testified that he supplied this information sheet to the retailers he sold dolls to. Interestingly, the information sheet openly states that, "These are original Cabbage Patch Kids TM by Xavier Roberts, Appalachian Artworks, copyright ". (P-10) (Emphasis added).
Finally, the defendant openly admitted that he had in a mass mailing campaign advertised the imported CPK dolls as "Genuine Original 16" Cabbage Patch Dolls." (See P-15). Reichert stated that he obtained a mailing list from a partner in an unrelated venture, and in December, 1984, mailed "flyers" to potential customers. He stated that there was much skepticism as to the authenticity of the dolls, and that as a result, he sold only $ 250.00 worth of dolls from the mass mailing campaign. No where did the flyer indicate that the dolls were imported and as just stated, the flyer openly misrepresented that the dolls were manufactured by Coleco.
II. THE COPYRIGHT ACT VIOLATIONS.
The plaintiff alleged that the defendant had committed four separate violations of the Copyright Act by importing and selling the European CPK dolls. The acts the plaintiff claims constituted infringement of its copyrights are:
(1) importation and sale of the dolls;
(2) importation and sale of the packing for the dolls;