(CN) - An Italian winery claims in Federal Court that a German wine distributor is relabeling and selling its wine on California's "gray market." Santa Margherita S.p.A. sued Unger Weine KG on copyright and trademark claims. Santa Margherita says that Terlato Wines is the authorized distributor of its pinot grigios - Valdadige DOC and Alto Adige DOC - in the U.S. market. It claims that Unger Weine undercuts its sales by exporting and selling the wine to Thomas Imports of Pasadena. Neither Terlato, of Lake Bluff, Ill., nor Thomas Imports are parties to the complaint.