The Indian rosewood wasn't illegal. The seizure was likely to check its provenance in the wake of the illegal Madagascar importation.
"Likely" doesn't equal a fact. One could state that the government "likely" seized the rosewood as well in order to force Gibson into a settlement.
The fact that the government settled for roughly $350K - which is peanuts to them, a serious drug raid brings more - would make some people believe that is
highly likely that there were other sides to the story.
I don't have a dog in this particular fight. While I'm fond of the Gibson brand in the historical sense, the same can't be said for Henry J. Not in the least.
However, I also maintain a certain level of distrust towards government in general, and I mean *any* government of *any* country.
A couple of bottom lines here, so we can get back to the purpose of this thread:
a) A government - and that's pretty much *any* government - can sue the business or an individual out of existence and/or into bankruptcy.
b) Any wood belonging to the Dalbergia species - at least to my understanding of CITES which may be incorrect and/or incomplete - is subject to permits when crossing international borders.
c) There's no doubt in my mind that the big companies (Fender, Rickenbacker, Ibanez, Gibson, Martin...) will find the way of obtaining whatever paperwork is required in order to comply with the regulations. It's the folks trying to sell used instruments on eBay/Reverb/etc. who'll get hit the hardest with the entire CITES nonsense whether they are individuals or small businesses.
My $0.02 only...