The goods are authentic but diverted from intended markets. Trademark liability turns on whether material differences exist between the gray market goods and authorized versions sold domestically.
The first sale doctrine otherwise permits resale.
Alternative Names:
Parallel Imports|Gray Goods
Why it Matters?
Material differences are what create liability, since genuinely identical goods are protected by the first sale doctrine and resale is lawful, and establishing differences in warranty coverage, formulation, labeling, or quality control is the trademark owner's path. The threshold is low, requiring only differences consumers would consider relevant. Documenting the specific differences before enforcement is accordingly the preparatory work.
Frequently Confused with
Related terms
Frequently asked questions
What creates liability?
How low is the threshold?
