The EU Court of Justice rules that a trademark owner can oppose the resale of his luxury goods by discount stores (Copad / Christian Dior couture)

On 23 April 2009, in its judgment in Case C-59/08 Copad SA v Christian Dior couture SA, the European Court of Justice (“ECJ”) shed further light on the often contentious topic of exhaustion of trade mark rights in respect of luxury goods. Christian Dior Couture SA (“Dior”) had concluded a licence agreement with Société Industrielle Lingerie (“SIL”) in respect of the manufacture and distribution of certain luxury goods bearing the Christian Dior trade mark. In order to maintain the repute and prestige of the Dior trade mark, the licence agreement prohibited SIL from selling to traders such as wholesalers, discount stores and mail order companies outside the selective distribution network without the prior written consent of Dior. Faced with financial difficulties, SIL subsequently sold goods

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  • Van Bael & Bellis (Brussels)

Quotation

Peter L'Ecluse, The EU Court of Justice rules that a trademark owner can oppose the resale of his luxury goods by discount stores (Copad / Christian Dior couture), 23 April 2009, e-Competitions Bulletin April 2009, Art. N° 43700

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