Application of Exhaustion of Trademark Rights in"Repackaging"Trademark Infringement Disputes
The essence of trademark exhaustion is to avoid obstacles to the circulation of goods placed on the market with the consent of the trademark owner,which determines that the condition for its application is that the first sale of the goods has been made with the consent of the trademark owner,which necessarily requires that the goods that are recirculated have not undergone any"human-initiated intervention"that would lead to misrecognition by the consumers,as compared to the goods that were sold for the first time.This necessarily requires that the re-circulation of the goods has not changed the quality of the goods in comparison with the goods sold for the first time in a way that would lead to misrecognition.For this reason,repackaging that does not change the quality of the goods should be recognized as constituting exhaustion of trademark rights,and repackaging that does not affect the quality of the goods should also be recognized as constituting exhaustion of trademark rights,provided that full disclosure of the re-packaging information is made.
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