Could Dior sue the discount store for trade mark infringement?
The final question was whether Dior could oppose the resale to Copad on the basis of Article 7(2) of the Directive which allows a trade mark owner to oppose the resale of goods provided that there are legitimate reasons and in particular when the condition of goods is changed or impaired after they have been put on the market. The ECJ held that where a licensee has put luxury goods on the market in breach of a term of the licence prohibiting sales to discount stores, the trade mark owner can oppose the resale of the goods under Article 7(2) if the resale damages the reputation of the trade mark. In Parfums Christian Dior v Evora, the ECJ had already held that serious damage to the reputation of a trade mark may be a legitimate reason allowing the trade mark owner to oppose further commercialisation of the goods. The ECJ said that it would be for the national court to consider whether further commercialisation of the luxury goods by the third party damages the trade mark’s reputation, t
