Trademarks and Luxury Goods: Where’s the Line Between Lawful Use and Infringement?
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In recent years, legal disputes involving the use of luxury brand trademarks without the owner’s consent have become increasingly common. Often, these cases don’t involve counterfeit goods — the products are original. The issues arise from parallel imports, unauthorized resale of genuine items, or simply using a brand’s name on a website.
The problem is that what a seller sees as “legal resale of an authentic product” may easily be seen by the trademark owner as unauthorized use, unfair competition, or even damage to brand reputation.
Why protect the brand if the goods are genuine?
Because in the luxury segment, a trademark isn’t just about distinguishing products. It’s a tool to control pricing, distribution, and brand positioning. This aligns with the EU legal framework: under Article 9 of Regulation (EU) 2017/1001, a trademark owner has the exclusive right to prevent third parties from using the sign during trade, including offering goods for sale, importing them, or using the sign in advertising — even if the goods are genuine.
When someone imports authentic bags, watches, or cosmetics made for, say, the UAE market and sells them in the EU without permission, the brand owner:
loses control over price and exclusivity
risks conflicts with official distributors
may face brand dilution and confusion in the market
and most importantly — loses control of the brand narrative
It’s important to note that the principle of exhaustion of trademark rights under Article 15 of Regulation (EU) 2017/1001 only applies if the goods were placed on the market in the European Economic Area (EEA) by the trademark holder or with their consent. Parallel imports from outside the EEA do not benefit from this rule and may still infringe trademark rights.
Where does legal resale end and legal risk begin?
Here’s a simple checklist. You're in a risk zone if:
you use the brand’s logo or name on your website or in ads
you import genuine products without authorization
you remove or alter original packaging (e.g., selling testers)
your store or online presence gives the impression of being “official”
Even if everything is authentic, you could receive a legal notice or face a court order. Moreover, under EU Regulation 608/2013, trademark owners can request that customs authorities detain goods suspected of infringing intellectual property rights — even if those goods are genuine but not authorized for import.
What should businesses do?
If you own the brand:
Set up and clearly define selective distribution networks
Include restrictions in contracts with partners and retailers
Monitor online platforms and marketplaces
Notify customs authorities to block unauthorized imports
If you’re a reseller, importer or marketplace operator:
Verify the source and chain of supply
Don’t use logos or branded terms without written permission
Seek licenses or written agreements when dealing with luxury brands
Understand that even selling genuine goods might bring liability
From practice: no illusions
In practice, these cases are rarely clear-cut. Brands are assertive — and understandably so. In luxury markets, reputation is often worth more than a shipment of goods. Sellers who don’t understand the subtleties of trademark law often end up in litigation simply because they assumed “genuine means safe.”
If you work with luxury products, cross-border sales, or online resales, take time to understand the legal framework before it turns into a legal dispute.
Do you have questions about your business trademark?
Our IPR expert is happy to consult you and assist you. Please do not hesitate to contact us for more information.