EU ruling stops grey market imports
A ruling by the European Court of Justice has stopped retailers from sourcing goods from the ‘grey market’, without the consent of the trademark owner. The decision came after a three-year legal battle fought by UK retailer Tesco to sell imported Levi Strauss jeans.
Branded goods manufacturers welcomed the ruling, saying that it meant they could continue to invest in their products. The decision is all the more significant because it shifts the burden of proof onto the importer, meaning that brand owners will be more willing to ask customs to seize suspect goods.
Joe Middleton, president of Levi Strauss Europe, Middle East and Africa, said "We have always maintained that we have the right to decide the way in which we distribute our products to best serve our customers, and the court has confirmed that right"
Tesco is now selling thousands of bottles of champagne at a discount that it had ordered in advance to celebrate the decision.
