Taiwan: Analysing a trade mark dispute involving a second-hand vendor

Managing IP is part of Legal Benchmarking Limited, 1-2 Paris Gardens, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2026

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Taiwan: Analysing a trade mark dispute involving a second-hand vendor

Louis Vuitton Malletier, the owner of the LV registered trade mark, recently filed a civil lawsuit with the IP Court against a second-hand luxury goods vendor, accusing the vendor of selling LV branded counterfeits online. In November 2017, the IP Court issued a judgment. The defendant was found guilty of trade mark infringement while Louis Vuitton was awarded compensatory damages.

During the court proceedings, Louis Vuitton and the defendant each engaged an expert to authenticate the LV branded goods at issue. While the expert engaged by Louis Vuitton (also one of its employees) determined the goods at issue to be counterfeits, the expert hired by the defendant thought otherwise. Since Louis Vuitton refused to disclose any details of its examination procedures, claiming that trade secrets were involved, neither the IP Court nor the defendant were in a position to challenge the credibility of the examination results that Louis Vuitton submitted to the IP Court. The IP Court, under such circumstances, still issued a judgment, deeming that the defendant had committed infringement. The defendant, as a second-hand luxury goods vendor, was found by the IP Court not to have exercised due diligence in authenticating whether the goods sold online were genuine. It also did not retain a record of the purchase of the goods at issue to prove non-infringement.

Nonetheless, the IP Court significantly reduced the amount of monetary compensation payable to Louis Vuitton to around $21,820, in comparison with around $348,000 as claimed by Louis Vuitton, for the following reasons:

"According to the principle of trade mark right exhaustion, it is legitimate to sell second-hand products in the market. The owner of a registered trade mark has no right to prohibit others from selling second-hand products branded with their registered trade mark(s). In this case, a question that should be first answered is whether or not the goods at issue are fake. However, that the plaintiff (trade mark owner) refused to disclose details of its examination procedures makes the examination results they submitted somewhat questionable. On this score, if the examination results submitted by the plaintiff were taken as an impeccable key reference, it would be tantamount to giving the trade mark owner powerful influence over the second-hand market, which is against the principle of trade mark right exhaustion."

This case sheds light on the necessity of a second-hand luxury goods vendor to avoid purchasing counterfeits and to retain a complete purchase record lest the trade mark owner should have the final say over the authenticity of suspected counterfeits.

Julia YM Hung


Saint Island International Patent & Law Offices7th Floor, No. 248, Section 3Nanking East RoadTaipei 105-45, Taiwan, ROCTel: +886 2 2775 1823Fax: +886 2 2731 6377siiplo@mail.saint-island.com.twwww.saint-island.com.tw

more from across site and SHARED ros bottom lb

More from across our site

Mid-market businesses looking to establish an online presence need ‘holistic’ brand protection services at an accessible cost, according to partners
Our latest update also includes the latest case filing statistics, and an update on how a transatlantic merger could be a UPC opportunity for the US half of the partnership
New partners, from biotech company Leyden Labs and Novartis, take the total number of partner hires to 12 since the firm took on external investment in late 2024
Labelled the ‘largest law firm merger in history’, the new outfit could also spell an opportunity for US clients to capitalise on Hogan Lovells' UPC expertise
Andy Lee and Amy Brooks of Brandsmiths explain how the firm secured a win for Peppa Pig over rival children’s character Wolfoo, in a case that centred on copied audio clips
Pedro Moreira outlines proposals by INPI that look set to open a discussion regarding biological materials, extracts, sequences, genetically edited plants, and computer programs
The combined firm, which has a newly appointed IP partner in London, brings together more than 3,500 practitioners across 52 offices, with flagship hubs in Seattle, London, Sydney and New York
A host of SEP-rich law firms, both leading arguments and as intervenors, are set to feature in the UK Supreme Court’s third FRAND episode, though one ground of appeal has been settled
Law firms are investing in generative engine optimisation and boosting their online presence in the hope of gaining a new client base
A decision on a licensing rate payable by Warner Bros and Paramount, and a survey outlining UK businesses’ lack of IP preparation ahead of launching abroad, were among other major talking points
Gift this article