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 2025

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

Deborah Kirk discusses why IP and technology have become central pillars in transactions and explains why clients need practically minded lawyers
IP STARS, Managing IP’s accreditation title, reveals its latest rankings for patent work, including which firms are moving up
Leaders at US law firms explain what attorneys can learn from AI cases involving Meta and Anthropic, and why the outcomes could guide litigation strategies
Attorneys reveal the trademark and copyright trends they’ve noticed within the first half of 2025
Senior leaders at TE Connectivity and Clarivate explain how they see the future of innovation
A new action filed by Nokia against Asus and a landmark ruling on counterfeits by South Africa’s Supreme Court were also among the top talking points
Counsel explain how they’re navigating patent prosecution matters and highlight key takeaways from Federal Circuit cases
A partner who joined Fenwick alongside two others explains what drew her to the firm and her hopes for growth in Boston
The England and Wales High Court has granted Kirkland & Ellis client Samsung interim declaratory relief in its ongoing FRAND dispute with ZTE
A UDRP decision that found in favour of a small business in a domain name dispute could encourage more businesses to take a stand in ‘David v Goliath’ cases
Gift this article