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

Submit your nominations to this year's WIBL Americas Awards by January 23
The 2026 Life Sciences EMEA Awards is now open for entries. We are looking forward to reviewing and celebrating the industry's most impressive achievements and landmarks from the past year.
The tie-up between Perkins Coie and Ashurst may generate some striking numbers, but independent IP firms need not worry yet, according to practitioners
Perkins Coie’s US patent prosecution strength could provide Ashurst with an opportunity to enter an untapped market in Australia, but it may not be easy
Mitesh Patel at Reed Smith outlines why the US Copyright Office and courts have so far dismissed AI authorship and how inventors can protect AI-generated works
Xia Zheng, founder of AFD China, discusses balancing legal work with BD, new approaches to complex challenges, and the dangers of ‘over-optimism’
A dispute involving semiconductor technology and a partner's move from Hoffman Eitle to Hoyng Rokh Monegier were also among the top talking points
A former Freshfields counsel and an ex-IBM counsel, who have joined forces at law firm Caldwell, say clients are increasingly sophisticated in their IP demands
Daniel Raymond, who will serve as head of client relations, tells Managing IP that law firms must offer ‘brave’ opinions if they want to keep winning new business
The new outfit, Ashurst Perkins Coie, will bring together around 3,000 lawyers across 23 countries
Gift this article