Brand owners have no obligation to help grey market traders vet their supply chain.

The Court of Appeal in Frankfurt/Main (case ref. 11 W 15/26) has confirmed this principle in a recent decision in favour of our client Coty Beauty Germany GmbH. It held that a grey market trader has no right to obtain information from a brand owner on whether specific goods are subject to trademark exhaustion within the EEA. Such right neither follows from unfair competition law, nor from antitrust law or general principles of good faith (Sec. 242 BGB).The court made clear that managing the risk of purchasing non-exhausted goods is the grey market trader’s own business risk. They cannot shift such risk onto the brand owner. Where a voluntary code-check service is offered, the brand owner is free to set the conditions under which it is provided.

This is a very important win not only for our client, but for all brand owners protecting their selective distribution system. Congratulations to our Berlin partner Martin Fiebig who handled the case.