Original Appalachian Artworks, Inc. v. Granada Elec., Inc., 816 F.2d 68 (2d Cir. 1987). · Go Syfert
Original Appalachian Artworks, Inc. v. Granada Elec., Inc., 816 F.2d 68 (2d Cir. 1987). Cases Citing This Book View Copy Cite
“artworks”
181 citation events (90 in the last 25 years) across 26 distinct courts.
Strongest positive: In re Keurig Green Mountain Single-Serve Coffee Antitrust Litig. (ilsd, 2019-04-03) · Strongest negative: Harley-Davidson, Inc. v. Selectra International Designs, Ltd. (wied, 1994-06-15)
Treatment trajectory · 1987 → 2026 · click a year to view as-of
1987 2006 2026
Top citers, strongest first. 50 distinct citers. How cited ↗
discussed Cited "but see" Harley-Davidson, Inc. v. Selectra International Designs, Ltd.
E.D. Wis. · 1994 · signal: but see · confidence high
But see Original Appalachian Artworks, Inc. v. Granada Electronics, Inc., 816 F.2d 68, 72-73 (2d Cir.1987) (holding that resale of goods purchased from licensed distributor may constitute trademark infringement if resale violates territorial restriction in licensing agreement).
discussed Cited as authority (quoted) In re Keurig Green Mountain Single-Serve Coffee Antitrust Litig.
S.D. Ill. · 2019 · quote attribution · 1 verbatim quote · confidence low
artworks
discussed Cited as authority (rule) Janssen Sciences Ireland Unlimited Company v. Safe Chain Solutions, LLC (2×) also: Cited "see, e.g."
E.D.N.Y · 2025 · confidence medium
Rather, the relevant question is whether the trademarked goods sold were “genuine.” See Original Appalachian Artworks, Inc. v. Granada Elecs., Inc., 816 F.2d 68, 73 (2d Cir. 1987).
cited Cited as authority (rule) Nike, Inc. v. B&H Customs Services, Inc.
S.D.N.Y. · 2021 · confidence medium
Original Appalachian Artworks, Inc. v. Granada Elecs., Inc., 816 F.2d 68, 71 (2d Cir. 1987).
discussed Cited as authority (rule) Dentsply International, Inc. V. Dental Brands for Less LLC (2×) also: Cited "see, e.g."
S.D.N.Y. · 2020 · confidence medium
Inc., 816 F.2d 68, 72-73 (2d Cir. 1987).
discussed Cited as authority (rule) Coty Inc. v. Cosmopolitan Cosmetics Inc.
S.D.N.Y. · 2020 · confidence medium
The Second Circuit has held that “goods are not genuine if they . . . differ must . . . [be] common knowledge [or] … derived from an unimpeachable source.”) (citations omitted). materially from the product authorized by the trademark holder for sale.” Zino Davidoff, 571 F.3d at 243 (citing Original Appalachian Artworks, Inc. v. Granada Elecs., Inc., 816 F.2d 68, 73 (2d Cir. 1987)).
cited Cited as authority (rule) Hokto Kinoko Company v. Concord Farms, Inc.
9th Cir. · 2013 · confidence medium
Original Appalachian Artworks, Inc. v. Granada Elecs., Inc., 816 F.2d 68, 73 (2d Cir.1987).
cited Cited as authority (rule) Technomarine SA v. Jacob Time, Inc.
S.D.N.Y. · 2012 · confidence medium
Inc., 816 F.2d 68, 72-73 (2d Cir.1987), are among the factors that can render grey goods non-genuine and therefore support the consumer confusion element of a trademark infringement claim.
discussed Cited as authority (rule) Tracfone Wireless, Inc. v. Pak China Group Co. (2×)
S.D. Fla. · 2012 · confidence medium
Corp., 86 F.3d 3 , 6 (2d Cir.1996)) (holding that a non-conforming product is not genuine and “its distribution constitutes trademark infringement”); Martin’s Herend Imports, Inc. v. Diamond & Gem Trading USA Co., 112 F.3d 1296, 1302 (5th Cir.1997); Societe Des Produits Nestle, SA. v. Casa Helvetia, Inc., 982 F.2d 633, 644 (1st Cir.1992); Original Appalachian Artworks, Inc. v. Granada Electronics, Inc., 816 F.2d 68, 73 (2d Cir. 1987).
examined Cited as authority (rule) Bel Canto Design, Ltd. v. MSS HiFi, Inc. (6×) also: Cited "see", Cited "see, e.g."
S.D.N.Y. · 2011 · confidence medium
In addition, the plaintiff must show that defendant’s use of that mark “is likely to cause confusion ... as to the affiliation, connection, or association of [defendant] with [plaintiff], or as to the origin, sponsorship, or approval of [the defendant’s] goods, services, or commercial activities by [plaintiff].” 1-800 Contacts, Inc. v. WhenU.Com, Inc., 414 F.3d 400, 406-07 (2d Cir.2005) (quoting 11 U.S.C. §§ 1114 , 1125) (other internal citations omitted); see also Warner-Lambert Co. v. Northside Development Corp., 86 F.3d 3 (2d Cir.1996); Original Appalachian Artworks, Inc. v. Grana…
discussed Cited as authority (rule) TracFone Wireless, Inc. v. SND Cellular, Inc. (2×)
S.D. Fla. · 2010 · confidence medium
Corp., 86 F.3d 3 , 6 (2d Cir.1996)) (holding that a non-conforming product is not genuine and “its distribution constitutes trademark infringement”); Martin’s Herend Imports, Inc. v. Diamond & Gem Trading USA, Co., 112 F.3d 1296, 1302 (5th Cir.1997); Societe Des Produits Nestle, S.A. v. Casa Helvetia, Inc., 982 F.2d 633, 644 (1st Cir.1992); Original Appalachian Artworks, Inc. v. Granada Electronics, Inc., 816 F.2d 68, 73 (2d Cir.1987).
discussed Cited as authority (rule) Tracfone Wireless, Inc. v. Anadisk LLC (2×)
S.D. Fla. · 2010 · confidence medium
Corp., 86 F.3d 3 , 6 (2d Cir.1996) (holding *1314 that a non-conforming product is not genuine and “its distribution constitutes trademai’k infringement”)); Martin’s Herend Imports, Inc. v. Diamond & Gem Trading USA, Co., 112 F.3d 1296, 1302 (5th Cir.1997); Societe Des Produits Nestle, S.A. v. Casa Helvetia, Inc., 982 F.2d 633, 644 (1st Cir.1992); Original Appalachian Artworks, Inc. v. Granada Electronics, Inc., 816 F.2d 68, 73 (2d Cir.1987).
discussed Cited as authority (rule) Zino Davidoff SA v. CVS Corp. (2×) also: Cited "see"
2d Cir. · 2009 · confidence medium
Corp. v. Mimran, 37 F.3d 74 , 78 (2d Cir. 1994), or if they differ 18 materially from the product authorized by the trademark holder for sale, Original Appalachian 19 Artworks, Inc. v. Granada Elecs., Inc., 816 F.2d 68, 73 (2d Cir. 1987). 20 Where the alleged infringer has interfered with the trademark holder’s ability to control 9 07-2872-cv Zino Davidoff SA v. CVS Corp. 1 quality, the trademark holder’s claim is not defeated because of failure to show that the goods 2 sold were defective.
discussed Cited as authority (rule) Zino Davidoff SA v. CVS Corp. (2×) also: Cited "see"
2d Cir. · 2009 · confidence medium
Corp. v. Mimran, 37 F.3d 74 , 78 (2d Cir. 1994), or if they differ 18 materially from the product authorized by the trademark holder for sale, Original Appalachian 19 Artworks, Inc. v. Granada Elecs., Inc., 816 F.2d 68, 73 (2d Cir. 1987). 20 Where the alleged infringer has interfered with the trademark holder’s ability to control 9 07-2872-cv Zino Davidoff SA v. CVS Corp. 1 quality, the trademark holder’s claim is not defeated because of failure to show that the goods 2 sold were defective.
discussed Cited as authority (rule) Zino Davidoff SA v. CVS Corp. (2×) also: Cited "see"
2d Cir. · 2009 · confidence medium
Corp. v. Mimran, 37 F.3d 74 , 78 (2d Cir.1994), or if they differ materially from the product authorized by the trademark holder for sale, Original Appalachian Artworks, Inc. v. Granada Elecs., Inc., 816 F.2d 68, 73 (2d Cir.1987).
discussed Cited as authority (rule) Beltronics USA, Inc. v. Midwest Inventory Distribution, LLC
10th Cir. · 2009 · confidence medium
See Brilliance Audio, Inc. v. Haights Cross Commc’ns, Inc., 474 F.3d 365, 370 (6th Cir.2007); Davidoff, 263 F.3d at 1302 ; Iberia Foods, 150 F.3d at 302-03 ; Martin’s Herend Imports, Inc. v. Diamond & Gem Trading USA, Co., 112 F.3d 1296, 1302 (5th Cir.1997); Societe Des Produits Nestle, S.A. v. Casa Helvetia, Inc., 982 F.2d 633, 638-39 (1st Cir.1992); Original Appalachian Artworks, Inc. v. Granada Elecs., Inc., 816 F.2d 68, 73 (2d Cir.1987). 4 We emphasize that not all differences are material.
cited Cited as authority (rule) Johnson & Johnson Consumer Companies, Inc. v. Aini
E.D.N.Y · 2008 · confidence medium
Original Appalachian Artworks, Inc. v. Granada Elecs., Inc., 816 F.2d 68, 73 (2d Cir.1987); see also Curtis, 890 F.Supp. at 158 .
cited Cited as authority (rule) Pepsico, Inc. v. Distribuidora La Matagalpa, Inc.
S.D. Fla. · 2007 · confidence medium
See *1115 15 U.S.C. § 1114 (1); Nestle, 982 F.2d at 636 ; Original Appalachian Artworks, Inc. v. Granada Electronics, Inc., 816 F.2d 68, 75 (2d Cir.1987).
examined Cited as authority (rule) DAN-FOAM A/S v. Brand Named Beds, LLC (6×) also: Cited "see", Cited "see, e.g."
S.D.N.Y. · 2007 · confidence medium
Original Appalachian, 816 F.2d at 73. 117 .
discussed Cited as authority (rule) Brilliance Audio, Inc. v. Haights Cross Communications, Inc. (2×)
6th Cir. · 2007 · confidence medium
See, e.g., Societe Des Produits Nestle, S.A. v. Casa Helvetia, Inc., 982 F.2d 633, 635 (1st Cir.1992); Original Appalachian Artworks v. Granada Elecs., Inc., 816 F.2d 68, 73 (2d Cir.1987); Iberia Foods Corp. v. Romeo, 150 F.3d 298, 302-03 (3d Cir.1998); Martin’s Herend Imports, Inc. v. Diamond & Gem Trading USA, Co., 112 F.3d 1296, 1301-02 (5th Cir.1997); see also Abercrombie & Fitch v. Fashion Shops of Ky., 363 F.Supp.2d 952, 963-65 (S.D.Ohio 2005) (adopting this rule).
discussed Cited as authority (rule) Brilliance Audio v. Haights Cross
6th Cir. · 2007 · confidence medium
See, e.g., Societe Des Produits Nestle, S.A. v. Casa Helvetia, Inc., 982 F.2d 633, 635 (1st Cir. 1992); Original Appalachian Artworks v. Granada Elecs., Inc., 816 F.2d 68, 73 (2d Cir. 1987); Iberia Foods Corp. v. Romeo, 150 F.3d 298, 302-03 (3d Cir. 1998); Martin’s Herend Imports, Inc. v. Diamond & Gem Trading USA, Co., 112 F.3d 1296, 1301-02 (5th Cir. 1997); see also Abercrombie & Fitch v. Fashion Shops of Ky., 363 F. Supp. 2d 952, 963-65 (S.D.
cited Cited as authority (rule) Abercrombie & Fitch v. Fashion Shops of Kentucky, Inc.
S.D. Ohio · 2005 · confidence medium
Id.,citing, Original Appalachian Artworks, Inc. v. Granada Elecs., Inc., 816 F.2d 68, 73 (2d Cir.), cert. denied, 484 U.S. 847 , 108 S.Ct. 143 , 98 L.Ed.2d 99 (1987); El Greco, 806 F.2d at 395-96 .
discussed Cited as authority (rule) Nitro Leisure Products, L.L.C. (Doing Business as golfballsdirect.com and as Second Chance) v. Acushnet Company (2×)
2d Cir. · 2003 · confidence medium
See, e.g., Nestle, 982 F.2d at 644 (1st Cir.) (finding material differences based on quality control, composition, configuration, packaging, and price); Original Appalachian Artworks, Inc. v. Granada Elecs., Inc., 816 F.2d 68, 78 (2d Cir.1987) (finding material differences where an imported doll comes with foreign language “adoption papers” and is not permitted to be “adopted” domestically); Iberia Foods Corp. v. Romeo, 150 F.3d 298, 302 (3d Cir.1998) (finding material differences where quality control measures differ); Martin’s Herend Imports Inc. v. Diamond & Gem Trading USA, Co., …
examined Cited as authority (rule) Ahava (USA), Inc. v. J.W.G., Ltd. (4×) also: Cited "see"
S.D.N.Y. · 2003 · confidence medium
Such a rule enforces the intention of trademark law, which “serves to guarantee the quality of the trade *370 marked product.” OAA, 816 F.2d at 75 (Cardamone, J., concurring).
examined Cited as authority (rule) Davidoff & Cie, S.A. v. PLD International Corp. (3×)
11th Cir. · 2001 · confidence medium
See Nestle, 982 F.2d at 636 ; Original Appalachian Artworks, Inc. v. Granada Electronics, Inc., 816 F.2d 68, 75 (2d Cir.1987) (Cardamone, J., concurring).
examined Cited as authority (rule) Montblanc-Simplo GMBH v. Staples, Inc. (3×) also: Cited "see"
D. Mass. · 2001 · confidence medium
Nestle, 982 F.2d at 639-40 ; see also Iberia Foods Corp., 150 F.3d at 302-03 (citations omitted) (“trademark owner attempting to use § 32 to prevent an infringement must establish that the products sold by the alleged in-fringer are not ‘genuine’ ” by showing that “material differences” exist between the products); Original Appalachian Artworks, 816 F.2d at 73 (existence of material difference that created confusion was most important in finding infringement by *237 gray market products); John P. Mitchell Systems, 862 F.Supp. at 1023 .
discussed Cited as authority (rule) Gamut Trading Co. v. United States International Trade Commission
Fed. Cir. · 1999 · confidence medium
Similarly in Original Appalachian Artworks v. Granada Electronics, 816 F.2d 68, 73 , 2 USPQ2d 1343, 1346 (2d Cir.1987) the court held that the United States owner of the “Cabbage Patch” mark can prevent importation of “Cabbage Patch” dolls that were made and sold abroad under license from the United States owner, on the ground that the foreign dolls were materially different from the dolls authorized for sale in the United States because their instructions and adoption papers were in the Spanish language.
discussed Cited as authority (rule) Gamut Trading Company v. United States International Trade Commission
Fed. Cir. · 1999 · confidence medium
Thus in Societe des Produits Nestle v. Casa Helvetia, Inc., 982 F.2d 633 , 25 USPQ2d 1256 (1st Cir. 1992) the court held that the foreign owner of the United States trademark "Perugina" and its Puerto Rican subsidiary that imported Italian-made "Perugina" chocolate could prevent the importation of "Perugina" chocolate made under license in Venezuela, because the product is materially different in taste; the court referred to the likelihood of consumer confusion and loss of goodwill and integrity of the mark. 16 Similarly in Original Appalachian Artworks v. Granada Electronics, 816 F.2d 68, 73 …
cited Cited as authority (rule) Aini v. Sun Taiyang Co., Ltd.
S.D.N.Y. · 1997 · confidence medium
E.g., Original Appalachian Artworks, Inc. v. Granada Elecs., Inc., 816 F.2d 68, 72-73 (2d Cir.), cert. denied, 484 U.S. 847 , 108 S.Ct. 143 , 98 L.Ed.2d 99 (1987).
examined Cited as authority (rule) Helene Curtis v. National Wholesale Liquidators, Inc. (3×) also: Cited "see"
E.D.N.Y · 1995 · confidence medium
This Section prohibits the unauthorized sale of goods bearing a registered trademark where there is a likelihood of confusion, mistake, or deception of purchasers. 5 Original Appala *157 chian Artworks, Inc. (“OAA”) v. Granada Elecs., Inc., 816 F.2d 68, 71 (2d Cir.), cert. denied, 484 U.S. 847 , 108 S.Ct. 143 , 98 L.Ed.2d 99 (1987).
discussed Cited as authority (rule) Polymer Technology Corporation v. Emile Mimran
2d Cir. · 1994 · confidence medium
This is so because "trademark law ... serves to guarantee the quality of the trademarked product," Original Appalachian Artworks, Inc., v. Granada Elecs., Inc., 816 F.2d 68, 75 (2d Cir.1987) (Cardamone, J., concurring), cert. denied, 484 U.S. 847 , 108 S.Ct. 143 , 98 L.Ed.2d 99 (1987), and the sale of inferior goods with a true mark will clearly undermine the value of the trademarked brand as a guarantor of quality. 13 Relying on the above case law, Polymer claims that Mimran has violated its trademark rights by selling its professional solutions to the retail market even though the solutions …
discussed Cited as authority (rule) Polymer Technology Corp. v. Mimran
2d Cir. · 1994 · confidence medium
This is so because “trademark law ... serves to guarantee the quality of the trademarked product,” Original Appalachian Artworks, Inc., v. Granada Elecs., Inc., 816 F.2d 68, 75 (2d Cir.1987) (Cardamone, J., concurring), cert. denied, 484 U.S. 847 , 108 S.Ct. 143 , 98 L.Ed.2d 99 (1987), and the sale of inferior goods with a true mark will clearly undermine the value of the trademarked brand as a guarantor of quality.
discussed Cited as authority (rule) John Paul Mitchell Systems v. Pete-N-Larry's Inc. (2×)
W.D.N.Y. · 1994 · confidence medium
Appalachian Artworks v. Granada Electronics, 816 F.2d 68, 73 (2d Cir.) (the existence of a material difference that creat *1024 ed the confusion was most important in finding infringement by gray market products), cert. denied, 484 U.S. 847 , 108 S.Ct. 143 , 98 L.Ed.2d 99 (1987).
discussed Cited as authority (rule) Anton/Bauer, Inc. v. Energex Systems Corp.
S.D.N.Y. · 1993 · confidence medium
Hayden Co. v. Siemens Medical Systems, 879 F.2d 1005 , 1022-24 (2d Cir.1989), aff'g 672 F.Supp. 724 (S.D.N.Y.1987); Original Appalachian Artworks ,v. Granada Elecs., 816 F.2d 68, 72 (2d Cir.), cert. denied 484 U.S. 847 , 108 S.Ct. 143 , 98 L.Ed.2d 99 (1987); El Greco Leather Prods. v. Shoe World, 806 F.2d 392, 396 (2d Cir.1986); In re Emergency Beacon Corp., 13 B.R. 773 (Bankr S.D.N.Y.1981); see also Champion Spark Plug Co. v. Sanders, 331 U.S. 125 , 67 S.Ct. 1136 , 91 L.Ed. 1386 (1947); Sebastian International v. Consumer Contacts (PTY), 847 F.2d 1093 (3d Cir.1988); and see 15 U.S.C. §§ 45 …
discussed Cited as authority (rule) Polymer Technology Corporation v. Emile Mimran
2d Cir. · 1992 · confidence medium
See, e.g., El Greco, 806 F.2d at 395 (when certificate of inspection is integral part of plaintiff's quality control effort, resale without certificate infringes trademark); Shell Oil Co. v. Commercial Petroleum, Inc., 928 F.2d 104, 107 (4th Cir.1991) (defendant infringed Shell trademark by marketing bulk oil according to its own and not Shell's quality control standards); Original Appalachian Artworks, Inc. v. Granada Electronics, Inc., 816 F.2d 68, 75 (2d Cir.) (Cardamone, J., concurring) (territorial restriction preventing United States sale of Cabbage Patch dolls with Spanish-language inst…
cited Cited as authority (rule) Tanning Research Laboratories, Inc. v. Worldwide Import & Export Corp.
E.D.N.Y · 1992 · signal: cf. · confidence medium
See Sasson Jeans, Inc. v. Sasson Jeans, L.A., Inc., 632 F.Supp. 1525 (S.D.N.Y.1986); cf. Original Appalachian Artworks, Inc. v. Granada Electronics, Inc., 816 F.2d 68, 72-73 (2d Cir.1987).
discussed Cited as authority (rule) Polymer Technology Corp. v. Mimran
2d Cir. · 1992 · confidence medium
See, e.g., El Greco, 806 F.2d at 395 (when certificate of inspection is integral part of plaintiff’s quality control effort, resale without certificate infringes trademark); Shell Oil Co. v. Commercial Petroleum, Inc., 928 F.2d 104, 107 (4th Cir.1991) (defendant infringed Shell trademark by marketing bulk oil according to its own and not Shell’s quality control standards); Original Appalachian Artworks, Inc. v. Granada Electronics, Inc., 816 F.2d 68, 75 (2d Cir.) (Cardamone, J., concurring) (territorial restriction preventing United States sale of Cabbage Patch dolls with Spanish-language …
discussed Cited as authority (rule) J. Atkins Holdings Ltd. v. English Discounts, Inc.
S.D.N.Y. · 1990 · confidence medium
The court held only that Sixth Avenue’s argument “has some force in cases where the imported goods are identical to the domestic goods and are intended for sale in the United States.” Id., 816 F.2d at 73 (emphasis added).
discussed Cited as authority (rule) H.L. Hayden Co. Of New York, Inc. v. Siemens Medical Systems, Inc. (2×) also: Cited "see"
2d Cir. · 1989 · confidence medium
Co. v. Shoe World, Inc., 806 F.2d 392, 395-96 (2d Cir.1986), cert. denied, --- U.S. ----, 108 S.Ct. 71 , 98 L.Ed.2d 34 (1987), and a concurring opinion in Original Appalachian Artworks, Inc. v. Granada Elecs., Inc., 816 F.2d 68, 76 (2d Cir.) (Cardamone, J., concurring), cert. denied, --- U.S. ----, 108 S.Ct. 143 , 98 L.Ed.2d 99 (1987), established that identical goods sold in an unauthorized manner are not "genuine" for purposes of the Lanham Act.
discussed Cited as authority (rule) H.L. Hayden Co. of New York v. Siemens Medical Systems, Inc. (2×) also: Cited "see"
2d Cir. · 1989 · confidence medium
Co. v. Shoe World, Inc., 806 F.2d 392, 395-96 (2d Cir.1986), cert. denied, — U.S. -, 108 S.Ct. 71 , 98 L.Ed.2d 34 (1987), and a concurring opinion in Original Appalachian Artworks, Inc. v. Granada Elecs., Inc., 816 F.2d 68, 76 (2d Cir.) (Cardamone, J., concurring), cert. denied, — U.S. -, 108 S.Ct. 143 , 98 L.Ed. 2d 99 (1987), established that identical goods sold in an unauthorized manner are not “genuine” for purposes of the Lanham Act.
discussed Cited as authority (rule) Lever Brothers Co. v. United States of America
D.C. Cir. · 1989 · confidence medium
The court found a violation of § 32(1)(a) of Lanham Act, 15 U.S.C. § 1114 (1)(a) (1982), which prohibits use of a trademark where it “is likely to cause confusion, or to cause mistake, or to deceive.” 816 F.2d at 70, 70-72 .
examined Cited as authority (rule) Disenos Artisticos E Industriales, S.A. v. Work (4×) also: Cited "see"
E.D.N.Y · 1987 · confidence medium
Original Appalachian Artworks, Inc. v. Granada Electronics, Inc., 816 F.2d 68, 71 (2d Cir.), cert. denied, — U.S. -, 108 S.Ct. 143 , 98 L.Ed.2d 99 (1987). 10 .
discussed Cited "see" Abbott Laboratories v. Adelphia Supply USA
E.D.N.Y · 2024 · signal: see · confidence high
See Original Appalachian Artworks, Inc. v. Granada Electronics, Inc., 816 F.2d 68 (2d Cir. 1987) (affirming judgment and permanent injunction against a Spanish Cabbage Patch doll supplier that had a license permitting distribution of the dolls in Spain, the Canary Islands, Andorra, and Ceuta Melilla, but not in the United States, finding the dolls’ Spanish language instructions and papers were materially different than the dolls distributed in the United States). 9 Abbott’s allegations regarding each defendant’s culpable acts are found, infra, in Section III.
discussed Cited "see" Osram Sylvania Inc. v. Ledvance LLC
S.D.N.Y. · 2021 · signal: see · confidence high
See Reply Br. at 3-4 (citing Original Appalachian Artworks, Inc. v. Granada Elecs., Inc., 816 F.2d 68 (2d Cir. 1987), Baskin-Robbins Ice Cream Co. v. D & L Ice Cream Co., 576 F. Supp. 1055 (E.D.N.Y. 1983), and Murjani Int'l, Ltd. v. Sun Apparel, Inc., No. 87 CIV. 4628 (PKL), 1987 WL 15110 (S.D.N.Y.
discussed Cited "see" International Information Systems Security Certification Consortium, Inc.
2d Cir. · 2016 · signal: see · confidence high
See 3 Original Appalachian Artworks, Inc. v. Granada Electronics, Inc., 816 F.2d 68, 73 (2d 4 Cir. 1987) (holding unauthorized importation and sale of Cabbage Patch dolls 5 manufactured in Spain with the foreign language adoption papers and birth 6 certificate infringed the plaintiff’s trademark in Cabbage Patch dolls “even 7 though the goods do bear [plaintiff’s] trademark and were manufactured under 8 license with [the plaintiff],” because plaintiff’s “domestic good will is being 9 damaged by consumer confusion caused by the importation of the [Spanish] 10 dolls,” which were ma…
discussed Cited "see" International Information Systems Security Certification Consortium, Inc. v. Security University, LLC
2d Cir. · 2016 · signal: see · confidence high
See Original Appalachian Artworks, Inc. v. Granada Electronics, Inc., 816 F.2d 68, 73 (2d Cir.1987) (holding unauthorized importation and sale of Cabbage Patch dolls manufactured in Spain with the foreign language adoption papers and birth certificate infringed the plaintiffs trademark in Cabbage Patch dolls “even though the goods do bear [plaintiffs] trademark and were manufactured under license with [the plaintiff],” because plaintiffs “domestic good will is being damaged by consumer confusion caused by the importation of the [Spanish] dolls,” which were materially different from Ame…
discussed Cited "see" Novartis Animal Health US, Inc. v. Abbeyvet Export Ltd.
S.D.N.Y. · 2005 · signal: see · confidence high
See Original Appalachian Artworks, Inc. v. Granada Electronics, Inc., 816 F.2d 68, 74 (2d Cir.1987) (Cardamone, J., concurring) (stating that the traditional consumer confusion test is difficult to apply for “gray goods”).
examined Cited "see" Iberia Foods Corp v. Romeo (3×) also: Cited "see, e.g."
3rd Cir. · 1998 · signal: see · confidence high
See 816 F.2d at 73 .
examined Cited "see" Iberia Foods Corp. v. Rolando Romeo, Jr. D/B/A Rol-Rom Foods Rolando Romeo, Jr., T/a Rol-Rom Foods (3×) also: Cited "see, e.g."
3rd Cir. · 1998 · signal: see · confidence high
See 816 F.2d at 73 .
cited Cited "see" Warner-Lambert Co. v. Schick U.S.A., Inc.
D. Conn. · 1996 · signal: see · confidence high
See Original Appalachian Artworks v. Granada Elec., Inc., 816 F.2d 68, 74 (2d Cir.), cert. denied, 484 U.S. 847 , 108 S.Ct. 143 , 98 L.Ed.2d 99 (1987).
Retrieving the full opinion text from the archive…
ORIGINAL APPALACHIAN ARTWORKS, INC., Appellee,
v.
GRANADA ELECTRONICS, INC., Appellant
519, Docket 86-7670.
Court of Appeals for the Second Circuit.
Apr 7, 1987.
816 F.2d 68
Noel W. Hauser, Haas, Greenstein, Hauser, Sims, Cohen & Gerstein, P.C., New York City, for appellant., Gerard F. Dunne, Wyatt, Gerber, Shoup, Scobey & Badie, New York City (Bruce N. Proctor, Eliot S. Gerber, New York City; William H. Needle, Atlanta, Ga.; Stanley F. Birch, Jr., Atlanta, Ga., of counsel), for appellee.
Oakes, Cardamone, Winter.
Cited by 75 opinions  |  Published
1 passage pin-cited by 1 case
Pinpoint authority: bottom 57%
Citer courts: S.D. Illinois (1)
Reporter's Syllabus — editorial summary, not part of the Court's opinion

Noel W. Hauser, Haas, Greenstein, Hauser, Sims, Cohen & Gerstein, P.C., New York City, for appellant.

Gerard F. Dunne, Wyatt, Gerber, Shoup, Scobey & Badie, New York City (Bruce N. Proctor, Eliot S. Gerber, New York City; William H. Needle, Atlanta, Ga.; Stanley F. Birch, Jr., Atlanta, Ga., of counsel), for appellee.

Before OAKES, CARDAMONE and WINTER, Circuit Judges.

OAKES, Circuit Judge:

Lead Opinion

OAKES, Circuit Judge:

This appeal involves a suit by a registered trademark owner in the United States against the importer of so-called “gray goods,” here Cabbage Patch Kids dolls, bearing the owner’s trademark but manufactured abroad under a restrictive license from the trademark owner. The license restriction defined the territory in which the dolls could be sold, limiting sales essentially to Spain. The Spanish “Kids,” although duly bearing the appropriate trademark, nevertheless differ from Kids manufactured in the United States because their “adoption papers” are in Spanish. The United States District Court for the Southern District of New York, William C. Conner, Judge, found that sale of the Spanish dolls in the United States infringed the owner’s trademark and granted a permanent injunction against the importer and distributor of the dolls. Original Appalachian Artworks, Inc. v. Granada Electronics, Inc., 640 F.Supp. 928 (S.D.N.Y.1986). We affirm.

This action was brought by Original Appalachian Artworks, Inc. (OAA), the Georgia maker and licensor of the well-known Cabbage Patch Kids dolls, against Granada Electronics, Inc. (Granada), who imported and distributed Cabbage Patch Kids dolls in the United States. Granada’s dolls were made in Spain by Jesmar, S.A. (Jesmar), under a license from OAA (through a licensing agent) which permitted manufacture and distribution of the dolls in Spain, the Canary Islands, Andorra, and Ceuta Melilla. Under the license Jesmar agreed not to make, sell, or authorize any sale of the licensed products outside its licensed territory and to sell only to those purchasers who would agree not to use or resell the licensed products outside the licensed territory. The boxes containing the Jesmar dolls bear the “Cabbage Patch Kids” trademark displayed in English on all panels of the box except the bottom. Also printed in English are the words “The World Of” preceding the trademark on the rear panel of the box and the name of OAA and its United States address in small print in the copyright notice. The rest of the wording on the box, however, is in Spanish.

OAA makes hand-sewn soft-sculpture Cabbage Patch Kids dolls in Cleveland, Georgia, and markets them through what it calls “adoption centers” located primarily in specialty stores and finer department stores. Purchasers of the dolls receive “birth certificates” and “adoption papers” to be filled out by the “parent” or owner of the doll, who takes an “oath of adoption.” The adoption papers are returned to OAA, and the information is entered into the OAA computer so that on the first anniversary of the adoption the adopting parent receives a “birthday card” from OAA. Judge Conner found that this adoption process is an “important element of the mystique of the [Cabbage Patch Kids] dolls, which has substantially contributed to their enormous popularity and commercial success.” 640 F.Supp. at 930.

Through an intermediary licensing agent, OAA also licenses Coleco Industries, Inc., of Hartford, Connecticut, to manufacture, promote, and distribute Cabbage Patch Kids dolls within the United States. Unlike the OAA dolls, the Coleco dolls are smaller, with vinyl heads. They are mass-produced, packaged in boxes, and sold at a retail price less than half that of the OAA soft-sculpture dolls. Nevertheless, the Coleco dolls are also accompanied by birth certificates and adoption papers and by English-language instructions suggesting the return of completed adoption papers in a preaddressed envelope to a processing center in the United States. The instructions also permit a purchaser “legally” to change the name of the doll if desired, and the doll’s[*71] parent gets a suitable-for-framing birth certificate as well as a birthday card on the first birthday of the doll. Coleco, with tremendous sales, has invested millions of dollars in advertising the dolls during the last three years and had spent approximately $2.9 million in the first two quarters of 1986. The district court found that, indeed, the Cabbage Patch Kids trademark has become famous and associated with Coleco by virtue of its advertising expenditures and television commercials. 640 F.Supp. at 931.

We note that OAA did cause its trademark to be recorded with the United States Customs Service, the regulations of which require the listing “of each foreign person or business entity authorized or licensed to use the trademark and a statement as to the use authorized.” 19 C.F.R. § 133.2(c) (1986). Jesmar was listed on the application for recordation by OAA and pursuant thereto the Customs Service sent its agents a letter authorizing Cabbage Patch Kids dolls made by Jesmar to pass through Customs. Parenthetically it should be noted that this court recently held that these regulations were not contrary to statute and that the Customs Service as a matter of “enforcement discretion” and by virtue of inherent “administrative difficulties” may authorize the admission of so-called gray market goods. Olympus Corp. v. United States, 792 F.2d 315, 320 (2d Cir.1986), petition for cert. filed, 55 U.S.L.W. 3372 (U.S. Nov. 6, 1986) (No. 86-757); accord Vivitar Corp. v. United States, 761 F.2d 1552, 1569-70 (Fed. Cir.1985), cert. denied, — U.S. -, 106 S.Ct. 791, 88 L.Ed.2d 769 (1986). But see Coalition to Preserve the Integrity of American Trademarks v. United States, 790 F.2d 903, 916-17 (D.C.Cir.1986) (customs regulations allowing importation of gray goods inconsistent with statute governing entry of trademarked goods), cert. granted, — U.S. -, 107 S.Ct. 642, 93 L.Ed.2d 699 (1986). It is important to point out, however, that although we held in Olympus that Customs could permit entry of gray market goods, we also indicated that this does not limit the reach of protection of section 526 of the Tariff Act of 1922, as reenacted in 1930 and codified at 19 U.S.C. § 1526 (1982). As we stated, “The markholder still has rights under the statute: he may pursue private remedies against the importer under section 526(c), notwithstanding Customs’ failure to exclude the goods.” Olympus Corp., 792 F.2d at 320. This is precisely such a case, that is, one in which the markholder is pursuing its private remedies against the importer. Cf. Osawa & Co. v. B & H Photo, 589 F.Supp. 1163 (S.D.N.Y.1984) (granting preliminary injunction in private infringement action against the importation of goods genuinely marked abroad), cited with approval and disapproval in Olympus Corp., 792 F.2d at 319.

DISCUSSION

As Judge Conner noted below, 640 F.Supp. at 932, OAA's registration of the Cabbage Patch Kids trademark is prima facie evidence of its validity and of OAA’s exclusive right to use the trademark, the validity of which has not been challenged here. As he also noted, section 32 of the Lanham Trademark Act of 1946, 15 U.S.C. § 1114(l)(a) (1982), prohibits the unauthorized sale of goods bearing a registered trademark where there is a likelihood of confusion, mistake, or deception of purchasers. See, e.g., Syntex Laboratories, Inc. v. Norwich Pharmacal Co., 437 F.2d 566, 568 (2d Cir.1971); S.Rep. No. 1333, 79th Cong., 2d Sess. 1, reprinted in 1946 U.S.Code Cong.Serv. Applying this standard, the district court found that Jesmar’s Cabbage Patch Kids dolls with their Spanish-language birth certificates, adoption papers, and instructions are materially different from the Coleco dolls with English-language papers. The court also concluded, on the basis of numerous letters from parents and child doll owners or “parents,” that the sale in the United States of the Spanish-language dolls with the prominent English-language trademark causes the public to confuse or mistake the Spanish dolls for the Coleco dolls that they expect to be for sale. Together, these findings led the district court to hold Granada’s sale of Jesmar dolls in the United States[*72] actionable under 15 U.S.C. § 1114(l)(a). 640 F.Supp. at 933 (citing Bell & Howell Mamiya Co. v. Masel Supply Co., 719 F.2d 42 (2d Cir.1983)).

Granada’s principal argument is that the central purpose of a trademark is to identify the owner of the trademark as the source of the goods. Accordingly, the argument runs, the role of trademark laws is to prevent an infringer from passing off its goods as being those of another. There would thus be no infringement here because Jesmar’s Cabbage Patch Kids dolls bear a genuine trademark that accurately portrays OAA as the originator, or in this case licensor, of the product. To back this line of reasoning, Granada cites three cases in this circuit as standing for the proposition that the unauthorized sale of authorized goods does not give rise to a claim for trademark infringement. Unfortunately for Granada, however, we do not find that these cases support its interpretation of the Lanham Act.

For example, in DEP Corp. v. Interstate Cigar Co., 622 F.2d 621 (2d Cir.1980), this court upheld the dismissal of a Lanham Act claim by a United States distributor of an English soap against a gray goods importer because the distributor had no property interest in the trademark. In dicta the court noted that it would be “anomalous” if the sale of genuine goods could support an infringement action. Id. at 622 n. 1. But the court also noted that A. Bourjois & Co. v. Katzel, 260 U.S. 689, 43 S.Ct. 244, 67 L.Ed. 464 (1923), appeared to the contrary and, in the end, concluded that it need not reach the issue in the case because the plaintiff had no standing to assert trademark infringement.

Granada also cites El Greco Leather Products Co. v. Shoe World Inc., 599 F.Supp. 1380 (E.D.N.Y.1984), which found that the trademark owner’s rights were not infringed by the unauthorized sale in the United States of trademarked shoes even though the shoes had not been accepted or approved for sale by the owner. But this decision was recently reversed in this court on appeal, El Greco Leather Products Co. v. Shoe World Inc., 806 F.2d 392 (2d Cir.1986), on the ground that while the shoes had been manufactured by agreement with the trademark owner, they were not “genuine” for purposes of trademark infringement because the shoes were sold without being inspected by the owner to insure quality. The unauthorized disposition of the shoes without inspection deprived the owner of the right to control the product and could mislead consumers into believing that the trademark owner had approved the shoes for sale. Thus, in El Greco we concluded that the owner was entitled to relief under section 1114 of the Lanham Act against the seller of goods that bore the owner’s mark but had not been inspected, accepted, or authorized for sale in the United States.

The third case cited by Granada, Sasson Jeans, Inc. v. Sasson Jeans, L.A., Inc., 632 F.Supp. 1525 (S.D.N.Y.1986), which involved unauthorized sales in the United States of surplus blue jeans manufactured overseas under license, is similarly unsupportive. In Sasson Jeans, the court recognized that the heart of the Lanham Act claim was potential confusion by the consumer as to the origin or source of the goods. 632 F.Supp. at 1527 (citing Standard & Poor’s Corp. v. Commodity Exchange, Inc., 683 F.2d 704, 708 (2d Cir. 1982)). The court ruled that there was no trademark infringement because the jeans were “genuine,” that is, their production was authorized by contract, they were labeled with the trademark with the intent that they be sold in the United States, and they were sufficiently similar that they could not give rise to the confusion section 1114 was intended to prevent. See Sasson Jeans, 632 F.Supp. at 1528-29; see also Monte Carlo Shirt, Inc. v. Daewoo International (America) Corp., 707 F.2d 1054, 1058 (9th Cir.1983) (surplus shirts were “the genuine product, planned and sponsored by Monte Carlo and produced for it on contract for future sale”); Diamond Supply Co. v. Prudential Paper Products Co., 589 F.Supp. 470, 475 (S.D.N.Y.1984) (paper products were produced under contract and “identical or qualitatively equivalent”); Ballet Makers, Inc. v. United States Shoe Corp., 633 F.Supp. 1328, 1334-[*73] 35 (S.D.N.Y.1986) (subsequent licensee’s use of trademark does not infringe prior licensee’s rights when goods are “genuine” and owner approved both goods for U.S. distribution).

But as OAA notes and the district court concluded, the present case is distinguishable from the above eases because Jesmar’s dolls were not intended to be sold in the United States and, most importantly, were materially different from the Coleco Cabbage Patch Kids dolls sold in the United States. There is a very real difference in the product itself — the foreign language adoption papers and birth certificate, coupled with the United States fulfillment houses’ inability or unwillingness to process Jesmar’s adoption papers or mail adoption certificates and birthday cards to Jesmar doll owners, and the concomitant inability of consumers to “adopt” the dolls. It is this difference that creates the confusion over the source of the product and results in a loss of OAA’s and Coleco’s good will. Thus, even though the goods do bear OAA’s trademark and were manufactured under license with OAA, they are not “genuine” goods because they differ from the Coleco dolls and were not authorized for sale in the United States. This case is therefore closer to Osawa & Co. v. B & H Photo, 589 F.Supp. 1163, 1171-74 (S.D.N.Y.1984), in which Judge Leval rejected the principle that a trademark lawfully affixed in one country carried the mark lawfully wherever it went and found that gray good Mamiya cameras imported into the United States in violation of a Customs Service exclusion order infringed upon the American distributor’s trademark. See also Ballet Makers, 633 F.Supp. at 1334 (distinguishing Osawa and A. Bourjois & Co. v. Katzel, 260 U.S. 689, 43 S.Ct. 244, 67 L.Ed. 464 (1923) from eases in which the trademark owner had authorized the goods for U.S. distribution). As in Osawa, OAA’s domestic good will is being damaged by consumer confusion caused by the importation of the Jesmar dolls.

Admittedly, this case is different from Osawa because it is OAA that owns and controls the trademark on Jesmar Cabbage Patch Kids dolls. Citing Parfums Stern, Inc. v. United States Customs Service, 575 F.Supp. 416, 419-20 (S.D.Fla.1983), Granada argues accordingly that there can be no infringement here because OAA cannot be damaged by sales of its own goods. Although this argument has some force in cases where the imported goods are identical to the domestic goods and are intended for sale in the United States, as in Sasson Jeans or Monte Carlo Shirt, for example, in a case such as this where the goods are confusingly different, the argument ignores the fact that section 1114 was intended to prevent any consumer confusion over similar goods. In light of this statutory purpose, the fact that a single entity owns the trademark worldwide is not dispositive.

Bell & Howell: Mamiya Co. v. Mosel Supply Co., 719 F.2d 42, 45-46 (2d Cir.1983), another gray goods case, is also distinguishable from the present case because it ruled only that a preliminary injunction should be denied when there was an inadequate showing of irreparable injury due to confusion and less drastic interim remedies could be adopted. Here there is a more than adequate showing of confusion over the source of the Cabbage Patch Kids dolls and sufficient evidence of damage to OAA’s good will to support the permanent injunction. Cf. Premier Dental Products Co. v. Darby Dental Supply Co., 794 F.2d 850, 859 (3d Cir.1986) (finding irreparable damage to good will even though gray good was identical to goods sold by trademark owner), cert. denied, — U.S. -, 107 S.Ct. 436, 93 L.Ed.2d 385 (1986).

Granada argues further that OAA consented to the importation of Jesmar dolls. This contention is meritless. Although OAA’s filing of the names of its licensed producers pursuant to Customs regulations, 19 C.F.R. § 133.2 (1986), did allow the goods to pass through Customs, this does not extinguish OAA’s rights to claim infringement or seek exclusion, as we have said, in a private suit in federal court. See Olympus Corp. v. United States, 792 F.2d at 320; Vivitar Corp. v. United States, 761 F.2d at 1570. The recordation of the trademark and its concomitant appli[*74] cation listing Jesmar as a licensee simply operates to ease Customs’ administrative chores, not as authorization to import.

Granada also argues that the court erred in dismissing its antitrust counterclaims. Although Granada recognizes that under Continental T. V., Inc. v. GTE Sylvania Inc., 433 U.S. 36, 97 S.Ct. 2549, 53 L.Ed.2d 568 (1977), territorial restrictions on product resale do not amount to a per se violation of the Sherman Act, see Olympus Corp., 792 F.2d at 319-20, it nonetheless makes the vague allegation that the “wide disparity in price” here and abroad and the shortage of Coleco’s Cabbage Patch Kids dolls in the United States are suggestive of an antitrust violation. The district court, however, correctly dismissed this counterclaim on the ground that Granada had alleged no antitrust injury that would give it standing to challenge OAA’s acts. Indeed, the court found, and we agree, that gray goods importers such as Granada would have benefited from any anticompetitive conduct. Cf. W. Goebel Porzellanfabrik v. Action Industries, Inc., 589 F.Supp. 763, 766 (S.D.N.Y.1984) (antitrust counterclaim to gray good copyright infringement suit dismissed because importer would have benefited from high domestic prices). Finally, any claim by Granada that the infringement suit itself is an antitrust violation fails because there is no evidence that the suit was brought in bad faith, to harass, or in any way such that it would not be immune from antitrust strictures under the Noerr-Pennington doctrine. See id. at 767.

Granada’s arguments regarding damages are premature and can be heard at the forthcoming damages hearing.

Judgment affirmed.

Concurrence

CARDAMONE, Circuit Judge,

concurring:

The majority states that the imported dolls were not intended to be sold in the United States and were “different” from those of the mark’s owner because the adoption papers and birth certificates were in Spanish. It is this difference, the majority continues, that creates confusion over the source of the product and constitutes the Lanham Act violation. I also believe that the importation of the Spanish produced Cabbage Patch dolls infringes the owner’s trademark and should be permanently enjoined. While I agree with the majority that there is “confusion over the source of the product,” I respectfully reach this conclusion for somewhat different reasons.

I

The essential element of an action under § 32 of the Lanham Act, 15 U.S.C. § 1114 (1982), is a showing of the likelihood of consumer confusion as to source of origin. See, e.g., Church of Scientology Int’l v. The Elmira Mission of the Church of Scientology, 794 F.2d 38, 43 (2d Cir.1986); Miss Universe, Inc. v. Patricelli, 753 F.2d 235, 237 (2d Cir.1985); Berlitz Schools of Languages, Inc. v. Everest House, 619 F.2d 211, 215 (2d Cir.1980); McGregor-Doniger Inc. v. Drizzle Inc., 599 F.2d 1126, 1130 (2d Cir.1979); Mushroom Makers, Inc. v. R.G. Barry Corp., 580 F.2d 44, 47 (2d Cir.1978), cert. denied, 439 U.S. 1116, 99 S.Ct. 1022, 59 L.Ed.2d 75 (1979) (per curiam). Because parallel goods are generally considered to be the “genuine” product of the foreign trademark owner, see, e.g., A. Bourjois & Co. v. Katzel, 260 U.S. 689, 691-92, 43 S.Ct. 244, 245, 67 L.Ed. 464 (1923); 3A R. Callmann Unfair Competition, Trademarks and Monopolies § 21.-17, at 74 (L. Altman 4th ed. 1983), the traditional Lanham Act consumer confusion test becomes difficult to apply. Lipner, The Legality of Parallel Imports: Trademark, Antitrust, or Equity?, 19 Tex.IntT L.J. 553, 568 (1984). Hence, to determine whether the importation of “genuine” Cabbage Patch dolls creates a likelihood of confusion as to their “source”, it is necessary to examine the functions and principles of trademark law.

A. Trade Identity Theory

Under the trade identity theory of trademark law, the only function of this body of law is to identify the ultimate source of the goods, i,e., the owner of the mark, 3A R. Callmann, supra, at 76; 2 S. Ladas, Pat[*75] ents, Trademarks and Related Rights § 732, at 1341 (1975); Takamatsu, Parallel Importation of Trademarked Goods: A Comparative Analysis, 57 Wash.L.Rev. 433, 453 (1982). Where, as here, the domestic owner of the mark has licensed the use of its mark by a foreign manufacturer, this theory logically leads to the conclusion that there can be no confusion as to source. 3A R. Callmann, supra; 2 S. Ladas, supra; Takamatsu, supra, at 457. Hence, it cannot serve as the rationale for granting a Lanham Act injunction.

B. The Guarantee Function

Many commentators however recognize that trademark law also serves to guarantee the quality of the trademarked product. 3A R. Callmann, supra, at 75; 2 S. Ladas, supra; 1 J. McCarthy, Trademarks and Unfair Competition, § 18.13, at 827 (2d ed. 1984). This is particularly apparent in the licensing context where the mark’s owner licenses another to manufacture the product while retaining only the right to control quality. See 1 J. McCarthy, supra, at 826-28. We have labelled that control which the licensor retains “sponsorship,” Societe Comptoir De L'Industrie Cotonniere v. Alexander’s Dep’t Stores, 299 F.2d 33, 35 (2d Cir.1962), and have deemed confusion as to “sponsorship” to he confusion as to “source of origin,” Id.

Recognizing that sponsorship includes quality control — and viewing the territorial sales restrictions imposed by OAA as a means of quality control — it follows that Granada’s importation of dolls with Spanish birth certificates, adoption papers and instructions into the United States may confuse the public as to whether OAA “sponsored” the importation of what the public perceives to be inferior dolls. This confusion is sufficient to constitute a violation of the Lanham Act. See Takamatsu, supra, 457-58 (acceptance of the guarantee function leads to the conclusion that the importation of goods of different quality is trademark infringement, even where domestic and foreign marks are owned by the same person); 2 S. Ladas, supra (same). See also 4A Callmann, supra, § 26.27, at 63-64 (“Here ... we may have some other form of confusion, involving for example the guarantee function of trademarks rather than the souree-identification function.”) (footnotes omitted).

The necessity of providing a remedy against quality infringement by third-parties is particularly essential in a licensing arrangement because the Lanham Act imposes an affirmative duty upon the licensor to maintain quality control. See Church of Scientology, 794 F.2d at 43; Franchised Stores of New York, Inc. v. Winter, 394 F.2d 664, 669 (2d Cir.1968). As we noted in Franchised Stores, “[i]t would be anomalous ... to burden the trademark owner with this ‘affirmative’ duty and then ... deny him a federal forum in which to control his licensees.” 394 F.2d at 669.

Even the guarantee function, in my view, is not entirely free from doubt as a basis for issuing an injunction. It has been argued that the importation of genuine but inferior goods of a foreign licensee is the fault of the trademark owner “in not exercising adequate supervision of the mark,” and that its failure “should not be a justification for protecting it under the trademark laws for the situation it has created.” See Vandenburgh, The Problem of Importation of Genuinely Marked Goods is Not a Trademark Problem, 49 Trade Mark Rptr. 707, 716 (1959) (emphasis in original). See also Parfums Stern, Inc. v. United States Customs Service, 575 F.Supp. 416, 419 (S.D.Fla.1983) (Criticizing mark owner for seeking federal trademark protection “to insulate itself from what it placed in motion itself through its own foreign manufacturing and distribution sources.”).

This argument is not persuasive when, as in this case, it is not clear that OAA could not have prevented by contract the importation of these Cabbage Patch dolls by third-party distributors, such as Granada. As a practical matter OAA appears to have tried. Under its license Jesmar agreed not to sell outside its Spanish-licensed territory, and further agreed to sell only to purchasers who also agreed not to sell outside that territory. Without any effective means of further controlling the distribution of its product, for example, by means of an eq[*76] uitable servitude on the dolls, OAA should not be held responsible for the dolls’ importation. See, e.g., 2 R. Callmann, supra, § 16.16 at 83 (“[Equitable] servitudes have not been the basis of any holding barring parallel imports of genuine trademarked goods”); Z. Chafee, The Music Goes Round and Round: Equitable Servitudes and Chattels, 69 Harv.L.Rev. 1250, 1255-56 (1956) (only scarce authority on the validity of equitable servitudes on chattels). Significantly, the only other situation in which trademark laws have been used against admittedly “genuine” goods arose when the U.S. owner of the mark did not have a contract remedy available to prevent the importation of the foreign product. See A. Bourjois & Co. v. Katzel, 260 U.S. 689, 43 S.Ct. 244, 67 L.Ed. 464 (1923).

C. The Exhaustion Doctrine

Several commentators have suggested that the trademark doctrine of “exhaustion” also cuts against a finding of infringement in the importation of parallel goods. See, e.g., 3A R. Callmann, supra, § 21.17, at 75. Simply put, this doctrine provides that a distributor, like Granada, has the “right to resell a branded item in an unchanged state.” 2 J. McCarthy, supra, § 25.11, at 261. See also Takamatsu, supra, at 456. The rationale underlying this doctrine is that trademark rights are exhausted once the trademarked goods have been duly placed into the market. Takamatsu, supra. But it is well-recognized that the exhaustion doctrine does not apply to genuine goods which have been altered. See 2 J. McCarthy, supra, § 25.10 at 259.

Here, because the dolls were manufactured and sold by Jesmar as authorized and licensed by OAA and not physically altered thereafter, it might be argued that Granada should be able to resell them in this unaltered state. The more persuasive view, I believe, is that the “exhaustion” doctrine does not apply with equal force in the international context. See 2 S. Ladas, supra, § 732, at 1341, Takamatsu, supra, at 457. Here the same mark has been attached to essentially two different products in the two countries, and each product has developed its own goodwill in its country. Although the Spanish dolls have not been physically altered during their importation, the sale of these dolls in the U.S. upsets the settled expectations of U.S. consumers about what they will receive when they purchase a Cabbage Patch doll. Because an American consumer would be disappointed by the same doll that would satisfy a Spanish consumer, the very act of importing different goods may be viewed, in an abstract sense, as an alteration of the doll.

II

In sum, the district court properly granted OAA the injunctive relief it requested. Once one adopts the guarantee function of trademark law, it becomes clear that OAA has a right to relief from potential consumer confusion as to whether it sponsored the importation of these genuine but “inferior” dolls. It is this violation of the mark owner’s right to control the quality of its product, that is to say its sponsorship, that is deemed confusion as to source.

For these reasons, I conclude that Granada’s importation of the Jesmar dolls creates the likelihood of consumer confusion as to source of origin and thus constitutes a violation of the Lanham Act. Consequently, I join the majority in voting to affirm the district court’s issuance of an injunction to prevent further importation.