Brother Wins Case Against Aussie Drum Distributor
December
2007 Brother Industries in Nagoya, Japan, announced that Brother
Industries, Ltd. and Brother International (Aust.) Pty Ltd.
(collectively “Brother”) have been successful in a Federal Court case
against Dynamic Supplies Pty Ltd (“Dynamic Supplies”), one of
Australia’s largest distributors of computer consumables.In 2004,
Brother notified Dynamic Supplies that it was infringing Brother’s
trade marks by selling OEM printer drum units (which has different
specification than that of Brother-branded printer drum units) as
Brother-branded printer drum units.
Dynamic Supplies rejected
Brother’s allegations and the matter was then taken to court.The
Federal Court found that Dynamic Supplies imported and sold unbranded,
OEM printer drum units in counterfeit Brother packaging. Those printer
drum units were sold by Dynamic Supplies as Brother-branded DR200
printer drum units.
The Court made two significant rulings in this case.
1
A reseller is not permitted to apply a manufacturer’s trade mark to OEM
goods that the manufacturer did not intend to be sold under its trade
mark.
2 If OEM goods pass through the supply chain of a subsidiary
of a trade mark owner as branded goods but without the authorization of
the trade mark owner itself, it does not follow that the trade mark
owner will be deemed to have authorized the use of its trade mark on
those goods by virtue of the conduct of its subsidiary. For the use of
the trade mark to be authorized, it must be applied with the direct
authority of the trade mark owner itself.