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2002 (Ju) 1100, Minshu Vol. 57, No. 2

Date of Judgment: February 27, 2003

 

Issuing Authority: Supreme Court

 

Level of the Issuing Authority: Final Instance

 

Type of Procedure: JudicialCivil

 

Subject Matter: Trademarks

 

Summary of the judgment (decision):

 

1. If a person other than a holder of a trademark right in Japan imports goods identical with the goods designated for the trademark right, by affixing thereto a trademark identical with the registered trademark, such act of importation is deemed to be what is generally referred to as parallel importation of genuine goods, and it is therefore deemed to not be substantially illegal for infringing the trademark right under the following conditions: (1) the trademark has been legally affixed to the import goods by a holder of a trademark right in a foreign country or a person licensed by the trademark right holder, (2) the trademark right holder in the foreign country and the trademark right holder in Japan are the same person or have a relationship wherein they can be regarded as being legally or economically identical with each other, and hence the trademark affixed to the import goods indicates the same source as that indicated by the registered trademark in Japan, and (3) since the trademark right holder in Japan is in the position to be able to control the quality of the import goods directly or indirectly, the import goods and the goods carrying the registered trademark held by the trademark right holder in Japan are judged to be not substantially different in terms of the quality guaranteed by the registered trademark.

2. Importation of goods to which a trademark identical with a trademark registered in Japan has been affixed by a person licensed by a holder of a trademark right in a foreign country to use the trademark cannot be regarded as parallel importation of genuine goods and therefore this does not fall under the case wherein such act is deemed to not be illegal, under the circumstances presented in the judgment, such as that the licensee has breached the clauses in the license agreement providing for the limitations on the countries where the licensee is authorized to engage in production, etc. and on the prohibition of subcontracted production without the consent of the trademark right holder, and has subcontracted the production of goods to a factory located in the country not covered by the license, without the consent of the trademark right holder.