Selling licensed goods without distinguishing them from the original
Goods are made and sold under a working licence and lawfully carry the brand. But their quality is lower than that of the original product, and the advertising does nothing to set them apart from it. The customer buys in the belief that they are getting the quality of the original, yet receives a markedly inferior product under the same name. For example, an importer sells a refrigerator that was made under licence to lower specifications for a particular market. It places the refrigerator beside the premium original under the same name, without indicating in its advertising or packaging that the cheaper item is of a different grade. The goods are not counterfeit, but the customer cannot tell the inferior from the genuine.
This note reflects the analysis of the HENGAM team and does not constitute specific legal advice.