Dior Has Right To Bar Discount Sales: EU High Court

Law360, New York (April 23, 2009, 12:00 AM EDT) -- The European Union's highest court has ruled that Christian Dior Couture SA can use its trademark rights to prohibit licensees from selling Dior-marked goods in discount stores.

The European Court of Justice ruled that a proprietor of a trademark can invoke its rights on the grounds of the trademark's prestige if it can prove that sales to discount stores have damaged the “allure and prestigious image which bestows on those goods an aura of luxury,” the court announced in a statement Thursday.

In this case, Dior...
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