The U.S. Court of Appeals for the Second Circuit recently summarily affirmed a preliminary injunction order in Abbott Laboratories v. H&H Wholesale Services1—a grey goods case involving importation of diabetes test strips designed for sale internationally. The Second Circuit’s adoption of the district court’s opinion sheds light on several issues in grey goods—genuine goods that are intended for sale abroad, which the manufacturer has never authorized for domestic sale.
Background
Abbott Laboratories manufactures test strips, used by diabetics to monitor their blood glucose, and sells them worldwide. It brought suit against H&H Wholesale Services, Inc., an importer, and numerous pharmaceutical retail companies, for importing Abbott’s strips sold abroad and distributing and selling them in the United States. The packaging for the strips bore Abbott’s registered trademarks, and it claimed that the internationally distributed strips were materially different from those sold in the United States. Abbott accordingly asserted claims for trademark infringement under the federal Trademark Act as well as the common law.
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