Selling Genuine Products but Still Infringing? On the Boundaries of Trademark Exhaustion

WISECODE Take

Many parallel importers assume selling genuine goods exempts them from infringement, but Wang Hua of Beijing Huaran Law Firm pointed out in the China Intellectual Property News on August 14, 2026, that trademark exhaustion has boundaries. This news reveals the dynamic tug-of-war between brand owners and distributors. Free circulation does not equal free modification. Altering trademarks, repackaging, or over-displaying them on e-commerce platforms can void exhaustion; Zhidian's trademark monitoring service helps businesses navigate these grey areas. Retailers merely listing brand names objectively are unaffected, but those in parallel importing or modification must review packaging. First, avoid magnifying third-party trademarks on storefronts. Second, clearly label the relationship between the processor and the original brand during repackaging. Selling genuine goods is just the start; knowing how to discretely indicate sources is key to avoiding trademark traps.