International exhaustion of trade mark rights permits resale of lawfully acquired imported goods without infringement, subject to disclosures.

International exhaustion of trade mark rights was treated as applicable to lawfully acquired imported goods under Sections 30(3)(a) and 30(3)(b) of the Trade Marks Act, 1999. The text states that further sale of such goods is not infringement merely because the mark has been assigned to another person or because the goods were first placed on the market and later resold. It further notes that the proprietor's control over further distribution is exhausted, while any consumer concern arising from after-sales service may be met through appropriate disclosures. The same approach was directed to be followed in the petitioner's case.

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Issues: Whether the principle of international exhaustion of trade mark rights applies to lawfully acquired imported goods so as to permit their further sale in India.

Analysis: The order relied on the statutory scheme under Section 30(3)(a) and Section 30(3)(b) of the Trade Marks Act, 1999 and the Delhi High Court's exposition that where goods bearing a registered trade mark are lawfully acquired, further sale is not infringement merely because the trade mark has been assigned to another person or because the goods were put on the market and later resold. The order also noted that the principle of international exhaustion removes the proprietor's control over further sale and distribution of such goods, while any possible concern regarding consumer dissatisfaction from after-sales service could be addressed by appropriate disclosures.

Conclusion: The principle of international exhaustion was treated as applicable, and the same approach was directed to be followed in the petitioner's case.

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