A Difference With A Distinction: The Second Circuit Upholds Preliminary Injunction In Parallel Imports Case

In Abbott Laboratories, et al. v. H&H Wholesale Services, Inc., et al., the United States Court of Appeals for the Second Circuit affirmed a preliminary injunction issued in a trademark case focused on the parallel importation of diabetes test strips.  One defendant had hoped to overturn the injunction order by arguing that its place in the supply chain shielded it from direct liability for consumer confusion.  The Second Circuit was not persuaded.

Parallel Imports

Parallel imports, sometimes referred to as "gray market" goods, start off as legitimate branded goods produced for and sold in foreign markets.  Because certain goods are less expensive abroad, parallel importers sometimes purchase them in another country at that low price and resell them in the United States for a profit without the authorization of the U.S. brand owner.