Trademark Rights Exhaustion

Trademark rights exhaustion, also known as the "first sale doctrine," is a legal principle in trademark law that limits the control that a trademark owner has over the use of their trademarked products after they have been lawfully sold or distributed. Under the principle of trademark rights exhaustion, once a trademark owner has sold or authorized the sale of a product bearing their trademark, they cannot prevent the subsequent sale or resale of that product by third parties.

For example, if a company sells a product bearing its trademark, it cannot prohibit the buyer from reselling that product to someone else. The company's rights to control the use of their trademark are said to be "exhausted" after the initial sale.

Trademark rights exhaustion is based on the idea that trademark law is intended to prevent consumer confusion about the source of goods, rather than to give trademark owners control over the downstream use of their products. The principle of trademark rights exhaustion ensures that consumers can freely buy and sell goods without fear of infringing on trademark rights.