Trademark Proprietor’s “Moral Right” as an Exception to the Doctrine of Exhaustion of Rights in Trademarks

Sahana Simha and M. P. Ram Mohan

IIMA Working Papers from Indian Institute of Management Ahmedabad, Research and Publication Department

Abstract: Trademark law is primarily viewed as a consumer protection law. Proprietary and consumer interests are not always balanced. This is especially evident in the doctrine of exhaustion of rights in trademarks, where the trademark owner loses control over the further distribution of their trademarked product once sold. Existing statutory exceptions to this doctrine allow the proprietor to take action against resellers only when the product has been impaired or changed. The exceptions do not account for harm or damage to the reputation and goodwill associated with a trademark as a ground to override exhaustion. This paper analyses legislative and judicial decisions regarding exceptions to exhaustion under Indian trademark law, with a comparative examination of rulings from the US and EU jurisdictions. We then highlight the theoretical differences between trademark and copyright law, exploring moral rights in copyright law and the anti-dilution theory of trademarks. In doing so, we examine the feasibility of expanding exceptions to the doctrine of exhaustion to include proprietary concerns, in addition to consumer and market considerations.

Date: 2024-09-27
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