Vancouver resident Michael Hallatt drives down to the United States on a regular basis. He shops at Trader Joe's and buys a ton of groceries. Then, he drives back to Vancouver, where he sells those groceries—highly marked-up, of course—in his store, Pirate Joe's. Joanna Cabot at Tele-Read explains:
Hallatt claims he is doing nothing wrong—he buys his “merchandise” at full retail price and is permitted to sell them if he wishes to under the first-sale doctrine. Trader Joe’s begs to differ and has filed a lawsuit for trademark infringement.
...There are no Trader Joe’s stores in Canada, so Hallatt cannot be argued to be taking business from them. And if Trader Joe’s ever did come to Canada, their retail prices would be cheaper than his marked-up ones, and he’d be driven out of business by normal market forces.
The article explains that the trademark infringement law generally applies to counterfeit items. This is certainly not applicable to Pirate Joe's, which only sells real, authentic Trader Joe's products. So what do you think, Slog?
Does Michael Hallatt Have the Right to Sell Trader Joe's Products in His Pirate Joe's Store?