Bristol-Myers Squibb v. Paranova (1996)

"Repackaging of genuine goods is permitted within the EU if it is necessary and done transparently."

Short Description :

This case dealt with the tension between parallel imports and trademark rights within the European Union. Bristol-Myers Squibb (BMS), a pharmaceutical company, objected to the repackaging of its medicines by Paranova, which imported genuine BMS products from one EU country and resold them in another. The issue was whether such repackaging constituted trademark infringement or was protected under the principle of free movement of goods.

Facts :

Paranova purchased original BMS drugs sold in low-price EU markets and repackaged them with its own labeling for sale in high-price markets such as Denmark. BMS argued that the new packaging and branding harmed its trademark’s reputation and misled consumers. Paranova claimed that repackaging was necessary for legal sale and did not affect the quality or origin of the goods.

Findings / Reasoning :

The European Court of Justice (ECJ) held that repackaging does not amount to trademark infringement if it is essential for the resale of goods in another EU country and if the repackaging clearly indicates the original manufacturer. However, any attempt to damage the brand image or mislead consumers would still violate trademark rights.

Suggestions / Observations :

The ECJ advised that parallel importers must act in good faith, ensuring that packaging changes are minimal and justified. Trademark owners can only object when repackaging affects the reputation or quality perception of the brand.

Judgment & Date :

On 11 July 1996, the ECJ ruled that repackaging is lawful under specific conditions — transparency, necessity, and preservation of brand integrity — thereby balancing trademark rights and free trade.