Hoffmann-La Roche & Co. v. Centrafarm (1978)

“Trademark rights protect origin, but they yield to free trade once goods are lawfully placed on the market.”

Short Description :

This case defined the principle of exhaustion of trademark rights within the European Community. It determined whether a trademark owner could prevent resale of genuine goods once they were marketed with consent in another EU country.

Facts :

Hoffmann-La Roche, a Swiss pharmaceutical company, sold Valium tablets in the Netherlands and the UK. Centrafarm purchased genuine Valium products in one country and resold them in another without Roche’s permission. Roche argued that its trademark rights were infringed because it had not authorized cross-border resale.

Findings / Reasoning :

The Court of Justice held that once goods are lawfully placed on the market by the trademark owner or with consent, the owner’s control over resale is “exhausted” within the EU. Preventing parallel imports would contradict the free movement of goods principle. Thus, Roche could not rely on its trademark to block Centrafarm’s resale.

Suggestions / Observations :

The ruling balanced trademark protection with market integration. It encouraged a single European market where legitimate goods move freely, while preserving the mark owner’s right to act only against altered or misleading resales.

Judgment & Date :

In 1978, the CJEU held in favor of Centrafarm, confirming that the trademark rights of Hoffmann-La Roche were exhausted after the initial authorized sale within the EU.