Warehouse Stores should be Jointly Responsible for Selling Counterfeits.　Judgments: Responsible Persons of Warehouse Stores have obligations of Verification.

A large warehouse store in Taipei was sued for the suspicion of selling counterfeit water dispenser. After trial, Shihlin District Court ruled that the said warehouse store infringed other people’s trademark right and sentenced the said warehouse store and the supplier to jointly compensate NT$1,344,000. The judge indicated that the responsible persons of warehouse stores have the obligations to verify whether the goods they sell are counterfeits and shall not use suppliers’ undertakings of non-counterfeit as excuse.

Such judgment states that since our country has registration and publishing system regarding trademarks, anyone can find out legal registered trademark through simple procedures; therefore, warehouse stores, which sell hundreds of products, should not be excluded. Besides, a professional warehouse store should set up a unit that will be exclusively responsible for checking whether products are counterfeits. In addition, suppliers’ undertakings of non-counterfeit should be considered inner contracts between suppliers and warehouse stores, and warehouse stores’ should not use them as excuse to exempt from liabilities and obligations to verify whether products are counterfeits. (2005.9)

CYJ/CHA