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9th July 2008
Small retailers 'increasingly face court over grey market goods'
Small retailers are increasingly finding themselves involved in disputes with larger companies for allegedly selling 'grey market' goods, a legal expert has said.
In an interview with the Liverpool Daily Post, lawyer Michael Sandys, said that businesses regarded grey markets as any where legal goods are sold through unofficial, unintended or unauthorised distribution channels, such as via eBay and other online sites.
He explained that many small retailers were inadvertently selling on the grey market and thus finding themselves facing cases brought by major multinationals.
"We have seen a major increase in the number of grey goods cases brought by a variety of multinationals against regional and national firms," Mr Sandys said to the paper.
"The majority of our clients are forced to defend their position against much larger organisations and they often face a struggle of David versus Goliath proportions.
"There is no suggestion that such clients are selling fake goods but simply that the products are being sold in a manner or area not intended by the original manufacturer and trade mark owner."
One problem Mr Sandy revealed many retailers face is that they find themselves at the end of long supply chains. They buy goods from wholesalers in "good faith" and are sometimes unaware of the potential market restrictions, the lawyer explained.
(c) 2008 Adfero Ltd.
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