Champion Spark Plug Co. v. Sanders
Supreme Court of the United States
331 U.S. 125 (1947)
Champion Spark Plug Co. (plaintiff) made spark plugs under the "Champion" trademark. Sanders (defendant) bought used Champion plugs, repaired them, and resold them in boxes still bearing the Champion name and some of Champion's own usage charts, though a note inside disclosed the plugs had been "renewed"; none of the boxes bore Sanders's own name. Champion sued for trademark infringement and unfair competition. The district court required Sanders to remove any reference to Champion's trademark and clearly disclose the repair and origin; the court of appeals modified that, allowing Sanders to keep the Champion trademark as long as the plugs and boxes were clearly labeled as used or repaired, without needing to spell out that Champion made them originally and Sanders repaired them. Champion sought certiorari due to a circuit split.
Whether a secondhand seller may use a manufacturer's original trademark on a repaired product, so long as the product's repaired and secondhand nature is disclosed to the consumer.