Gucci America, Inc. v. Daffy's, Inc.
United States Court of Appeals for the Third Circuit
354 F.3d 228 (2003)
Daffy's (defendant) unknowingly purchased and sold counterfeit Gucci bags so well-made that even Gucci's own store clerks and repair staff couldn't identify them as fakes; upon receiving a cease-and-desist letter from Gucci (plaintiff), Daffy's voluntarily stopped selling the bags and adopted a policy against carrying Gucci products altogether. The district court found Daffy's liable for trademark infringement but, treating it as an innocent infringer, declined to order a product recall or injunction, and Gucci appealed.
Whether a court must order a recall of infringing goods when the risk of public confusion and harm to the trademark owner is outweighed by the burden a recall would impose on the defendant.