Zino Davidoff SA v. CVS Corporation

Zino Davidoff SA (plaintiff) made and trademarked the Cool Water brand of colognes and ran a quality-assurance and anti-counterfeiting program built around a unique production code on each bottle and package, which let it spot counterfeits and trace products for recalls. Davidoff refused to sell to CVS (defendant), which obtained the fragrances through other distributors. After Davidoff repeatedly found unauthorized and counterfeit Davidoff products at CVS, in 1998, 2005, and again in 2006, it sued. CVS agreed to stop selling counterfeits but not to stop selling genuine Davidoff fragrances that had their production codes removed. Davidoff sought a preliminary injunction against CVS selling any Davidoff products lacking those codes; the district court granted it, and CVS appealed.

Whether a reseller that interferes with a trademark holder's ability to conduct quality control over its trademark-bearing goods can be liable for trademark infringement.