Repaired but Still Branded? When Trademark Law Allows Resale

Can trademarked goods be bought, altered, and then resold under the same trademark? According to the U.S. Supreme Court’s decision in Champion Spark Plug Co. v. Sanders, the answer is yes, with important conditions.

The Court held that genuine trademarked goods may be repaired or reconditioned and resold without removing the original trademark, provided there is full and clear disclosure. Specifically, the goods must be plainly marked as “Repaired” or “Used,” containers and advertising must clearly communicate that the products are second-hand or reconditioned, and the reseller must be identified as the party that performed the repairs or alterations.

While trademark owners can, and should, vigorously protect their registered marks, Champion Spark Plug remains a key case for resellers to keep in their back pocket, affirming that truthful, non-deceptive resale of altered goods is permissible under trademark law.

Jason Sanders, the founder of Sanders IP, is the grandson of C.C. “Sparkplug” Sanders who was the petitioner in this classic trademark case.