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This information is taken directly from the court opinion. It is not taken out of context nor is it altered. Relevant footnotes are included at the bottom.

From Belltronics USA v Midwest Inventory, 562 F. 3d 1067 (10th Cir 2009)

It logically follows that the first sale doctrine is not applicable “when an alleged infringer sells trademarked goods that are materially different than those sold by the trademark owner.” Davidoff, 263 F.3d at 1302. A materially different product is not genuine and may generate consumer confusion about the source and the quality of the trademarked product. See id.; Gamut Trading Co. v. U.S. Int’l Trade Comm’n, 200 F.3d 775, 779 (Fed. Cir. 1999); Iberia Foods Corp. v. Romeo, 150 F.3d 298, 303 (3d Cir. 1998).3 We hold, as other federal circuit courts have held, that the unauthorized resale of a materially different trademarked product can constitute trademark infringement. See Brilliance Audio, Inc. v. Haights Cross Commc’ns, Inc., 474 F.3d 365, 370 (6th Cir. 2007); Davidoff, 263 F.3d at 1302; Iberia Foods, 150 F.3d at 302–03; Martin’s Herend Imports, Inc. v. Diamond & Gem Trading USA, Co., 112 F.3d 1296, 1302 (5th Cir. 1997); Societe Des Produits Nestle, S.A. v. Casa Helvetia, Inc., 982 F.2d 633, 638–39 (1st Cir. 1992); Original Appalachian Artworks, Inc. v. Granada Elecs., Inc., 816 F.2d 68, 73 (2d Cir. 1987).

We emphasize that not all differences are material. See Davidoff, 263 F.3d at 1302. Some differences between products “prove so minimal that consumers who purchase the alleged infringer’s goods get precisely what they believed they were purchasing [and] consumers’ perceptions of the trademarked goods are not likely to be affected by the alleged infringer’s sales.” Iberia Foods, 150 F.3d at 303 (quotations and citations omitted). A guiding principle in evaluating whether a difference between two products bearing the same trademark is material is whether the difference “confuses consumers and impinges on the . . . trademark holder’s goodwill.” Nestle, 982 F.2d at 638. For this reason, the materiality analysis must be undertaken “on a case-by-case basis,” see id. at 641, and must include “an examination of the products and markets at issue.” Brilliance Audio, 474 F.3d at 371. Although no mechanical process exists for determining the threshold for materiality, see Nestle, 982 F.2d at 641, a difference is material if “consumers [would] consider [it] relevant to a decision about whether to purchase a product.” Davidoff, 263 F.3d at 1302. Because many factors influence such considerations, the threshold “must be kept low to include even subtle differences between products.” Id. We review de novo the question of whether differences between trademarked goods and goods sold by an alleged infringer are material. Iberia Foods, 150 F.3d at 303.

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