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This information is taken directly from the court opinion. It is not taken out of context nor is it altered.
From Societe Des Products Nestle v Casa Helvetia, 982 F.2d 633 (1st Cir 1992)

2. Territoriality. In general, trademark rights are congruent with the boundaries of the sovereign that registers (or recognizes) the mark. Such territoriality reinforces the basic goals of trademark law. Because products are often tailored to specific national conditions, see Lever Bros. Co. v. United States, 877 F.2d 101, 108 (D.C.Cir.1989), a trademark's reputation (and, hence, its goodwill) often differs from nation to nation. See Osawa & Co. v. B & H Photo, 589 F.Supp. 1163, 1173 (S.D.N.Y.1984) ("a mark may have not only a separate legal basis but also a different factual significance in each separate country where the local mark owner has developed an independent goodwill"). Because that is so, the importation of goods properly trademarked abroad but not intended for sale locally may confuse consumers and may well threaten the local mark owner's goodwill. It is not surprising, then, that the United States Supreme Court long ago recognized the territoriality of trademark rights. See, e.g., A. Bourjois & Co. v. Aldridge, 263 U.S. 675, 44 S.Ct. 4, 68 L.Ed. 501 (1923) (per curiam); A. Bourjois & Co. v. Katzel, 260 U.S. 689, 43 S.Ct. 244, 67 L.Ed. 464 (1923). These cases bear scrutiny.

In Katzel, the plaintiff, a United States corporation, purchased the American trademarks and goodwill of a French face powder manufacturer. Thereafter, it continued to sell the imported French powder in the United States, taking pains to conduct its sales efforts in a fashion "suitable for the American market." Katzel, 260 U.S. at 691, 43 S.Ct. at 245. The Court held that the defendant's sale of the same French powder, similarly packaged, within the United States infringed plaintiff's trademark rights, notwithstanding that defendant's merchandise, purchased in France, was "the genuine product of the French concern." Id. The Court explained that defendant's use of the trademark misrepresented the goods' origin because, in the United States, the label "indicates in law ... that the goods come from the plaintiff although not made by it," and the name "stakes the reputation of the plaintiff upon the character of the goods." Id. at 692, 43 S.Ct. at 245. In Aldridge, a case involving similar circumstances, the Supreme Court reaffirmed the protection due domestic trademark holders against imported merchandise that is genuine abroad. See Aldridge, 263 U.S. at 676, 44 S.Ct. at 4.

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