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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 Iberia Foods v Rolando Romeo, 150 F.3d 298 (3rd Cir 1998)

As a matter of doctrine, a trademark owner attempting to use § 32 to prevent an infringement must establish that the products sold by the alleged infringer are not "genuine." See, e.g., Weil Ceramics and Glass, Inc. v. Dash, 878 F.2d 659, 671-73 (3d Cir.1989); El Greco Leather Prod. Co. v. Shoe World, Inc., 806 F.2d 392, 395-99 (2d Cir.1986); Shell Oil Co. v. Commercial Petroleum, Inc., 928 F.2d 104, 107-08 (4th Cir.1991). The test for whether an alleged infringer's products are genuine asks whether there are "material differences" between the products sold by the trademark owner and those sold by the alleged infringer. See Societe Des Produits Nestle, S.A. v. Casa Helvetia, Inc., 982 F.2d 633, 638 (1st Cir.1992); Martin's Herend Imports, Inc. v. Diamond & Gem Trading USA, 112 F.3d 1296, 1302 (5th Cir.1997). If there are no material differences between the products sold, then the products offered by the alleged infringer are "genuine" and an infringement action under § 32 of the Lanham Act must fail. Whether differences are material so that an alleged infringer's products are nongenuine is a matter of law that we review de novo. See El Greco, 806 F.2d at 395; Casa Helvetia, 982 F.2d at 642, 642 n. 9. The purpose of the material differences test is to determine whether the allegedly infringing products are likely to injure the goodwill developed by the trademark owner in the trademarked goods. See Weil Ceramics, 878 F.2d at 671. When the products sold by the alleged infringer and the trademark owner contain identical marks but are materially different, consumers are likely to be confused about the quality and nature of the trademarked goods. See Casa Helvetia, 982 F.2d at 641. Characteristics of the alleged infringer's goods that are not shared by the trademark owner's goods are likely to affect consumers' perceptions of the desirability of the owner's goods. See Weil Ceramics, 878 F.2d at 671; Martin's Herend, 112 F.3d at 1302. Sales of the alleged infringer's goods will tarnish the "commercial magnetism" of the trademark, injuring the trademark owner. Mishawaka Rubber & Woolen Mfg. Co. v. S.S. Kresge Co., 316 U.S. 203, 205, 62 S.Ct. 1022, 1024, 86 L.Ed. 1381 (1942) (Frankfurter, J.).7 In such circumstances, the alleged infringer's goods are considered "non-genuine" and the sale of the goods constitutes infringement. In contrast, when the differences between the products prove so minimal that consumers who purchase the alleged infringer's goods "get precisely what they believed that they were purchasing," Weil Ceramics, 878 F.2d. at 672, consumers' perceptions of the trademarked goods are not likely to be affected by the alleged infringer's sales. See Casa Helvetia, 982 F.2d at 641. Although consumers may be unaware of the precise avenues that a given product has traveled on its way to the supermarket shelf, the authentic trademark on the alleged infringer's goods is an accurate indicator of their nature and quality. Cf. Prestonettes, Inc. v. Coty, 264 U.S. 359, 368, 44 S.Ct. 350, 351, 68 L.Ed. 731 (1924). Thus, the goods may be considered "genuine." This does not mean that the trademark owner suffers no economic harm from the alleged infringer's sales, but it does mean that § 32 of the Lanham Act does not offer a remedy to the trademark owner. See Weil Ceramics, 878 F.2d. at 672.