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"The only thing necessary for the triumph of evil is for good men to do nothing"
Edmund Burke


Graham Webb Intl v Emporium Drug Mart, 916 F.Supp. 909 (E.D. Ark 1995)

Graham Webb is a Minnesota limited partnership engaged in the business of manufacturing, marketing, and distributing hair care, bath, cosmetic, and related products throughout the United States through distribution agreements with various local distributors. Drug Emporium is an Arkansas corporation engaged in the business of selling products to the general public through a retail store in Little Rock, Arkansas. Graham Webb sued claiming trademark infringement, unfair competition, damage to business reputation, and tortious interference with contract or prospective relations.

Graham Webb sells its products only to distributors, and these distributors are restricted to reselling Graham Webb products only to salons that meet certain requirements set out by Graham Webb. Graham Webb states that its products are designed to be professionally administered. Drug Emporium was selling Graham Webb products at lower retail prices than the salons with the product batch codes obliterated. Drug Emporium was informing customers of the following: "Drug Emporium is not associated or affiliated with the manufacturer or salon or professional hair care products sold in these stores".

. Soon after receiving Graham Webb's letter requesting discontinuation of sales, Drug Emporium posted the following disclaimer:

Attention Customers

Graham Webb International cannot guarantee the authenticity of any product sold by an unauthorized retailer such as Drug Emporium. Graham Webb International states that its products are guaranteed only when sold through professional salons. If the UPC codes or other tracing codes are missing from any product container of a Graham Webb International product purchased by you, please retain your purchase receipt to assist in the tracing of that product in the unlikely event it is defective.

The court found nothing suggesting that Drug Emporium had taken any action that could be construed as creating a likelihood of consumer confusion and that Graham Webb had failed to establish a basis for a viable trademark infringement claim. The unfair competition claim failed for the same reason as the trademark infringement claims. There were no triable issues with respect to Graham Webb's claim of damage to business reputation. The tortious interference was also dismissed. In effect, Graham Webb International wasted its time on an issue that it lost on all counts.

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