Jerry Margulis makes knockoffs of Prada handbags. He calls them Preda, and that name appears on the product, but otherwise they look a lot like the original. Whereas Prada might typically sell for $300, a Preda seels for $40. A Preda is definitely of inferior quality compared to a Prada. Jerry sells his handbags to discount houses and other stores that do not carry Prada knock-off that looks like one. Prada learns of this activity, and sues Jerry for trade mark infringement. Which of the following is true?
A)This is not trade mark infringement because purchasers are not fooled into believing that a Preda is a Prada. On the contrary, they know that it's not.
B)Jerry is trading on the goodwill that Prada has built up, and that is actionable.
C)Jerry may not be trying to fool the public, but purchasers of a Preda presumably are.
D)The sale of low quality knock-offs harms Prada's reputation for high quality goods.
E)B, C, and D

Question

Quizplus · Accepted Answer

Jerry is trading on Prada's goodwill, which is actionable. Purchasers of Preda may try to pass them off as Prada, and low-quality knock-offs can harm Prada's reputation.

Jerry Margulis Makes Knockoffs of Prada Handbags