Luxury good marketers found a new way to combat gray market imports into the United States.In March 1995,the U.S.Supreme Court let stand an appeals court ruling prohibiting a discount drugstore chain from selling Givenchy perfume without permission.The distinctive packaging of the perfume is also protected by the U.S.Copyright law.The ruling implies that:
A) Givenchy can only be sold in copyrighted packages.
B) Costco and Walmart will no longer be able to sell Givenchy.
C) Costco and Walmart will be able to sell Givenchy with authorization.
D) gray marketers will be able to market with authorization.
E) discount drugstores cannot market a product resembling Givenchy's perfumes.

Question

Quizplus · Accepted Answer

The ruling prohibits discount drugstore chains from selling Givenchy perfume without permission, but it does not prevent authorized retailers like Costco and Walmart from selling the perfume. Therefore, they will be able to sell Givenchy with authorization. This ruling does not give authorization to gray marketers. Although the packaging is protected by copyright law, the ruling does not imply that the products can only be sold in copyrighted packages. The ruling only applies to Givenchy perfume and does not extend to other products resembling Givenchy's perfumes.

Luxury Good Marketers Found a New Way to Combat Gray