Coty made and marketed perfumes under its trade marks such as Lancaster and Joop! It used a selective distribution system to sell those goods. Simex was not an authorised seller but it had provided goods to German shops of two testers. Coty thought that Simex had obtained them from outside the European Economic Area. Under EU trade mark law, trade marked goods cannot be sold within the EEA except if the trade mark owner has expressly or impliedly consented to them being sold there. This is normally done by the act of the trade mark owner first placing the particular goods for sale in the EEA. In this case, the goods had been labelled with ‘Not For Sale’ and ‘Demonstration’. Therefore, the European Court of Justice ruled that they could not be sold within the EEA, whether or not they had been obtained by Simex from within the EEA or outside, as they had clearly not been put on the market by the trade mark owner with the intent of them being sold.
