Regie National Des Usines Renault SA and Renault Automobiles SA v Zhang S192/2000

Regie National Des Usines Renault SA and Renault Automobiles SA (the Renault companies) sought to restrain the importation and sale of genuine Renault vehicles by Mr Zhang, who had purchased them in France and imported them into Australia for resale. The Renault companies argued that Mr Zhang’s actions infringed their trade mark rights and constituted misleading or deceptive conduct under the *Trade Practices Act 1974* (Cth). The matter came before the High Court of Australia on appeal from the Full Federal Court.

The High Court was required to determine whether the importation and sale of genuine goods bearing a registered trade mark, without the consent of the trade mark owner, constituted an infringement of that trade mark under the *Trade Marks Act 1954* (Cth). It also had to consider whether such conduct amounted to misleading or deceptive conduct under the *Trade Practices Act 1974* (Cth), specifically in relation to the origin of the goods.

Gaudron and Kirby JJ, in separate judgments, held that the importation and sale of genuine goods did not infringe the trade mark owner's rights under the *Trade Marks Act 1954* (Cth). Their Honours reasoned that the proprietor of a trade mark has the exclusive right to use the mark in relation to the goods for which it is registered, but this right does not extend to controlling the subsequent sale of goods once they have been lawfully placed on the market by the proprietor or with their consent. The principle of exhaustion of rights, which limits the scope of trade mark protection once goods have been sold within a particular territory, was considered relevant. Furthermore, their Honours found that Mr Zhang's conduct did not amount to misleading or deceptive conduct under the *Trade Practices Act 1974* (Cth), as the goods were genuine Renault vehicles and there was no misrepresentation as to their origin.

The appeal was dismissed.