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DOMESTIC SALE OF TRADE-MARKED GOODS MADE FOR EXPORT CONSTITUTES IN-FRINGEMENT
Article 26 Paragraph 2 of the Trademark Law provides that a trademark owner may license to another, in whole or in part, the right to use that trademark on the goods for which it is registered. But the law makes no explicit provision as to the effect of a licensee's breaching territorial restric-tions on the trademark's use imposed by the li-censor, and it has been a matter of considerable dispute in practice.
In a 2001 civil judgment, the Supreme Court held that if permission has been granted for a trade-mark to be used only on goods destined for ex-port, but such goods, bearing the trademark, are sold on the domestic market without the consent of the trademark owner, then such sale does in-fringe upon in the trademark.