Opinion ID: 480175
Heading Depth: 2
Heading Rank: 2

Heading: The District Court's Disposition of Appellant's Claims.

Text: 21 The district court's dismissal of appellant's claims were based largely on its erroneous conclusion that the shoes in question were genuine and therefore that sale of them could not cause confusion. Since we conclude that the shoes were not genuine CANDIE'S shoes, it is plain that appellant has made out a violation of Sec. 32(1) of the Lanham Act, 15 U.S.C. Sec. 1114(1). That section provides: 22 Any person who shall, without the consent of the registrant-- 23 (a) use in commerce any reproduction, counterfeit, copy, or colorable imitation of a registered mark in connection with the sale ... of any goods or services on or in connection with which such use is likely to cause confusion.... shall be liable in a civil action by the registrant.... 24 15 U.S.C. Sec. 1114(1). 25 El Greco is entitled to relief under this provision. The shoes sold by Shoe World were not genuine CANDIE'S shoes, and El Greco never gave its consent to the use of the mark on those shoes. Even though Shoe World was involved neither in the manufacture nor the affixing of the CANDIE'S trademark to the shoes, its sale of the shoes was sufficient use for it to be liable for the results of such infringement and its claimed lack of knowledge of its supplier's infringement, even if true, provides no defense. See De Acosta v. Brown, 146 F.2d 408, 410-12 (2d Cir.1944), cert. denied, 325 U.S. 862, 65 S.Ct. 1198, 89 L.Ed. 1983 (1945); Bowmar Instrument Corporation v. Continental Microsystems, Inc., 497 F.Supp. 947, 957 (S.D.N.Y.1980); 2 J. McCarthy, Trademarks and Unfair Competition Sec. 25.5, at 179 (2d ed. 1984); 3 M. Nimmer on Copyright p 13.08, at 13-136, 13-138 (1986). Shoe World made no inquiry, and certainly had no reason to believe that El Greco was aware or had approved of its use of the mark. Shoe World could have easily ascertained whether the shoes in question were genuine. 26 We find it unnecessary to pass upon appellant's remaining claims of trademark infringement, unfair competition, and a violation of the New York General Business Law. Appellant is entitled to the permanent injunction it seeks and to a remand for a determination of damages based solely on the Lanham Act violation. 27 No. 86-7032 is reversed and remanded. No. 86-7038, denying Shoe World's motion for sanctions pursuant to rule 11, Fed.R.Civ.P., 623 F.Supp. 1038, is affirmed. 28