Chanel v Crepslocker: does exhaustion apply?

The French fashion powerhouse Chanel is famous not only for its brand, but also for its efforts in defending it against misuse and infringement.

While Chanel’s legal battles with retailers who sell allegedly counterfeit goods are ongoing, the brand has also started a lawsuit in England against an online retailer—Kensulate, owner of the Crepslocker online store—that sells authentic Chanel goods.

Chanel accuses Crepslocker’s owner of infringing Chanel’s trademark by tarnishing its positioning as a luxury fashion brand.

Chanel’s main arguments consist in the facts that Crepslocker: