IP Newsletter | Spring 2016
	TRADEMARK, DESIGN, COPYRIGHT & UNFAIR COMPETITION
	"Lost Balls" Can't Be Found…and Refinished
	Golf is one of the most popular sports in Korea. However, because top quality golf balls can be quite expensive, there is a substantial market in Korea for refurbished golf balls (which are typically balls recovered from golf courses after being lost during play by the original owner). A Korean court recently held that the use of the original trademarks on such "lost" or "refinished" balls by the refinisher constitutes infringement of the trademark rights of the original ball manufacturer (contrasting with other jurisdictions such as the U.S.). Refinished Ball Korea Co., Ltd. ("RBK") is in the business of refinishing and reselling golf balls. RBK's refinishing process involves peeling, painting and coating used golf balls, re-affixing Acushnet Company's ("Acushnet's") marks TITLEIST and PROV1 on the balls, and then selling them in packaging bearing the disclaimer, "lost ball" or "premium refinished," as shown below. Acushnet asserted a trademark infringement claim against RBK in the Seoul Central District Court (Case No. 2015Gahap539487, rendered on February 5, 2016).
	RBK argued that Acushnet's trademark rights were exhausted by the sale of the original golf balls. However, the court dismissed this argument, finding that the refinishing process was so extensive that RBK's refinished golf balls could not possibly maintain the same quality as Acushnet's new golf balls. RBK also argued that there was no risk of consumer confusion due to the use of Acushnet's trademarks, because the packaging clearly indicated that the product was a "lost ball" or "refinished" ball, and included RBK's company name, while the balls themselves were marked as "refinished." The court however held that this was insufficient because it found that consumers could still be confused, such as through encouraging the belief that Acushnet was in the business of making refinished golf balls (which it is not). RBK ultimately was enjoined from any use of Acushnet's trademarks on golf balls, golf ball packaging, and related items such as golf ball pouches, etc. This court decision is now final and conclusive, and amounts to a substantial victory for original golf equipment manufacturers in Korea. Resellers of used equipment in Korea can no longer count on being able to use the original manufacturer's trademarks to sell used products that have been substantially refinished or refurbished beyond minor cleaning or repairs.
	Back to Main Page
	If you have any questions regarding this article, please contact:
	Seong-Soo PARK seongsoo.park@kimchang.com Seung-Hee LEE shlee7@kimchang.com Nayoung KIM nkim@kimchang.com
	For more information, please visit our website: www.ip.kimchang.com