July 2007 – The Supreme Court of Canada has released its decision in the grey-marketing case Euro-Excellence Inc. v. Kraft Canada Inc., in which Kraft brought an action against Euro for secondary copyright infringement. In effect, Kraft alleged that Euro was violating its Canadian copyright in two artistic works (logos) appearing on Toblerone wrappers by importing and distributing Toblerone chocolate bars in Canada (which Euro had acquired legally in Europe). Kraft controlled the copyright in the logos via exclusive license from its parent companies.While the grey-marketer in this particular case prevailed, the Supreme Court appears to have established an assignment/exclusive license distinction that may offer a “fix” for companies that would like to rely on copyright as a basis for keeping grey market versions of their products out of Canada. Thus, where it is possible to do so, local rightsholders should obtain a full assignment of Canadian copyright for the logo or other packaging elements in question.