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What are gray market goods?
Gray market goods are made by the trademark owner but often differ materially from so-called genuine goods. Typically they appear to be identical to genuine goods and are sold at substantial discounts. Trademark owners often place territorial or regional restrictions on where particular products can be sold. These restrictions are because the product is somehow different in composition, features, function or warranty and are often the result of compliance with local regulations. Restrictions protect the distributor's territory and the consumer.
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