The standard for determining liability for contributory infringement
was first enunciated by the U.S. Supreme Court in the case of Inwood
Laboratories v. Ives Laboratories}^ The defendant in that case was a
Pharmaceuticals manufacturer that continued to supply generic dmgs to
retail pharmacists who were relabeling them with another manufacturer's
trademark. In analyzing whether the defendant was indirectly liable for the
pharmacist's infringing activities, the Court explained: