Whether garment OEM has trademark infringement action? There have been arguments in entrepreneurs, academia and judicial world, so OEM could possibly face completely different judgment when involved in such situation. Through the analysis on the theory and practices of Trademark Law, this article argues that the identification of trademark infringement should be based on the “Principle of Confusion”, which means the usage of trademark should be recognized by the fulfillment of the function of trademark. Trademark legislation should take into consideration of the benefits of different parties and avoid over-protection to the owner of the trademark. Trademark legislation should maximize the maintenance of our national interests and economic security.