I think Apple has grounds on this case. But is it "allowed" (by Apple or by law) at all, to manufacture/sell 3rd party parts of iPhone (I mean by not pretendin

I think Apple has grounds on this case. But is it "allowed" (by Apple or by law) at all, to manufacture/sell 3rd party parts of iPhone (I mean by not pretending to be genuine parts)? If not, and combined with the fact Apple don't sell their genuine parts to basically anybody, the situation still sounds ridiculous to customers at the end of the day. Edit: by the way, what's the legal status of reclycled parts from genuine iPhones?