Parallel import Definition

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GLOSSARY

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What does Parallel import mean?

parallel imports typically occur when branded goods are imported into the eea from countries where those goods are sold at a lower price which, in turn, can be sold at a reduced price in the EEA. The brand owner generally relies on its trade mark rights to prevent parallel imports and may pursue a trade mark infringement claim where it has not consented to such imports, ie where the trade mark rights have not been exhausted.

Trade within the EEA is a different matter; generally, trade mark rights cannot be used to restrain the free movement of goods between member states. Trade mark rights are exhausted once goods are put on the market in one member state. There are some limited exceptions to this principle, usually in cases concerning re-packaging of goods.

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Parallel imports—UK

The legal frameworkThis Practice Note explains trade mark law on parallel trade. Parallel imports, or ‘grey market’ goods, are genuine goods that are placed on the market by, or with the consent of, the rights holder but are imported for sale into a particular market without the rights holder’s consent. They are not counterfeit or ‘black market’ goods. For information about counterfeit goods, see: Anti-counterfeiting—overview.Much of the law in this area originated from the Treaty on the Functioning of the European Union (TFEU) and Directive (EU) 2015/2436 (which governs national trade mark registrations in Member States, and is implemented in the UK via the Trade Marks Act 1994 (TMA 1994)).This Practice Note sets out the law relating to parallel imports in the context of UK trade mark law. It considers when a trade mark owner’s rights will be exhausted and when the right holder is able to prevent grey market goods from being marketed in the UK. It explains the relationship with the EU parallel imports regime following Brexit, including...

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