| Abstract: | Legal context: Intellectual property rights, particularly trade marks, haveas their primary aim the protection of the rights holder (andperhaps consumer) by allowing him and only him to sell eg, hispatented product, or his product under his trade mark. Counterfeitersand infringers are stopped in their tracks. However, intellectualproperty law has a secondary use – allowing rights holdersto stop products being marketed in Europe without their consent,even when said products are genuine. Key points: This article summarises the law on parallel importation andexhaustion of rights, focussing on two recent UK cases; thesuccessful action by the music industry for copyright infringementby CD-WOW, a leading CD retailer based in Hong Kong and thesuccessful appeal against a finding of trade mark infringementby parallel importer Mastercigars Direct, which imports Cubancigars. Practical significance: Parallel imports provide a means for entrepreneurs to exploitprice differentials between countries in Europe and countriesin the rest of the world. As such, they occur on a significantscale, generating substantial revenues. IP rights holders haveconsistently taken action against such individuals, with Sonyin particular heading to the courts on regular occasions, meetingmostly with success. |
