What is parallel import of pharmaceuticals?

Parallel imports (PI), also called gray-market imports, are goods produced genuinely under protection of a trademark, patent, or copyright, placed into circulation in one market, and then imported into a second market without the authorization of the local owner of the intellectual property right.

What is parallel trade EU?

Parallel trade is the cross-border sale of goods within the EU by traders outside of the manufacturer’s distribution system without the manufacturer’s consent.

What is a parallel import medicine UK?

The UK parallel import licensing scheme lets a medicine authorised in European Economic Area ( EEA ) Member State be marketed in the UK, as long as the imported product has no therapeutic difference from the cross-referenced UK product.

Are parallel imports legal?

In the United States, courts have established that parallel importation is legal. In the case of Kirtsaeng v. John Wiley & Sons, Inc., the US Supreme Court held that the first-sale doctrine applies to copies of a copyrighted work lawfully made abroad, thus permitting importation and resale of many product categories.

What are parallel medicines?

Parallel distribution is the distribution of a centrally authorised medicinal product from one Member State to another by a pharmaceutical company independent of the marketing-authorisation holder.

What is parallel import?

A parallel import is an item that’s imported and sold outside of the brand’s authorized distribution channels. It is no longer on the white market, but on the gray market. This can happen with electronics, books, magazines, software, accessories, cars and much more.

Are parallel imports illegal in UK?

Under the Intellectual Property (Exhaustion of Rights) (EU Exit) Regulations 2019, SI 2019/265 (which amended TMA 1994, s 12), UK rights holders are not able to prevent parallel imports of products into the UK where they have been lawfully sold or put on the market in the EEA.

Is parallel import legal in Europe?

Parallel imports are perfectly legal and are a direct consequence of differences in prices between EU Member States and of the development of the Internal Market which guarantees the free movement of goods.

Is a parallel import fake?

Parallel imported goods are genuine product and they’re brought in by individuals or businesses from overseas authorised sellers. When we’re talking about counterfeit product, it’s fake product and it’s brought in by unauthorised people.

What is the problem with parallel imports?

A business that sells a parallel imported item is not an authorized dealer of that item. That also means they can’t offer a manufacturer’s warranty. In cases like books or toiletries, this might not be a big deal for the buyer. But for electronics, watches, and software, this can be a problem.

Why do we use parallel imports?

Parallel imports are particularly common in the field of pharmaceuticals and medicines, due to the significant difference in pricing across the EU Member States. Importers purchase goods that have already been placed on the market in the EEA and then import them into the UK to distribute and sell on to UK customers.

How do I stop parallel imports?

Once the individual or company responsible for the parallel imports has been identified, the first step will usually be to contact them directly requiring them to cease and desist, in order to try to resolve the issue as inexpensively as possible without issuing court proceedings.

What is the GREY market UK?

Grey market goods (sometimes referred to as parallel imports) are genuine, non-counterfeit goods of a trade mark owner, like white market goods. Yet, after first being put on the market, the goods are imported into an economic area and sold there without the consent of the trade mark owner.

Are parallel imports illegal in the UK?

This is because, although importing is allowed without the IPR owner’s consent, the use of a UK-registered trade mark in advertising without consent of that trade mark’s owner is still unlawful. The UK Supreme Court has confirmed that this applies to parallel import sales as well as to sale of counterfeit goods.

Does parallel import mean fake?

What causes parallel imports?

Brands might sell the same product on the US market and the Chinese market but price them differently. A parallel import would happen when a business buys that brand’s product in China and sells it in the US, or vice-versa. The legality of parallel imports depends on the first sale doctrine.

Is grey market illegal UK?

UK: Trade Mark Law Update: Grey Market Goods. In good news for brand owners, the Supreme Court has decided that the distribution of grey market goods without the consent of the brand owner is a criminal offence.

Are GREY Markets illegal?

The gray market is an unofficial one but is not illegal. The term “gray market” also refers to the import and sale of goods by unauthorized dealers; in this instance as well, such activity is unofficial but not illegal.

Are GREY imports legal UK?

A Court of Appeal decision has confirmed that the sale of so-called ‘grey goods’ can constitute a criminal offence under section 92 of the Trade Marks Act 1994 (the Act).

Why are grey imports cheaper?

Grey market products are goods that are sourced from overseas rather than through the local distributor. This process is often called parallel importing. They may be less expensive than the Australian RRP or local retail prices because they forgo the overheads associated with local business.