What is parallel importation?

Parallel importation refers to the practice of importing and selling genuine products without the authorization of the trademark or copyright owner. Also known as unauthorized importation or the grey market, parallel importation involves the purchase of authentic goods in one country and their sale in another without the consent of the original seller.

Implications for businesses

Parallel importation can lead to trademark infringement and copyright infringement as the original brand owner loses control over the distribution of their products. This can have a significant economic impact on businesses as it undermines their ability to set prices and maintain brand reputation.

Implications for consumers

While parallel importation can sometimes result in lower prices for consumers, it can also lead to issues with product warranty and quality control. Additionally, the sale of parallel-imported goods may not always comply with local regulations, raising concerns about consumer rights and safety.

Legal implications

Parallel importation raises complex legal issues related to intellectual property rights, including brand protection and market competition. It often requires courts to balance the rights of trademark and copyright owners with the principles of global trade and consumer access to diverse product choices.