Parallel Imports in a Global Market: Should a Generalised International Exhaustion be the Next Step?

Abstract

“Exhaustion of intellectual property rights” means that right holders lose the right to control the resale of the protected goods. Without an exhaustion doctrine IPR holders would perpetually exercise control over the sale, transfer or use of the relevant goods, and would have a grip on commercial relations.

Article 6 TRIPs leaves WTO member countries free to adopt national, regional or international exhaustion regimes. After highlighting the benefits and costs stemming from the different types of exhaustion, the author argues that only international exhaustion is consistent with the spirit, provisions and targets of the WTO multilateral trading system and should therefore be imposed to all WTO countries.

Keywords: Intellectual Property, Parallel Imports, TRIPS, WTO