Parallel imports under the intellectual property regime a study with reference to the Indian Law

Abstract

The intellectual property right holders are given protection under relevant laws with a view to grant them the exclusivity to use their intellectual property in a manner they intend to and also check the infringements of their rights, if any. One of the possible infringements is selling a product under the intellectual property protection in another market without the authorization of the rightful holder. This is the concept of parallel import. The concept of parallel imports can be understood only once one understands the concept of exhaustion and its applicability in respect of intellectual property. What doctrine of exhaustion essentially determines, is the point at which the holder of an intellectual property is ceased of his control over the goods or services protected under the intellectual property. Usually, intellectual property rights are exhausted on the goods or services incorporating these rights being put on market; meaning thereby once an article protected by a patent, trademark or copyright, is sold by the owner, any further sale of the said article could no longer be controlled by him. With the growth and development of international trade, the doctrine of exhaustion is being used across the globe, however, in the absence of an international consensus, there lacks a uniform regime of exhaustion. The extent of applicability of the doctrine is dependent upon the practice adopted by the different countries under their domestic laws. This thesis in the light of statutory provisions and decisions of the Courts examines the existing legal position of parallel imports under the intellectual property laws in India. newline